TODAY’S IMPORTANT INDICATORS
Markets traded sideways yesterday following a quiet session a day ahead of the critical US inflation data. All majors remained unchanged but Yen fell as demand for risk-averse assets remained subdued. Conversely, Oil kept moving higher as the US withdrew from the Iran deal. Investors shift focus to the long-awaited CPI release, while European banks are closed in observance of Ascension Day.
MARKET MOVERS
EURUSD – Euro unmoved above Fibo extension, trading session lacking indicator. Euro-Dollar traded sideways in the Wednesday session as no economic indicators were scheduled in and the US Dollar remained mixed. Price is at a critical junction above 1.1850, a level which will prove its strength today.
EURUSD DAILY CHART
GBPUSD – Cable forms a “doji” candle for another session, break likely to come soon. Sterling continued its moderate trading activity on Wednesday as investors wait for today’s inflation report and the interest rate decision, a widely expected “hold”. With the British Pound being on the side-lines between 1.35 and 1.36 over the past few days, it is likely that a break will follow up very soon, either up or down.
GBP/USD DAILY CHART
USDJPY – The Yen loses ground against the Dollar as demand for safe haven declines. The Dollar-Yen rose some 80 pipis yesterday following a sell-off of the safe-haven Yen as demand for the risk-free asset fell. Price confirmed a somewhat bullish retracement at the 38.2% Fibo near 108.80 taking into consideration its recent bullish move. 110 next.
USDJPY 1-HOUR CHART
USOIL – Oil prints 3 ½ year record high following EIA, continues bullish rally after Iranian deal. WTI broke above the 161.8% Fibo extension in the Wednesday session, building further up its bullish momentum after EIA reported 2.2 million barrels draw while analysts expected a build-up. Price seats at 100% extension of the second upward leg, a level likely to “break” or “fake”.
CRUDE OIL DAILY CHART
XAUUSD – Gold neutral again despite US delivering poor data as safe-havens lose traction. Gold traded within the same range of 1317 and 1306 yesterday as activity remained at subdued levels. With Yen taking up all the losses, Gold price managed to firm strong and unchanged, closing the session at 1313/oz. Market participants will seek opportunities today as risk events near.
XAUUSD DAILY CHART
US Indexes – DJ closed 0.75% higher, S&P 500 surged higher by 0.97%.
European Indexes – DE 30 opens 0.2% lower, UK 100 trades 0.16% higher.
Asian Indexes - ASX 200 tilted 0.19% higher, Nikkei 225 rose by 0.39%, Hang Seng trades 0.96% higher.
US Equities – Twitter appreciated by 1.66%, Amazon fell by 0.48%.
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