12 June 2018 Daily Analysis
Market thread cautiously as historic summit in tow.
US dollar inches higher on yesterday as pound sterling slumped further due to bearish economic outlook as portrayed by the latest major economic release. The dollar index tacks up 0.06% while last quoted around 93.51 during Asian trading hours. Subdued momentum on the greenback came as market participants shifts their attention towards the historic summit between US President Donald Trump and North Korean leader Kim Jong-Un today in Singapore. Both countries will discuss ongoing issues which plague the Korean Peninsula such as calls for denuclearization and possibility to end Korean War officially with a peace treaty. Otherwise, pound sterling slides further after report shows that UK manufacturing output shrank the most for the last six years with -1.4% versus 0.3% seen in April. In addition, sterling receives further bearish pressure as traders reduces their risk exposure on the currency ahead of Brexit Withdrawal Bill vote slated for today and tomorrow. Pair of GBP/USD was down 0.04% to $1.3375 as of writing.
As for commodities, crude oil price rose 0.15% to $66.14 per barrel after Iraq warned producers against easing limit on production cuts as global oil prices still require support from the effort. On the other hand, gold price shed its gains by 0.12% to $1,298.68 a troy ounce ahead of widely expected interest rate decision from the Federal Reserve this coming Thursday.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
19:20 CrudeOIL OPEC Monthly Report
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Average Earnings Index +Bonus (Apr) | 2.6% | 2.5% | – |
| 16:30 | GBP – Claimant Count Change (May) | 31.2K | 11.3K | – |
| 16:30 | GBP – Unemployment Rate (Apr) | 4.2% | 4.2% | – |
| 17:00 | EUR – German ZEW Economic Sentiment (Jun) | -8.2 | -14.6 | – |
| 20:30 | USD – Core CPI (MoM) (May) | 0.1% | 0.1% | – |
| 04:30 | CrudeOIL – API Weekly Crude Oil Stock | -2.028M | – | – |
GBPUSD
GBPUSD, H1: GBPUSD remains traded within a descending channel while currently testing the lower level. MACD histogram which illustrate death cross formation suggests the pair to extend its losses after breaking the support level at 1.3350.
Resistance level: 1.3375, 1.3410
Support level: 1.3350, 1.3320
EURUSD
EURUSD, H1: EURUSD was traded lower following prior breakout from the bottom level of narrowing triangle. MACD histogram which illustrate downward signal suggests the pair to extend its losses after breaking the strong support at 1.1740.
Resistance level: 1.1790, 1.1830
Support level: 1.1740, 1.1705
USDJPY
USDJPY, H1: USDJPY remains traded within an ascending channel while recently retraced from the upper level. Stochastic Oscillator which hovers near the overbought region suggests imminent downward bias for short-term. Otherwise, mid-term trend direction still subject to the ascending channel formation.
Resistance level: 110.55, 111.00
Support level: 110.00, 109.40
CrudeOIL
CrudeOIL, H1: Crude oil price remains traded within an ascending wedge while currently testing near the top level. MACD histogram which illustrate diminishing upward momentum suggests the commodity price to be traded lower in short-term as technical correction.
Resistance level: 66.50, 67.35
Support level: 65.70, 65.45
GOLD
GOLD_, H1: Gold price remains traded within a sideways channel following prior retracement from the top level. MACD histogram which begins to form a death cross signal suggests the pair to extend its losses after closing below the 60-MA line (green).
Resistance level: 1298.70, 1301.30
Support level: 1294.70, 1292.40