Dollar Fairly Steady Against Peers Despite Weak Economic Data

Trading 21 fév 2019 Commentaire »

The U.S. dollar was fairly steady against major currencies on Thursday even as the latest batch of economic data turned out to be a bit disappointing.

The minutes of the Federal Reserve's January meeting that gave rise to prospects of a hike in interest rate sometime during the course of this year helped the greenback stay somewhat stronger against its peers.

The Dollar Index was up by about 0.11%, at 96.62, after advancing to 96.66 from a low of 96.36.

Against the British Pound Sterling, the dollar was up by about 0.12% with continued uncertainty about Brexit weighing on the U.K.'s currency. Against the Euro, the greenback was little changed, with an euro getting $1.1335.

The Japanese Yen was gaining about 0.13%, trading at 110.71 a dollar, after closing at 110.85 a dollar.

The Canadian dollar loonie was trading weak against the greenback with the latter gaining about 0.35% at 1.3224.

In economic news, a report from the Labor Department said first-time claims for U.S. unemployment benefits fell more than expected in the week ended February 16th, dropping to 216,000, down 23,000 from previous week's unrevised level of 239,000. Economists had expected jobless claims to dip to 229,000.

According to data released by the Commerce Department, durable goods orders surged up by a less than expected 1.2% in December, after jumping by an upwardly revised 1% in November. Economists had expected durable goods orders to soar by 1.5%, compared to the 0.7% increase that had been reported for the previous month.

Meanwhile, a report from the Federal Reserve Bank of Philadelphia said that the Philadelphia-area manufacturing activity contracted for the first time since May of 2016.

The Philly Fed said its index for current manufacturing activity in the region tumbled to a negative 4.1 in February from a positive 17.0 in January, with a negative reading indicating contraction. The index had been expected to slip to 14.0.


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

Oil Futures Settle Modestly Lower

Trading 21 fév 2019 Commentaire »

Crude oil prices edged lower on Thursday, with concerns over excess supply in the market weighing on the commodity. However, the loss was just modest as OPEC-led supply cuts and U.S. sanctions on Venezuela and Iran offered some support and limited oil's fall.

According to the report released by the U.S. Energy Information Administration this morning, crude oil inventories rose 3.7 million barrels in the week ended February 15th, rising for a fifth successive week. The increase was more than what analysts had forecast.

The report from EIA said total crude output in the U.S. was up by about 100,000 barrels to a record 12 million barrels per day in the week ended February 15th.

However, gasoline and distillate stockpiles dropped down last week, both falling by 1.5 million barrels, EIA said.

Earlier, on Wednesday, the American Petroleum Institute said in its report that crude stockpiles increased by 1.3 million barrels to 448.5 million barrels last week.

West Texas Intermediate Crude oil futures for April ended down $0.20, or 0.4%, at $56.96 a barrel.

In December 2018, OPEC and some non-OPEC members, including Russia, agreed to cut output by 1.2 million barrels per day from this January.

Recently Saudi Arabia said it would cut output by by a higher volume than it had committed earlier. On Wednesday, Nigeria said it would limit output in order to attract higher prices in the global market.


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

Treasuries Move Lower Amid Optimism About U.S.-China Trade Talks

Trading 21 fév 2019 Commentaire »

After ending the previous session roughly flat, treasuries showed a notable move to the downside during the trading day on Thursday.

Bond prices came under pressure early in the session and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.4 basis points to 2.688 percent.

The strength among treasuries came as optimism about progress in U.S.-China trade talks overshadowed a batch of largely disappointing U.S. economic data.

A report from Reuters said U.S. and Chinese negotiators have started to outline commitments in principle on the stickiest issues in their trade dispute.

While the U.S. and China remain far apart on demands for structural changes to China's economy, sources familiar with the negotiations told Reuters the broad outline of what could make up a deal is beginning to emerge from the talks.

A separate report from CNBC indicating Chinese authorities could be getting ready to implement more extensive stimulus measures in a bid to encourage economic growth also reduced the appeal of bonds.

Meanwhile, traders largely shrugged off the disappointing U.S. economic data, including a report from the Philadelphia Federal Reserve unexpectedly showing a contraction in regional manufacturing activity for the first time since May of 2016.

The Philly Fed said its index for current manufacturing activity in the region tumbled to a negative 4.1 in February from a positive 17.0 in January, with a negative reading indicating contraction. The index had been expected to slip to 14.0.

A separate report from the Commerce Department also showed a smaller than expected increase in durable goods orders in January.

The report said durable goods orders surged up by 1.2 percent in December after jumping by an upwardly revised 1.0 percent in November.

Economists had expected durable goods orders to soar by 1.5 percent compared to the 0.7 percent increase that had been reported for the previous month.

Excluding a jump in orders for transportation equipment, durable goods orders inched up by just 0.1 percent in December after slipping by 0.2 percent in November. Ex-transportation orders had been expected to rise by 0.3 percent.

The Commerce Department also said orders for non-defense capital goods excluding aircraft, a closely watched indicator of business spending, fell by 0.7 percent in December after tumbling by 1.0 percent in November.

Andrew Hunter, Senior U.S. Economist at Capital Economics said, "The December durables goods data suggest that equipment investment growth slowed further in the fourth quarter, and we expect it to remain weak for most of this year."

"Overall, the durable goods data provide further reason to think that economic growth will soon slow to below its 2% potential pace, which will keep the Fed on hold throughout this year," he added.

The National Association of Realtors also released a report showing existing home sales unexpectedly fell to their lowest level in over three years in January.

NAR said existing home sales tumbled by 1.2 percent to an annual rate of 4.94 million in January after plunging by 4.0 percent to a revised rate of 5.00 million in December.

The continued decrease surprised economists, who had expected existing home sales to climb by 1.0 percent to a rate of 5.04 million from the 4.99 million originally reported for the previous week.

With the third consecutive monthly decrease, existing home sales slumped to their lowest annual rate since November of 2015.

The U.S. economic calendar is relatively quiet on Friday, although traders are likely to keep an eye on remarks by several Federal Reserve officials.

Fed Vice Chairman Richard Clarida, Fed Vice Chairman for Supervision Randal Quarles, San Francisco Fed President Mary Daly, New York Fed President John Williams, and St. Louis Fed President James Bullard are all due to participate in the U.S. Monetary Policy Forum in New York City.


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

Gold Futures Settle Sharply Lower As Dollar Stays Firm

Trading 21 fév 2019 Commentaire »

Gold prices declined sharply on Thursday, as the dollar gained strength after the Fed's January meeting minutes hinted at a possible hike in interest rate sometime this year due to a fairly strong labor market and the overall strength in the economy.

The greenback's rise despite weak economic data prompted traders to shun the yellow metal.

According to the minutes, many participants observed that if recent uncertainty eases, the Fed would need to reassess the characterization of monetary policy as "patient" and might then use different statement language.

Gold futures for April ended down $20.10, or about 1.5%, at $1,327.80 an ounce, suffering their biggest single-day loss in about six months.

On Wednesday, gold futures for April settled at $1,347.90 an ounce, gaining $3.10 for the session.

Silver futures for March ended at $15.801 an ounce, losing $0.376, after gaining $0.210 at $16.177 an ounce, in the previous session.

Copper futures for March ended down $0.0230, at $2.8970 per pound, after settling with a gain of $0.0455 at $2.9200 per pound on Wednesday.

In economic news, a report from the Labor Department said first-time claims for U.S. unemployment benefits fell more than expected in the week ended February 16th, dropping to 216,000, down 23,000 from previous week's unrevised level of 239,000. Economists had expected jobless claims to dip to 229,000.

According to data released by the Commerce Department, durable goods orders surged up by a less than expected 1.2% in December, after jumping by an upwardly revised 1% in November. Economists had expected durable goods orders to soar by 1.5%, compared to the 0.7% increase that had been reported for the previous month.

Meanwhile, a report from the Federal Reserve Bank of Philadelphia said that the Philadelphia-area manufacturing activity contracted for the first time since May of 2016.

The Philly Fed said its index for current manufacturing activity in the region tumbled to a negative 4.1 in February from a positive 17.0 in January, with a negative reading indicating contraction. The index had been expected to slip to 14.0.


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

Treasury Announces Details Of Next Week's Long-Term Securities Auctions

Trading 21 fév 2019 Commentaire »

On Thursday, the Treasury Department announced the details of next week's auctions of two-year, five-year, and seven-year notes.

The Treasury said it plans to sell $40 billion worth of two-year notes and $41 billion worth of five-year notes next Monday and $32 billion worth of seven-year notes next Tuesday.


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

U.S. Leading Economic Index Unexpectedly Dips 0.1% In January

Trading 21 fév 2019 Commentaire »

With weakness in labor market components offsetting strengths in the financial components, the Conference Board released a report on Thursday unexpectedly showing a modest drop by its reading on leading U.S. economic indicators in the month of January.

The Conference Board said its leading economic indicators edged down by 0.1 percent after coming in unchanged in December. Economists had expected the index to inch up by 0.1 percent.

"Based on preliminary data, the US LEI declined very slightly in January and December's decline was revised up to no change," said Ataman Ozyildirim, Director of Economic Research at The Conference Board. "The US LEI has now been flat essentially since October 2018."

He added, "The Conference Board forecasts that US GDP growth will likely decelerate to about 2 percent by the end of 2019."

The report said the coincident economic index crept up by 0.1 percent in January after rising by 0.2 percent in December, while the lagging economic index climbed by 0.5 percent after a 0.3 percent increase in the previous month.


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

U.S. Existing Home Sales Unexpectedly Tumble To Three-Year Low In January

Trading 21 fév 2019 Commentaire »

Existing home sales in the U.S. unexpectedly showed a steep drop in the month of January, according to a report released by the National Association of Realtors on Thursday.

NAR said existing home sales tumbled by 1.2 percent to an annual rate of 4.94 million in January after plunging by 4.0 percent to a revised rate of 5.00 million in December.

The continued decrease surprised economists, who had expected existing home sales to climb by 1.0 percent to a rate of 5.04 million from the 4.99 million originally reported for the previous week.

With the third consecutive monthly decrease, existing home sales slumped to their lowest annual rate since November of 2015. Existing home sales were also down 8.5 percent from a year ago.

"Existing home sales in January were weak compared to historical norms; however, they are likely to have reached a cyclical low," said NAR chief economist Lawrence Yun.

He added, "Moderating home prices combined with gains in household income will boost housing affordability, bringing more buyers to the market in the coming months."

The median existing home price for all housing types was $247,500 in January, down 2.8 percent from $254,7000 in December but up 2.8 percent from $240,800 a year ago.

While noting the year-over-year median home price growth is the slowest since February 2012, Yun cautioned that the figures do not yet tell the full story for the month of January.

"Lower mortgage rates from December 2018 had little impact on January sales, however, the lower rates will inevitably lead to more home sales," Yun said.

Total housing inventory increased to 1.59 million existing homes available sale at the end of January, representing 3.9 months of supply at the current sales pace.

The report single family home sales tumbled by 1.8 percent to a rate of 4.37 million in January, while existing condominium and co-op sales surged up by 3.6 percent to a rate of 570,000.


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

*U.S. Leading Economic Index Dips 0.1% In January

Trading 21 fév 2019 Commentaire »

U.S. Leading Economic Index Dips 0.1% In January


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

*U.S. Existing Home Sales Tumble 1.2% In January

Trading 21 fév 2019 Commentaire »

U.S. Existing Home Sales Tumble 1.2% In January


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

The cost of oil peaked again in the last three months

Trading 21 fév 2019 Commentaire »

By the end of Wednesday's trading on February 20, the price of Brent crude oil updated its three-month high, reaching $ 67.37 a barrel. According to experts, support for oil prices was largely due to the uncertainty about Brexit.

a79RSotcgsb5ZweWXJg2lnSsjKVtt8vXHC3w7u5o

Recall that on March 29 of this year, the UK is scheduled to leave the European Union. However, the situation around Brexit is full of contradictions in connection with analysts who advise taking into account the possibility of a tough development of events. At the same time, the UK is not ready to extend the free trade agreement with Japan and South Korea until it leaves the EU. Note that these Asian countries annually purchase British exports of 18.6 billion pounds. The UK Commerce Minister assured the leadership of these countries that the relevant agreements would be ready for signing the day after Brexit.

The current situation is supporting black gold prices, experts say. For example, the oil trader Trafigura purchased Brent oil from Vitol for delivery in March with a premium of 40 cents. This markup is considered the maximum for the last four months. When Equinor was selling oil at a premium of 45 cents, the above was only the value of the October deal. According to experts, the uncertainty regarding Brexit can lead to disruptions in the supply of black gold, so oil traders tend to minimize possible risks.

Futures for Brent crude oil rose more than 1% to $ 67.15 a barrel for April delivery. Since the beginning of this year, the North Sea grade of raw materials has risen in price by 24.8%. The cost of WTI light crude oil increased by 1.62%, to $ 57 per barrel.

SdTuM6v5z3mycQk_570fgQmh7eUZwMDD6JAxAMSl

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