21 June 2018 Daily Analysis
Dollar oscillates amid the lack of market movers.
US dollar ticks higher on Thursday while soft US economic data and a surge in Pound Sterling kept the lid off for any substantial recovery on the currency. The dollar index was quoted up 0.04% to 94.72 during early Asian trading hours. Overnight, US dollar received some bearish pressure after Commerce Department reported that Existing Home Sales fell short of expectation with -0.4% versus 1.5% seen in the month of May. In addition, further bearish bias was evoked following a rebound of the Pound Sterling after UK Prime Minister Theresa May successfully won the key vote on the Brexit Withdrawal Bill which enables the government to negotiate Brexit terms with the EU without a meaningful vote from the Parliament. Nevertheless, losses on the greenback remains limited following sharp rise on 10-years Treasury yield amid hawkish signals given by the Federal Reserve Chair Jerome Powell. Powell postulate that the case for gradual rate hikes is “solid”, reaffirming investor expectation that the central bank would raise interest rates by twice for the remaining half of the year.
Peering into the commodities market, crude oil price extended gains by 0.14% to $65.58 per barrel after Energy Information Administration reported a massive draw in US crude stockpiles by 5.914 million barrels last week. For the time being, investors will shift their attention towards members and non-members of OPEC who will be meeting today to review their production-cut plan which was agreed in November 2016. Otherwise, gold price tacks up 0.04% to $1,268.83 a troy ounce while remained under pressure due to stronger dollar and higher prospect for faster pace of rate hikes from the Federal Reserve.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
15:30 CHF SNB Monetary Policy Assessment
16:30 CHF SNB Press Conference
Tentative CrudeOIL OPEC Meeting
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 06:45 | NZD – GDP (QoQ) (Q1) | 0.6% | 0.5% | 0.5% |
| 15:30 | CHF – SNB Interest Rate Decision | -0.75% | -0.75% | – |
| 19:00 | GBP – BoE Interest Rate Decision | 0.50% | 0.50% | – |
| 20:30 | USD – Initial Jobless Claims | 218K | 220K | – |
| 20:30 | USD – Philadelphia Fed Manufacturing Index (Jun) | 34.4 | 29.0 | – |
| 20:30 | USD – Philly Fed Employment (Jun) | 30.2 | – | – |
| 20:30 | CAD – Wholesale Sales (MoM) (Apr) | 1.1% | 0.5% | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded lower following prior retrace from the downward trendline. MACD histogram which illustrate persistent downward signal and momentum suggests the pair to extend its losses towards the direction of strong support near 1.3140.
Resistance level: 1.3185, 1.3235
Support level: 1.3140, 1.3050
EURUSD
EURUSD, H1: EURUSD remains traded within a sideways channel while currently testing at the lower level. Due to the lack of signal from price action and MACD histogram, it is suggested to wait for further signal before entering the market.
Resistance level: 1.1645, 1.1710
Support level: 1.1550, 1.1445
USDJPY
USDJPY, H1: USDJPY remains traded within a narrowing triangle while currently testing at the top level. However, MACD histogram which illustrate diminished upward momentum may suggests the pair to be traded lower in short-term.
Resistance level: 110.55, 110.90
Support level: 110.25, 110.10
CrudeOIL
CrudeOIL, H1: Crude oil price extended gains following prior rebound from the lower level of descending channel. MACD histogram which illustrate diminished downward momentum suggests the commodity price to advance further up after closing above the resistance level at 65.75.
Resistance level: 65.75, 67.40
Support level: 64.10, 62.90
GOLD
GOLD_, H1: Gold price was traded higher following a rebound prior to the support level at 1264.00. MACD histogram which illustrate diminished downward momentum may suggest the commodity price to be traded higher in short-term as technical correction.
Resistance level: 1275.80, 1285.20
Support level: 1264.00, 1260.00