easyMarkets: The Bullet Report (12 Oct 2017)

The Bullet Report Straight to the point

by Nicolas Shamtanis Chief Sales & Retention Officer 1. The dollar fell to two-week lows against other major currencies on Thursday, amid fresh uncertainty over a potential U.S. rate hike before the end of the year and as investors eyed a batch of U.S. economic reports due later in the day.  2. EUR/USD continued the rebound from earlier this week. The move was due to overall dollar softness. Catalan developments hardly affect the single currency. US PPI data are expected to rise today. However, USD investors probably want a clear signal from tomorrow’s key US data before changing tactics on the dollar. EURUSD faces strong resistance at 1.1880 as it trades at 1.1860 at time of writing. Support is at 1.1830.  Elsewhere, GBP/USD rose 0.27% to trade at 1.3256, the highest since October 4. 3. With regards to the FOMC statement from yesterday, Most Federal Reserve officials believed at their September meeting that they would likely raise short-term interest rates again this year, but some cautioned the decision would hinge on whether inflation picks up. That is why tomorrow’s CPI data is extremely important.  4. After a cautious comeback, the USD is again losing ground this week. No news is apparently bad news for the dollar. USD investors want concrete news on the tax reform, on the economy and on the Fed’s rate intentions. The absence of progress on these issues causes some “by-default” USD selling. Higher Inflation data might be slightly USD supportive, but it won’t be a trigger for a U-turn. 5. A big beneficiary from the FOMC minutes has been GOLD, which rose to its highest level in 2 weeks of $1297 which is also a significant resistance level. A break from here could lead the yellow metal as high as $1316, provided that CPI data would be weak tomorrow.  Trading could lead to a loss of your invested capital

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