[B]Daily Fundamental Dose: 06 – February – 2017[/B]
Hello Traders,
A long week with many economic events/details propelled heavy liquidity into the Forex market during past 5 working-days. However, the US Dollar Index (I.USDX) kept being Bears’ favorite for sixth consecutive week as protectionist policies of Trump administration and weaker Wage growth dragged the greenback to south. Let’s discuss details of the past and present week.
[B]USD Couldn’t Benefit From NFP & Spendings[/B]
Even after registering handsome rise in Spendings and NFP, the US Dollar failed to register a positive weekly closing as a drag in Earnings and a higher unemployment rate than forecast, coupled with Trump’s protectionism, kept signaling weaker days for US. The EUR remained benefited from Inflation & GDP figures while AUD and NZD maintained their upstream on rising commodity prices and better data-points. Further, JPY again witnessed surprise increase in bond buying from BoJ and declined whereas GBP had to bear the burden of weaker PMIs and failure of BoE Governor to convey any strong economic message. Additionally, Gold extended its north-run on strong safe-haven demand and the Crude prices also gained as US levied fresh sanctions on Iran.
[B]ECB, RBA & RBNZ To Gain Focus This Week[/B]
While BoJ, Federal Reserve and BoE disappointed global traders during last week, by not providing any strong clues for their future actions, ECB President’s testimony and monetary policy meetings at Reserve Bank of Australia (RBA) & Reserve Bank of New Zealand (RBNZ) would gain attention this week. Additionally, US Prelim UoM Consumer Sentiment and Trade Balance figures from US, UK and China are some data-points that can entertain traders.
On Monday, ECB President’s testimony is likely to reflect how strong Mr. Mario Draghi feels after recent advances in EU inflation and can help EUR while Tuesday’s RBA meeting isn’t likely to act upon anything but strong statement can further stretch AUD’s advances. Moving on, RBNZ, on Wednesday, is not also likely to alter its present monetary policy and can only please NZD traders with few hawkish statements whereas Trade Balance figures are overall strong for UK & US. Also, the Chinese Trade Balance, on Friday, may trigger a bit of profit-booking in commodity currencies in case the figures show higher deficit. In addition to what discussed above, Canadian Job figures, Ivey PMI figures and Crude inventories are extra figures to observe, which in-turn indicate more strength by the CAD.
[B]Technical Talks[/B]
Looking at the technical side, EURUSD continue failing to break 100-day SMA and is likely to witness pullback towards 1.0650 with a clearance of 1.0800 being a trigger for the pair to aim for 1.0850 & 1.0960. The GBPUSD might witness extended drag towards 1.2220 with 1.2700 acting as strong upside resistance whereas USDJPY might challenge 111.30 strong support, breaking which it can plunge to 109.30 with 113.70 being near-term strong resistance. Further, 0.7730 and 0.7360 are likely landmarks for AUDUSD & NZDUSD to look whereas 0.7630 & 0.7250 being supports to watch.
Have a nice trading-day …………