Today's Important Indicators
Trader risk-off appetite faded away yesterday as selling volumes on the Dollar weakened overnight, allowing investors to shift the uneventful markets with ease. Euro, Pound, Yen and Gold declined while Oil jumped back above $70 per barrel. With Carney and Poloz speeches and economic reports from the EU and US coming in, it is likely that we will see a much more interesting and volatile session today.
MARKET MOVERS
EUR/USD – Euro gives up Friday’s gains during uneventful session as risk sentiment improves. In Tuesday’s session, Euro lost 50 pips against the Dollar as selling pressure from trade war risk subsided, allowing investors to form a top by the 61.8% Fibo at $1.1720. Euro is likely to be Dollar-biased today as the eco calendar contains no major reports for the EU currency.
| EUR/USD 4-HOUR CHART |
GBP/USD – Pound lower as MPC member Haskel questions rate hike, pair retests $1.32. Sterling moved to the 50% Fibo yesterday, retesting the $1.32 level as uncertainty over rate hikes weighed in. The sell-off accelerated with NY open as Dollar was supported by bulls following a shift in risk appetite. Carney speaks about the financial stability report at 08:30 GMT today.
| GBP/USD 4-HOUR CHART |
USD/JPY – Dollar higher following retest on ascending trendline, price tops at 110. Dollar-Yen ended Tuesday’s session a tad higher despite a somewhat poor CB Consumer Confidence report as bulls started buying the asset following a rejection on the ascending March trendline. With sentiment shifting to riskier assets, Dollar may maintain a cautious upward. Today, though, a directional activity largely depends on the Core Durable Goods Orders.
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USOIL – Oil surges higher on good API report, US plans to cut off Iranian Oil and have allies follow. Oil price rose by $2.5 per barrel yesterday following a major crude draw reported by API, as well as Trump’s plans to isolate Iranian Oil. The black gold reached a daily high of $70.40, breaking back above the $70 hurdle, but most importantly, decisively above the ascending trendline. Investors eye EIA’s report at 14:30 for short-term trades.
| CRUDE OIL 4-HOUR CHART |
XAU/USD – Gold declines to 6-month low amid a riskier currency environment, price below $1260. As expected, Gold moved lower yesterday, while since the break of the channel, the death cross has been providing us with solid indications of a further downside move. The precious metal hit a December low following repositioning due to to risk improvement. Note that a bullish convergence is forming on the MACD histogram.
XAU/USD DAILY CHART
US Indexes – DJ rises by 0.12%, S&P follows with a 0.22% upmove.
European Indexes – DE 30 falls by 0.73%, UK 100 moves a tad lower.
Asian Indexes - ASX 200 closes unchanged, Hang Seng plummets by 1.59%, Nikkei depreciates by 0.31%.
US Equities – Tesla appreciates by 2.70%, Alphabet falls by 0.58%.
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