Dollar Firm on Hopeful Tax Reform Speech, Eyes on GDP.
This article is originally referred from FXPrimus News.
FXPrimus has summarized the important market indicators of the day.
Today’s Important Indicators
Investors could take advantage of Kuroda’s speech at the National Securities Industry Convention at 06:35 and Carney’s speech at 08:15 at the BoE’s independence conference as both are likely to create volatility.
RBA’s Debelle will speak at 09:00, and FOMC Fischer at 14:15, at the same conference.
At 12:30 the Bureau of Economic Analysis will release the quarterly US Final GDP, a report many investors are waiting, while at the same time the Jobless Claims are to be released too.
Today’s Forecast for Important Trading Indicators
- EURUSD – Euro slips to a 6-Week low on positive US data, Trump’s fiscal changes proposal. Euro-Dollar reached a fresh low of 1.1716 on the back of Trump’s proposal to cut corporation and business tax to 20% while Dollar remained broadly firm since Yellen’s remarks earlier in the week. Durable Goods Orders data came out positive for the US while earlier in the session EU showed showed resilience due to the M3 supply growth. Euro retested the 1.1772 and currently trades near the recent low, a break of which could take the pair to fresh lows. US GDP at 12:30 to play in.
- USDJPY – Dollar-Yen raise to 113.25 on strong Dollar, US-Japan 10-Year yield spread hits a 10-Week high. Dollar moved higher for a consecutive session supported by an increase in buyers above the 112.60 retracement for what looks like a continuation pattern supported by the 50% Fibonacci retracement. Trump’s tax speech weighed in while the US-Japan 10-Year yield spread appreciated to 2.27 points (Yen pay-out out to bond investors for risk weakens). Kuroda’s speech at 06:35 will determine the next price for USDJPY.
- BTCUSD – Bitcoin breaks the $4K psychological level despite Chinese exchanges’ operational cease. The biggest Cryptocurrency in the world raised above the 4K level, a level that has struggled to break over the past two weeks, as investors decided to turn the negative bias of the regulatory aspects into positive, saying any government regulation will help the Cryptocurrencies market thrive. While fears are supposed to raise over halts in deposits and withdrawal limitations, market players seem determined to not let the digital asset go.
- USOIL – Crude remains firm near recent high as correction is supported by a fall in Crude stocks. Crude Oil corrected at the 50% Fibonacci at 51.48 yesterday ahead of the EIA release of Crude Oil Inventories as investors took profits, following a positive API report earlier in the week. EIA reported a draw of 761K barrels on an expected figure of +2.9M. A break above the recent high of $52.50 could add to the bullish sentiment.
- XAUUSD – Gold declines to a fresh low as risk appetite increases, Dollar strong. Gold price fell for another session as risk-on appreciated following Yellen’s speech earlier in the week. The precious metal was sold-off as Dollar continued to strengthen over a robust economic outlook and substantial tax cut discussions. The 1-Month low could take price lower; as long as the price remains within the bullish channel, Gold can be considered as bullish.
- In US Indexes, S&P 500 and DJ increased 0.41% and 0.25% respectively.
- In Europe, UK 100 appreciated 0.38% while DE 30 upticked 0.41%.
- In Asia, ASX 200 surpassed the 0.11% level, Hang Seng fell 0.24% and Nikkei up surged 0.61%.
- In stocks, Alphabet appreciated by 2.40% while BoA saw a raise of 2.42%.
Original Source: FXPrimus News