29 August 2017 Daily Analysis
Safe-haven in demand as North Korea fires missile.
US dollar slumped to a four-months low against the Japanese yen on Tuesday after North Korea fired a missile which flew across the Japanese territory, in a latest act of provocation by Pyongyang. According to Japanese and South Korea government, North Korea fired a missile earlier today near Pyongyang which flew over northern Japan territory of Hokkaido. Such moves came as tensions in between North Korea and United States subsides after several weeks of threat hurling. Consequently, the dollar index was down 0.32% to 92.17 while USD/JPY depreciate by 0.76% to 108.42. In the other region, euro surged to a two-and-a-half-year high at $1.1985 amid speculation over the possibility of European Central Bank tapering its quantitative easing program at its September policy meeting next week. ECB President Mario Draghi which did not attempt to curb euro’s rise during his speech at Jackson Hole suggested that he is less concerned with the recent surge in euro.
Otherwise, crude oil price pared some losses by 0.43% to $46.77 a barrel. Earlier, the commodity suffered from a broad sell-off as Tropical Storm Harvey continued to disrupt refinery activities along US Gulf Coast which could lead to an uptick in crude supplies. On the other hand, gold price surged 0.58% to $1,317.26 as geopolitical tension in the Korean peninsula arises.
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 |
| 07:30 | JPY – Household Spending (MoM) (Jul) | 1.5% | -0.5% | -1.9% |
| 20:30 | CAD – RMPI (MoM) (Jul) | -3.7% | -2.5% | – |
| 22:00 | USD – CB Consumer Confidence (Aug) | 121.1 | 120.3 | – |
| 04:30 | CrudeOIL – API Weekly Crude Oil Stock | -3.595M | – | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded higher following a rebound from the support level of 1.2890. MACD indicator which illustrate increasing upward momentum suggests GBPUSD to advance further up, towards the resistance level of 1.2960.
Resistance level: 1.2960, 1.3020
Support level: 1.2890, 1.2830
EURUSD
EURUSD, Daily: EURUSD extended gains following prior closure above the resistance level of 1.1880. MACD histogram which illustrates positive divergence signal suggests EURUSD to continue its upward momentum after closing above the psychological level of 1.2000.
Resistance level: 1.2000, 1.2150
Support level: 1.1880, 1.1700
USDJPY
USDJPY, H4: USDJPY was traded lower following prior closure below the strong support level of 108.90. MACD histogram which begins to illustrate substantial negative divergence suggests USDJPY to move further down, towards the target of 108.30.
Resistance level: 108.90, 109.50
Support level: 108.30, 107.80
CrudeOIL
CrudeOIL, H4: Crude oil price remains traded within a downward wedge following prior rebound from the support level of 46.15. Stochastic Oscillator which illustrate a rebound signal from oversold region suggests short-term upside bias for crude oil price to advance towards 47.15.
Resistance level: 47.15, 47.80
Support level: 46.65, 46.15
GOLD
GOLD_, Daily: Gold price extended gains following prior rebound from the support level of 1278.45. MACD histogram which illustrate positive divergence signal suggests gold price to move further upwards after successfully closing above the resistance level of 1320.80.
Resistance level: 1320.80, 1350.00
Support level: 1305.00, 1278.45