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Market View

US Markets on the wires before Trump's speech

Tuesday, February 28, 2017 6:01 AM GMT

USD-correlated pairs are in the spotlight today. Trump’s upcoming speech will dominate the markets today after London’s close.  Yesterday, Eurozone indicators were mixed while in US, Durable Goods were increased by 1.8% in January. Today, before Trump’s appearance, we are expecting US GDP to stay unchanged at 2.1% but Consumer Confidence lower at 110.9. Overall Trump’s speech will be the event to watch closely as markets expect more details on his administration policy. Major US Indices (SP500, US30, NAS100) continued their bullish momentum as Donald Trump said yesterday in his first budget proposal will include a “historic increase” in defense spending, to be paid for by savings through the federal government. The goal is 54$ billion extra on the defense budget. This boosted many defense stocks during the day. 

However, as we said, the market anticipates more specification as Trump has promised to unveil a remarkable tax reform and substantial spending on infrastructure. If he fails to provide satisfactory announcements, the market momentum will turn bearish especially for US dollar.

Technical View on Major USD-pairs

As you will notice, there is consolidation on all pairs as the market expect the next catalyst news. President Trump may be the one that will give the next move.

EURUSD Daily

The 1.06 level is critical. If it breaks out and confirms this level, then it may head at 1.068 resistance. On the other hand, if it violates 1.055, then it may see new lows. 

 

GBPUSD Daily

The pair moves between 180pips range for many days. We have noted both scenarios in case there is a violation of upper and lower level.

 

USDJPY Daily

There is a potential falling wedge. If it breaks out this pattern then the pair may see the upper resistance at 114.3. However if it violates downwards the 111.6, it will head at 109.4.

 

USDCHF Daily

The pair “respects” the upward trendline (white). So, either it will continue higher after the valid retest of current level or we may see a bearish breakout of 1.004 level.

 



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