12 September 2018 Daily Analysis
Dollar falls amid easing of NAFTA talks.
Dollar index fell by 0.08% to 94.70 at early Asian trading session amid US President Donald Trump’s comment on the ongoing NAFTA negotiations whereby he stated that both sides are operating in good faith with the trade talks going well and Canada is ready to make a deal. The dollar traded lower amid sources from Canada stated that Ottawa was ready to offer the US limited access to the Canadian dairy market as a concession in negotiations in remaking the NAFTA. Besides that, the greenback’s fall was also due to the increasing tension of trade wars between the US and China as President Donald Trump stated last Friday that he was ready to impose additional $267 billion on Chinese goods. Investors had since lost faith and confidence towards the dollar, being afraid that the trade war will not end well for either countries. In other news, the Canada dollar was seen stronger amid the smoother NAFTA negotiations whereby Canada had offer US access to Canadian dairy market as concession in negotiations. The stronger Loonie was also due to comments from US President Donald Trump regarding that the trade talks are going well and Canada was ready to make a deal. The pair USDCAD increased by 0.03% to 1.3070 as of writing.
As for the commodities market, crude oil price increased by 0.26% to $70.00 per barrel as the crude inventories are falling. Besides that, the price of crude oil was also pushed up by the Hurricane Florence which is expected to cause shortages in fuel. On the other hand, gold price continues to fall by 0.33% to $1194.65 per troy ounce as the dollar is still maintaining its strength amid the NAFTA negotiations and trade war with China.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
21:30 USD FOMC Member Bullard Speaks
Todays’ Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – PPI (MoM) (Aug) | 0.0% | 0.2% | – |
| 22:30 | USD – Crude Oil Inventories | -4.302M | -0.805M | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded lower following prior breakout below the previous support level 1.3020. Recent price movement and MACD which illustrate a bearish momentum suggest the pair to extend its losses towards the support level 1.2975.
Resistance level: 1.3020, 1.3085
Support level: 1.2975, 1.2945
EURUSD
EURUSD, H1: EURUSD was traded lower following prior retracement from the resistance level 1.1605. Recent price movement and MACD which illustrate a bearish momentum and the formation of a death cross suggest the pair to extend its retracement towards the support level 1.1580.
Resistance level: 1.1605, 1.1625
Support level: 1.1580, 1.1530
USDJPY
USDJPY, H1: USDJPY was traded lower following prior retracement from the resistance level 111.60 while currently breaking below the support level 111.45. Recent price action and MACD which display a bearish momentum and formation of a death cross suggest the pair to extend its losses towards the support level 111.20.
Resistance level: 111.45, 111.60
Support level: 111.20, 110.90
CrudeOIL
CrudeOIL, H1: Crude oil price was recently traded higher following prior breakout above the previous resistance level 69.80. Recent price movement and MACD which illustrate persistent bullish momentum suggest the commodity to extend its gains towards the resistance level 70.30.
Resistance level: 70.30, 71.05
Support level: 69.80, 69.10
GOLD
GOLD, H1: Gold price was traded lower following prior breakout below the previous support level 1196.00. Recent price action and MACD which illustrate bearish momentum and the formation of a death cross suggest the commodity to extend its losses towards the support level 1191.10.
Resistance level: 1196.00, 1198.95
Support level: 1191.10, 1186.80