Daily Report on January 12, 2017
The U.S. dollar slipped on Thursday, as President-elect Donald Trump's highly-awaited news conference contained no details on tax cuts and infrastructure spending. Trump, who takes office on Jan. 20, failed to offer details on those two factors that had fuelled the five-week rally in stocks and dollar, and instead took aim at pharmaceutical companies and U.S. intelligence agencies in his first news conference since the Nov. 8 election.
As a result, the dollar index, which tracks the U.S. currency against a basket of six major counterparts, slipped 0.63 percent to 101.08 in early European trading hours. The benchmark had risen to a one-week high on Wednesday, ahead of Trump's news conference. The greenback fell to as low as 114.047 yen, its lowest since Dec. 9, down more than 1% on the day.
Trump did not mention possible tariffs against Chinese exports as well, which is considered a relief for Asian share markets that concerned the outbreak of a global trade war. MSCI's broadest index of Asia-Pacific shares outside Japan jumped 0.6 percent to its highest since late October. Shanghai stocks edged up 0.2 percent while Japan's Nikkei slipped 0.9 percent as the yen climbed on a retreating dollar.
According to NDRC spokesman Zhao Chenxi on Thursday, China approved 227 projects worth 1.704 trillion yuan ($246.55 billion) in 2016. In December only, the country’s National Development and Reform Commission (NDRC) approved 23 fixed-asset projects worth 184.0 billion yuan. China will invest 1.2 trillion yuan ($173.57 billion) between 2016 and 2018 in a three-year action plan to develop information infrastructure.
Fig: USDJPY H4 Technical Chart
As can be seen from the price chart, USDJPY has breached the 61.8% Fibonacci retracement at 114.105. As the market has entered the oversold zone, the decline is expected to be short-lived. However, the –DI is soaring strongly, suggesting that the pair can attempt the support at 113.200 – the lowest level since December 08, 2016.
Buy Digital Put Option from 113.900 to 113.200 valid until 20:00 GMT January 12, 2017
Fig: NZDUSD H4 Technical Chart
NZDUSD retreated from a one-month high at 0.71200 as the sharp rally had sent the market into the overbought one. The pair is expected to fall into a correction before resume its up moves. A surging ADX index with a divergence between the +DI and –DI lines show a strong bullish momentum in the market.
Buy Digital Call Option from 0.71200 to 0.71600 valid until 20:00 GMT January 12, 2017
Fig: WTI H4 Technical Chart
U.S. light sweet crude price pulled back after hitting the short-term MA20 at 52.13. The commodity is swinging back and forth around the key level at 52.30. The dynamic resistance – long-term MA50 is within the sight. RSI moving past 50 line indicates further advances.
Buy Digital Call Option from 52.50 to 53.00 valid until 20:00 GMT January 12, 2017
EURO 50 Index
Fig: EURO 50 Index H1 Technical Chart
Euro 50 index opened today’s session with a wide gap down and kept falling lower to retest yesterday’s low at around 3283.40. Two latest bearish candles have no upper shadows, showing strong sellers in the market. RSI index which returned to the bearish zone also confirms further declines.
Buy Digital Put Option from 3285.00 to 3270.00 valid until 20:00 GMT January 12, 2017