03 November 2017 Daily Analysis
Sterling suicides as BoE hikes their rates.
GBP/USD plunged sharply on Thursday by 0.88% at 1.3062 as of writing following the Bank of England (BoE)’s decision to raise interest rates for the first time in 10-years with a dovish tone that any further rate hike in future would be at a gradual pace and to a limited extent. The BoE reversed the rate cut of August 2016 following the aftermath of the Brexit vote that helped in cushioning Britain’s economy by voting to increase interest rates from 0.25% to 0.5%. Dovish momentum was initiated after BoE signaled that they will raise interest rates gradually over the next three years, suggesting a less frequent rate hike momentum as what investors are expecting. On the other hand, the US dollar held steady versus a trade-weighted basket of currencies during Asian trading hours, traded at $94.66 as of writing while investors shifted focus to U.S. jobs data after President Donald Trump came with no surprise by nominating Reserve Governor Jerome Powell to be the next Fed Chair. Overnight, the Greenback slipped after Republicans in the U.S. House of Representatives released proposals to overhaul the tax code, cutting tax rates not only on corporate profits but also on individuals and families. However, despite the contents of the tax reforms that seem positive for the Greenback, analysts warned that there is still uncertainty over how quickly the tax reforms could be implemented.
In the commodities market, crude oil price rose 0.48% to $54.80 a barrel after it was fuelled by investors’ expectation toward rebalancing of the global oil market following ongoing OPEC and non-OPEC output cuts. Otherwise, gold price rose 0.20% to $1277.48 a troy ounce as President Donald Trump announced Jerome Powell to lead the U.S. Federal Reserve.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
00:15 USD FOMC Member Kashkari Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 08:30 | AUD – Retail Sales (MoM) (Sep) | -0.5% | 0.4% | 0.0% |
| 09:45 | CNY – Caixin Services PMI (Oct) | 50.6 | 50.8 | 51.2 |
| 17:30 | GBP – Services PMI (Oct) | 53.6 | 53.3 | – |
| 20:30 | USD – Average Hourly Earnings (MoM) (Oct) | 0.5% | 0.2% | – |
| 20:30 | USD – Nonfarm Payrolls (Oct) | -33K | 315K | – |
| 20:30 | USD –Unemployment Rate (Oct) | 4.2% | 4.2% | – |
| 20:30 | CAD – Employment Change (Oct) | 10.0K | 15.0K | – |
| 20:30 | CAD – Unemployment Rate (Oct) | 6.2% | 6.2% | – |
| 22:00 | USD – Factory Orders (MoM) (Sep) | 1.2% | 1.2% | – |
| 22:00 | USD – ISM Non-Manufacturing Employment (Oct) | 56.8 | – | – |
| 22:00 | USD – ISM Non-Manufacturing PMI (Oct) | 59.8 | 58.5 | – |
| 01:00 | CrudeOIL – US Baker Hughes Oil Rig Count | 737 | – | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded lower prior breaking support level at 1.3245. Arrangement of bearish candlesticks and increasing bearish momentum as shown by MACD histogram suggest the pair to extend losses toward the next support level at 1.3030.
Resistance level: 1.3245, 1.3320
Support level: 1.3030, 1.2960
EURUSD
EURUSD, H4: EURUSD was traded higher prior rebound from support level at 1.1605. Formation of hidden positive divergence by MACD signal line suggest the pair to extend its gains toward the resistance level at 1.1705.
Resistance level: 1.1705, 1.1745
Support level: 1.1605, 1.1475
USDJPY
USDJPY, H1: USDJPY was traded lower prior retracement from resistance lvel at 114.15. Death-cross as formed by MACD signal line suggests the pair to trade lower toward the support level at 113.80.
Resistance level: 114.15, 114.75
Support level: 113.80, 113.45
CrudeOIL
CrudeOIL, Daily: Crude oil price was traded higher prior gaining its support at 54.25. Bullish engulfing candlestick and upward slope of MACD signal line suggest the commodity price to extend higher in longer-term toward the resistance level at 56.95.
Resistance level: 56.95, 61.15
Support level: 54.25, 51.30
GOLD
GOLD_, H1: Gold price was traded in consolidation within ascending triangle. Absence of obvious signal from both candlestick pattern and MACD histogram suggest to wait for breakout to occur for clearer indication of its price movement.
Resistance level: 1280.00, 1291.00
Support level: 1273.15, 1268.95