TODAY’S IMPORTANT INDICATORS
Overall risk appetite remained at steady levels yesterday yet, US markets saw Dollar falling amid negative flows adding pressure to the currency following a poor CPI report. European markets closed higher due to the Dollar’s weakness as no economic indicators were due during a holiday-thin trade. Pound held steady, following same result on rates, while Gold moved higher, trailing Yen. Finally, Oil matched yesterday’s close as investors’ concerns surrounding US sanctions after quitting the Iranian nuclear deal remain alive. Today, market players can participate on the Canadian Jobs report and also find potential opportunities during ECB President Draghi’s speech.
MARKET MOVERS
EUR/USD – Euro appreciates following Dollar’s pullback, $1.1820 could prove to be a reversal level. Euro-Dollar rose after 4 sessions of negative flows as investors sold the Dollar following poor US data. The pair bounced at the $1.1820, which could prove to be the reversal European trades have waited for. Chart shows bullish divergence following the reversal at the 161.80 Fibonacci extension.
EURUSD 4-HOUR CHART
GBPUSD – Pound steady after BoE’s announcement to “hold”, market in consolidation. Sentiment remains subdued for London traders as BoE announced steady rates. Despite remarks on negative growth expectations following the announcement, speculators appeared somewhat upbeat, taking into consideration the “neutral” tone by day’s end. 100% Fibonacci extension holds, at least for now, a level to be watched closely.
GBP/USD DAILY CHART
USDJPY – April US inflation shifts risk appetite, traders find opportunity to cash out profits. Dollar-Yen declined yesterday following negative flows from the widely expected CPI release as figures came out worse than expected. Despite economists’ prospects on rates remaining unchanged, traders took advantage of the bearish move in order to cash some profits. The sell orders were supported by a double top formation at the psychological 110 too, making this trade more accessible.
USDJPY 4-HOUR CHART
USOIL – Oil takes a breather from bulls yet re-imposed sanctions remain a risk, markets await. WTI hit a fresh 3 ½ year high in the Thursday session following increasing buy orders as Trump’s announcement to quit Iranian deal increase possibilities of Oil disruptions. With the Iran-trade effect subsiding, commodity traders found the opportunity to take some profits, taking the market to its daily open, and forming an indecision candle as week-end flows kick in.
CRUDE OIL DAILY CHART
XAU/USD – Gold moves higher as investors sell Dollars, CPI effect has precious metal trailing Yen. Gold broke above the 38.2% Fibonacci retracement on Thursday as US Inflation disappointed risk markets. With this move, chances of heading back towards the $1366 top of the sideways market are increasing. Next week will provide clues on that while Fibonacci extensions are hit.
XAUUSD 4-HOUR CHART
US Indexes – DJ surged 0.80% higher, S&P 500 surpassed by 0.14% to 0.94% rise.
European Indexes – DE 30 opens 0.4% higher, UK 100 trades 0.05% higher.
Asian Indexes - ASX 200 closed unchanged, Nikkei 225 soared by 1.16%, Hang Seng trades 1.08% higher.
US Equities – Exxon Mobil rose by 2.24 %, Tesla declined by 0.60%.
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