Today's Important Indicators
The Dollar Index soared nearly 100 pips in the Thursday session amid a rise in annual inflation and month-end flows ahead of weekend headline risk. Euro-Dollar remained stable for the day while Cable and Dollar-Yen proceeded a tad lower. In commodities WTI held firm around $64.50/b, however, Gold plummeted on increased risk sentiment. Today is an uneventful day for the markets with month-end flows likely to kick-in.
Today's Forecast for Important Trading Indicators
MARKET MOVERS
EURUSD – Euro pars daily losses following trendline rejection, ends session mixed despite poor German CPI. Euro-Dollar ended Thursday’s session right at the $1.23 hurdle following a rejection at the ascending trendline beginning on March 3. The directional change came after Euro bears pushed price lower against Dollar succeeding a poor German CPI figure of 0.4%. Trendline likely to hold during the last trading day of the month all the while the first 2018 quarter comes to an end.
EURUSD 4-HOUR CHART
GBPUSD – Cable weakens further for a 3rd consecutive session despite good data, Dollar strong. The British Pound fell to $1.40 on Thursday reaching a strong psychological support and the 50% Fibonacci retracement despite yesterday’s good data on Lending and Current Account as the GDP data confirmed the slowest annual pace in eight years. With Dollar longs increasing ahead of weekend risk it was imminent that Sterling posts some further losses.
GBPUSD 4-HOUR CHART
USDJPY – Dollar broadly stronger on 1st quarter position squaring losses 0.1% against Yen. Dollar strengthened against most majors in the Thursday session apart Yen. The Japanese currency won the battle amid geopolitical tensions surrounding Kim Jong-Un seeking talks with Japan. The pair’s high was the top of the range near 107.00 which was reached after the release of a 45-Years Jobless Claims low. Since the price has been correcting.
USOIL – Oil mixed despite OPEC supply cuts as tensions between Saudi Arabia and Iran escalate.WTI got rejected at the $64.15/b yesterday despite the intraday low of $63.70/b on geopolitical anxieties as OPEC and other major suppliers are exploring the possibility to cut supplies for the rest of the year. Price remaining above the aforementioned handle label the black gold as bullish.
XAU/USD – Gold remains near golden ratio despite geopolitical tensions as US data weigh in.Gold held the $1325/oz price as investor appetite for riskier assets was counterbalanced with the rise in geopolitical tensions between Saudi Arabia and Iran. Gold rose following a positive US PCE ad Jobless Claims and due to quarter-end flows ahead of weekend risk but price moved back to $1325/oz as the markets shifted focus to the latest tensions. Yen seemed to have been the safe-haven of choice in the Thursday session.
US Indexes – DJ rose 1.07%, S&P 500 soared by 1.38%.
European Indexes - UK 100 moved 0.17% higher, DE 30 jumped 1.31% up.
Asian Indexes - ASX 200 declined by 0.51 %, Nikkei upsurged by 1.40 %, Hang Seng trades 0.24% higher.
US Equities – Facebook climbed 4.42% higher, Tesla saw a 3.24% appreciation.
Stavros Tousios is an experienced forex market specialist who provides insightful market analysis to traders of popular currency pairs, stocks, commodities and indices. With a focus on technical analysis, he closely analyses present and historical market data in order to provide our clients with any relevant information which may help in making their strategic trading decisions.
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