27 July 2017 Daily Analysis
Dovish FOMC quotes future data for rate hike.
US dollar extended its losses during Asian trading hours on Thursday following the release of FOMC statement which signals a rather dovish stance. The dollar index plunged 0.23% to a fresh 13-months low of 93.26 against a basket of six major currencies. In a move largely expected by the financial market, US Federal Reserve (Fed) voted to retain its benchmark rate target between 1% – 1.25%. The statement which accompanied the decision revealed some concerns of policymakers with regards to recent slowdown in inflationary pressure which are well below their target of 2%. The Feds noted that market-based measures of inflation compensation are low but remained optimistic that the pace of inflation would stabilize in the long-term. The central bank postulate that key interest rates may likely to remain low for “some time”, highlighting the role of future economic data in determining the next rate hike. Against other major currencies, euro rose 0.37% to fresh 30-months high at $1.1747 while USD/JPY was down 0.13% to 111.03.
In the commodities market, crude oil price sheds 0.25% to $48.63 as market participants took the opportunity to cash in their gains from the recent rally. Otherwise, gold price rose 1.02% to $1,261.78 following a sell-off on the greenback.
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) (Jun) | 0.3% | 0.4% | – |
| 20:30 | USD – Initial Jobless Claims | 233K | 241K | – |
DOLLAR_INDX
DOLLAR_INDX, Daily: Dollar index extended its losses following prior retracement from the psychological level at 94.00. A closure below the support level of 93.20 would suggest the dollar index to extend its losses further towards the target of 92.45 thereafter.
Resistance level: 94.00, 94.95
Support level: 93.20, 92.45
GBPUSD
GBPUSD, H4: GBPUSD extended gains following prior rebound from the 20-MA line (red) while closing above the threshold of 1.3100. It is suggested to advance further up, towards the upper level of the upward channel at next target of 1.3160.
Resistance level: 1.3160, 1.3210
Support level: 1.3100, 1.3050
EURUSD
EURUSD, Daily: EURUSD extended gains following prior successful closure above the strong psychological level at 1.1700. Both MA lines which continues to expand upwards suggests EURUSD to move further up towards the next target at 1.1870.
Resistance level: 1.1870, 1.2000
Support level: 1.1700, 1.1550
USDJPY
USDJPY, H4: USDJPY pared its earlier gains following a retracement from the 60-MA line (green). A closure below the strong support level of 111.00 would suggest USDJPY to advance towards the next target at 110.15.
Resistance level: 111.65, 112.30
Support level: 111.00, 110.15
CrudeOIL
CrudeOIL, H1: Crude oil price were traded lower following the lack of bullish momentum near the psychological level of 49.00. MACD which illustrates a divergence signal suggests crude oil price to be traded lower in short-term, towards the target of support level at 48.40.
Resistance level: 49.00, 49.65
Support level: 48.40, 47.75
GOLD
GOLD_, Daily: Gold price extended gains following prior rebound from the support level of 1247.00 while closing above 60-MA line (green). Recent closure above 1259.00 suggests gold price to advance further up towards the next target at 1270.35.
Resistance level: 1270.35, 1281.00
Support level: 1259.00, 1247.00