Daily Analysis | 08 December 2017
The Employment Report today forecasted to include a Non-Farm Payrolls figure of about 198k, an unemployment rate of 4.1% and accelerated average hourly earnings at the rate of 0.3%. The actual figures were – Non-Farm Payrolls: 228k (better than expected), an unemployment rate of 4.1% (as expected), and accelerated average hourly earnings at the rate of 0.2% (worse than expected). The dollar fell against all major currencies expected the GBP. On another development, the possible US Government shutdown has been postponed temporarily as US Congress passed a bill to temporarily fund the US government until the 22nd of December. On the tax front, media reports suggest that a possible wrap up of the tax reform is possible even earlier than the 22nd of December. Hence, currently the fundamentals could support the USD, however, it remains to be seen if the actual figures of the employment report will meet the forecasted ones as aforementioned.
EUR/USD rose by roughly 40 pips yesterday during the European morning only to surrender any gains later on and continue to trade within the boundaries (Upper: 1.1960 (R3), Lower: 1.1550 (S3) ) of a sideways movement which began on the 14th of November. In case of a strong Employment Report print today, the bears could take the reins, break the 1.1725 (S1) barrier and aim for another test at 1.1680 (S2). On the other hand, if there is a disappointment in the market for USD the pair could break the resistance level of 1.1820 (R1) and aim for the 1.1880 (R2) resistance zone.
- Support: 1.1725 (S1), 1.1680 (S2), 1.1550 (S3)
- Resistance: 1.1820 (R1), 1.1880 (R2), 1.1960 (R3)
Bitcoin almost reached 17,000
Bitcoin is again in the headlines as it soared yesterday reaching unprecedented heights. There still seems to be no clear fundamental catalyst behind the cryptocurrency but opinions expressed in media reports, seem to converge towards multiple factors. Speculation could be one factor as investors consider that the cryptocurrency has not reached its upper limit and gains still run high. Another factor that could be mentioned is that the total number of Bitcoins is currently capped at around 21m with around 16.7m already released, meaning that new Bitcoins will be increasingly more difficult to mine and increasing demand could be satisfied currently, only through higher prices for the cryptocurrency. Also, the fact that Cboe, CME, and NASDAQ are preparing to launch Bitcoin trading instruments in the near future could be perceived by investors as a further step towards an international acceptance of Bitcoin.
Bitcoin prices surged yesterday after finding fresh buy orders near the 13000 (S2) level, to break all of yesterday’s resistance barriers and reach the new resistance level of 17000(R1), then it surrendered any gains above the 14000 (S1) support barrier. Should the bulls regain the driver’s seat, we could see the cryptocurrency break the 17000 (R1) resistance barrier and aim for the psychological territory of 18000 (R2). In case of a correction lower, we could see Bitcoin break below the 13000 (S2) support level and aim for the 11500 (S3) territory.
- Support: 14000 (S1), 13000 (S2), 11500 (S3)
- Resistance: 17000 (R1), 18000 (R2), 19000 (R3)
From the US, we get the Employment Report for November, while from the UK we get Octobers Industrial production and from Canada, the Capacity Utilisation Indicator is to be released.