Dollar Mostly Sluggish Against Major Currencies

Trading 25 fév 2019 Commentaire »

The U.S. dollar turned in a sluggish performance against its peers on Monday as optimism about U.S.-China trade increased after the U.S. President Donald Trump said he would extend the deadline for trade talks beyond March 1.

Trump said he would delay the deadline for additional tariffs on Chinese goods, originally set to begin on March 1.

Saying trade talks are seeing a substantial progress on a series of divisive areas, including intellectual property protection, technology transfers, agriculture, services and currency, Trump indicated a likely meeting with Chienese President Xi Jinping to reach a final deal.

The dollar index, which opened at 96.50, swung between 96.32 and 96.60, and was last seen hovering around 96.40, down by slightly less than 0.1% from previous close.

Against the Euro, the dollar was trading at $1.1365, losing about 0.26%, and against British Pound Sterling, it was weak as well, with the sterling fetching $1.3103, after having closed at $1.3055 on Friday.

The British Parliament is scheduled to vote on a possible Brexit delay on Wednesday even as support for another referendum is reportedly gathering some momentum.

The greenback edged higher against the Japanese Yen, gaining about 0.35%, at 111.10 Yen, rising from 110.58. The dollar strengthened to 111.24 Yen before paring some gains.

The greenback was little changed against the Swiss Franc, trading at CHF 1.0004 a dollar.

The Canadian dollar was down by about 0.10 cents at 76 cents U.S.

In economic news from the U.S., data released by the Commerce Department showed wholesale inventories jumped by much more than anticipated in the month of December.

The report said wholesale inventories surged up by 1.1% in December after climbing by an upwardly revised 0.4% in November. Economists had expected inventories to rise by 0.3%, matching the increase originally reported for the previous month.

The bigger than expected jump in wholesale inventories came as inventories of durable goods spiked by 1.5% in December after rising by 0.7% in November.


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

Treasuries Climb Off Worst Levels But Still Close Lower

Trading 25 fév 2019 Commentaire »

Treasuries moved to the downside during the trading session on Monday in reaction to latest developments on the trade front.

Bond prices climbed off their worst levels of the day but still closed lower. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 1.8 basis points to 2.673 percent.

The weakness among treasuries after President Donald Trump announced he intends to postpone a planned increase in U.S. tariffs on Chinese imports, reducing the appeal of safe havens such as bonds.

Trump had previously threatened to raise tariffs on $200 billion worth of Chinese goods to 25 percent from 10 percent if a long-term trade agreement was not reached before a March 1st deadline.

The increase in tariffs will now be delayed, although Trump did not specify another deadline to strike a trade deal.

Trump said the decision to delay the tariff increase reflected "substantial progress" in the ongoing trade talks between the U.S. and China.

The president said the U.S. and China have made progress on "important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues."

Assuming additional progress is made, Trump said he will be planning to meet with Chinese President Xi Jinping to conclude an agreement.

Trading activity was somewhat subdued, however, as traders looked ahead to the second summit between Trump and North Korean leader Kim Jong Un.

"With complete Denuclearization, North Korea will rapidly become an Economic Powerhouse," Trump said on Twitter ahead of the summit. "Without it, just more of the same. Chairman Kim will make a wise decision!

Federal Reserve Chairman Jerome Powell's testimony before Congress in the coming days also kept some traders on the sidelines.

Meanwhile, traders largely shrugged off the results of the Treasury Department's auction of two-year and five-year notes.

The auction of $40 billion worth of two-year notes attracted below average demand, while the auction of $41 billion worth of five-year notes attract average demand.

On Tuesday, the Treasury is due to finish off this week's series of long-term securities auctions with the sale of $32 billion worth of seven-year notes.

Powell's testimony before the Senate Banking Committee is also likely to attract attention on Tuesday along with reports on housing starts, home prices, and consumer confidence.


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

Oil Futures Retreat After Early Gains, Settle Sharply Lower

Trading 25 fév 2019 Commentaire »

Crude oil futures fell to their lowest levels in more than a week on Monday, weighed down by a tweet from the U.S. President Donald Trump that said oil prices were getting too high.

Trump tweeted : "Oil prices getting too high. OPEC, Please relax and take it easy. World cannot take a price hike."

Oil prices tumbled even as worries about demand growth faded a bit after U.S. President Trump said would delay an increase in U.S. tariffs on Chinese goods.

Citing substantial progress in ongoing trade talks, Trump indicated a likely meet with Chinese President Xi Jinping to reach a final deal on trade.

West Texas Intermediate Crude oil futures April ended down $1.78, or 3.1%, at $55.78 a barrel, well off the day's high of $57.53.

On Friday, crude futures ended up $0.30, or 0.5%, at $57.26 a barrel, the best settlement since November 12.

Brent crude futures declined $2.36, or 3.5% to $64.76 a barrel, falling sharply from a 3-1/2 month high of $67.73 it had touched on Friday.

The OPEC-led output cuts, Saudi Arabia and Nigeria's decisions to resort to bigger output reductions and the U.S. sanctions on Iran and Venezuela contributed to oil's uptick last week.


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

Gold Futures Settle Lower As Traders Seek Riskier Assets

Trading 25 fév 2019 Commentaire »

Gold prices edged lower on Monday as investors chose to pick up riskier assets amid easing trade tensions after the U.S. President Donald Trump decided to delay the imposition of additional tariffs on goods imported from China.

The U.S. dollar eased against most major currencies as trade tensions faded, but regained most of the lost ground as the day progressed.

Trump, who said trade talks are seeing a substantial progress on a series of divisive areas, including intellectual property protection, technology transfers, agriculture, services and currency, indicated a likely meeting with Chinese President Xi Jinping to reach a final deal.

Gold futures for April settled down $3.30, or 0.3%, at $1,329.50 an ounce.

On Friday, gold futures for April ended up $5.00, or 0.4%, at $1,332.80 an ounce.

Silver futures for March ended down $0.084, at $15.830 an ounce, while Copper futures for March ended at $2.9450 per pound, down $0.0065 from previous close.

Traders were looking ahead to the second summit between Trump and North Korean leader Kim Jong Un.

In economic news from the U.S. data released by the Commerce Department showed wholesale inventories jumped by much more than anticipated in the month of December.

The report said wholesale inventories surged up by 1.1% in December after climbing by an upwardly revised 0.4% in November. Economists had expected inventories to rise by 0.3%, matching the increase originally reported for the previous month.

The bigger than expected jump in wholesale inventories came as inventories of durable goods spiked by 1.5% in December after rising by 0.7% in November.


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

Five-Year Note Auction Attracts Average Demand

Trading 25 fév 2019 Commentaire »

After the sale of $40 billion worth of two-year notes earlier in the day, the Treasury Department sold $41 billion worth of five-year notes on Monday, attracting average demand.

The five-year note auction drew a high yield of 2.489 percent and a bid-to-cover ratio of 2.40.

Last month, the Treasury also sold $41 billion worth of five-year notes, drawing a high yield of 2.576 percent and a bid-to-cover ratio of 2.41.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous five-year note auctions had an average bid-to-cover ratio of 2.43.

On Tuesday, the Treasury is due to finish off this week's series of long-term securities auctions with the sale of $32 billion worth of seven-year notes.


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

Two-Year Note Auction Attracts Below Average Demand

Trading 25 fév 2019 Commentaire »

The Treasury Department kicked off this week's series of long-term securities auctions with the sale of $40 billion worth of two-year notes on Monday, attracting below average demand.

The two-year note auction drew a high yield of 2.503 percent and a bid-to-cover ratio of 2.50.

Last month, the Treasury also sold $40 billion worth of two-year notes, drawing a high yield of 2.600 percent and a bid-to-cover ratio of 2.56.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous two-year note auctions had an average bid-to-cover ratio of 2.68.

Looking ahead, the Treasury is also due to sell $41 billion worth of five-year notes today and $32 billion worth of seven-year notes on Tuesday.


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

U.S. Wholesale Inventories Jump Much More Than Expected In December

Trading 25 fév 2019 Commentaire »

Delayed data released by the Commerce Department on Monday showed wholesale inventories in the U.S. jumped by much more than anticipated in the month of December.

The report said wholesale inventories surged up by 1.1 percent in December after climbing by an upwardly revised 0.4 percent in November.

Economists had expected inventories to rise by 0.3 percent, matching the increase originally reported for the previous month.

The bigger than expected jump in wholesale inventories came as inventories of durable goods spiked by 1.5 percent in December after rising by 0.7 percent in November.

Inventories of metals, furniture, electrical equipment, and lumber all showed significant increases during the month.

The report said inventories of non-durable goods also rose by 0.3 percent in December after edging down by 0.1 percent in November.

A 4.8 percent slump in petroleum inventories was offset by a 3.8 percent spike in apparel inventories as well as notable increases in inventories of chemicals and miscellaneous non-durable goods.

Meanwhile, the Commerce Department said wholesale sales tumbled by 1.0 percent in December after plunging by 1.2 percent in November.

Sales of non-durable goods showed another substantial decrease, plummeting by 2.5 percent amid an 11.1 percent nosedive in petroleum sales.

The steep drop in sales of non-durable goods was partly offset by a rebound in sales of durable goods, which climbed by 0.7 percent in December after falling by 0.7 percent in November.

Substantial increases in sales of furniture and electrical equipment more than offset notable decreases in sales of automotive products and hardware.

With inventories jumping and sales slumping, the inventories/sales ratio for merchant wholesalers rose to 1.33 in December from 1.30 in November.


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

*U.S. Wholesale Inventories Jump 1.1% In December

Trading 25 fév 2019 Commentaire »

U.S. Wholesale Inventories Jump 1.1% In December


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

Bitcoin analysis for February 25, 2019

Trading 25 fév 2019 Commentaire »

analytics5c73f56f1d8d9.png

BTC has been trading downwards. The price tested the level of $3.775. In the background, we found a fake breakout of the resistance at the price of $4.050. We also found a potential bearish flag in creation and our advice is to watch for selling opportunities. The key short-term support is set at the price of $3.610. Key short-term resistance is set at the price of $4.200.

Trading recommendation: We are looking for the breakout of the $3.775 to confirm further downward continuation. The downward target is set at the price of $3.610.

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

Spain Producer Price Inflation Rises For First Time In 4 Months

Trading 25 fév 2019 Commentaire »

Spain producer price inflation rose in January after easing in the previous three months, data from the statistical office INE showed on Monday.

Producer prices rose 1.8 percent year-on-year in January, after a 1.7 percent increase in December. In November, inflation was 2.9 percent.

Producer price inflation has been slowing since peaking at 5.3 percent in September.

Excluding energy, producer price inflation eased slightly to 0.3 percent from 0.5 percent in December.

Among components, energy prices rose 5.1 percent from last year, intermediate goods and capital goods prices rose 1.1 percent and 1.0 percent, respectively.

Meanwhile, producer prices for consumer goods fell 0.8 percent in January.

On a month-on-month basis, producer prices rose 0.2 percent in January, after a 1.0 percent decline in the preceding month. Prices increased for the first time in four months.


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