June Hike Probability Increased Though CPI and Geopolitical Worries Weighed in on Dollar

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TODAY’S IMPORTANT INDICATORS Majors closed somewhat unchanged in the Wednesday session despite market-implied probability for June FOMC edged up to above 70% as the US CPI report came out sluggish while geopolitical worries surrounding Russia and Middle East weighed in. Euro, Pound and the US Index held steady but safe haven Yen and the Gold rose. Oil gained against Dollar too. Market participants shift their focus on ECB and Carney. MARKET MOVERS EURUSD – Euro steady against Dollar as geopolitical concerns overshadow session. Euro-Dollar rose to $1.2395 intraday in the Wednesday session amid a weaker Dollar as profit taking kicked in just below $1.24 psychological on poor US data and geopolitical uncertainty. The pair ended the day with an indecision candle, that has proved to be a signal for a reversal in the past, however, the reversal may occur on a higher level near the descending trendline. EURUSD DAILY CHART GBPUSD – The British Pound hits a fresh 2-week high, bears take over on $1.42 psychological. Cable ended Wednesday’s session steady despite reaching a fresh 2-week high as the psychological $1.42 acts as barrier to longs while concurrently the Manufacturing Production disappointed. With Dollar being negatively biased the pair closed at $1.4170, nearly 50 pips lower than the day’s high. Market participants look forward to Carney’s speech at the Public Policy Forum's Canada growth summit. GBPUSD 1-HOUR CHART USDJPY – Dollar falls against Yen on safe-haven demand and on poor US inflation figures. Dollar-Yen fell 45 pips yesterday following some bearish pressure amid a contractionary US CPI and on Trump’s challenge to Syria and Russia.The pair ended by the 23.6% Fibonacci retracement, where Tuesday’s open occurred. Players patiently wait for news headlines to decide on directional activity. USDJPY 1-HOUR CHART USOIL – Oil hits multiyear high on geopolitical risk despite EIA reports inventory build. WTI soared to a high of $67.34 yesterday, piercing the strong resistance intraday, as Trump’s twits on Syria played in. Despite EIA reporting a crude oil stocks build of 3.3 million barrels oil traders went long, supporting earlier trade-war bulls. End of week flow are likely to kick in while the break or breath is now a 50-50. OIL 4-HOUR CHART XAUUSD – Gold posts substantial gains on geopolitical developments yet remains within range. Gold soared nearly $30/oz intraday following news headlines on Syria, Russia and the prevailing trade war concerns, finding a fresh 10-week high at 1$365/oz. As relations between US and Russia are not likely to get better risk appetite may remain at subdued levels. Double top formation may lead to reversal. XAUUSD DAILY CHART ​ US Indexes – DJ lost 0.90% intraday, S&P 500 fell by 0.55%. European Indexes - UK 100 fell by 0.10 %, DE 30 saw a fall of 0.24%. Asian Indexes - ASX 200 depreciated by 0.24%, Nikkei 225 declined by 0.87%, Hang Seng trades 0.75% lower. US Equities – bank of America declined by 1.80, Facebook rose 0.78%. 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. https://twitter.com/StavTous Risk Disclaimer: Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors. Trading in financial instruments may result in losses as well as profits and your losses can be greater than your initial invested capital. Before undertaking any such transactions, you should ensure that you fully understand the risks involved and seek independent advice if necessary. Read our full risk disclosure. Any opinions, news, research, analyses, prices or other information contained on this email or linked to from this email are provided as general market commentary and do not constitute investment advice. FXPRIMUS does not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.