News & Research

Japan rate decision: The Bank of Japan maintained its interest rates at minus 0.1% and the 10-year government bond yield to around zero%. The Central bank raised its growth projections for the fiscal year beginning in April to 1.5% from 1.3% in the previous month due to positive expectations for exports. Projections for growth in 2018 have also increased. BOJ Governor Haruhiko Kuroda reassured reporters saying U.S. President Donald Trump’s protectionist policy will boost growth in the US and around the world. Kuroda also said the 2% inflation target may take longer to achieve.
UK rate decision: The Bank of England maintained its benchmark rate at 0.25% and voted to continue its quantitative easing measures. The Central bank raised its forecasts for the UK economy, increasing the odds for a rate hike rather than a rate cut. The bank predicts the economy will grow 2% this year and the unemployment would be much lower than previously projected. Growth has remained resilient since the Brexit vote and policymakers expect growth to continue in the coming months.
US Building Permits: The number of building permits surged 4.6% in January to a rate of 1.29 million units, the highest level since November 2015 indicating the housing market will increase its activity in the coming months. Economists had forecast permits would remain at 1.23 million units. This positive data together with the tight labor market shows the economy continues to improve. The number of building permits is expected to reach1.26 million this time.
US Philly Fed Manufacturing Index: Philly Fed’s manufacturing activity survey exceeded expectations registering 43.3 for February, way above economists’ expectations of 18.5, jumping higher up from the 23.6 reading in January. This is the highest reading for the index since 1984 and the largest gap between the reading and expectations since 1998. The current new orders index increased 12 points this month. The exports index increased 8 points. Other broad indicators also corroborate growth. Manufacturing activity in the Philly area is expected to reach 30.2 in March.
US Unemployment Claims: The number of Americans filing new claims for unemployment benefits increased from a 44-year low to 243,000 in the week ended March. However despite the 20,000 rise the reading still remained at a healthy labor market conditions. Economists expected claims to reach 239,000 for the week. The four-week moving average of claims fell by 2,250 to 236,500. The positive reading shows the labor market is near full employment and is ready for another rate hike. The number of jobless claims is expected to rise to 245,000.

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• EURUSD

Update: The pair may reach the level of 1.0770 and 1.0800 during the week, then if it shows some negative factors it may go down to reach the level of 1.0750 followed by 1.0650. The pair is on its way to reach the level of 1.0800 during the week. It is our strong resistance level for the week so we believe that as long as the pair is traded below it, it is highly recommended to go short targeting the level of 1.0650 during the week. On the other hand, breaching the level of 1.0800 opens the door for further upward movement that the pair may reach the level of 1.0850.

Resistance levels:	Support levels:	Recommended:
▪ 1.0770 ▪-1.0800 ▪ 1.0850	▪ 1.0650 ▪-1.0600 ▪ 1.0500	We remain bearish as long as the pair is traded below the level of 1.0800

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• GBPUSD

Update: As could be seen on the chart that the pair managed to form a bullish candle patter: (Bullish Engulfing) so this is a good sign that the pair may continue its bullish movement during the rest of the week. As could be seen on the chart that the pair is traded above a strong support area around: (1.2080 – 1.2040) so as long as the pair is traded above it, it is highly recommended to go long targeting the level of 1.2400 during the week.

Resistance levels:	Support levels:	Recommended:
▪ 1.2400 ▪-1.2500  ▪ 1.2600	▪ 1.2080 ▪ 1.2040 ▪ 1.2000	We remain bullish as long as the pair is traded above the level of 1.2040

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• GOLD

The pair managed to break through the level of 1216 so we believe that as long as the gold is traded above 1216 the way would be open for the pair to reach the level of 1230 – 1240 – 1250 during the week.

Resistance levels:	Support levels:	Recommended:
▪ 1260 ▪ 1240 ▪ 1230 ▪ 1216	▪ 1190 ▪ 1180 ▪ --	We remain bullish as long as the pair is traded below the level of 1216.

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• AUDUSD

Update: Targets were hit so here is a new scenario. The pair is now traded right below a strong resistance level around 0.7720 so we believe that as long as the pair is traded below them, the pair may go down to reach the level of 0.7600 during the rest of the week. On the other hand, breaching the level of 0.7720 opens the door for further upward movements.

Resistance levels:	Support levels:	Recommended:
▪ 0.7720 ▪0.7800 ▪--	▪ 0.7410 ▪ 0.7400 ▪ 0.7600	We remain bearish as long as the pair is traded below the level of 0.7720

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• GBPJPY

Update: a slight weakness could be noted on the pairs of GBP. Today's bearish candle doesn't have that much effect on the pair, it is just the beginning of the day. The pair is traded right above a very strong support level around 138.70 so we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 142 during the week. On the other hand, breaching the level of 138.70 opens the door for further downward movement that the pair may reach the level of 137 during the week.

Resistance levels:	Support levels:	Recommended:
▪ 142 ▪ 144.70 ▪ --	▪ 138.70 ▪ 138 ▪ 137	We remain bullish as long as the pair is traded above the level of 138.70