News & Analysis
BOC holds rates – USDCAD jumps; Oil drops – demand worries; DAX support bounce.
Today’s high impact news:
▸ 00:30 USD Unemployment Claims
▸ 03:00 EUR ECB President Draghi Speaks
U.S equity market traded mixed overnight, tech stocks rallied for a 2nd day lifting the NASDAQ to a 14.16 point gain. The Dow Jones closed 39.73 points lower, the S&P lost 0.30 points in quiet trade. Investors also kept an eye on Washington as they awaited new details on Congress negotiations to overhaul the U.S. tax code. President Trump may impose a government shutdown this Saturday. European markets traded mixed, the FTSE closed 20.53 points higher and the DAX finished 49.69 in the red. We saw a support bounce on the GER30 our CFD that tracks the DAX. Traders should keep an on this as it may start a new leg up. In the latest news surrounding the divorce proceedings between the U.K. and the European Union (EU), British leader Theresa May is facing pressure from fellow political parties to soften negotiations by keeping the U.K. within the customs union and the single market after it leaves the political-economic bloc, Reuters reported.
The Bank of Canada held rates as expected, this drove the CAD lower to the USD. The USDCAD closed 102 pips higher. The GBP continued its red week closing lower to the USD and JPY. The AUD closed sharply lower to the USD and JPY. The EUR lost further ground to the JPY and USD both making new weekly lows. Gold softened further overnight losing $1.00 bulls are continuing to fight back from 1260.60 support. Oil fell by 2.88% breaking through $57.20 support on global demand worries. U.S. gasoline, distillate stockpiles build sharply – EIA. U.S. crude stocks drop, production at new weekly record –EIA.
The Aussie dollar can’t miss a beat atm as Australia’s trade balance came in way under expectations. Australia’s trade balance shrunk from 1.75B to .11B after today’s figure. The AUD has continued lower losing a further 17 pips.
US30 – has formed a Doji candle this could be the starting point of a reversal. We want to see 24,130 continue to hold for buyers. If we do see a rally buyers should watch 24,328 resistance if reached.
Good trading from Eightcap.
Sources; Reuters, CNBC
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