Consumer Spending Pushes Dollar Lower, PPI to Provide Directional Bias.
This article is originally referred from FXPrimus News.
FXPrimus has summarized the important market indicators of the day.
Today’s Important Indicators
DOLLAR plummeted following a disappointing Retail Sales report and as a result, all majors gained against the greenback.
GOLD and OIL also surged as consumer spending pressures weighed in while stocks have now climbed higher for four straight sessions.
Markets will focus on today’s US PPI and the Jobless Claims.
Today’s Forecast for Important Trading Indicators
- EURUSD – EURO extends gains versus DOLLAR, ends session at 23.6% Fibo near 1.2450. Euro-Dollar closed the Wednesday session some 100 pips higher following disappointing data from the US despite an initial downward spike during the release of the CPI and Retail Sales reports. The pair moved to a daily low of 1.2273 yet recovered the losses rapidly amid poor Consumer Spending, having moved nearly 200 pips from the day’s low. The correction may complete anywhere above 1.2500.
- GBPUSD – STERLING climbs higher as US data drag the greenback further down. POUND closed the session just below the $1.40 handle posting over 100 pips gains against the Greenback amid DOLLAR’s broad weakness in the NY session. Despite a poor CB Leading Index figure, Cable rose and price rejected at the 1.40 struggle. With no economic event on its calendar today, Cable is likely to be affected by the US counterpart for another session.
- USDJPY – Retail Sales disappoints investors, bearish trend continues against YEN despite better CPI. Dollar broke below critical 107.30 following a very disappointing Retail Sales release. Price reached a 15-Month low, breaching the strong support as the inflation figures unfolded. Although a rejection at the 161.8% Fibo Extension is currently seen, today’s PPI may push the price lower, or help recover some of the losses.
- USOIL – OIL correction confirmed after EIA, price extended to back above $60 per barrel. Yesterday’s indecision candle proved to have formed a reversal pattern on the OIL with the support of course of EIA’s report. Despite a small build in Crude and Gasoline inventories, the report relaxed investors as API was worrisome yesterday. Price is currently moving higher while the US Dollar weakens.
- XAUUSD – GOLD soars to $1350/oz, extends upward wave following a weaker USD. Spot GOLD jumped over $20 per ounce in the Wednesday session on a weaker US counterpart and due to increased demand in physical Gold following the start of a 2-day Chinese New Year celebrations. Price reached the 261.8 Fibo Extension at 1352 and subsided to a daily close of 1350 after being rejected. Today could see Gold prices raising towards 1370 if the PPI report comes out worse than expected.
- US Indexes – DJ rose 1.03, S&P 500 by +1.34%.
- European Indexes – UK 100 appreciated by 0.64%, DE 30 soared by 1.17%.
- Asian Indexes – ASX 200 surged by 1.16%, Nikkei 225 saw an 1.41% increase, Hang Seng trades 1.97% higher.
- US Equities – Facebook jumped 3.68% higher, Tesla fell by 0.42 %.
Original Source: FXPrimus News