8 September 2017 Daily Analysis
Dollar below 92, ECB might taper soon?
US dollar wilts against other major currencies on Friday amid refreshed demand for the single common currency – Euro. As of writing, the dollar index extended its losses by 0.21% to 91.35. Broad selling pressure were initiated across the board following the release of downbeat US jobless claims data and hawkish remarks given by European Central Bank President Mario Draghi. In the US front, jobless claims for last week rose more than expected to 298,000, exceeding consensus forecast of 241,000. Such data spurs further concern over the recent slack in the US labor market. On the other hand, euro rose to two-weeks high against the greenback on yesterday following President Draghi’s remark to announce a decision on the future of QE program this coming October. Although he cited such action were due to robust growth in the EU zone, he too cautioned on the recent volatility in euro which may affect near-term outlook on inflationary pressure. Likewise, pair of EUR/USD was up 0.09% to $1.2035 during Asian trading hours.
In the commodities market, crude oil price trims its losses by 0.08% to $49.13 while remained overshadowed by a larger-than-expected build in US crude oil stocks. Otherwise, gold price rose 0.33% to a one-year high of $1,349.58 over the backdrop of a weaker dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:45 USD FOMC Member Harker Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 07:50 | JPY – GDP (QoQ) (Q2) | 1.0% | 0.7% | 0.6% |
| Tentative | CNY – Trade Balance (USD) (Aug) | 46.73B | 48.60B | – |
| 16:30 | GBP – Manufacturing Production (MoM) (Jul) | 0.0% | 0.3% | – |
| 20:30 | CAD – Employment Change (Aug) | 10.9K | 19.0K | – |
| 01:00 | CrudeOIL – US Baker Hughes Oil Rig Count | 759 | – | – |
GBPUSD
GBPUSD, H4: GBPUSD extended gains following prior closure above the resistance level of 1.3075. Both MA lines which continues to expand upwards suggests further upside bias for GBPUSD to advance towards the resistance level of 1.3160.
Resistance level: 1.3160, 1.3210
Support level: 1.3075, 1.3020
EURUSD
EURUSD, H4: EURUSD extended its uptrend following prior closure above the resistance level of 1.1970. MACD histogram which continues to illustrate upward signal suggests EURUSD to advance further up, towards the target of 1.2070.
Resistance level: 1.2070, 1.2130
Support level: 1.1970, 1.1915
USDJPY
USDJPY, H4: USDJPY remains traded within a downward channel while currently testing at the bottom level. MACD histogram which illustrate negative divergence suggests possibility to occur a breakout at this level and signal a change in trend direction to move further downwards.
Resistance level: 109.00, 109.70
Support level: 108.25, 107.50
CrudeOIL
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level of 48.55. Both MA lines which continues to expand upwards suggests its prices to move further up and retest at the resistance level of 49.35.
Resistance level: 49.35, 49.95
Support level: 48.55, 48.00
GOLD
GOLD_, Daily: Gold price extended its prior uptrend while currently testing at the resistance level of 1350.00. A successful closure above this level would suggests further upside bias for gold price to extend towards the subsequent target of 1374.75.
Resistance level: 1350.00, 1374.75
Support level: 1320.80, 1305.00