Previous Week
US dollar has lost more than 1% after the Jackson Hole symposium. US Fed chairman has kept the door open for a future rate cut but warned there will be a slowdown in the US economy due to the US-China trade war. The downside of the dollar index is limited as an escalation of the US-China trade war has increased demand for Safe-haven assets like dollar, yen and Swiss franc.
DXY has jumped more than 50 pips from the previous week low 97.17 and closed at 97.63.
The precious metal hits 6-year high on US-China trade war escalation and dovish monetary policy stance by the Fed. It hits high of $1555 and is currently trading around $1542.20.
US 10 year bond yield continues to trade lower and lost more than 12% in the past two trading days after dovish comment from Fed Chairman. It is currently trading at 1.458%. The yield curve between US 10 year and 2 year got inverted which increases the chance of recession.
Weekly Technical:
EURUSD:
Major trend reversal level- 1.1185
Near term support- 1.1095/1.0250
Near term resistance – 1.1185, 1.12300
USDJPY:
Major trend reversal level- 106.70
Near term support- 104.60/103
Near term resistance – 106.70/107.50
USDCHF
Major trend reversal level- 0.9660
Near term support- 0.9660/0.9540
Near term resistance – 0.9820/0.9900
USDCAD
Major trend reversal level- 1.335
Near term support- 1.32490/1.3180
Near term resistance – 1.3350/1.3435
Gold
Major trend reversal level- $1565
Near term support- $1498/$1470
Near term resistance – $1565/$1600
WTI Crude
Major trend reversal level- $50.50
Near term support- $53.50/$52
Near term resistance – $54.75/$57.
Major Economic events for the week
US Core Durable goods orders m/m – Monday (12:30 PM GMT)
German Ifo Business climate- Monday (8:00 PM GMT)
US CB Consumer Confidence - Tuesday (2:00 PM GMT)
Prelim GDP q/q - Thursday (12:30 PM GMT)
US Personal spending m/m- Friday (12:30 PM GMT)
