[B]Daily Fundamental Dose: 09 – February – 2017[/B]
Hello Traders,
Having witnessed upbeat sentiments during first two-days of the week, USD traders again faced headwinds and a negative greenback closing on Wednesday as investors locked prior gains. The EUR remained sluggish with looming political uncertainty while GBP strengthened for the second straight-day after one BoE policymaker indicated the need to reverse August month rate-cut as economy is well in-direction to growth. Further, the JPY and Gold managed to stretch their safe-haven backed up-moves whereas AUD and CAD strengthened after commodity basket enjoyed weaker US Dollar. Additionally, NZD plunged across the board as RBNZ surprised global markets with a dovish forecast of record low interest-rate for prolonged period of time and the Governor also expressed worry due to higher NZD prices. Moving on, Crude prices avoided higher than expected oil inventory figures as gasoline stockpile shrank and some of the OPEC members signaled previously agreed production-cuts could be extended to second-half of 2017 against the planned reduction through H1 only.
As we come to Thursday, the early-day moves were governed by NZD’s continuous plunge after RBNZ Governor kept repeating his likeliness for weaker NZD while JPY witnessed profit-booking on BoJ Deputy Governor’s comments favoring the need for massive monetary support. Furthermore, the US Dollar also gained with speculations that US Aviation officials might deliver a hawkish plan for spending during the day and the U.S. court of appeals remain well in favor of President Trump.
Other than the political plays at EU, US and UK, weekly Jobless Claims from US becomes the only economics to observe during the day. Given the US officials manage to please investors with higher spending plan, chances of the US Dollar to recover its recent losses and portray a rally are high. On the contrary, EUR might not have any reasons to witness buying and can continue on its south-run while GBP should extend latest advances on concerns that Theresa May has a upper-hand during March’s Article 50 negotiation.
[B]Technical Desk[/B]
Although yesterday’s RBNZ provided noticeable down-tick to the NZD pairs, the NZDJPY is still trading around strong support of 80.55-65 and a following bounce might flash 81.30 on the chart. Further, the GBPAUD tests 1.6420-25 horizontal-resistance and can witness pullback to 1.6375 & 1.6330 whereas 200-day SMA, at 1.3135, can keep inflating USDCAD towards 1.3210.
Have a nice trading-day …………