12 October 2017 Daily Analysis
Greenback slumbered after Fed Minutes.
Dollar index was last quoted down 0.32% to 92.67 after Federal Reserve policymakers shown uncertainty regarding its rate hike later in December. A debate has been prolonged according to the last Fed policy meeting in September with regards to the prospects of recent sluggish inflation which could slow down the path of future rate hike. Also, an announcement is made by Fed that it would reduce its large bond portfolio starting this month following the financial crisis and unanimous vote to maintain steady interest rates. As such, Fed mentioned that they would decide future interest rate moves based on incoming inflation data over the next few months. Overnight, the latest Job Openings and Labor Turnover Survey (JOLTs) in August released by the U.S. Labor Department shown a decrease to 6.082M, below the expectations of 6.125M. On the other hand, Fed Rate Monitor Tool shown a positive market sentiment with nearly 90% of traders expect the Fed to increase interest rates in December as compared to only 80% in the previous week.
In the commodity market, crude oil price was down by 0.40% to trade at $51.08 per barrel following a gain in U.S. fuel inventories despite efforts by OPEC to restrict crude supplies. Otherwise, gold price was up by 0.52% to trade at $1292.53 a troy ounce following dovish U.S. data and absence of hawkish outlook by recent Fed minute meetings.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
Tentative CrudeOIL IEA Monthly Report
22:30 USD FOMC Member Brainard Speaks
22:30 USD FOMC Member Powell Speaks
22:30 EUR ECB President Draghi Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:00 | EUR – Industrial Production (MoM) (Aug) | 0.1% | 0.5% | – |
| 20:30 | USD – Initial Jobless Claims | 260K | 255K | – |
| 20:30 | USD – PPI (MoM) (Sep) | 0.2% | 0.4% | – |
| 20:30 | CAD – New Housing Price Index (MoM) (Aug) | 0.4% | 0.3% | – |
| 23:00 | CrudeOIL – Crude Oil Inventories | -6.023M | – | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded higher prior its rebound from support level at 1.3175. The pair is currently testing resistance by 200-MA line and resistance level at 1.3240. Successful closure above the said resistance level will further suggest the pair to gain its momentum to trade higher toward the next resistance level at 1.3315.
Resistance level: 1.3315, 1.3330
Support level: 1.3175, 1.3025
EURUSD
EURUSD, H4: EURUSD was traded higher prior its breakout above resistance level at 1.1820. The pair is currently testing resistance by 200-MA line and resistance level at 1.1870. Successful breakout above the said resistance level will indicate the pair to continue its bullish momentum to trade higher toward the resistance level at 1.1990.
Resistance level: 1.1870, 1.1990
Support level: 1.1820, 1.1775
USDJPY
USDJPY, H4: USDJPY was traded higher prior its rebound from support level at 112.05. It is suggested to stay aside and wait for clearer signal before entering the trade prior to absence of obvious signals from both candlestick pattern and MACD signal line.
Resistance level: 112.60, 113.00
Support level: 112.05, 111.65
CrudeOIL
CrudeOIL, H1: Crude oil price was traded lower prior its retracement from resistance level at 51.35. Formation of engulfing candlestick pattern and negative divergence as portrayed by MACD signal line suggest crude oil price to undergo short-term technical correction to further its losses toward the support level at 50.80.
Resistance level: 51.35, 51.70
Support level: 50.80, 50.65
GOLD
GOLD_, H4: Gold price was traded higher after breaking above resistance level at 1278.25. Formation of engulfing candlestick suggests bullish momentum still taking over but diminishing due to downward slope of MACD histogram. A breakout above the resistance level at 1295.55 is required for gold price to gain greater momentum to increase its gains.
Resistance level: 1295.55, 1306.50
Support level: 1278.25, 1260.60