TODAY’S IMPORTANT INDICATORS
Promising Retail Sales encouraged Dollar bulls to push prices higher against all pairs and hammer down the price of Gold, while a decisive break of the 10 Year US Yields beyond the 3% mark seems to be the clue investors have been waiting for all along. Other data in Europe, UK and Japan disappointed, providing no structural resistance against the upward revised US data and allowing the “fresh” bullish sentiment not only to be maintained, but also extended. European inflation, US Housing data, our EIA’s weekly Stock count and SNB’s Jordan in focus today.
MARKET MOVERS
EURUSD – Euro loses 90 pips as European data disappoint; US Dollar strengthens. Euro-Dollar fell in the Tuesday session following an array of data from Europe and remained under pressure as the Dollar was relatively strong. The rate has now formed a double bottom around $1.1820. EU CPI in focus.
EURUSD 4-HOUR CHART
GBPUSD – Pound shrugs off Dollar’s dominance as UK employment rate hits “fresh” record. Cable somehow shrugged off Dollar’s dominance yesterday as hopes for an interest rate hike supported the currency. Hopes increased following a strong jobs report as employment rate was pushed 0.4% higher in the last quarter. The pair is stable above $1.3512.
GBPUSD DAILY CHART
USDJPY –Retail Sales data sends the Dollar to 110.44 against the Yen, Japanese economy contracting. Dollar-Yen surged to the second extension of 110.44 on Tuesday after the release of the US Retails Sales. The report showed an upward revision and in spite of the actual results not matching analysts’ expectations, the Dollar surged. The price remains above 110 while participants wait for the Building Permits.
USDJPY 1-HOUR CHART
USOIL – Oil mixed as API reports crude oil build, putting a halt to the recent surge. WTI formed a double top and retraced back to opening levels yesterday as API reported a crude oil stocks build. With investors expecting EIA to deliver its own report today sentiment becomes subdued and the $71/b a critical zone.
CRUDE OIL DAILY CHART
XAUUSD – Gold plummets beyond $1300/oz as USD flows rise following risk data. Gold breached the psychological level in the Tuesday session, falling nearly $23/oz, after Retail Sales showed an upward revision of 20 basis points. With the 50% penetrated traders will look at 61.8% for support. Risks events today may have a weigh-in factor.
XAUUSD DAILY CHART
US Indexes – DJ plunged by 0.78%, S&P 500 fell by 0.68%.
European Indexes – Both DE 30 and UK 100 closed 0.17 % higher.
Asian Indexes - ASX 200 moved 0.15% higher, Nikkei 225 lost 0.44%, Hang Seng trades 0.18% lower.
US Equities – Twitter rose by 1.95%, Tesla plunged by 3.02%.
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