Dollar is negatively impacted by Trump’s new tax decision and gold is climbing to the 1321 level
The Asian trading session was devoid of any major reports, which only served to highlight a strong report from New Zealand, which led the kiwi to gain ground across the board.
In the meantime, the greenback continues to lose ground against its major peers as market participants are anxious about the impact of Trump’s tariffs on both U.S. businesses and consumers.
The economic release from New Zeland has shown building approvals increasing by 0.2% for the month of January as the increase in permits for apartments, townhouses, and new houses made up for declines in retirement unit applications.
As for Japan, the country’s employment conditions witnessed a sharp decrease in its unemployment rate for the month of December. The report recorded the jobless rate falling from 2.8% to 2.4%.Separately Tokyo consumer prices rose by 0.9% in January. This report is seen as a leading indicator, which was recorded better than the BOJ’s core CPI reading of 0.8% for the month of December.
The forex market struggled to find any catalysts, but the Asia equities and commodities markets were at ease. Market participants continued to take into account Trump’s current policy changes which consist of slapping a 25% tax on steel imports and a 10% tax on aluminum purchases.
As for commodities, Gold is down by 0.01% to $1,316.83; Brent crude oil is down by 0.47% to $63.88, and U.S. WTI is down by 0.64% to $60.93.
The trading trend in the Pound today is expected to be determined by UK Prime Minister’s Brexit speech due later today which is likely to decide UK’s future with the European Union.
GBP/USD – The GBP/USD is expected to find support at 1.3735, and a fall through could take it to the next support level of 1.3685. The pair is expected to find its first resistance at 1.3815, and a rise through could take it to the next resistance level of 1.3845.
EUR/USD: Despite dipping to 1.2155, EUR/USD could not sustain below 1.2205 key support and recovered.
GBP/USD: A temporary low is formed at 1.3710 in GBP/USD and intraday bias is turned neutral first.
USD/CAD: At this point, intraday bias remains on the upside for 1.2920 key resistance.
USD/CHF: Despite reaching as high as 0.9490, USD/CHF failed to stay above 0.9470 resistance and retreated.
USD/JPY: USD/JPY’s break of 106.35 minor support suggests rebound from 105.55 has completed.
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***Information contained in this newsletter are gathered from third parties and should not be regarded in any way as trade advice or recommendations by CM Trading. CM Trading does not recommend or advise traders or investors in their decision making but merely provides information from the market for its clients as additional information is made available as per the events occurring in the financial markets.
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