Dollar Continues To Exhibit Strength

Trading 05 mar 2019 Commentaire »

The U.S. dollar continued to exhibit strength against most major rivals on Tuesday, riding on the latest batch of economic data and on optimism about a U.S.-China trade agreement.

The downward revision in China's growth forecast too supported dollar's uptick.

The Dollar Index rose to 97.01 before paring some gains. Still, at 96.80, the index was up by about 0.2% from previous close.

Against the British Pound, the dollar strengthened to 1.3176, rising from a low of 1.3197.

Against the Euro, the dollar gained about 0.3%, advancing to 1.1308.

The Japanese yen was weak as well against the greenback, easing to 112.12 before recovering some lost ground. Still, at 111.88, the Yen was down by about 0.13% from last close.

Activity in the U.S. services sector rebounded much more than expected in February, a report from the Institute for Supply Management showed.

The ISM said its non-manufacturing index climbed to 59.7 in February after falling to 56.7 in January, with a reading above 50 indicating growth in the service sector. Economists had expected the index to inch up to 57.3.

The rebound by the headline index was partly due to a notable acceleration in the pace of new orders growth, with the new orders index surging up to 65.2 in February from 57.7 in January.

The business activity index also jumped to 64.7 in February from 59.7 in January, although the employment index dipped to 55.2 from 57.8.

The report also said the prices index fell to 54.4 in February from 59.4 in January, indicating a notable slowdown in the pace of price growth.

Meanwhile, new homes sales in the U.S. unexpectedly showed a notable increase in the month of December, according to a report released by the Commerce Department on Tuesday.

The report said new home sales jumped by 3.7% to an annual rate of 621,000 in December after surging up by 9.1% to a revised rate of 599,000 in November.

Economists had expected new home sales to tumble by 8.7% to a rate of 600,000 from the 657,000 originally reported for the previous month.


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

Oil Futures Settle Flat Ahead Of Inventory Data

Trading 05 mar 2019 Commentaire »

Crude oil futures ended flat on Tuesday, with traders making cautious moves ahead of weekly inventory reports and reacting to reports about China lowering its economic growth target for 2019.

The American Petroleum Institute is scheduled to release its weekly oil report later in the day, while the official data from Energy Information Administration is due Wednesday morning.

Traders were also weighing the prospects of future demand and supply positions in the market.

According to reports Libya's biggest oilfield has commenced production again. However, global oil supply is unlikely to increase any significantly, given the aggressive output cuts by OPEC and its allies.

Russia had said on Monday that it would step up output cuts this month.

West Texas Intermediate Crude oil futures for April ended down $0.03, at %56.66 a barrel.

On Monday, WTI crude futures for April ended at $56.59 a barrel, gaining $0.79, or 1.4%.

China has lowered its economic growth target for 2019 to a range of 6% to 6.5% from the 2018 target of around 6.5%, citing challenges from rising debt and a trade dispute with the U.S.

Aiming to spur growth, the Chinese government has unveiled plans to boost spending, increase foreign firms' access to its markets and cut billions of dollars in taxes. The government also said it would continue to carry out a prudent monetary policy and use reserve requirements as policy tools.


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

Treasuries Close Flat After Recovering From Early Weakness

Trading 05 mar 2019 Commentaire »

After showing an early move to the downside, treasuries recovered over the course of the trading session on Tuesday.

Bond prices climbed well off their worst levels of the day before closing roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, ended the day unchanged at 2.722 percent after reaching a high of 2.750 percent.

The early weakness among treasuries was partly due to the release of some upbeat economic data, which reduced the appeal of safe havens like bonds.

The Institute for Supply Management released a report showing the pace of growth in service sector activity rebounded more than expected in February.

The ISM said its non-manufacturing index climbed to 59.7 in February after falling to 56.7 in January, with a reading above 50 indicating growth in the service sector. Economists had expected the index to inch up to 57.3.

"The non-manufacturing sector's growth rate rebounded in February after cooling off in January," said Anthony Nieves, Chair of the ISM Non-Manufacturing Business Survey Committee.

He added, "Respondents are concerned about the uncertainty of tariffs, capacity constraints and employment resources; however, they remain mostly optimistic about overall business conditions and the economy."

A separate report from the Commerce Department showed an unexpected increase in new home sales in the month of December.

Selling pressure waned over the course of the session, however, as lingering uncertainty about U.S.-China trade talks made traders reluctant to make more significant moves.

The impending release of the Labor Department's closely watched monthly jobs report on Friday also kept some traders on the sidelines.

Reports on private sector employment and the U.S. trade deficit may attract attention on Wednesday along with the Federal Reserve's Beige Book.


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

Gold Futures Slide, Extend Losses To 7th Straight Session

Trading 05 mar 2019 Commentaire »

Gold futures settled lower on Tuesday, extending losses to a seventh straight session and suffering the longest losing streak in about two years, weighed down by a stronger dollar.

A downward revision in China's growth forecast contributed as well the yellow metal's weakness, as a weak Chinese economy could result in a significant drop in demand for gold.

The U.S. dollar gained against most major currencies amid optimism the U.S. and China will agree on a trade deal sometime soon. Better than expected report on U.S. non-manufacturing activity for the month of February too contributed to the greenback's rise.

The dollar index rose to a high of 97.01 before paring some gains. It was hovering around 96.90 about an hour ago, gaining 0.2%.

Gold futures for April ended down $2.80, or 0.2%, at $1,284.70 an ounce.

On Monday, gold futures for April ended down $11.70, or 0.9%, at $1,287.50 an ounce.

Silver futures for May settled at $15.105 an ounce, unchanged from previous close. Copper futures for May ended up $0.0245, at $2.9335 per pound.

The dollar climbed on optimism over a potential U.S.-China trade deal after U.S. Secretary of State Mike Pompeo said that trade talks with China aimed at ending tariffs on hundreds of billions of dollars worth of products would be successful.

China cut its GDP growth target for 2019 to a range of 6% - 6.5% from the 2018 target of around 6.5%, citing challenges from rising debt and a trade dispute with the U.S.

China's private sector growth weakened marginally in February with softer growth in services activity, survey data from IHS Markit showed on Tuesday.

The Caixin composite output index fell to 50.7 in February from 50.9 in January. Nonetheless, a reading above 50 indicates expansion in the private sector.

The services Purchasing Managers' Index slid to 51.1 from 53.6 a month ago. The score was forecast to rise moderately to 53.5.

In U.S. economic news, a report from the Institute for Supply Management showed services sector growth rebounded by much more than expected in the month of February.

The ISM said its non-manufacturing index climbed to 59.7 in February after falling to 56.7 in January, with a reading above 50 indicating growth in the service sector. Economists had expected the index to inch up to 57.3.

The rebound by the headline index was partly due to a notable acceleration in the pace of new orders growth, with the new orders index surging up to 65.2 in February from 57.7 in January.

The business activity index also jumped to 64.7 in February from 59.7 in January, although the employment index dipped to 55.2 from 57.8.

The report also said the prices index fell to 54.4 in February from 59.4 in January, indicating a notable slowdown in the pace of price growth.

Meanwhile, new homes sales in the U.S. unexpectedly showed a notable increase in the month of December, according to a report released by the Commerce Department on Tuesday.

The report said new home sales jumped by 3.7% to an annual rate of 621,000 in December after surging up by 9.1% to a revised rate of 599,000 in November.

Economists had expected new home sales to tumble by 8.7% to a rate of 600,000 from the 657,000 originally reported for the previous month.


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

U.S. Service Sector Growth Rebounds More Than Expected In February

Trading 05 mar 2019 Commentaire »

After reporting a slowdown in the rate of growth in U.S. service sector activity in the previous month, the Institute for Supply Management released a report on Tuesday showing growth rebounded by much more than expected in the month of February.

The ISM said its non-manufacturing index climbed to 59.7 in February after falling to 56.7 in January, with a reading above 50 indicating growth in the service sector. Economists had expected the index to inch up to 57.3.

"The non-manufacturing sector's growth rate rebounded in February after cooling off in January," said Anthony Nieves, Chair of the ISM Non-Manufacturing Business Survey Committee.

He added, "Respondents are concerned about the uncertainty of tariffs, capacity constraints and employment resources; however, they remain mostly optimistic about overall business conditions and the economy."

The rebound by the headline index was partly due to a notable acceleration in the pace of new orders growth, with the new orders index surging up to 65.2 in February from 57.7 in January.

The business activity index also jumped to 64.7 in February from 59.7 in January, although the employment index dipped to 55.2 from 57.8.

The report also said the prices index fell to 54.4 in February from 59.4 in January, indicating a notable slowdown in the pace of price growth.

Last Friday, the ISM released a separate report showing growth in U.S. manufacturing activity slowed by much more than anticipated in February.

The ISM said its purchasing managers index dropped to 54.2 in February after climbing to 56.6 in January. Economists had expected the index to edge down to 55.5.


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

U.S. New Home Sales Unexpectedly Jump 3.7% In December

Trading 05 mar 2019 Commentaire »

New home sales in the U.S. unexpectedly showed a notable increase in the month of December, according to a report released by the Commerce Department on Tuesday.

The report said new home sales jumped by 3.7 percent to an annual rate of 621,000 in December after surging up by 9.1 percent to a revised rate of 599,000 in November.

Economists had expected new home sales to tumble by 8.7 percent to a rate of 600,000 from the 657,000 originally reported for the previous month.

Despite the monthly increase, the Commerce Department said new home sales in December were down by 2.4 percent compared to the same month a year ago.

The continued sales growth during the month was partly due to a 44.8 percent spike in new home sales in the Northeast.

New home sales in the South and West also increased by 5.0 percent and 1.4 percent, respectively, while sales in the Midwest plunged by 15.3 percent.

The report said the median sales price of new houses sold in December was $318,600, up 5 percent from $303,500 in November but down 7.2 percent from $343,300 a year ago.

The estimate of new houses for sale at the end of December was 344,000, representing 6.6 months of supply at the current sales rate.


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

*U.S. New Home Sales Jump 3.7% In December

Trading 05 mar 2019 Commentaire »

U.S. New Home Sales Jump 3.7% In December


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

*ISM U.S. Non-Manufacturing Index Climbs To 59.7 In February

Trading 05 mar 2019 Commentaire »

ISM U.S. Non-Manufacturing Index Climbs To 59.7 In February


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

Estonia Industrial Production Growth Eases For Second Month In January

Trading 05 mar 2019 Commentaire »

Estonia's industrial production growth slowed for the second consecutive month in January, figures from Statistics Estonia showed on Tuesday.

Industrial production climbed a working-day adjusted 4.7 percent year-on-year in January, followed by a 5.5 percent rise in December. In November, the production was 8.2 percent.

Among sectors, mining production fell by 1.2 percent annually in January, while the biggest increase was in energy production by 14.6 percent.

The manufacturing output registered a 3.7 percent year-on-year rise in January and fell 0.3 percent compared to the previous month.

On a monthly basis, industrial production rose seasonally adjusted 0.9 percent in January, after a 0.3 percent decline in the prior month.


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

India Service Sector Growth Rises In February

Trading 05 mar 2019 Commentaire »

India's service sector expanded in February at a faster rate as new work, output and employment expanded, while price pressures eased, survey results from IHS Markit showed on Tuesday.

The Nikkei services purchasing managers' index, or PMI, rose to 52.5 in February from 52.2 in January. Any reading above 50 indicates expansion in the sector.

Companies that reported higher output cited greater demand, securing of new clients and favorable public policies as reasons for growth.

The Composite PMI Output Index rose to 53.8 in February from 53.6 in January.

Growth of factory orders rose to a twenty eight-month high and services firms also reported rise in new business.

Jobs in the service sector expanded at the same rate as in January, while in the manufacturing industry, the upturn in payroll numbers was the quickest in fourteen months.

Higher workloads in the services companies reflected in the delayed client payments. The rise in backlogs was the quickest in sixteen months.

On the price front, input prices rose during February, with higher fuel costs. The rate of inflation softened slightly from January, remaining below the average for the thirteen-and-a-half-year survey history.

Services firms noted a faster rise in cost burdens than manufacturing counterparts for the second straight month.

Business sentiment among service providers strengthened in February and the confidence level towards the twelve- month outlook for activity was below its long-run average.


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