Another bad day for US dollar, in the wake of yesterday news of the U.S President Donald Trump disclosed highly classified information to Russia's foreign minister about a planned Islamic State operation. Today concerns had raised about slowing the schedule of Trump’s economic reforms, with the possibility of obstruction of justice charges could be laid against the president. That’s Besides the disappointed data from the U.S economy last week as we mentioned yesterday.
Reports that Trump asked then-FBI Director James Comey to end a probe into his former national security adviser, in the wake of turmoil week in the white house after Trump fired Comey, then the disclose the classified information.
All of this hit the US dollar sharply, so the dollar index erased its gains over six months since Trump won the elections to reach the lowest level at 97.65. investors ran away searching for safe haven because of these turmoil, as USDJPY reached lowest level since the beginning of May at 111.58, also Gold managed to reach again levels of 1250$.
In Australia, however rising in wages price in the first quarter of 2017, it is still represent a burden because of it’s near to lowest level historically, which makes RBA going on its easing monetary policy.
Employment data of UK continued to surprise markets since voting on Brexit, as Unemployment rates printed the lowest record over 42 years, but there are still some concern about wages rising in the wake of continuous inflation and the expectations to reach 3% by end of this year.
In Euro area, ECB still awaiting to more proofs of sustained inflation rising, to think of shifting its policy and stop the stimulus program. Today Final CPI came at 1.9% in April as expected.
Oil prices try to keep its gains over the past days and staying higher than levels of 48$, and if it succeeded to stay higher, it would reach levels of 49/50$. As US inventories declined for the sixth week in row.
Technically, we will spotlight the major movement in the market today in the following :
The pair still trading higher after penetrating the ascending channel reaching the highest levels over sixth month near to 1.1140, exceeding this level would send prices much higher till 1.13. the failure of overcoming current strong resistance could send it lower for testing support levels at 1.1050 then 1.1020.
Prices are still moving inside ascending channel, currently the pair targeting resistance levels at 1.2998 then 1.3030. if prices couldn’t penetrate the channel higher we would see prices again at the bottom border near to support level at 1.2875.
We mentioned in the morning report that the pair in its way to support level at 112.09, prices managed to break this level down and targeting now next support at 111. Staying higher than this level would send it again to test level of 112.
Prices formed a reversal bump and run pattern with exceeding 1240$, the target will be at levels of 1277$. Currently prices reached levels of 1258$ and next resistance will be at 1262$. Breaking it through would pave the way to prices to reach the target. In the way down support levelswill be at 1255$ then 1247$.