TODAY’S IMPORTANT INDICATORS
Risk sentiment shifted since the beginning of the week as investors anticipate a hawkish FOMC statement despite rates are expected to remain unchanged.
The dollar traded higher against all majors as risk shifted ahead of FOMC, having Gold and well as Oil falling.
Ahead of week’s end NFP, market participants have a number of indicators to focus on:
MARKET MOVERS
EUR/USD – Euro breaks lower continuing fall since German Retail Sales, rate below $1.20. Euro-Dollar lost nearly 85 pips in the Tuesday session, maintaining a bearish momentum started on Monday. Price broke below the $1.20 psychological support and 50% Fibonacci retracement as risk improved. Market participants look forward to the GDP figures at 0900 GMT.
EURUSD DAILY CHART
GBP/USD – Cable declines on poor PMI report, heading towards $1.35. Sterling fell for a consecutive session adding up further to the selling pressure after UK reported a worse than expected figure on the Manufacturing PMI report. Following the 38.2% Fibo break price could head lower to $.135 levels. Investors are cautious with the latest poor indicators. Construction PMI figures expected at 0830 GMT.
GBP/USD DAILY CHART
USD/JPY – Dollar rise despite poor ISM as risk returns back to the market. Dollar pierced the 110 level against Yen yesterday despite apoor ISM Munfacturing PMI was delivered as investors went bullish on Dollar following hawkish FOMC expectasions. Price broke above the second extension and could head higher assuming a bullish Statement.
USD/JPY 4-HOUR CHART
USOIL – OIL deteriorates to $67.20/b amid Crude Oil build, geopolitical concerns do not dissipate. WTI reached the bottom of its range for another session owed to a disappointing weekly stocks report provided by API. The exchange rate against the US Dollar declined over $1/b as API reported a build of 3.427 million barrels. With volatility expected to be high before the 12th of May - when the US decides on Iran – price swings may become a reality. EIA reports today at 1430 GMT.
WTI 1-HOUR CHART
XAU/USD – Gold slides lower as investors price-in hawkish FOMC statement, Dollar higher. Gold fell to $1300/oz on Tuesday marking another disappointing session as investor sentiment shifted to more risky products. Dollar rose as a result of risk appetite as FOMC is looking to provide hawkish clues despite a “hold”. 50% Fibonacci maker or breaker.
XAU/USD DAILY CHART
US Indexes – DJ fell by 0.27%, S&P 500 rose by 0.25%
European Indexes - UK 100 closed 0.40% higher, DE 30 +0.27%
Asian Indexes - ASX 200 rose by 0.60%, Nikkei 225 declined by 0.16%, Hang Seng trades 0.40% lower
US Equities – Apple rose by 2.32%, Exxon Mobil fell by 1.03%
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