[B]Daily Fundamental Dose: 07 – March – 2017[/B]
Hello Traders,
During the first-day of the week, market players maintained their optimism concerning Federal Reserve’s March rate-hike which helped fueling the US Dollar Index (I.USDX) while better than forecast US Factory Orders provided additional strength to greenback traders in avoiding President Donald Trump’s fresh travel ban, second after January, for people from six predominantly Muslim countries. The EUR remained weaker as speculations relating to anti-Euro candidate’s knockout in first-round of French election weakened after Former Prime Minister Alain Juppe denied intention to participate in a run for the presidency. Further, the GBP extended its south-run due to Article 50 uncertainty whereas JPY strengthened across the board on the news of North-Korea’s ballistic missile launch but Gold failed to enjoy such liberty due to rising greenback. Additionally, AUD, NZD and CAD couldn’t deny sellers with commodity basket getting a hit of strong USD whereas Crude prices weakened further on the news that U.S. shale output might off-set OPEC & Non-OPEC members’ production-cut efforts.
At the start of Tuesday, US Dollar traded a bit weaker as investors await calls from US politicians relating to Trump travel-ban whereas RBA’s no rate-change and a hawkish statement for economic growth helped AUD recover some of its latest losses. Moving on, GBP kept trading weaker as UK policymakers will again face parliamentary vote on giving an upper hand to PM while discussing Article 50 with EU but the JPY and Gold adhered to south as geo-political tensions from North-Korea seems fading.
For the rest of the day, Trade Balance figures from US & Canada, coupled with Canadian Ivey PMI and Final reading of Q4 2016 Japanese GDP, could provide noticeable market moves. While the US & Canadian figures are both likely to damage greenback and CAD respectively, the USD might remain comparatively strong with March rate-hike concerns. Further, the JPY is also expected to remain strong on uncertainty at UK and expected hike in GDP number.
To sum up, overall market sentiment can keep riding the US Dollar on expected March rate-hike ahead of the Friday’s Jobs report while disappointing figures can have higher repercussions.
[B]Technical Talks[/B]
As the GBPUSD is again trading around 1.2220, a break is more likely to fetch the quote towards 1.2180 and then to 1.2100 mark with 1.2280 acting as near-term strong resistance. For EURGBP and EURCAD traders, things are quite confusing as EURGBP again heads to 0.8670 resistance, breaking which 0.8710 can comeback whereas EURCAD struggles between 1.4240 & 1.4100 with downside more expected.
Have a nice trading-day ……