[B]Daily Fundamental Dose: 10 – February – 2017[/B]
Hello Traders,
Thursday proved to be a good-day for all those reflation expecting traders who faced tough time during January and early-February when US President, Donald Trump, failed to provide any strong signals on his promised tax cuts and spending details. Mr. Trump, during a White House meeting with airline executives, promised to provide a “phenomenal” tax plan to lower burden on businesses during next 2-3 weeks. Markets grabbed this opportunity and propelled US Dollar strength as the President repeated such optimistic promise for the first time since taking the office. The EUR and GBP couldn’t confront the greenback’s strength and declined while CAD registered smallest losses amongst commodity currencies as Crude prices advanced on upbeat sentiment. Further, the JPY and Gold became the victim of strong USD cutting safe-haven demands.
Coming to the Friday, early-day releases of Chinese Trade Balance and RBA’s quarterly update of forecasts provided noticeable moves into the commodity basket. China registered another strong economic figure and became capable to gain praises whereas RBA remained a bit neutral and said near-term growth might be affected with lesser chances to see any further improvement in jobs report. With this, AUD, NZD and CAD recovered some of their previous losses whereas JPY and Gold kept being on the downside ahead of the Japanese PM’s visit to his US counterpart.
During the rest of the day, details of discussion between US & Japanese leader would gain higher attention on political front while monthly reports by The International Energy Agency and OPEC, during later Friday and early Monday, might entertain energy traders. On the economic front, UK Manufacturing & Industrial Production, Canadian Jobs report and US Prelim UoM Consumer Sentiment as some of the data-points to observe.
Considering the latest positive environment triggered by Trump, the US Dollar is likely to complete its first week of gains since December and the Canadian Dollar can also witness upside. However, JPY might decline if US fail to respect Japanese ambition and the GBP is less expected to carry on its latest upside.
[B]Technical Desk[/B]
USDJPY is struggling to break 113.65 TL, which in-turn could open doors for its rally towards 114.40 & 115.10 whereas pullbacks can have 113.30. Moreover, 87.00 resistance-mark gains importance for CADJPY & AUDJPY traders, which if broken can flash 87.40 & 87.55 respective upside figures.
Have a nice trading-day …………