DOLLAR Tumbles on Risk Appetite, Inflation Figures to Set Market Tone.
This article is originally referred from FXPrimus News.
FXPrimus has summarized the important market indicators of the day.
Today’s Important Indicators
DOLLAR fell for another session as investors shifted to safe-havens once again ahead of the Chinese New Year and due to US Yields.
EURO, POUND and GOLD rose as a result of a weaker DOLLAR as well as following good economic data.
OIL closed mixed following an il-liquid session, seems that the correction is finding a bottom.
Markets will focus on European GDPs and the US CPI and Retail Sales.
Today’s Forecast for Important Trading Indicators
- EURUSD – EURO extends recovery after finding a bottom at the 1.2242, 4th bullish session in line. Euro-Dollar gained over 100 pips in the Tuesday session despite no economic events had influence over the pair, but rather due to the weakness in DOLLAR. USD failed to hold firm and nosedived for another session taking the pair to fresh weekly highs of 1.2349, where the 50% Fibo betides. Investors look forward to the European GDP releases at 09:00 and 10:00 GMT as price reaches the 161.8% extension.
- GBPUSD – STERLING posts gains for another session as UK CPI surprises economists. CABLE closed the session some 40 pips higher despite having reached a daily high of 1.3920 as the UK CPI figure came out better than what economists had anticipated. The pair surged intraday yet lot 30 pips of the earlier gains as concerns over more hikes weighed in as the increase justified BoEs plans to rise faster than expected.
- USDJPY – DOLLAR slips on safe-haven demand while equities recovery continues ahead of the US CPI. Dollar broke below the 108 support against Yen in the Tuesday session as demand for safe havens increased ahead of the Chinese New Year starting tomorrow. In addition, the Stock marker recovery also weighed in as equities investors continued their bullish run. The pair currently trades near 107 while investors look forward to the CPI figures at 13:30 GMT.
- USOIL – OIL ends slightly lower after API reports a build in both OIL and Gasoline stocks. WTI price formed a bearish indecision candle yesterday following API’s report on Crude Oil Inventories. API reports a build of 3.947 million barrels, compared to the 2.825 expected, which resulted in the loss of earlier marginal gains. OIL trades near below $60/barrel, near $58.8 while investors eye EIAs report.
- XAUUSD – GOLD appreciates for another session as demand for physical Gold rises. Spot GOLD closed another trading day on a positive tone following an increase in demand ahead of the Chinese New Year and also the recovery in equities, which drive the DOLLAR value down. GOLD price increased $8/oz, reaching a daily high of 1330/0z. Price in increasing while market participants expect the US inflation figures.
- US Indexes – DJ rose 0.16, S&P 500 by +0.26%.
- European Indexes – UK 100 fell by 0.13%, DE 30 plummeted by 0.70%.
- Asian Indexes – ASX 200 declined by 0.29%, Nikkei 225 slumped by 0.45%, Hang Seng trades 1.82% higher.
- US Equities – Twitter soared by 8.05%, Facebook fell by 1.85%.
Original Source: FXPrimus News