19 July 2018 Daily Analysis
Dollar flickers as sterling plummet.
Greenback remained broadly higher against a basket of six major peers following a large selloff in pound sterling which has offsets somber US housing market data. Overnight, pound sterling extended its losses following subdued UK inflation data which has dial down expectations for an interest rate hike from the Bank of England (BoE). According to Office for National Statistics, UK Consumer Price Index (CPI) came in at only 2.4% versus forecast of 2.6% for the month of June. Prior, market participants speculate that BoE may hike their interest rate in August due to growing concern within the bank towards rising inflationary pressure. A slump in sterling has helped to cushion greenback’s losses after dollar-bulls reacts towards US Building Permits which tumbled more than economist forecast with -12.3% versus -2.2% for the month of June. However, financial market did not react on Fed Chair Jerome Powell second day of testimonial as he failed to deliver new insights with regards to future monetary policy. The dollar index was quoted up 0.15% to 94.80 while pairing of GBP/USD slumped 0.54% to 10-months low of $1.3001.
As for commodities, crude oil price settled down 0.12% to $68.92 per barrel after EIA reported a rise in US crude stockpiles by 5.836 million barrels last week, missing forecast for a draw of 3.622 million barrels. Otherwise, gold price was down 0.07% to $1,226.67 a troy ounce following resilient dollar-bulls.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 09:30 | AUD – Employment Change (Jun) | 12.0K | 16.7K | – |
| 16:30 | GBP – Retail Sales (MoM) (Jun) | 1.3% | 0.1% | – |
| 20:30 | USD – Initial Jobless Claims | 214K | 220K | – |
| 20:30 | USD – Philadelphia Fed Manufacturing Index (Jul) | 19.9 | 21.6 | – |
| 20:30 | USD – Philly Fed Employment (Jul) | 30.4 | – | – |
GBPUSD
GBPUSD, H4: GBPUSD extended its recovery after slumping to a 10-months low near 1.3000. MACD histogram which illustrate upward signal suggests the pair to be traded higher in short-term as technical correction. Long-term trend direction still skewed towards bearish.
Resistance level: 1.3130, 1.3180
Support level: 1.3070, 1.3000
EURUSD
EURUSD, H1: EURUSD was traded higher following prior rebound from the 20-MA line (red). MACD histogram which illustrate bullish signal suggest the pair to extend its recovery and move towards the direction of resistance level near 1.1665.
Resistance level: 1.1665, 1.1680
Support level: 1.1620, 1.1590
USDJPY
USDJPY, H1: USDJPY was traded lower following prior retracement and closure below the 20-MA line (red). MACD histogram which illustrate bearish signal suggests the pair to extend its short-term bearish bias, towards the upward trendline near 112.60.
Resistance level: 113.25, 114.15
Support level: 112.60, 112.10
CrudeOIL
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the support level near 66.55. MACD histogram which illustrate persistent upward momentum suggests further bullish bias. However, a close above 67.90 is required to attain further confirmation.
Resistance level: 67.90, 69.30
Support level: 66.55, 65.90
GOLD
GOLD_, H1: Gold price was traded lower following prior retrace from the threshold of 1228.55. MACD histogram which illustrate diminishing upward momentum suggests the commodity price to advance further down after closing below 1226.50.
Resistance level: 1228.55, 1233.70
Support level: 1226.50, 1222.00