26 May 2017 Daily Analysis
Oil down 7% as larger cuts missing in action.
Pound sterling extended its back leg on Friday following prior lackluster economic growth data that has spur widespread pessimism over Britain’s ability to overcome Brexit headwinds. Pairing of GBP/USD shed 0.25% to one-week low of $1.2910. According to the Office for National Statistics, Britain’s first quarter reading of gross domestic product was revised down to 0.2%, missing its prior estimate of 0.3%. The reading was at its weakest level since the first quarter of 2016. Investors will now look ahead to UK’s general election on June 8th while main political parties are set to resume campaigning later today. In the American region, US dollar extended its recovery during early Asian trading hours and was last seen at 97.15 against six major peers. Overnight, the greenback received renewed buying momentum following hawkish initial jobless claims data that has lifted overall expectation for an economic rebound in the second quarter.
As for commodities, crude oil price slumped 7.02% to $48.40, leading to the largest daily percentage slide in crude prices since early March. While OPEC’s move on Thursday has been largely expected to extend their production cut, some oil market investors has higher hope that they would implement deeper cuts in order to substantially reduce global glut of crude supplies. Analyst postulate that the recent rally in its price has left few buyers to lend some support, hence accelerating its nosedive. In the gold market, price of the yellow metal eased 0.09% to $1,254.65 following a rebound in US dollar due to better-than-expected jobless claims.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
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Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – Core Durable Goods Orders (MoM) (Apr) | -0.2% | 0.5% | – |
| 20:30 | USD – GDP (QoQ) (Q1) | 0.7% | 0.9% | – |
| 22:00 | USD – Michigan Consumer Sentiment (May) | 97.7 | 97.5 | – |
| 01:00 | Crude Oil – Baker Hughes Oil Rig Count | 720 | – | – |
GBPUSD
GBPUSD, H4: GBPUSD slumped sharply after breaching the support level of 1.2935 while currently testing to breakout from the bottom level of upward channel. A successful closure at this level would signal a change in trend direction for GBPUSD to move further downwards thereafter.
Resistance level: 1.2935, 1.2980
Support level: 1.2900, 1.2965
EURUSD
EURUSD, H1: EURUSD remained traded within a descending triangle following prior retrace from the top level. Recent closure below the support level of 1.1195 suggests EURUSD to move further downwards, towards the target of support level of 1.1170 in short-term.
Resistance level: 1.1195, 1.1220
Support level: 1.1170, 1.1150
USDJPY
USDJPY, H4: USDJPY was traded lower following prior retracement from the strong resistance level of 112.00 while currently testing at the 20-moving average line (red). A closure below the line would suggest USDJPY to advance further down, towards the target of support level at 111.25.
Resistance level: 112.00, 112.90
Support level: 111.25, 110.50
CrudeOIL
CrudeOIL, H4: Crude oil price was traded higher following prior rebound while currently testing near the support level of 48.85. MACD indicator which continues to hover outside of downward momentum suggest crude oil price to be traded higher in short-term as technical correction. Otherwise, long-term trend direction still suggests crude oil price to extend its downward momentum.
Resistance level: 50.00, 52.00
Support level: 48.85, 47.85
GOLD
GOLD_, H4: Gold price remained traded within an ascending triangle while currently testing at the support level of 1253.80. A successful rebound from this level would suggest gold price to advance further up towards the upper level of the triangle in short-term. Long-term trend direction could only be determined after a successful breakout from either side of the triangle.
Resistance level: 1263.00, 1271.00
Support level: 1253.80, 1246.00