Dollar Losing Ground After Employment Report

Trading 06 juil 2018 Commentaire »

The dollar is losing ground against its major rivals Friday afternoon, following the release of the mixed jobs report. Employment increased by more than expected in June, but the unemployment rate also unexpectedly ticked up.

Employment in the U.S. increased by more than expected in the month of June, according to a report released by the Labor Department on Friday.

The report said non-farm payroll employment jumped by 213,000 jobs in June after surging up by an upwardly revised 244,000 jobs in May.

Economists had expected employment to climb by 195,000 jobs compared to the addition of 223,000 jobs originally reported for the previous month.

Despite the stronger than expected job growth, the unemployment rate rose to 4.0 percent in June from 3.8 percent in May. The unemployment rate was expected to be unchanged.

The dollar has dropped to a 3-week low of $1.1735 against the Euro Friday afternoon, from an early high of $1.1679.

Germany's industrial production recovered notably in May after a weaker start to the year, official data showed Friday.

Industrial output grew 2.6 percent month-on-month in May, reversing a revised 1.3 percent drop in April, Destatis reported. This was the biggest expansion in six months. Output was forecast to grow marginally by 0.3 percent.

France's foreign trade gap widened in May, as exports fell faster than imports, figures from the Customs Office showed Friday. The trade deficit rose to EUR 6.0 billion in May from EUR 5.21 billion in the previous month.

The buck has fallen to around $1.3265 against the pound sterling this afternoon, from an early high of $1.3204.

UK labor productivity decreased in the first quarter as a result of the continued strength in employment growth combined with weaker output growth, the Office for National Statistics showed Friday. Labor productivity slid 0.4 percent in the first quarter, which was the first fall in output per hour since the second quarter of 2017.

UK house prices increased at a slower pace in June, data from the Lloyds bank subsidiary Halifax and IHS Markit showed Friday. House prices grew only 0.3 percent on month in June, following May's 1.7 percent increase. Prices were expected to gain 0.2 percent.

The greenback reached a high of Y110.380 against the Japanese Yen Friday morning, but has since retreated to around Y110.485.

The average of monthly spending in Japan was down 1.4 percent on year in May, the Ministry of Internal Affairs and Communications said on Friday, coming in at 281,307 yen. That beat expectations for a fall of 1.5 percent following the 1.3 percent decline in April.

Japan's leading index increased more than expected in May to the highest level in six months, preliminary figures from the Cabinet Office showed Friday. The leading index, which measures the future economic activity, climbed to 106.9 in May from 106.2 in April. The index was forecast to rise to 106.6.

Total labor cash earnings in Japan increased for the tenth straight month in May, and at a faster-than-expected pace, preliminary report from the Ministry of Health, Labor and Welfare showed Friday. Gross earnings climbed 2.1 percent year-over-year in May, faster than the revised 0.6 percent rise in April. Economists had expected a 0.9 percent increase for the month.


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Crude Oil Jumps Along With Rig Count

Trading 06 juil 2018 Commentaire »

Crude oil prices rose Friday after Baker Hughes said the U.S. oil rig count unexpectedly climbed this week.

Baker Hughes said the number of active U.S. rigs drilling for oil rose by 5 to 863 this week.

WTI light sweet oil was up 83 cents to $73.77 an ounce. Bargain hunters swooped in after oil slipped from a recent 4-year high.

Employment in the U.S. increased by more than expected in the month of June, according to a report released by the Labor Department on Friday.

The report said non-farm payroll employment jumped by 213,000 jobs in June after surging up by an upwardly revised 244,000 jobs in May. However, the unemployment rate rose to 4.0 percent in June from 3.8 percent in May, as temporary school jobs ended for the summer.


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Gold Steadies Despite Rate Hike Certainty

Trading 06 juil 2018 Commentaire »

Gold prices edged lower Friday but posted a modest weekly gain after heavy losses in June.

August gold lost $3, or 0.2%, to settle at $1,255.80/oz, for a weekly gain of about 0.1%.

There was little reaction to relatively upbeat jobs data. Employment in the U.S. increased by more than expected in the month of June, according to a report released by the Labor Department on Friday.

The report said non-farm payroll employment jumped by 213,000 jobs in June after surging up by an upwardly revised 244,000 jobs in May. However, the unemployment rate rose to 4.0 percent in June from 3.8 percent in May, as temporary school jobs ended for the summer.

Traders also weighed yesterday afternoon's Federal Reserve minutes.

"Negative risks to economy from U.S. trade policy have intensified," the minutes showed. Still, with the economy doing well, the Fed projects two more interest rate hikes this year.


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*Platinum Prices Are Tumbling

Trading 06 juil 2018 Commentaire »

Platinum Prices Are Tumbling


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Loonie Drops As Canada Jobless Rate Rises

Trading 06 juil 2018 Commentaire »

The Canadian dollar fell against its major opponents in the European session on Friday, erasing its recent gains, as an unexpected rise in the Canadian jobless rate for June offset optimism over positive employment figures.

Data from the Statistics Canada showed that the Canadian employment grew more than expected in June.

The report said employment rose by 31,800 jobs in June, following a decline of 7,500 jobs in May.

Economists had expected employment to climb by 24,000 jobs.

The unemployment rate rose to 6.0 percent in June from 5.8 percent in May. The unemployment rate was expected to be unchanged.

Separate data showed that Canada's merchandise trade deficit widened more than forecast in May.

The trade deficit widened to C$2.8 billion in May from C$1.9 billion in April. Economists were looking for a shortfall of C$2.2 billion. Imports rose 1.7 percent, while exports edged down 0.1 percent.

Further weighing on the currency was a decline in oil prices.

Crude for August delivery dropped $0.28 to $72.66 per barrel.

Oil prices were weighed by an unexpected build in U.S. oil inventories last week.

Crude inventories rose 1.2 million barrels in the week to June 29, compared with analysts' expectations for a decrease of 3 million barrels, according to the EIA.

The currency fell against its major counterparts in the Asian session, barring the yen.

The loonie retreated to 84.07 against the yen, from a 3-day high of 84.42 hit at 8:30 am ET. The loonie is likely to find support around the 83.00 level.

Preliminary figures from the Cabinet Office showed that Japan's leading index increased more than expected in May to the highest level in six months.

The leading index, which measures the future economic activity, climbed to 106.9 in May from 106.2 in April. The index was forecast to rise to 106.6.

The loonie fell to weekly lows of 1.5443 against the euro and 0.9770 versus the aussie, from its early highs of 1.5348 and 0.9697, respectively. The next likely support for the loonie is seen around 1.58 against the euro and 0.99 versus the aussie.

The loonie that climbed to a new 3-week high of 1.3086 against the greenback soon after the data, eased to 1.3148. At Thursday's close, the pair was worth 1.3131.

Data from the Labor Department showed that the U.S. employment grew more than expected in June.

The report said non-farm payroll employment jumped by 213,000 jobs in June after surging up by an upwardly revised 244,000 jobs in May.


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Dollar Weakens As U.S. Jobless Rate Ticks Higher

Trading 06 juil 2018 Commentaire »

The U.S. dollar drifted lower against its major counterparts in the European session on Friday, after the release of mixed U.S. jobs data, which showed that the economy created more jobs than forecast in June, but the jobless edged up.

Data from the Labor Department showed that the U.S. employment grew more than expected in June.

The report said non-farm payroll employment jumped by 213,000 jobs in June after surging up by an upwardly revised 244,000 jobs in May.

Economists had expected employment to climb by 195,000 jobs compared to the addition of 223,000 jobs originally reported for the previous month.

Despite the stronger than expected job growth, the unemployment rate rose to 4.0 percent in June from 3.8 percent in May. The unemployment rate was expected to be unchanged.

Investors monitored trade tensions between the U.S. and China, as American tariffs on 34 billion dollars worth of Chinese imports took effect and China vowed to make a necessary counterattack in equal measure.

The currency traded mixed against its major rivals in the Asian session. While it fell against the pound and the euro, it held steady against the franc. Against the yen, it rose.

The greenback dropped to a 2-week low of 0.7444 against the aussie and a 9-day low of 0.6842 against the kiwi, reversing from its early highs of 0.7376 and 0.6782, respectively. If the greenback continues its fall, 0.76 and 0.70 are possibly seen as its next support levels against the aussie and the kiwi, respectively.

The greenback slipped to 110.43 against the yen, from a 3-day high of 110.79 hit at 1:30 am ET. Next key support for the greenback is likely seen around the 109.00 level.

Preliminary figures from the Cabinet Office showed that Japan's leading index increased more than expected in May to the highest level in six months.

The leading index, which measures the future economic activity, climbed to 106.9 in May from 106.2 in April. The index was forecast to rise to 106.6.

Reversing from an early session's high of 1.3204 against the pound, the greenback weakened to 1.3269. The greenback is seen challenging support around the 1.34 mark.

Data from the Lloyds bank subsidiary Halifax and IHS Markit showed that UK house prices increased at a slower pace in June.

House prices grew only 0.3 percent on month in June, following May's 1.7 percent increase. Prices were expected to gain 0.2 percent.

The greenback fell to a 9-day low of 0.9892 against the franc, off early session's high of 0.9944. On the downside, 0.97 is possibly seen as the next support level for the greenback.

The U.S. currency declined to a new 3-week low of 1.1763 against the euro, after having advanced to 1.1680 at 10:00 pm ET. The greenback is poised to test support around the 1.19 level.

Data from Destatis showed that Germany's industrial production recovered at a faster than expected pace in May.

Industrial output grew 2.6 percent month-on-month in May, reversing a revised 1.3 percent drop in April. Output was forecast to grow marginally by 0.3 percent.

The greenback that fell to a new 3-week low of 1.3086 against the loonie following the data, trimmed its losses immediately. At Thursday's close, the pair was worth 1.3131.

Looking ahead, Canada Ivey PMI for June is due shortly.


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Gold Barely Budges Amid Jobs Report

Trading 06 juil 2018 Commentaire »

Gold futures were flat Friday morning as traders weighed jobs data and the Federal Reserve minutes.

The U.S. added a robust 213,000 jobs in June, but unemployment rate was back up to 4% as the school-year ended.

Hourly wages rose 5 cents, or 0.2%, to $26.98 but the yearly rate of pay increases was unchanged at 2.7%.

Yesterday, the Federal Reserve said the economy is humming along but warned about trade issues.

"Negative risks to economy from U.S. trade policy have intensified," the minutes showed.

Still, "The information reviewed for the June 12-13 meeting indicated that labor market conditions continued to strengthen in recent months, and that real gross domestic product (GDP) appeared to be rising at a solid rate in the first half of the year."

Gold was down $1 at $1257/oz this morning.


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Trading plan for the US session on July 6 EUR/USD

Trading 06 juil 2018 Commentaire »

To open long positions on EURUSD it is required:

The repeat resistance test of 1.1720, which sellers held in the morning, could lead to a breakdown of this level with a further exit to the highs around 1.1778 and 1.1810, where it is recommended taking profits. In the case of a decline in the euro in the second half of the day after data on the labor market in the US, one can return to buying in the range of 1.1683, and the best is on a rebound from 1.1651.

To open short positions on EURUSD it is required:

It is best to return to short positions on the Euro after the formation of a false breakout at the resistance level of 1.1720, with an additional signal in the form of a good report on the US labor market. If the euro rises above 1.1720, you can sell for a rebound from a new high at 1.1778. A decline below 1.1683 could lead to a larger pressure on the pair, which will collapse to a minimum in the area of 1.1651 and 1.1622.

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Description of indicators

  • MA (moving average) 50 days - yellow
  • MA (moving average) 30 days - green
  • MACD: fast EMA 12, slow EMA 26, SMA
  • Bollinger Bands 20
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*U.S. Dollar Drops To 1.3269 Against Pound

Trading 06 juil 2018 Commentaire »

U.S. Dollar Drops To 1.3269 Against Pound


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*U.S. Dollar Weakens To New 3-week Low Of 1.1763 Against Euro

Trading 06 juil 2018 Commentaire »

U.S. Dollar Weakens To New 3-week Low Of 1.1763 Against Euro


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