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A mixed day today for the U.S. Dollar, with the greenback trading lower in early trading, with the Fed’s Bullard stating the last rate hike by the Fed back in December may have “slightly overdone it” then going on to say that he was glad the committee pivoted to a more accommodative and data-driven approach. The Dollar did pick back up in later trading, pushing back to neutral territory, aided by two additional Fed Members making speeches with the Fed’s Williams saying that the U.S. economy is in a very good place and the economic risks from abroad have receded somewhat.
On the technical front, little has changed for the Dollar Index, we are still sitting towards the top ends of recent highs and we have seen the price push and try to clear the high from back in April, but as you can see from the chart below failed to clear and has seemingly run out of momentum, however, it does have the previous resistance level to now act as support and hold the price higher.
US DOLLAR – Daily
Another day of declines for Sterling today as Prime Minister continues to fight for a Brexit deal, despite the mounting pressure to both get a deal and hold on to her position as Prime Minister. As of writing the Cable rate is down -0.51%, ever so slightly up from lows of the day to the lowest since the start of the year. This is mainly due to a complete lack of faith from MP’s in the Prime Minister’s ability to get a deal done, this lack of faith isn’t just from opposing party MP’s, it is also coming from MP’s in her own party and speculation rises that cabinet ministers may ask the PM to resign given the minuscule change her latest Brexit deal proposal has of passing Parliament.
On the technical front, today’s trading has seen the price bulldoze through the support level that we mentioned previously (thin red dashed line) and we are now looking towards the 1.2500 level and the next low from December of 2018.
GBPUSD – Daily
Forex Majors Summary
Oil has seen another day of declines today, at its worst trading down in excess of 2.2% on the day. With Oil opening the day at $62.95 and only managing to gain $0.05 a barrel before getting hammered and trading lower steadily all day before seeing aggressive sell-offs in late trading. One of the factors driving this decline is the surprise Inventories data out of the U.S., which saw an increase of 4.7 million barrels, the reason this is such an important figure is due to the analyst expectations for this figure was a decline of close to 600K barrels. As of writing, we are seeing Oil trading down $1.33 a barrel or -2.11%.
A choppy but ultimately flat trading day today for the precious metals markets, mirroring the trading partner of the Dollar Index today. Currently Gold is sitting fractionally in the green, up $0.35 an ounce or +0.03% and Silver is up $0.01 an ounce on +0.09% on the day.
USOUSD – Daily
Another red day across the board for both European & U.S. Indices, with the exception of the FTSE 100, which has managed to push into positive territory and hold they’re going into the end of the trading session, despite some of the “Brexit sensitive stocks” sinking on PM May’s Brexit proposal falling flat.
The U.S. Indices also opened the day lower, following the European Indices but the S&P500 also being pulled lower by the Information Technology sector pulling the index lower, this on the back Qualcomm tumbling as the Judge ruling that the company violated antitrust law in the chip market.
Cryptocurrencies seeing a bit of a slide today, with all the digital currencies on our monitor sitting in the red with the exception of Monero. Bitcoin still capped by the $8,000 level but despite this, all of the crypto’s are still sitting at the top end of their 30-day trading range.
For the latest Chart of the Day by our click here.
By Alex Simcock
This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk.
Sources: GO Markets MetaTrader 5, Datawrapper, Tradingview, CoinMarketCap, Bloomberg, Twitter