Gold Futures Settle Lower As Dollar Rebounds

Trading 21 sept 2018 Commentaire »

Gold prices drifted lower on Friday, as the dollar moved up against a basket of major currencies and equities edged higher amid easing worries about U.S.-China trade war impact on the global economy.

Traders are gradually switching over to stocks amid hopes the U.S. economy is well poised to register impressive growth in the coming quarters. On Wall Street, the Dow and the S&P 500 both reached new record intraday highs on Friday.

The dollar index, which tumbled to a more than 3-month low of 93.39 earlier in the day, rose to 93.84 subsequently, gaining 0.37 points, or 0.40%.

Gold futures for December ended down $10.00, or 0.80%, at $1,201.30 an ounce, the lowest close in the week. On Thursday, gold futures ended up $3.00, or about 0.30%, at $1,211.30 an ounce, the highest settlement price so far this month. For the week, the yellow metal recorded a small gain of less than 0.1%.

Silver futures for December settled at $14.359 an ounce, gaining $0.054. Copper futures for December ended higher by $0.1175, at $2.8575 per pound.

It is widely expected that the Federal Reserve will raise interest rates by 25 basis points when it announces its monetary policy next week. The Fed's views on the economy and outlook for futures rate hikes will set the near term trend for the markets.


The material has been provided by InstaForex Company - www.instaforex.com

*Crude Oil For November Delivery Climbing $0.71 To $71.03 A Barrel

Trading 21 sept 2018 Commentaire »

Crude Oil For November Delivery Climbing $0.71 To $71.03 A Barrel


The material has been provided by InstaForex Company - www.instaforex.com

Global macro overview for 21/09/2018

Trading 21 sept 2018 Commentaire »

The PMI reading for the Eurozone confirmed what was obvious after the data from Germany and France was published. The mood in the industrial sector has deteriorated, which is not beginning to be reversed. It is just the opposite. The index for Eurozone dropped from 54.6 to 53.3 points (versus a forecast of 54.5 points).

The Eurozone Composite Purchasing Managers Index (PMI) assesses business conditions in manufacturing, construction and service sectors. The Eurozone PMI is both a significant and timely indicator of business conditions and the general health of the economy. Close correlation with the business cycle, assessed on the basis of long-term statistical data, allows using the PMI indicator for prognosis of future GDP volumes. The PMI indices are based on selected panels of executives in companies who report each month on real events. The subindex of intangibles sector - PMI services - is of more importance because in industrialized countries around 70% of GDP is generated in the non-manufacturing sector.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. Such weak data cool down the eagerness to buy the euro across the board. EUR / USD went down to 1.1770, or about 40 pips under the daily highs, which is the nearest resistance (the next is at the level of 1,1850). The technical support is seen at the level of 1.1740-50 and then at the level of 1.1655. It will be very important weekly candle close and the key level of interest is the area of 1.1750, where demand should be activated.

analytics5ba5128420e2e.jpg

The material has been provided by InstaForex Company - www.instaforex.com

Global macro overview for 21/09/2018

Trading 21 sept 2018 Commentaire »

Statistics Canada reports that the Canadian Retail Sales in July are growing by 0.3% in monthly terms to the level of $ 50.9 billion due to higher sales of food, beverages and fuels. Market measurements that exclude the most volatile components of sales turned out to be much more important for the market. In this perspective, the retail sales ratio grows by 0.9% m / m - well above forecasts of 0.6%.

Stronger retail sales are emphasized by sufficiently high CPI. Consumer inflation on an annual basis is growing in August by 2.8% compared to the previous year, which is a value consistent with the market consensus. The change in monthly terms indicates a slight (0.1%) decline in the index.

Let's now take a look at the USD/CAD technical picture at the H4 time frame. Surprisingly good data and the return of the Canadian minister to the US in order to continue trading talks make bulls buy CAD-related pairs across the board. In the first minutes after the publication of today's report, USD/CAD tested the region of yesterday's low, where the USD buyers emphasized their presence. The pair has been in a clear downward trend for quite some time. The nearest technical support is seen at the level of 1.2887.

analytics5ba5122063207.jpg

The material has been provided by InstaForex Company - www.instaforex.com

Canadian Dollar Higher After Strong Retail Sales

Trading 21 sept 2018 Commentaire »

The Canadian dollar strengthened against its major counterparts in the European session on Friday, as nation's retail sales grew in July following a fall last month, driven by higher sales at food and beverage stores and gasoline stations.

Data from Statistics Canada showed that retail sales rose 0.3 percent on a seasonally adjusted monthly basis.

The rate matched expectations. It dropped 0.2 percent on month in June.

Core retail sales increased 0.9 percent, beating expectations of 0.6 percent.

This follows a 0.1 percent slide last month.

Separate data showed that consumer inflation edged up 0.1 percent on a seasonally adjusted monthly basis in August.

This follows a 0.5 percent gain in July and contradicted a 0.1 percent fall expected by economists.

Core CPI rose 0.1 percent in August, from a revised 0.5 percent increase seen in July.

The currency held steady against its major counterparts in the Asian session, with the exception of the yen.

The loonie advanced to 1.5155 against the euro, from a 3-day low of 1.5226 hit at 4:45 am ET. The loonie is poised to find resistance around the 1.49 mark.

Survey data from IHS Markit showed that Eurozone private sector grew at the second-weakest rate since late-2016 on subdued manufacturing activity growth in September.

The composite output index fell to 54.2 in September from 54.5 in August. The score was forecast to remain unchanged at 54.5.

The loonie, having dropped to a 2-day low of 0.9423 against the aussie at 4:45 am ET, reversed direction and climbed to 0.9384. On the upside, 0.92 is possibly seen as the next resistance level for the loonie.

The loonie spiked up to 1.2886 against the greenback, coming off from a low of 1.2927 hit at 8:15 am ET. The loonie is seen finding resistance around the 1.27 level.

The loonie rose back to 87.43 against the yen, heading to pierce a 7-1/2-month peak of 87.45 seen at 3:00 am ET. Next key resistance for the loonie is seen around the 89.00 region.

Figures from the Ministry of Economy, Trade and Industry showed that Japan's all industry activity remained stable in July.

The all industry activity index remained flat on month, following a 0.9 percent fall in June. Economists had forecast a marginal 0.1 percent rise.

Looking ahead, Markit's U.S. manufacturing PMI for September is set for release shortly.


The material has been provided by InstaForex Company - www.instaforex.com

Iceland Wage Growth Slows In August

Trading 21 sept 2018 Commentaire »

Iceland's wage growth eased in August after accelerating in the previous month, figures from Statistics Iceland showed on Friday.

The wage cost index climbed 6.0 percent year-over-year in August, following a 6.3 percent rise in the previous month. In June, the rate of increase was 5.9 percent.

On a monthly basis, the wage index edged down 0.1 percent from July, when it gained by 0.4 percent.

The real wage index grew 3.3 percent annually in August, while it dropped 0.3 percent from the preceding month.


The material has been provided by InstaForex Company - www.instaforex.com

Iceland Wage Growth Slows In August

Trading 21 sept 2018 Commentaire »

Iceland's wage growth eased in August after accelerating in the previous month, figures from Statistics Iceland showed on Friday.

The wage cost index climbed 6.0 percent year-over-year in August, following a 6.3 percent rise in the previous month. In June, the rate of increase was 5.9 percent.

On a monthly basis, the wage index edged down 0.1 percent from July, when it gained by 0.4 percent.

The real wage index grew 3.3 percent annually in August, while it dropped 0.3 percent from the preceding month.


The material has been provided by InstaForex Company - www.instaforex.com

Amended: Lithuania Industrial Production Climbs In August

Trading 21 sept 2018 Commentaire »

Corrects Month

Lithuania's industrial production expanded in August, driven by manufacturing sector, figures from the Department of Statistics showed on Friday.

Industrial production climbed by a seasonal and calendar-adjusted 1.4 percent month-on-month in August. The rise was mainly led by a 1.8 percent growth in the manufacturing output.

Meanwhile, the mining and quarrying output fell 1.9 percent in August.

On an unadjusted basis, the industrial production registered a growth of 5.1 percent in August.

Year-on-year, the industrial production advanced by an adjusted 3.0 percent. On an unadjusted basis, production climbed 3.5 percent.


The material has been provided by InstaForex Company - www.instaforex.com

UK Budget Deficit Widens As Govt Spending Rises

Trading 21 sept 2018 Commentaire »

The UK budget deficit increased in August on higher expenditure amid subdued income growth, data from the Office for National Statistics showed Friday.

Public sector net borrowing, excluding public sector banks, rose by GBP 2.4 billion from last year to GBP 6.8 billion in August. Borrowing was expected to fall to GBP 3.4 billion.

This was the largest August borrowing for two years and the first annual increase for August in three years.

Current receipts climbed 1.6 percent to GBP 55.6 billion, while total expenditure rose 6.9 percent to GBP 60.4 billion.

At the end of August, public sector net debt excluding public sector banks totaled GBP 1.78 trillion or 84.3 percent of gross domestic product. Debt increased by GBP 15.9 billion from a year ago.

Debt, excluding Bank of England, decreased by GBP 28.7 billion to GBP 1.58 trillion at the end of August.

In the current financial year-to-date period, PSNB excluding interventions was GBP 17.8 billion, which was GBP 7.8 billion less than in the same period in 2017. This was the lowest year-to-date borrowing for 16 years.

Despite the higher than expected shortfall, the government is on track to undershoot the GBP 37 billion target set by the Office for Budget Responsibility.

The fiscal watchdog is likely to revise its forecast down in November, giving the Chancellor room to deliver the promised increase in health expenditure without having to increase taxes or make cuts elsewhere, Andrew Wishart, an economist at Capital Economics, said.


The material has been provided by InstaForex Company - www.instaforex.com

*Canadian Dollar Edges Up To 1.2886 Against U.S. Dollar

Trading 21 sept 2018 Commentaire »

Canadian Dollar Edges Up To 1.2886 Against U.S. Dollar


The material has been provided by InstaForex Company - www.instaforex.com