13 April, 2017
The U.S. dollar fell sharply across the board yesterday after the U.S. President Trump in an interview with the Wall Street Journal gave his views on the U.S. dollar. Trump said that the U.S. dollar was "getting too strong" and said that his administration would not label China as a currency manipulator.
During the interview, Trump also said that he preferred a low interest rate policy. The comments by the President sent the U.S. dollar falling to a one-month low as the U.S. dollar index futures settled at 100.04 on Thursday's close.
Looking ahead, the economic calendar today is mixed with not much of data to go by from the U.S. Only the PPI numbers are due to come out today. The BoC Gov. Poloz is expected to speak later today, and his comments come following the BoC's decision to hold interest rates at 0.5% at yesterday's monetary policy meeting.
EURUSD intra-day analysis
EURUSD (1.0670): The EURUSD maintained the bullish gains yesterday rising to a 4-day high as price closed at 1.0665. On the 4-hour chart, we notice a slight hidden bearish divergence with the Stochastics oscillator posting a higher high against a lower high in price.
This could keep the EURUSD biased to the downside, but supported above the support level at 1.0600. In the near term, in the case of a dip in the short term, we can expect the price to reverse above 1.0600 and attempt to test the resistance level at 1.0700 following a rally to 1.0800.
USDJPY intra-day analysis
USDJPY (108.83): USDJPY continues to extend the decline after a brief spell of consolidation. Price action is down two days in a row breaking below the 110.00 support level in yesterday's trading session. This potentially paves way for further declines down to 108.00.
The USDJPY is particularly hit by a risk off sentiment which is seen strengthening the Japanese yen while the U.S. dollar remains week. With no short term catalysts in the near term, USDJPY is expected to remain biased to the downside in the near term, into Friday’s U.S. inflation report.
XAUUSD intra-day analysis
XAUUSD (1285.62): Gold is seen currently rallying to a 5-month high as the precious metal has resumed its bullish momentum. This is expected to push gold prices towards the $1300.00 mark once again, and a failure to test this level could trigger a short-term correction in prices towards $1250 initially.
In the short term, the fundamentals are mostly in favor of gold as short-term political events such as the Turkish constitutional referendum, the French elections and the continuing uncertainty in the case of Syria and North Korea continue to see investors rush to the safe haven status of gold.
The Institute of Supply Management's business survey covering the manufacturing and non-manufacturing sector showed that activity...
Amid the rising threat of trade wars and the optimism of the looming U.S. and China trade talks, the U.S. President Trump hit out at the Federal Reserve last week...
Japan's economy was seen rising more than expected in the three months ending June 2018. Growth was helped by strong...
The U.S. Federal Reserve Governor, Jerome Powell, gave his two-day testimony to the U.S. Congress last week. In this testimony, Powell cautioned...
The common currency which had fallen sharply over the past few weeks and was eventually seen hovering above the support level of 1.1540 level was seen...
The U.S. dollar lost ground yesterday amid a slow trading day with lack of any clear catalysts for the markets. The speech by Janet Yellen did not offer anything new for the markets...
Mexico's inflation is likely to be boosted higher as the government announced that it would be hiking fuel prices by nearly one-fifth from January. The government said that fuel price ceilings will be capped between 14.2% - 20% above December's prices...
The Institute of Supply Management's Purchase Managers Index data is one of the most widely watched indicators. It is considered to be a leading indicator which gauges the strength in the U.S. manufacturing sector...
A fairly quiet Monday saw USDJPY retreating from its recent highs ahead of the big events this week. USDJPY has retraced its gains and now trades just above the support level of 104. The markets look to another slow day today with no major events on the tap, leaving the bulk of trading on the technical aspects...