24 October 2017 Daily Analysis
Powell as the next Fed? Greenback spooked by the dovish outlook.
Dollar index was traded lower against a trade-weighted basket of six major currencies, quoted down 0.19% to 93.59 amid ongoing market speculation toward the appointment of the next head of the Federal Reserve in which President Donald Trump mentioned that he would make his final decision “very shortly”. The front runners for the position lie among current Fed Chair Janet Yellen, Federal Reserve Governor Jerome Powell and Stanford University economist John Taylor. However, Powell is taking a big lead in the betting market as the next Fed’s Chair which has spur some bearish momentum this morning. All in all, Powell is more skewed towards dovish stance which may spook market participants whom are hoping for more interest rate hike down the road. Overnight, the Greenback was traded at three-month highs against the Yen, with USD/JPY rose 0.14% to 113.69 after Prime Minister Shinzo Abe won a snap election for his party, resulting in increase in traders’ expectation for the Bank of Japan (BoJ) to continue its loose monetary policy measures in the future.
In the commodity market, crude oil price rose 3 cents at $51.89 a barrel supported by declining exports from southern Iraq which fell by 110,000 barrels per day this month. Gold price seesawed around $1,281.75 while market participants look ahead towards the appointment of next Fed Chair.
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 |
| 15:30 | EUR – German Manufacturing PMI (Oct) | 60.6 | 60.0 | – |
| 16:00 | EUR – Manufacturing PMI (Oct) | 58.1 | 57.8 | – |
| 16:00 | EUR – Markit Composite PMI (Oct) | 56.7 | 56.5 | – |
| 16:00 | EUR – Services PMI (Oct) | 55.8 | 55.7 | – |
| 21:45 | USD – Manufacturing PMI (Oct) | 53.1 | 53.6 | – |
| 21:45 | USD – Markit Composite PMI (Oct) | 54.8 | – | – |
| 21:45 | USD – Services PMI (Oct) | 55.3 | 55.6 | – |
| 04:30 | CrudeOIL – API Weekly Crude Oil Stock | -7.310M |
GBPUSD
GBPUSD, H4: GBPUSD was traded higher prior breaking above resistance level at 1.3140. Formation of engulfing candlestick and upward slope of MACD signal line suggest the pair to continue its momentum to trade higher toward resistance level at 1.3220.
Resistance level: 1.3220, 1.3300
Support level: 1.3140, 1.3070
EURUSD
EURUSD, H4: EURUSD was traded higher prior rebound from support level at 1.1735. Formation of pin bar candlestick and upward slope of MACD histogram suggest the pair to extend its gains toward resistance level at 1.1785.
Resistance level: 1.1785, 1.1825
Support level: 1.1735, 1.1680
USDJPY
USDJPY, H4: USDJPY was traded lower after breaking support level at 113.55. Formation of negative divergence as shown by MACD histogram suggests the pair to extend losses toward the next support level at 113.15.
Resistance level: 113.55, 114.30
Support level: 113.15, 113.00
CrudeOIL
CrudeOIL, H4: Crude oil price was traded higher prior breaking resistance level at 51.65. A lack of momentum as shown by MACD signal line and candlestick pattern suggest to wait for confirmation breakout to gauge the direction of this commodity in nearer term.
Resistance level: 52.50, 53.70
Support level: 51.65, 51.25
GOLD
GOLD_, H1: Gold price was traded lower prior retracement from resistance level at 1283.40. Downward slope of MACD histogram suggests gold price to undergo short-term technical correction toward the support level at 1278.40.
Resistance level: 1283.40, 1290.45
Support level: 1278.40, 1273.95