28 June 2018 Daily Analysis
Sterling bulldozed following Carney’s warning.
Greenback outperforms against other major peers on yesterday following large selloff on the Pound Sterling while market participants continue to ponder upon rising trade tension between United States and its trading partners. Overnight, pound sterling plunged sharply after Bank of England (BoE) Governor Mark Carney failed to deliver signals with regards to next rate hike while spooking off the market with dovish stance. Carney warned that global trade tensions continues to intensifies and economic turmoil may set off if an agreement with the EU is not reached before Britain’s departure from the economic bloc. Such signals left investors to ponder if a rate hike is still likely in August as BoE policymaker expressed their concern over the impact of Brexit on UK’s economy. However, gains on the greenback were capped below the threshold of 95.00 due to lower-than-expected economic data from yesterday. According to the US Census Bureau, Core Durable Goods Orders for the month of May shrank 0.3%, missing economist forecast to grow at the pace of 0.5%. On the whole, dollar index rose 0.67% to 94.96 while pair of GBP/USD ticked down 0.03% to 1.3116.
Looking into the commodities market, crude oil price settled up 0.22% to $72.55 per barrel after Energy Information Administration reported a massive draw in US crude stockpiles by 9.891 million barrels last week, toppling economist forecast to reduce by only 2.572 million barrels. Otherwise, gold price recovered some losses by 0.05% to $1,252.67 a troy ounce albeit remained under pressure due to higher prospect for interest rate hike from the US.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
Tentative EUR EU Leaders Summit
22:45 USD FOMC Member Bullard Speaks
00:00 USD FOMC Member Bostic Speaks
Today’s Highlight Economy Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 05:00 | NZD – RBNZ Interest Rate Decision | 1.75% | 1.75% | 1.75% |
| 14:00 | EUR – GfK German Consumer Climate (Jul) | 10.7 | 10.6 | – |
| 20:00 | EUR – German CPI (MoM) (Jun) | 0.5% | 0.2% | – |
| 20:30 | USD – GDP (QoQ) (Q1) | 2.2% | 2.2% | – |
| 20:30 | USD – GDP Price Index (QoQ) (Q1) | 1.9% | 1.9% | – |
| 20:30 | USD – Initial Jobless Claims | 218K | 220K | – |
| 20:30 | USD – Real Consumer Spending (Q1) | 1.0% | – | – |
GBPUSD
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the support level of 1.3100. MACD histogram which shows diminished downward momentum may suggest the pair to be traded in a consolidation phase for short-term before extending its losses.
Resistance level: 1.3155, 1.3185
Support level: 1.3100, 1.3050
EURUSD
EURUSD, H1: EURUSD was traded higher after regaining its support from the threshold of 1.1550. MACD histogram which illustrate diminished downward momentum may suggest the pair to be traded higher in short-term as technical correction before extending its major bearish trending.
Resistance level: 1.1640, 1.1710
Support level: 1.1550, 1.1445
USDJPY
USDJPY, H4: USDJPY remains traded within a descending channel following prior retracement from the top level. MACD histogram which begins to illustrate diminishing upward momentum suggests the pair to extend its bearish momentum in short-term following a closure below the 60-MA line (green).
Resistance level: 110.25, 110.55
Support level: 109.80, 109.50
CrudeOIL
CrudeOIL, H4: Crude oil price extended gains following prior breakout from the resistance level of 71.15. Both MA line which continues to expand upwards suggests further bullish momentum. However, a break above 72.80 is required to attain further confirmation.
Resistance level: 72.80, 74.90
Support level: 71.15, 69.50
GOLD
GOLD_, H1: Gold price was traded higher after regaining some support at 1250.00. MACD histogram which illustrate diminished downward momentum suggests the commodity price to be traded higher in short-term as technical correction. Otherwise, long-term trend direction is subject to major bearish trendline.
Resistance level: 1254.00, 1260.00
Support level: 1250.00, 1245.70