16 May 2018 Daily Analysis
Greenback propelled on bullish track following a break of Treasury yields above 3%.
Dollar index was traded higher against its major peers by 0.58% to 93.15 as of writing on the back of rising U.S. bond yields above 3% despite the release of mixed economic data yesterday. Overnight, the Commerce Department reported a fall in retail sales to 0.3%, missing the forecast reading for an increase of 0.4%. However, the losses endured following an upward revision of prior data for retail sales from 0.6% to 0.8% for the month of April. These solid figure has boasted sentiment of market participants that weakness seen in first-quarter consumer spending was only temporary. On the contrary, EUR/USD endured losses by 0.57% to $1.1826 after German GDP missed the expected reading of 1.8%, last stood at 1.6% which indicates that economic growth in the European zone has slowed down slightly in the first quarter.
In the commodities market, crude oil price rose 35 cents to $71.04 per barrel following an optimistic investors’ sentiment towards reduced global supplies following U.S. sanctions on Iran. Otherwise, gold price fell 1.83% to $1292.39 a troy ounce after investors’ appetite to hold the yellow metal was believed to have reduced following recent surge in the Greenback and U.S. bond yields.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
16:00 CrudeOIL IEA Monthly Report
20:00 EUR ECB President Draghi Speaks
20:30 USD FOMC Member Bostic Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 07:50 | JPY – GDP (QoQ) (Q1) | 0.1% | 0.0% | -0.2% |
| 09:30 | AUD – Wage Price Index (QoQ) (Q1) | 0.6% | 0.6% | 0.5% |
| 12:30 | JPY – Industrial Production (MoM) (Mar) | 1.2% | 1.2% | – |
| 14:00 | EUR – German CPI (MoM) (Apr) | 0.0% | 0.0% | – |
| 17:00 | EUR – CPI (YoY) (Apr) | 1.2% | 1.2% | – |
| 20:30 | USD – Building Permits (Apr) | 1.379M | 1.350M | – |
| 20:30 | USD – Housing Starts (Apr) | 1.319M | 1.324M | – |
| 21:15 | USD – Industrial Production (MoM) (Apr) | 0.5% | 0.5% | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | -2.197M | -0.719M | – |
| 22:30 | CrudeOIL – Gasoline Inventories | -2.714M | – | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded higher prior rebound from support area around 1.3440. Successful breakout above current resistance level at 1.3500 would indicate the pair to undergo short-term technical correction to trade higher towards the next resistance level at 1.3540.
Resistance level: 1.3500, 1.3540
Support level: 1.3440, 1.3300
EURUSD
EURUSD, H1: EURUSD was traded lower after breaking support level at 1.1840. However, golden-cross as displayed by MACD signal line would suggest the pair to undergo short-term technical correction to trade higher before continuing its downside bias.
Resistance level: 1.1840, 1.1900
Support level: 1.1770, 1.1720
USDJPY
USDJPY, H4: USDJPY was traded higher following breaking resistance level at 110.00. MACD signal line that displays ongoing bullish momentum would suggest the pair to extend its gains if breakout at the next resistance level 110.40 is successful.
Resistance level: 110.40, 110.90
Support level: 110.00, 109.60
CrudeOIL
CrudeOIL, H1: Crude oil price was traded lower prior retracement from resistance level at 71.20. A lack of obvious signal from both candlestick pattern and MACD would suggest to wait for confirmation breakout to grasp the movement of the commodity price in the near future.
Resistance level: 71.20, 71.70
Support level: 70.60, 69.80
GOLD
GOLD_, H1: Gold price was traded higher after rebound from support level at 1290.00. Golden-cross as displayed by MACD signal line would suggest the commodity price to undergo short-term technical correction to trade higher before continuing its bearish bias.
Resistance level: 1295.70, 1301.20
Support level: 1290.00, 1286.00