5 July 2017 Daily Analysis
North Korea tests ICBM, investors gush to safe-haven.
US dollar slipped against the Japanese counterpart on Wednesday amid rising tension between the United States and North Korea while Canadian dollar held firm after the nation’s central bank chief backed for an interest rate hike. The dollar shed 0.21% to 113.03 against the Japanese yen while the dollar index ticked down 0.05% to 95.85. Pyongyang said on Tuesday that they had conducted a test on a newly developed intercontinental ballistic missile (ICBM) which are able to carry large and heavy nuclear warhead, triggering a call by Washington for global action against the isolated nation and its pursuits of nuclear weapons. Pentagon condemned the missile launch and was prepared to defend United States and its allies against the growing threat from North Korea. Otherwise, the pair of USD/CAD held steady at around C$1.2940 after hitting 10-months low of C$1.2910. Bank of Canada Governor Stephen Poloz told a German newspaper that Canada’s inflation could achieve an uptrend by first half of 2018, adding that policy normalization must begin before price growth hits its target.
Likewise, crude oil price held steady at $47.09 a barrel after being supported by tentative signs that persistent rise in US crude production may be slowing. Concurrently, gold price rose 0.72% to $1,226.72 in midst of rising Korean peninsula tension.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
02:00 USD FOMC Meeting Minutes
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Services PMI (Jun) | 53.8 | 53.5 | – |
| 22:00 | USD – Factory Orders (MoM) (May) | -0.2% | -0.5% | – |
| 04:30 | Crude Oil – API Weekly Crude Oil Stock | 0.850M | – | – |
GBPUSD
GBPUSD, H1: GBPUSD were traded higher following prior rebound from the support level of 1.2910. Recent closure above the 20-moving average line (red) suggests further upside bias for GBPUSD to advance towards the resistance level of 1.2970.
Resistance level: 1.2970, 1.3030
Support level: 1.2910, 1.2850
EURUSD
EURUSD, H1: EURUSD was traded higher following prior rebound while successfully closing above the 20-moving average line (red). MACD histogram which begins to illustrate substantial upward signal suggests EURUSD to advance towards the first target at 1.1380.
Resistance level: 1.1380, 1.1445
Support level: 1.1345, 1.1310
USDJPY
USDJPY, H4: USDJPY were traded lower following prior retracement while recently closed below the psychological level of 113.00. Referring to MACD indicator which hovers outside of upward momentum suggests USDJPY to be traded lower in short-term, towards the target of support level at 112.50.
Resistance level: 113.00, 113.70
Support level: 112.50, 112.00
CrudeOIL
CrudeOIL, H4: Crude oil price were traded flat in between the range of 46.70 and 47.50 due to lack of momentum. MACD indicator begins to drift outside of upward momentum suggests crude oil price to be traded lower in short-term as technical correction. Otherwise, long-term trend direction still suggests crude oil price to extend further upwards.
Resistance level: 47.50, 48.40
Support level: 46.70, 46.00
GOLD
GOLD_, H1: Gold price were traded higher following prior rebound from the support level of 1222.30. Recent closure above the 23.6 Fibonacci level of 1227.00 suggests further upward bias for gold price to extend its gains towards the resistance level at 1232.30.
Resistance level: 1232.30, 1236.60
Support level: 1227.00, 1222.30