Today’s main events are RBNZ’s Interest Rate decision and Crude Inventories report

November 8, 2017

Dollar Down On TAX Delay Rumours, Focus On RBNZ and EIA.

Today’s main events are RBNZ’s Interest Rate decision and Crude Inventories report

This article is originally referred from FXPrimus News

FXPrimus has summarized the important indicators of the day.

Today’s Important Indicators

Dollar weakened overnight on reports that US Senate Republicans are likely to delay corporate tax cuts, while Treasury Yields shifted to a negative territory.

Today, market participants will pay attention to RBNZ Rate decision where the Bank is widely expected to leave rates unchanged.

In addition, EIA is due to report their weekly Crude Inventories, an event that could produce opportunities.

Today’s Forecast for Important Trading Indicators

Market Movers

  • USDJPYAlthough dollar ended the session higher, gains evaporated amid rumours for corporate tax cut delays. Dollar rose during yesterday’s early session and managed to close nearly 30 pips higher against Yen, however, more than half the gains faded on reports of a delay to corporate tax cut. Since price was rejected at the 114.16 few days back, and with a divergence appearing on the many time-frames, Dollar is likely to struggle maintaining the bullish momentum.

USDJPY 4-HOUR CHART

  • BTCUSD – Bitcoin finds support at $7000, surges $430 higher in anticipation of November’s fork. Bitcoin fell a few days back on taking profit and remained around the $7K key level, where price formed a double bottom pattern. A few hours back price appreciated near the all-time high as investors and traders buy the crypto-currency ahead of November’s fork.
  • EURUSDEuro hits a fresh 3-Month low on Draghi, recovers some losses but closes the day lower. EURUSD closed yesterday’s session nearly 20 pips lower amid Draghi’s speech at the ECB Forum on Banking Supervision. It has been a few days since the pair moved (and retested) below the 100 DMA, maintaining its price within the bearish channel started on September 8.

EURUSD DAILY CHART

  • USOILWTI maintains $57pb price despite API draw, while Saudi purge continues. Crude Oil fell marginally yesterday despite yet another stocks draw as rally comes to a rest on profit taking. Oil price is likely to experience some swings today during the EIA’s report while the Fibonacci Extension on the weekly chart shows $60 next.
  • XAUUSDGold falls on Dollar’s bullish momentum but struggles to recover losses on Dollar’s bearish shift. Spot Gold closed the session at $1274 after it lost most of its momentum on lower Gold demand, despite Dollar’s decline on a possible delay on the corporate tax cut. Gold is currently trading ~$3 higher; no major events are scheduled for the US Dollar for the rest of the week.
  • In US Indexes, both DJ and S&P closed almost unchanged marking a quiet session.
  • In Europe, UK 100 is trading 0.12% higher, and DE 30 0.29% higher.
  • In Asia, ASX 200 closed unchanged, Nikkei declined 0.10% and Hang Seng trades 0.31% lower.
  • In stocks, BoA fell by 2.05% while Twitter rose by 1.39%.

Original Source: FXPrimus News

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