Daily Market Review April 07



Future interest rates scenario keeps on sending ripple effects on the global economic market, also taking down the U.S. dollar. The greenback has now slid to a 17-month low against the Yen and the pair USDJPY stood at 108.85 Yen earlier today, which is the lowest level seen since October 2014. The USD is set to further hit the lows amidst concerns of the Federal Reserve of whether to hike rates or not. The USD is currently weak against a basket of currencies, thus a close scrutiny of the market would be an advantage.

Contrary to what analysts were expecting, U.S. crude inventories fell yesterday which generated quite a positive support to crude prices. On this note, International Brent futures LCOc1 went back to trade above $40 and was seen at $40.10 a barrel earlier today. U.S. WTI crude CLc1 traded at $38.09 a barrel. A good sign, but this might not be a lasting effect though, since crude futures are still surrounded by fears of low exports and higher output.

On the other hand, soaring oil prices helped to boost stocks and Indices were seen higher yesterday. The FOMC meeting generated quite much buzz also, as the Fed indicated that it could take some time to raise the rates. The S&P 500 rose by 21.49 points to settle at 2.066.66 points which was a nice rally to see after days of losses incurred. Health care stocks also prompted the index to surge higher. The Dow Jones Industrial Average also hiked up by 0.6 percent, rising to 17,716.05 points.

Technical Analysis:
The pair EURUSD looks ready to go higher on this chart as a bullish momentum was seen earlier today. Given cues from the European Central Bank are going to be of great interest to traders today, they will gauge the market closely to evaluate the current economic state of the Eurozone. Mario Draghi is set to speak today, but that is yet to be confirmed. His speech is definitely going to add spark to the ascent of the EURUSD pair. Yesterday, the pair EURUSD commenced the session around the 1.138 level where it consolidated the day before. Within the first few hours of trading, the pair was brought down to the 1.134 but from there on the pair was hammered to the 1.142 level and is consolidating there. Keep an eye.
The USDJPY is bearish! This has been the matter since the beginning of this year with the dollar coming up each time, but getting quickly dragged back in the lows. Major currencies take advantage of the weakness of the dollar as it dips in the lows. The Yen is being provided with boost by Japan’s central bank, which has played well in the favor of the Japanese currency. The parabolic SAR indicator shows that the pair may adopt this bearish trend for a while, with the dotted lines hovering above the candles. Yesterday, the pair USDJPY commenced the session around the 110.3 level and consolidated before being dragged down to the lows at the 109.7 level. Support line is down at 108.80 level. Keep an eye on trends today.
Not much is expected from the GBPUSD pair, but the slight ascent seen for the pair is trying to revive the sentiment. Tomorrow will be the day to watch out for this pair as UK gets ready to release a bunch of data, which could help jolt the GBP. Traders hope that the economic releases are going to stand by the British pound tomorrow. The pair is expected to go higher but the direction is still uncertain while the 1.435 remains the higher resistance line. Yesterday, the pair started the session around the 1.415 level to consolidate in this first few hours of trading, but was dragged down to the 1.401 level. However, the pair managed to climb up at the 1.415 level to close the session around the same level.

 

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