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This article is originally referred from FXPrimus News.
Today’s Important Indicators
A quiet Friday in terms of volatility, compared to the last two days, with investors expecting releases on Japanese, EU and US economic data.
BoJ will announce its interest rate decision, whereas Eurozone will release core inflation data and changes in purchasing trends.
US is to round up the week with its monthly residential building permits report for the month of May.
Today’s Forecast for Important Trading Indicators
- Sterling gains against Yen on three members opting to hike rates for 25 basis points. Pound climbed 1.23% on Thursday’s session despite a record low interest rate amid surprise vote of 5/3, unchanged/hike. The pair remained almost unchanged during the earlier session on disappointing retail sales due to Yen’s weakness ahead of an unvaried forecasted interest rate from BoJ.
- Dollar jumps 1.10% on upbeat unemployment data while BoJ faces criticism on delays over stimulus program. The greenback extended gains due to 237K vs. 241K unemployment claims, taking the pair to 2-week high levels above 111.000, a 38.2% fibo. Investors were looking forward to BoJ interest rate decision to anticipate whether a bullish bias confirmation was in play or not this morning. No surprises for Yen after the release.
- Kiwi plummets in Asia after GDP data let down, supported by Yelen’s comments on unwinding the U.S. balance sheet. NZDUSD moved 0.95% lower after retesting the 0.72102 weekly resistance in the early session amid slow NZ growth, while Fed’s forecast weighed in taking the pair below its 50 EMA.
- Euro-dollar hits a May low backed on promising U.S. data, dives up to 0.65% on Thursday’s close. The pair broke below the 4 hour 100 EMA following unemployment claims news, and a decision for another rate hike encouraged market participants. EURUSD found support at 1.11434 level, while investors get ready for inflationary and economic releases from Europe and US.
- USDCHF heads 0.42% lower amid SNB’s stable benchmark interest rate despite dollar vulnerability on Trump’s allegations of plausible “obstruction of justice”. Dollar strengthened against the safe-haven on unchanged rate of -0.75% as Swissy remains “significantly overvalued” and economy grows slow. The pair rose to May highs to find resistance at 0.97563, above the 100 EMA that was broke in the early session.
- Silver dives 3.80% on U.S. manufacturing index and jobless claims data while import prices flop. XAUUSD fell sharply taking the pair to 16.643 lows while it moved higher in the early session, owned to upbeat Aussie data and retested the 1 hour 100 EMA before confirming the bearish continuation.
- Gold touches a 3-week low amid Fed’s interest raise decision as investors restore confidence on yielding assets. The precious metal weakened to lows of ~1251.00 on strong greenback, approaching the 100 EMA on the daily chart around 1249.00, after it broke the 61.8% fibo extension.
- US indexes closed lower with S&P 500 plummeting 0.22%, Dow 0.07%.
- In Europe Dax crashed 0.89% while UK 100 also plunged 0.74% to weekly support of 7437.3.
- In Asia indexes fell, Hang Seng sunk 1.20%, ASX 200 1.12 and Nikkei declined 0.26%.
- In stocks Tesla slumped 2.35%, while Amazon moved 1.68% lower.
Original Source: FXPrimus News