[B]Daily Fundamental Dose: 15 – February – 2017[/B]
Hello Traders,
During her first testimony under Trump presidency, Federal Reserve Chair, Janet Yellen, remained strong enough to avoid any monetary policy difficulties from Mr. President’s fiscal & tax policies and said the central bank doesn’t need to wait for such triggers while deciding on its next rate-hike. Market players perceived this as a strong signal, and together with upbeat PPI figures, propelled US Dollar Index (I.USDX) to test more than three-week highs. The EUR, however, had to bear this burden when EU & German figures disappointed regional currency traders whereas GBP also dropped for the day as UK CPI remained lesser than forecast, but being at highest since mid-2014. Further, the AUD and CAD remained strong with early-day Chinese and AU details helping commodity basket whereas NZD couldn’t manage to counter stronger greenback. Additionally, JPY and Gold flashed mixed signals as Gold rose and JPY declined, mainly due to political risks at EU and upbeat sentiment at US.
As yesterday’s Testimony provided additional fuel to recently strengthened reflation trades, market players carried their upbeat sentiment for US Dollar during early-Wednesday. However, AUD and NZD still remain strong enough with commodities rising. Crude traders are waiting for US stockpile figures whereas second-round of Fed Chair’s testimony becomes important for investors. Additionally, UK jobs report, US CPI, Retail Sales and Empire State Manufacturing are some of the headline data-points that could provide noticeable market moves during the rest of the day.
Looking at forecasts, UK Jobs report might provide another reason for Pound traders to continue their latest profit-booking whereas US data-points keep indicating strong economy and further advances by the greenback. Moreover, Fed Chair’s testimony, if maintaining yesterday’s strength, could become a boost for greenback whereas US Crude stockpile might help energy prices to rally as the figure has already grown too much during previous release.
[B]Technical Desk[/B]
GBPNZD again reversed from 1.7460-70 area and is indicating brighter chances of flashing 1.7300 mark while break of 1.3100 can help USDCAD to meet 1.3140-45 resistance-zone. Also, USDJPY managed to surpass 114.10 and is heading towards 115.00 and 115.30 north-side numbers with 113.80 & 113.20 become immediate supports to watch.
Have a nice trading-day …………