Daily Fundamental Dose: 13 – November – 2017
Hello Traders,
Be it suspicion over the future of US President’s optimistic tax-plan or dearth of economic details, the US Dollar Index (I.USDX) had to bear it all with first in a four-week negative weekly closing. The EUR, even after gone through the same lack of stats, managed to post gains due to positive sentiment surrounding future growth of the regional bloc while the GBP remained sluggish as upbeat data-points had to confront with political uncertainty at UK. Further, the JPY, CHF and Gold could extend their previous advances on safe-haven demand whereas Crude posted fifth week of rally amid Geo-political tensions in Middle-East and positivity concerning the effect of global production-cut accord. Additionally, commodity currencies like AUD, NZD and CAD also registered weekly positive closings on China’s upbeat inflation even if RBA didn’t sound too optimistic but the RBNZ was in a good mood to support the Kiwi.
While political waves played a crucial role during last-week, the moves didn’t rest even on weekends. The latest news came from the Australia wherein the Government’s rule is challenged by another leader’s quit in the dual-citizenship saga after the nation’s Deputy PM had to resign over the same issue before nearly fortnight. The UK PM also had a bad news following Sunday Times’ report that nearly 40 members of parliament are ready to ink a letter of no confidence for the present occupant of the position, Theresa May, who is already struggling to manage her power amid widespread resignations by British lawmakers during recently erupted sex-scandal. In addition to the dip in AUD and GBP, the Crude prices also remained volatile on early Monday as rising US rig counts and Saudi Arabia’s signal to raise security of its crude facilities after a fire at a pipeline that connects the two Arab allies entertained traders.
At the economic calendar, increase in Prelim Machine Tool Orders helped the JPY to stretch its up-moves whereas the EUR had to witness a pullback after German WPI lagged behind consensus & prior. The US Dollar, however, recovered some of its latest losses with Trump’s Asia tour about to complete with no threats received from North Korea, which in-turn unearthed the chances of a talk between US and the hermit kingdom to tame the prevailing tension.
For the rest of the day, there are no major fundamental numbers scheduled for publish and the Canadian markets are also closed for the day, which in-turn indicate softer start to the crucial week that contains headline CPI & employment release from major economies. Though, early-day speech by Philadelphia Fed President, Patrick Harker, helped supporting the rate-hike concerns and the same could continue till end of the day as there are nothing more to observe. However, one shouldn’t ignore the political developments concerning US President’s tax-hike plan at his land, which aren’t going well and may keep hurting the greenback.
Technical Talk
Following its break of short-term ascending TL support, the NZDUSD bounced off a 0.6910 support and is presently struggling to extend latest recovery, which can meet 0.6960 & 0.6980 on the break of 0.6930, with 0.6910 & 0.6880 acting as immediate supports. Further, USDJPY couldn’t clear the 113.70 intermediate resistance-mark during its up-moves to 114.30 and may revisit 113.10 and 112.80 rest-points. Moving on, EURGBP cleared 0.8885-90 horizontal-resistance and may now rise to 0.8940 & 0.8970 north-side numbers while 0.8850 & 0.8810 can confine the pair’s near-term downside.
Have a nice trading-day ……