11 July 2018 Daily Analysis
Dollar sags as Trump escalate trade war into next level.
Greenback fell sharply during early Asian trading hours as White House releases an additional list of China imports that may be subjected to additional tariffs. The dollar index fell 0.30% while last quoted around 93.79 as of writing. Trade war between two economic powers escalate into next level after US President Donald Trump releases another gargantuan round of tariffs upon $200 billion China imports that could be subjected to 10% tariffs. According to trade representative Robert Lighthizer, he said that the move was made following China’s retaliation by imposing tariff upon $34 billion worth of US exports and threatened to execute on additional $16 billion. The tariff is expected to take effect after public consultations end on 30th August. Similarly, pair of USD/JPY plunged 0.38% to 110.84 following the announcement from White House. Escalating trade war risk has catalyzed higher risk aversion in the market and driving up the demand for safe-haven assets.
In the commodities market, crude oil price settled up 0.37% to $73.96 per barrel after American Petroleum Institute reported a massive draw of 6.796 million barrels of crude oil in producers inventories last week. Otherwise, gold price tacks up 0.05% to $1,256.18 a troy ounce as market participants weighs the prospect of interest rate hike and escalating trade war between US-China.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
15:00 EUR ECB President Draghi Speaks
19:30 CrudeOIL OPEC Monthly Report
22:00 CAD BoC Monetary Policy Report
23:15 CAD BoC Press Conference
23:35 GBP BoE Gov Carney Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – PPI (MoM) (Jun) | 0.5% | 0.2% | – |
| 22:00 | CAD – BoC Interest Rate Decision | 1.25% | 1.50% | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 1.245M | -4.489M | – |
| 22:30 | CrudeOIL – Gasoline Inventories | -1.505M | -0.750M | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded lower following prior breakout from the bottom level of ascending channel. MACD which illustrate bearish signal suggests the pair to extend its losses towards the direction of next target at 1.3260.
Resistance level: 1.3310, 1.3350
Support level: 1.3260, 1.3210
EURUSD
EURUSD, H1: EURUSD was traded lower following recent breakout from the upward trendline. MACD histogram which illustrate diminishing upward momentum suggests the pair to extend its losses, towards the direction of support level near 1.1710.
Resistance level: 1.1740, 1.1780
Support level: 1.1710, 1.1680
USDJPY
USDJPY, H1: USDJPY was traded lower following prior retracement from the resistance level at 111.35. MACD histogram which illustrate bearish signal suggests the pair to extend it losses after closing below the 60-MA line (green).
Resistance level: 111.00, 111.35
Support level: 110.70, 110.55
CrudeOIL
CrudeOIL, H1: Crude oil price was traded lower following prior breakout from the bottom level of descending channel. MACD and Stochastic Oscillator which illustrate bearish signal suggests the pair to extend its losses after breaking the target at 73.20.
Resistance level: 73.55, 73.85
Support level: 73.20, 72.80
GOLD
GOLD_, H1: Gold price was traded lower following prior breakout from the bottom level of sideways channel. MACD which illustrate bearish signal suggests the commodity price to extend its losses towards the direction of support level near 1248.20.
Resistance level: 1253.50, 1257.10
Support level: 1248.20, 1237.80