27 September 2017 Daily Analysis
Yellen reaffirms raising rates, greenback remains stronger.
Dollar index grew stronger against a basket of major currencies with an increase of 0.11%, traded around 92.91 as of written. Overnight, Fed Chair Janet Yellen’s reaffirmation regarding central bank’s view to increasing rates gradually is the most suitable policy measure. Her statement has led investors to mull over that the slowing pace of inflation could keep interest rates to remain lower for a longer time, thereby decreasing the central bank’s ability to ease monetary policy during market distress. On the other hand, dollar-bull remains limited as duo economic reports namely consumer confidence and the housing sector did not perform well; with new home sales decreased 3.4% to its lowest level since December 2016 with a seasonally adjusted annual rate of 560,000 units in August, as compared to a forecast of an increase of 3.3% to a pace of 588,000 units last month. Next, a report from the Conference Board stated that index of consumer confidence decreased from a reading of 120.4 in August to 119.8 this month.
In the commodity market, crude oil prices settled higher at $52.09 per barrel with an increase of 21 cents following American Petroleum Institute (API) data that shows a surprise draw of U.S. crude oil inventories by 761,000 barrels as compared with a 2.296 million barrels build expected. Otherwise, gold prices decreased by 0.13% to $1295.31 per troy ounce, after market sentiment toward Fed to increase interest rates heightened following Fed Chair Janet Yellen’s speech.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
23:45 CAD BoC Gov Poloz Speaks
00:55 CAD BoC Gov Poloz Speaks
01:30 USD FOMC Member Bullard Speaks
02:00 USD FOMC Member Brainard Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – Core Durable Goods Orders (MoM) (Aug) | 0.6% | 0.2% | – |
| 22:00 | USD – Pending Home Sales (MoM) (Aug) | -0.8% | -0.5% | – |
| 22:30 | CrudeOIL – Crude Oil Inventories | 4.591M | – | – |
GBPUSD
GBPUSD, H4: GBPUSD was traded higher prior its rebound from support level at 1.3400. The pair is currently traded within descending triangle. Upward slope of MACD histogram suggests GBPUSD to be on bias to move higher, testing the top of the descending triangle around level 1.3490.
Resistance level: 1.3490, 1.3645
Support level: 1.3400, 1.3255
EURUSD
EURUSD, H4: EURUSD was traded lower prior breaking below support level at 1.1845. Downward slope of MACD signal line suggests the pair to continue its bearish momentum toward the next support level at 1.1710.
Resistance level: 1.1845, 1.1990
Support level: 1.1710, 1.1595
USDJPY
USDJPY, H4: USDJPY was traded higher after its rebound from support level at 111.65. Golden cross as formed by MACD signal line suggests the pair to continue trading higher toward the next resistance level at 113.00.
Resistance level: 113.00, 114.30
Support level: 111.65, 110.00
CrudeOIL
Crude OIL, Daily: Crude oil price was traded higher after breaking resistance level at 51.25. Upward slope of MACD signal line suggests crude oil price to extend its gains toward the next resistance level at 53.75.
Resistance level: 53.75, 54.35
Support level: 51.25, 50.00
GOLD
GOLD_, Daily: Gold price was traded lower prior breaking below support level at 1299.00. Formation of dark cloud cover candlestick pattern and death cross as shown by MACD histogram suggests gold price to extend its losses toward the next support level at 1281.00
Resistance level: 1299.00, 1321.30
Support level: 1281.00, 1263.00