Dollar Gains as Risk-On Sentiment Increases.
This article is originally referred from FXPrimus.
FXPrimus has summarized the market indicators to focus on today.
Today’s Important Indicators
Investors could look into opportunities in the market early in the session with Australia’s Employment report expected at 01:30 MT.
China will publish its Industrial Production report and Fixed Asset Investment 30 minutes later. SNB will follow with its latest rate decision at 07:30 GMT while the UK will announce its own rate at 11:00 GMT.
Later in the session, at 12:30 GMT, Canada will report the latest NHPI figures, US will release its latest Core CPI and Unemployment Claims report, and this will be followed by Weidmann’s speech at Goethe University, at 15:30 GMT.
Today’s Forecast for Important Trading Indicators
- GBPUSD – UK Unemployment Rate falls to 42-Year low, Sterling declines amid poor wage growth. The British Pound did distant itself from the previously reached 1-Year high against the Dollar as average wages rose less than expected despite a record Unemployment Rate and positive Jobless Claims. BoE is widely expected to leave rates unchanged at 0.25% at today’s Monetary Policy meeting, an opportunity not to be missed while the GBPUSD corrects below 1.3224.
- USDJPY – Dollar gains against Yen despite worse than expected PPI, as y-o-y strengthens to 2.4%. US deficit betters. Dollar gained for 5th consecutive session against poor Yen mainly on the latter’s weakness and depreciation of safe-haven demand around N.K. and US. The move was supported marginally by the U.S. PPI as prices for final demand based of year-on-year increased to 2.4%, compared to a previous figure of 1.9%, as well as due to the U.S. Government posting a deficit of $107.7 billion. USDJPY formed a double top while price broke outside the descending upped line of the bearish channel started on the 27th of July. Eyes on today’s CPI release at 12:30 GMT.
- AUDUSD – Aussie higher on Employment rise despite CPI expectations fall to 1.9%. The Australian Dollar fell on the back of a decline in inflation expectations, a decline for a second consecutive month, as CPI weakened to an annualised 1.9% from a previous reading of 2.1%. Aussie recovered most losses on positive Employment data; an increase in Employment Change now occurs for a 6th consecutive release, however surrender some of those on poor Chinese data. AUDUSD remains within the bullish channel above the 200 4-HMA as the price bounced at the 23.6% Fibonacci Retracement started on the 22nd of June.
- USOIL – Oil appreciated despite worse than expected EIA stocks, following a decline in gasoline stocks. Crude Oil surged above the $49 barriers creating a double top while price broke the $49 per barrel. Price remained above the upper trendline of the ascending channel started on the 8th, however, for the time being, it was rejected by the 200 DMA. Crude’s upmove of 2% was supported by a continuously increased demand in Oil, as growth largest in 2 years.
- XAUUSD – Gold weakens on Dollar’s strength as positive data from the US bought risk-on trades back. Gold remained weak for another session falling to ~1320.00 per ounce as traders and investors continued buying Dollars after the latter added to recent gains on positive U.S. Treasury Budget data. Gold price could head lower taken today’s CPI release comes out positive.
- In US Indexes, S&P 500 closed 0.08% higher while DJ raised 0.18%.
- In Europe, UK 100 decreased 0.28% while DE 30 appreciated 0.23%.
- In Asia, ASX 200 declined 0.11%, Nikkei -0.29% and Hang Seng -0.52%.
- In stocks, Amazon climbed 1.73% and Apple fell for 0.75%.
Original Source: FXPrimus