24 July 2018 Daily Analysis
Dollar recovers as Mnuchin clarifies.
Greenback recovered from its session low on yesterday after scaling back its losses against the Yen while market participants continue to eye on President Donald Trump’s remarks. The dollar index was up 0.19%, last seen around 94.36 during early Asian trading hours. Prior, Japanese Yen rallied sharply against the US dollar after Reuters report postulate that the Bank of Japan is in discussion to tweak its quantitative easing program. The changes will enable the central bank to offer and buy unlimited amount of bonds and may cause a rise in bond yields. However, the rally in safe-haven Yen was short-lived as market participants place higher prospect towards the United States in terms of economic progression and bullish rate hike stance from Fed Chair Jerome Powell. While Trump expressed his dissatisfaction towards the Fed in tightening their monetary policy, US Treasury Secretary Steven Mnuchin clarified that “no interference was intended to be made with Fed’s decision and the administration supports its independence”. Against other major peers, pair of USD/JPY was up 0.08% to 111.43 while EUR/USD slumped 0.02% to $1.1690.
In the commodities market, crude oil price settled down by 2% to $67.76 per barrel following higher concern towards diminishing demand in the global market due to recent trade war spat. Trump threatened last Friday to impose tariffs upon $500 billion Chinese exports which may downplay global economic growth and leads to slower demand for crude oil in the long-run. Otherwise, gold price was down 0.04% to $1,224.09 a troy ounce following substantial recovery in the US dollar.
Today’s Holiday Market Close
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Today’s Highlight Events
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Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:30 | EUR – German Manufacturing PMI (Jul) | 55.9 | 55.5 | – |
| 16:00 | EUR – Manufacturing PMI (Jul) | 54.9 | 54.7 | – |
| 16:00 | EUR – Markit Composite PMI (Jul) | 54.9 | 54.8 | – |
| 16:00 | EUR – Services PMI (Jul) | 55.2 | 55.0 | – |
| 21:45 | USD – Manufacturing PMI (Jul) | 55.4 | 55.1 | – |
| 21:45 | USD – Services PMI (Jul) | 56.5 | 56.5 | – |
| 04:30 | CrudeOIL – API Weekly Crude Oil Stock | 0.629M | – | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded lower following prior retracement and closure below the 20-MA line (red). Although MACD illustrate bearish signal, recent price action which portrays consolidation suggests to wait for a breakout at 1.3070 to further confirm the downward bias.
Resistance level: 1.3130, 1.3180
Support level: 1.3070, 1.3000
EURUSD
EURUSD. H4: EURUSD was traded lower following prior retracement from the strong resistance near 1.1750. MACD histogram which begins to form a bearish signal suggests further downside bias. However, a close below 1.1675 is required to attain further confirmation.
Resistance level: 1.1710, 1.1750
Support level: 1.1675, 1.1640
USDJPY
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level of 110.70. However, diminishing upward momentum from MACD suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 111.95, 112.20
Support level: 111.25, 110.70
CrudeOIL
CrudeOIL, H1: Crude oil price remains traded within an ascending channel while currently testing at the bottom level. Although MACD illustrate bearish signal, a break below the channel and target at 67.55 is required to attain further confirmation.
Resistance level: 67.90, 68.40
Support level: 67.55, 66.50
GOLD
GOLD_, H1: Gold price was traded lower following prior retracement and breakout from the upward trendline. Although both MA and MACD portrays bearish signal, a close below the support level at 1222.00 is required to attain further confirmation.
Resistance level: 1226.50, 1233.70
Support level: 1222.00, 1216.00