Oil Ends Lower After Cautious Trades

Trading 05 sept 2018 Commentaire »

Crude oil prices drifted lower on Wednesday, after tropical storm Gordon, which looked headed towards some oil producing areas and threatened to disrupt production, weakened and deviated away from the expected path.

Traders were largely cautious with their moves as they looked ahead to a report on oil stockpiles from the American Petroleum Institute, due later in the day, and official inventory data from the Energy Information Administration, due on Thursday.

Trade tensions and concerns over emerging market currencies too forced traders to refrain from making aggressive moves.

Crude oil futures for October delivery ended down $1.15, or 1.7%, at $68.72 a barrel.

On Tuesday, crude oil futures settled with a small gain of 0.1%, at $69.87 a barrel, after rising to a high of $71.40 intraday.

Natural gas futures edged up by 0.21% to $2.829 per million btu.

Oil prices may move up if weekly U.S. crude inventory data show a drop in crude stockpiles. Analysts expect a drop of about 1.9 million barrels in stocks last week.

A report released by Baker Hughes last Friday showed U.S. oil drilling rigs count increased by two to 862 last week.


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Treasuries Close Roughly Flat Following Choppy Trading Session

Trading 05 sept 2018 Commentaire »

After ending the previous session notably lower, treasuries showed a lack of direction during trading on Wednesday before closing roughly flat.

Bond prices spent the day bouncing back and forth across the unchanged line. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, closed unchanged at 2.902 percent.

The choppy trading in the bond market came amid ongoing trade tensions between the U.S. and its key partners.

A report from Reuters said Canadian Prime Minister Justin Trudeau has indicated Canada will not bend on key demands regarding NAFTA in talks with the U.S. this week.

"There are a number of things we absolutely must see in a renegotiated NAFTA," Trudeau told reporters on Tuesday.

U.S. and Canadian officials are scheduled to hold trade talks in Washington today after failing to reach an agreement last week.

Reports President Donald Trump intends to impose tariffs on another $200 billion worth of Chinese imports as soon as a public comment period ends on Thursday also weighed on investors' minds.

In trade-related economic news, the Commerce Department released a report showing the U.S. trade deficit widened in the month of July.

The Commerce Department said the trade deficit widened to $50.1 billion in July from a revised $45.7 billion in June.

Economists had expected the deficit to widen to $50.1 billion from the $46.3 billion originally reported for the previous month.

Trading on Thursday may be impacted by reaction to any developments regarding trade as well as reports on weekly jobless claims, private sector employment, and service sector activity.


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Dollar Little Changed After Paring Early Gains

Trading 05 sept 2018 Commentaire »

The dollar got off to a positive start Wednesday, but has since pared its early gains. The buck is now down slightly against its major European rivals, but is holding onto a slight increase against the Japanese Yen.

Traders remain focused on trade issues as the week passes the midway point. U.S. and Canadian officials held trade talks in Washington today after failing to reach an agreement last week.

President Trump also reportedly intends to impose tariffs on another $200 billion worth of Chinese imports as soon as a public comment period ends on Thursday.

With the value of exports falling and the value of imports rising, the Commerce Department released a report on Wednesday showing the U.S. trade deficit widened in the month of July. The Commerce Department said the trade deficit widened to $50.1 billion in July from a revised $45.7 billion in June.

Economists had expected the deficit to widen to $50.1 billion from the $46.3 billion originally reported for the previous month.

The dollar climbed to an early high of $1.1542 against the Euro Wednesday, but has since retreated to around $1.1625.

Eurozone retail sales dropped for the first time in three months in July, Eurostat reported Wednesday. Retail sales fell 0.2 percent month-on-month in July, in contrast to a 0.3 percent rise in June. This was the first fall since April, when sales were down 0.2 percent. Sales were expected to fall 0.1 percent.

The euro area private sector expanded slightly more than initially estimated in August, final data from IHS Markit showed Wednesday. The composite output index rose to 54.5 in August from July's 54.3. The score was marginally above the flash estimate of 54.4.

The buck rose to a high of $1.2785 against the pound sterling Wednesday morning, but has since dropped to around $1.29.

UK services sector expanded at a faster pace in August on stronger new orders, survey data from IHS Markit showed Wednesday.

The IHS Markit/Chartered Institute of Procurement & Supply services Purchasing Managers' Index rose to 54.3 from 53.5 in July. The indicator has reached its second-highest level since February. The expected score was 53.9.

The greenback reached a high of Y111.756 against the Japanese Yen Wednesday, but has since eased back to around Y111.525.

The services sector in Japan continued to expand in August, and at a faster rate, the latest survey from Nikkei revealed on Wednesday with a PMI score of 51.5. That's up from 51.3 in July, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.


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Gold Ends Higher As Dollar Retreats After Recent Gains

Trading 05 sept 2018 Commentaire »

Gold prices edged higher on Wednesday, as the U.S. dollar eased after recent gains, ahead of a slew of economic data.

The Pound Sterling gained on reports that both the British and German governments have abandoned key Brexit demands. The decision of these governments is expected to result in a Brexit deal.

However, the upside for the yellow metal was just modest amid concerns about international trade conflicts and rising inflation in emerging markets.

Reports indicating that the U.S. administration will likely move ahead with proposed tariffs on $200 billion worth of Chinese imports this week have raised fears about a full-blown global trade war.

Gold futures for December ended up $2.20, or 0.2%, at $1,201.30 an ounce. On Tuesday, gold futures ended down $7.60, or 0.6%, at $1,199.10 an ounce.

Silver futures for December ended up $0.040, at $14.220 an ounce.

Copper futures for December settled at $2.6100 per pound, gaining $0.0080 for the session.

The dollar index eased to 95.14, losing 0.23 or 0.24%.

In economic news from U.S., the Commerce Department's report showed that the U.S. trade deficit widened in the month of July. The report said trade deficit widened to $50.1 billion in July from a revised $45.7 billion in June.

Economists had expected the deficit to widen to $50.1 billion from the $46.3 billion originally reported for the previous month.


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Pound Advances On News Of Brexit Breakthrough

Trading 05 sept 2018 Commentaire »

The pound strengthened against its major counterparts in the New York session on Wednesday, following a media report that Germany has indicated its willingness to offer a major compromise on Brexit deal, with an aim to clinch to deal in the coming months.

Germany is ready to "accept a less detailed agreement on the UK's future economic and trade ties with the EU in a bid to get a Brexit deal done," according to a report from Bloomberg.

The U.K. has also consented for a vaguer statement of intent on the future relationship and defer some decisions until after Brexit day, it said.

Final data from IHS Markit showed that the euro area private sector expanded slightly more than initially estimated in August.

The composite output index rose to 54.5 in August from July's 54.3. The score was marginally above the flash estimate of 54.4.

The currency was lower in the European session amid risk aversion.

The pound advanced to 5-day highs of 0.8956 against the euro and 1.2983 against the greenback, from its early weekly low of 0.9052 and more than a 2-week low of 1.2785, respectively. If the pound rises further, 0.88 and 1.32 are likely seen as its next resistance levels against the euro and the greenback, respectively.

The pound hit 6-day highs of 144.97 against the yen and 1.2625 against the franc, off its early low of 142.66 and a 1-year low of 1.2459, respectively. The next possible resistance for the pound is seen around 147.00 against the yen and 1.28 against the franc.


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

Pound Advances On News Of Brexit Breakthrough

Trading 05 sept 2018 Commentaire »

The pound strengthened against its major counterparts in the New York session on Wednesday, following a media report that Germany has indicated its willingness to offer a major compromise on Brexit deal, with an aim to clinch to deal in the coming months.

Germany is ready to "accept a less detailed agreement on the UK's future economic and trade ties with the EU in a bid to get a Brexit deal done," according to a report from Bloomberg.

The U.K. has also consented for a vaguer statement of intent on the future relationship and defer some decisions until after Brexit day, it said.

Final data from IHS Markit showed that the euro area private sector expanded slightly more than initially estimated in August.

The composite output index rose to 54.5 in August from July's 54.3. The score was marginally above the flash estimate of 54.4.

The currency was lower in the European session amid risk aversion.

The pound advanced to 5-day highs of 0.8956 against the euro and 1.2983 against the greenback, from its early weekly low of 0.9052 and more than a 2-week low of 1.2785, respectively. If the pound rises further, 0.88 and 1.32 are likely seen as its next resistance levels against the euro and the greenback, respectively.

The pound hit 6-day highs of 144.97 against the yen and 1.2625 against the franc, off its early low of 142.66 and a 1-year low of 1.2459, respectively. The next possible resistance for the pound is seen around 147.00 against the yen and 1.28 against the franc.


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

Bitcoin analysis for September 5, 2018

Trading 05 sept 2018 Commentaire »

Bitcoin has been quite impulsive with the bearish counter momentum today which did engulf a series of previous bullish momentum but currently it is held by the dynamic level of 20 EMA and Kumo Cloud support. Ahead of the high impact USD economic reports this week, certain volatility is expected. As of the current scenario, the dynamic level 20 EMA has managed to hold the price as support, whereas the Kijun Line is also expected to provide a strong support above $6,500 area. Therefore, the bullish bias is expected to continue further with target towards $8000-8500 area in the coming days.

SUPPORT: 6000, 6500

RESISTANCE: 7500, 8000, 10000

BIAS: BULLISH

MOMENTUM: VOLATILE

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Czech Retail Sales Growth Rises Sharply

Trading 05 sept 2018 Commentaire »

Czech retail sales growth accelerated at a faster-than-expected pace in July, preliminary data from the statistical office showed Wednesday.

Retail sales, including automotive fuel and automobile trade, rose a non-adjusted 7 percent year-on-year following a 1.4 percent in June. Economists had forecast a 5.9 increase.

Sales excluding automobile trade grew 5.6 percent in July after a 2.1 percent increase in the previous month.


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Hungary Q2 Growth Revised Up

Trading 05 sept 2018 Commentaire »

Hungary's economy grew at a faster-than-expected pace during the second quarter, latest data from the statistical office showed Wednesday.

Gross domestic product rose 4.8 percent year-on-year, which was higher than the 4.6 percent reported initially.

This means that Hungary has posted its highest growth rate since 2004, ING Bank economist Peter Virovacz reckoned.

In the first quarter, the economy grew 4.4 percent.

Most industries contributed to the growth with the business services making the biggest contribution.

Compared to the previous three months, GDP rose 1 percent in the second quarter following a 1.2 percent growth in the first quarter.

"There are signs Hungary could well be over its peak. Expect economic activity to slow down over the coming months but for now, we maintain our forecast of 4.3 percent growth in 2018," Virovacz added.


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Loonie Rises After BoC Decision

Trading 05 sept 2018 Commentaire »

As expected, the Bank of Canada kept its benchmark rate unchanged at 1.50 percent.

Following the decision, the loonie rose against its major counterparts.

The loonie was trading at 1.3175 against the greenback, 84.80 against the yen, 0.9470 against the aussie and 1.5316 against the euro around 10:02 am ET.


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