Dollar Declines on Fed’s Debate over Inflation Prospect.
This article is originally referred from FXPrimus News.
FXPrimus has summarized the important market indicators of the day.
Today’s Important Indicators
Today, at 08:30 BoE released its quarterly Credit Conditions Survey.
At 12:30, Canada will report its new housing price index and US its inflation data that includes the latest PPI report and Jobless Claims.
At 14:30, ECB’s Draghi will participate in a panel discussion about monetary policy that is likely to bring some volatility back into the market; Brainard and Powell will speak at the same event.
Volatility could also be high at 15:00 on the USOIL, as the Crude Stocks will be released.
Later in the session, at 19:15 and 21:30, Wilkins will speak in a panel discussion and NZ will release the diffusion index level.
Today’s Forecast for Important Trading Indicators
- EURUSD – Puigdemont’s reassurance takes Euro-Dollar to fresh highs away from the 1.1845 level. The Euro was sent to a new high as calmness around Catalonia’s independence prevails as a result of President Puigdemont’s decision to negotiate terms. EURUSD edged to a 16-Day high at 1.1877, moving further away from the 161.80 FE retest, at 1.1845. Euro was also supported by the Fed’s minutes release. On the 4-Hour chart, only 2 out of 23 candles are bearish, signaling a strong bullish sentiment over the past 6 days. Market participants look forward to Draghi’s speech.
- GBPUSD – Pound trades in consolidation, tilts higher after FOMC minutes as Dollar weakened. Sterling traded in consolidation in a tight 40 pip range between 1.3183 and 1.3222, easing on the recent bullish momentum, as concerns amid Britain’s departure from the EU sharpened. The noise grew after UK’s finance minister said “leaving the EU with no agreement is also a possibility”. Fed’s minutes allowed Pound to break the top of the range; currently trades around 1.3256.
- USDJPY – Dollar-Yen consolidates ahead of minutes and declines on inflation debate between members. Dollar moved into a range between 112.100 and 112.55 despite the fact it traded higher ahead of the FOMC’s minutes release; the pair is trading lower due to policymakers’ split on inflation. The pair currently moves towards the bottom of the range while investors’ eye today’s inflation data at 12:30.
- USOIL – Oil declines on raising API stocks as well as investors’ profit-taking after a double top. Crude Oil eased off recent highs, as API report on crude inventories showed a rise in stocks despite OPEC’s cut extension. Oil declined to the 23.60% FR at 51.09, where a correction could be expected to follow.
- XAUUSD – Gold correction confirmed, as FOMC policymakers’ debate, sends prices to fresh high. Spot Gold raised near $1296.00 after it retraced back to the 23.60% extension to retest the level. The price of Gold continues its 4th day rally on worries over future interest rate rise in the US; this was backed by the growing concern of members on the possibility of a rise in inflation. Gold’s next level could be the 100% FE; today’s US inflation and Jobless data are to define investors’ appetite.
- In US Indexes, S&P 500 and DJ raised by 0.18%.
- In Europe, UK 100 fell for 0.06% while DE30 appreciated by 0.17%.
- In Asia, ASX 200 jumped 0.40% higher, Hang Seng appreciated by 0.34% and Nikkei by +0.35%.
- In stocks, Alphabet and Twitter moved 1.81% and 1.84% higher.
Original Source: FXPrimus News