03 May 2018 Daily Analysis
Greenback fails to extend its gains following careful FOMC statement.
Dollar index was traded higher against a basket of major currencies post-FOMC yet the bullish momentum was short-lived following a lack of hawkish tone by the Federal Reserve. The Greenback pared its gains by 0.19% to 92.34 during the Asian trading hours. Overnight, the Federal Reserve left its interest rates unchanged at 1.75% to 2% as widely anticipated by market participants. However, they also signaled that inflation was close to its 2% target over the medium term which has further cemented investors’ expectation for further rate hike at its next meeting in June. All in all, the Greenback has failed to extend its bullish momentum following statements by the policymakers that a rise in inflation above the target should not necessarily lead to aggressive monetary policy tightening. On the contrary, GBP/USD fell 0.05% to $1.3588 despite the release of optimistic UK construction data following dampening investors’ expectation towards the Bank of England (BoE) to increase its interest rates later this month.
In the commodities market, crude oil price rose 1.01% to $67.81 per barrel despite rising U.S. crude inventories by 6.218 million barrels versus the forecast reading for an increase of 0.739 million barrels. The rise in the commodity price was due to market participants that expressed greater optimism towards the OPEC and Non-OPEC to extend their crude supply cut. Likewise, gold price rose 0.54% to $1309.66 a troy ounce following recent recession of the Greenback.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 09:30 | AUD – Building Approvals (MoM) (Mar) | -6.2% | 1.0% | 2.6% |
| 09:30 | AUD – Trade Balance (Mar) | 1.349B | 0.650B | 1.527B |
| 16:30 | GBP – Services PMI (Apr) | 51.7 | 53.3 | – |
| 17:00 | EUR – CPI (YoY) (Apr) | 1.3% | 1.3% | – |
| 20:30 | USD – Initial Jobless Claims | 209K | 216K | – |
| 20:30 | USD – Trade Balance (Mar) | -57.60B | -55.60B | – |
| 20:30 | USD – Unit Labor Costs (QoQ) (Q1) | 2.5% | 3.1% | – |
| 22:00 | USD – ISM Non-Manufacturing Employment (Apr) | 56.6 | – | – |
| 22:00 | USD – ISM Non-Manufacturing PMI (Apr) | 58.8 | 58.1 | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded higher prior rebound from support level at 1.3550. MACD that displays a golden-cross would suggest the pair to extend its gains towards the resistance level at 1.3610.
Resistance level: 1.3610, 1.3670
Support level: 1.3550, 1.3490
EURUSD
EURUSD, H1: EURUSD was traded higher prior rebound from support level at 1.1940. MACD that displays a golden-cross would suggest the pair to extend its gains towards the resistance level at 1.2010.
Resistance level: 1.2010, 1.2050
Support level: 1.1940, 1.1870
USDJPY
USDJPY, H4: USDJPY was traded lower prior retracement from resistance level at 109.90. MACD that shows a death-cross would suggest the pair to extend its losses towards the support level at 109.40.
Resistance level: 109.90, 110.20
Support level: 109.40, 109.10
CrudeOIL
CrudeOIL, H1: Crude oil price was traded higher prior rebound from support level at 67.50. MACD that portrays increasing bullish momentum would suggest the commodity price to extend its gains towards the resistance level at 68.00.
Resistance level: 68.00, 68.40
Support level: 67.50, 67.00
GOLD
GOLD_, H1: Gold price was traded higher prior breaking resistance level at 1307.40. MACD that portrays a golden-cross would suggest the safe-haven asset price to extend its gains towards the resistance level at 1315.70.
Resistance level: 1315.70, 1321.30
Support level: 1307.40, 1303.60