DOLLAR Tumbles, ECB Could Aid the Weak Currency.
This article is originally referred from FXPrimus News.
FXPrimus has summarized the important market indicators of the day.
Today’s Important Indicators
DOLLAR continued getting battered against all majors on Wednesday as political uncertainty and concerns around the US economic recovery keep adding downward pressure to the currency.
Both GOLD and OIL reached fresh highs along with the major pairs, not unexpectedly.
Markets are going to focus on Draghi’s Press Conference following ECB’s Interest Rate decision today yet market players are likely to keep an eye on the DOLLAR situation as the WEF meetings continue.
Today’s Forecast for Important Trading Indicators
- USDJPY – Trump and Mnuchin unlock route to lower lows, Dollar-Yen hits a 4 ½ – Months low. DOLLAR breakdown below the 110 hurdle against YEN owed to Mnuchin remarks that a weaker DOLLAR is good to the US economy a few days after Trump approved tariffs on imported goods. The pair broke outside the descending triangle and is likely to move lower unless if we see a dovish Draghi.
- GBPUSD – CABLE surges above $1.42 despite dovish Employment reports, hits June ’16 high. STERLING traded to yet another fresh high since Brexit reaching a daily high of 1.4260 amid a broadly weaker US counterpart. Although the Claimants Count Change came out x3 times bigger any bearish sentiment dwindled over the weak DOLLAR. The pair currently trades above the $1.43 level.
- EURUSD – EURO soars to a 37-Month high against DOLLAR as latter under pressure. EURO posted massive gains in the Wednesday session ending the trading session above the $1.24 level. The pair resumed its short-medium term uptrend while investors wait for ECB’s rate decision and Draghi’s speech today. The pair currently trades above the $1.24 level, retesting the 1.2411.
- USOIL – WTI heads to $66 per barrel, EIA report welcomed by bull investors. CRUDE OIL rose to a fresh multiyear high near $66 per barrel as EIA reported another consecutive weekly inventory draw, relieving market players after API’s stock build. USOIL gained nearly $1.5 per barrel in the Wednesday session as Gasoline stocks supported, as they did not see a big build up to push OIL price lower.
- XAUUSD – GOLD climbs higher as broad DOLLAR sell-off continues, reaching a 19-Week high. Spot GOLD crashed the $1350/oz level yesterday amid a broadly weaker DOLLAR owed to remarks made in Davos as well as due to the poor US Home data delivered. Price was rejected at the $1360/oz level and is likely to move higher depending on today’s US data and any fresh developments coming from Davos.
- US Indexes – DJ closed 0.16% higher, S&P 500 remained unchanged.
- European Indexes – UK 100 plummeted by 1.14%, DE 30 by -1.07%.
- Asian Indexes – ASX 200 held steady, Nikkei plunged by 1.13%, and Hang Seng trades 0.64% higher.
- US Equities – Tesla plummeted 1.96%, Twitter by -1.67%.
Original Source: FXPrimus News