[B]Daily Fundamental Dose: 09 – March – 2017[/B]
Hello Traders,
Wednesday was no different than that of previous week-days when US Dollar dominated market moves as private jobs report, shown by ADP Non-Farm Employment Change, grew rapidly, indicating a better NFP on Friday and a Fed rate-hike during next week. The EUR, however, maintained its weakness with rising chances of anti-EUR candidate to win first round of French election while GBP couldn’t resist declining even if UK finance minister announced optimistic official growth forecasts for 2017 when releasing the British budget. Commodity currencies continued bearing the burden of strong greenback and the record high US Crude stockpile dragged energy prices to the lowest level of 2017. With this the CAD failed to enjoy upbeat Canadian housing market figures while AUD and NZD declined further toward south. Additionally, JPY and Gold were also badly hit by a lack of safe-haven demand due to rising market optimism surrounding next week’s Fed rate-hike.
On early Thursday, Chinese Inflation numbers confused traders with upbeat PPI and a weaker CPI numbers but strong US Dollar kept damaging the commodity basket but Crude witnessed mild pullback after slumping the most in more than a year. Rest of the currencies left without any major updates and are continue on their drops against greenback.
For the rest of the day, monetary policy meeting by the European Central Bank (ECB) and US Jobless Claim are likely to provide intermediate market moves to traders. Considering latest improvement in EU CPI numbers, the ECB President is more likely to repeat his favorite hawkish tone relating to economic progress and might refrain from announcing any changes into the currency monetary policy with an extended QE till 2017-end. This can offer a bit pullback to EUR and may damage the USD a bit but overall bullish sentiment governing the US currency is less likely to fade. Hence, traders shouldn’t consider today’s USD pullback as a reversal.
[B]Technical Talk[/B]
With present weakness in Crude prices, coupled with comparatively stronger USD, the USDCAD is likely to progress towards challenging 1.3530-40 resistance-zone, breaking which 1.3590 – 1.3600 could again come into play while 1.3470 & 1.3430 may keep acting as immediate supports. Further, the EURGBP again failed to clear 0.8700 mark and an unexpected dovish statement from ECB could fetch the quote to 0.8640-30 re-test whereas GBPNZD seems heading towards 1.7700 with across the board weakness of NZD but a dip below 1.7590 might reignite concerns for correction.
Have a nice trading-day ……