06 September 2018 Daily Analysis
Dollar plunges as light shed on Brexit news.
The dollar plunged by 0.19% to 94.10 after the breaking news update on Brexit whereby both the UK and Germany had come into agreement to let go crucial demands over Brexit in order for it to be executed properly. The fall of the greenback is caused by the lifting of investors’ fears regarding Britain leaving the European Union without any comprehensive agreement. Reports by Reuters stated that the fall in dollar is only temporary, as global trade tensions are growing and the dollar will be able to benefit from emerging markets funds outflow while regaining the position for safe-haven asset. In other news, the sterling was seen surging by 0.12% to 1.2920 after breaking news on the agreement between the UK And Germany to drop few points in Brexit negotiations to ease the trade deal. The pair was traded lower for the past two weeks as the tension of Brexit deals grew as the deadline draw closer while a ‘no deal’ Brexit was still in order. After the agreement yesterday, possibilities for further easing on the trade agreements can be anticipated as the deal is reaching its deadline soon and both the market for EU and UK will undergo large changes as well.
As for the commodities market, crude oil price fell by 0.12% to $68.55 per barrel as emerging market woes on sentiment while conflict in trade war between the US and China grew nearer following the possibilities of additional tariff on $200 billion Chinese goods. On the other hand, gold price edged by 0.22% to $1199.00 per troy ounce as the dollar index continues to tumble down.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22:00 USD FOMC Member Williams Speaks
Todays’ Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:15 | USD – ADP Nonfarm Employment Change (Aug) | 219K | 188K | – |
| 22.00 | USD – ISM Non-Manufacturing PMI (Aug) | 55.7 | 57.0 | – |
| 23:00 | USD – Crude Oil Inventories | -2.566M | -1.294M | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded higher following prior breakthrough above the previous resistance level 1.2910. Recent price movement and MACD which illustrate persistent bullish momentum suggest the pair to extend its gains after a breakout above the resistance level 1.2945.
Resistance level: 1.2945, 1.2975
Support level: 1.2910, 1.2870
EURUSD
EURUSD, H1: EURUSD was traded higher following prior breakout above the previous resistance level 1.1625. Recent price movement and MACD which signal a persistent bullish momentum suggest the pair to extend its gains after a breakthrough above the resistance level 1.1650.
Resistance level: 1.1650, 1.1695
Support level: 1.1625, 1.1580
USDJPY
USDJPY, H1: USDJPY was traded lower following prior breakout below the previous support level 111.45. MACD which illustrate persistent bullish signal suggest the pair to extend its losses towards the support level 111.20.
Resistance level: 111.45, 111.65
Support level 111.20, 110.90
CrudeOIL
CrudeOIL, H1: Crude oil price was recently traded lower following prior breakout below the support level 69.10. MACD which illustrate the starting of bullish momentum and formation of a golden cross suggest the pair to be traded higher towards the resistance level 69.10.
Resistance level: 69.10, 69.80
Support level: 68.35, 67.75
GOLD
GOLD, H1: Gold price was traded higher following prior breakthrough above the resistance level 1198.95. Recent price movement and MACD which display persistent bullish signal suggest the commodity to extend its gains towards the resistance level 1203.00.
Resistance level: 1203.00, 1207.80
Support level: 1198.95, 1196.00