9 September, 2016
Yesterday the Bank of England announced the Inflation Report, stating that the BoE will implement further QE when it is necessary. The performance of the UK economy after the Brexit vote so far has been a bit better-than-expected. Yet we need more subsequent data to have a clearer picture.
The current price is near the previous high on 14-15 July. 1.3470 is a significant resistance level. The current price action is oscillating in the range between 1.3400 and 1.3300.
The daily Stochastic Oscillator is above 70, suggesting a retracement.
The resistance level is at 1.3370, followed by 1.3400 and 1.3470.
The support line is at 1.3300, followed by 1.3270 and 1.3230.
The Dollar Index (DXY)
The Fed Beige Book was announced yesterday. It stated that although the labour market is tight and wage level is rising, this was not helping lift inflation. In aggregate, the US economy is expected to grow at a moderate pace in the following months.
DXY has turned bearish since 06th September on the weak ISM figure. The significant support level at 94.73 was broken earlier today, where the medium term trend line support situates. The bearish trend is ongoing. The next support line is at 94.55, followed by 94.35, 94.18 and 94.00.
The price is trading below the 8 and 20 EMAs, suggesting upside selling pressure.
The daily time frame Stochastic Oscillator is below 20, and 4 hourly RSI indicator is around 30, suggesting a rebound.
The newly formed resistance level is at 94.73, followed by 95.00, 95.20 and 95.40.
Keep an eye on the US Initial Jobless Claim and the Continuing Jobless Claims figures, to be released at 12:30 GMT.
The dollar index reached the one-year highs on Wednesday due to the demand for safe assets. USDX reached level 95.43 on Thursday, breaking the peak levels...
The FOMC minutes highlighted some increased risks to the US economy particularly concerning trade relationships but the view still holds that the Fed should...
UK Consumer Price Index (YoY) (May) is expected out at 2.5% against 2.4% previously. Producer Price Index â€“ Input (YoY) (May) is expected...
UK Construction PMI (May) will be out with an expected headline number of 49.7 from a prior number of 52.5. The consensus is for a drop in the numbers...
UK Industrial Production (YoY) (Mar) is expected to be 3.1% against a previous 2.2%. Industrial Production (MoM) (Feb) is expected to be 0.2% against...
UK Budget Report will be released. This is a mini-budget and outlines the government’s updated budget for the fiscal year, including infrastructure...
The US Nonfarm Payrolls data released on Friday showed a strong increase in job creation and, combined with the lower than expected increase...
The Bank of Japan Interest Rate Decision was as expected and left unchanged at -0.1%. The Japanese 10-Year JGB yield target is around zero percent...
On Tuesday, the American Petroleum Institute said crude stocks in the United States fell by 7.4 million barrels last week. That is almost twice...