What is moving the markets today
Forex today: a lot of market’s movements
- The US dollar index is slightly lower, however, nothing noticeable. There is no significant movement. The greenback is near 93. Thursday’s economic data will influence the further USD’s movement. CPI and Core CPI will be out at 15:30 MT time. The forecast is encouraging. If the actual data is greater than the forecast, the US dollar will return to previous highs.
- The euro managed to turn around after 4-day fall. No important data is anticipated until the next week, so the EUR/USD’s movement will depend on the USD. If the US dollar moves lower, the euro will be able to break the resistance at 1.1860. If the US dollar strengthens after the release of the economic data, the single currency will fall. The next support is at 1.1770.
- There are risks for the pound ahead of the BOE statement (14:00 MT time). GBP/USD rebounded from the 200-day MA and is moving to the pivot point at 1.36. The further movement will depend on the votes. If all 9 members of Monetary Policy Committee vote not to change the rate, GBP/USD will decline to 1.3350; if all of them vote to raise the rate, the pound will go up to 1.3850; if 2-3 of 9 members vote for the rate hike, the pound will find a support at 1.36.
- The bullish trend in the oil market continues. The rise is not so extensive as it was on Wednesday after US president Mr. Trump announced the US would withdraw from the Iran nuclear deal and re-impose sanctions. Both oil benchmarks Brent and WTI renewed highs of the end of 2014. Brent is trading around $77.70, WTI is slightly above $71.50.
- As oil is soaring, the Canadian dollar is highly appreciating against the US dollar. On Wednesday, USD/CAD rebounded from the resistance at 1.2945, formed bearish engulfing and managed to break the support at 1.2860. On Thursday, the pair has broken the support at 1.28. If it is able to close below this level, the next support will lie at 1.2740.
- The RBNZ dovish comments pulled the New Zealand dollar down. The central bank kept the interest rate unchanged at 1.75%, lowered its inflation forecast, and noted the deterioration in inflation. It made traders think about the future of the interest rate. The NZD/USD pair is above the support at 0.6920. If the pair closes below it, risks of the further fall will increase. The next support is at 0.6860.
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