U.S. Dollar Shows Modest Move To The Downside

Trading 30 avr 2019 Commentaire »

With traders looking ahead to Wednesday's monetary policy decision by the Federal Reserve, the U.S. dollar has moved modestly lower on Tuesday.

The U.S. dollar is trading at 111.38 yen compared to the 111.65 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is valued at $1.1216 compared to yesterday's $1.1186.

The Fed is widely expected to leave interest rates unchanged, although traders are likely to keep a close eye on the accompanying statement and Fed Chairman Jerome Powell's subsequent press conference.

A day ahead of the Fed announcement, President Donald Trump urged the central bank to slash interest rates by as much as a full percentage point.

"Our Federal Reserve has incessantly lifted interest rates, even though inflation is very low, and instituted a very big dose of quantitative tightening," Trump said in a post on Twitter.

He added, "We have the potential to go up like a rocket if we did some lowering of rates, like one point, and some quantitative easing."

Some analysts accused the Fed of capitulating to Trump's demands by revealing after its last meeting that officials no longer expect to raise rates this year.

Meanwhile, traders largely shrugged off some upbeat U.S. economic data, with reports showing bigger than expected rebounds in consumer confidence and pending home sales.

The Conference Board said its consumer confidence jumped to 129.2 in April after falling to 124.2 in March. Economists had expected the index to rise to 127.0.

"Consumer Confidence partially rebounded in April, following March's decline, but still remains below levels seen last Fall," said Lynn Franco, Senior Director of Economic Indicators at the Conference Board.

A separate report from the National Association of Realtors showed its pending home sales index surged up by 3.8 percent to 105.8 in March after slumping by 1 percent to 101.9 in February. Economists had expected pending home sales to jump by 1.1 percent.

A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.


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Oil Prices Move Higher As Saudi Arabia May Extend Supply Cuts

Trading 30 avr 2019 Commentaire »

Oil prices moved higher on Tuesday after Saudi Arabia said it would not rush to boost oil supply to make up for a loss of Iranian crude due to U.S. sanctions.

WTI crude futures jumped more than 1 percent on the news before pulling back later in the day - gaining $0.23 or 0.36 percent to $63.84.

Saudi Energy Minister Khalid al-Falih reportedly told RIA news agency that the country would stick to a global deal on oil production, which could be extended to the end of 2019.

He didn't specify whether, or by how much, output levels could change after June.

His comments came after the United States decided last week not to renew exemptions from sanctions against Iran and President Donald Trump told the oil cartel to lower oil prices.

Oil prices have jumped nearly 40 percent since January, helped by OPEC-led supply cuts as well as U.S. sanctions on producers Iran and Venezuela.


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Treasuries Move Higher Ahead Of Fed Announcement

Trading 30 avr 2019 Commentaire »

Treasuries moved to the upside during the trading day on Tuesday, rebounding from the pullback seen in the previous session.

Bond prices moved higher in morning trading and remained firmly positive throughout the afternoon. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.7 basis points to 2.509 percent.

The rebound by treasuries came as traders looked ahead to the announcement of the Federal Reserve's latest monetary policy decision on Wednesday.

The Fed is widely expected to leave interest rates unchanged, although traders are likely to keep a close eye on the accompanying statement and Fed Chairman Jerome Powell's subsequent press conference.

A day ahead of the Fed announcement, President Donald Trump urged the central bank to slash interest rates by as much as a full percentage point.

"Our Federal Reserve has incessantly lifted interest rates, even though inflation is very low, and instituted a very big dose of quantitative tightening," Trump said in a post on Twitter.

He added, "We have the potential to go up like a rocket if we did some lowering of rates, like one point, and some quantitative easing."

Some analysts accused the Fed of capitulating to Trump's demands by revealing after its last meeting that officials no longer expect to raise rates this year.

Meanwhile, bond traders largely shrugged off some upbeat economic data, with reports showing bigger than expected rebounds in consumer confidence and pending home sales.

The Conference Board said its consumer confidence jumped to 129.2 in April after falling to 124.2 in March. Economists had expected the index to rise to 127.0.

"Consumer Confidence partially rebounded in April, following March's decline, but still remains below levels seen last Fall," said Lynn Franco, Senior Director of Economic Indicators at the Conference Board.

A separate report from the National Association of Realtors showed its pending home sales index surged up by 3.8 percent to 105.8 in March after slumping by 1 percent to 101.9 in February. Economists had expected pending home sales to jump by 1.1 percent.

A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.

Ahead of the Fed announcement Wednesday afternoon, trading may be impacted by reaction to reports on private sector employment, manufacturing activity, and construction spending.


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

Short-term technical analysis of EURUSD for April 30, 2019

Trading 30 avr 2019 Commentaire »

EURUSD has reached our first short-term target at 1.12 and is trading above it but below short-term trend line resistance. Medium-term trend remains bearish as long as price is below 1.13-1.1350.

analytics5cc8a905a1edf.png

Red line - support

Blue line - short-term resistance trend line

Black line - major resistance trend line

EURUSD has bounced as expected towards 1.12. Price has reached the 50% Fibonacci retracement and just below the blue short-term trend line resistance. A rejection at current levels will open the way for a move back to 1.11. RSI has not reached overbought levels yet and this implies that we may see this short-term bounce continue higher. Breaking above 1.1250 will open the way for a move towards 1.13-1.1330 where we find major trend resistance.

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

Short-term technical analysis of Gold for April 30, 2019

Trading 30 avr 2019 Commentaire »

Gold price has held short-term support at $1,280 where we find the lower channel boundary. Bulls need to break above $1,289 in order to push higher towards the major resistance of $1,300.

analytics5cc8a834a9faa.png

Red line - major resistance trend line

Blue lines - short-term bullish channel

Red rectangle - short-term resistance area

Gold price has short-term resistance area at $1,289. Breaking above this level will open the way for a move towards the red trend line major resistance. This will be a short-term bullish signal. However medium-term trend remains bearish as long as we trade below $1,300 and any bounce is considered as selling opportunity. Support is at $1,280 and bulls do not want to see that level broken. A break below this support will open the way for a move towards $1,250-60 or lower.

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

Gold Edges Higher As Growth Concerns Resurface

Trading 30 avr 2019 Commentaire »

Gold prices edged higher on Tuesday as weak Chinese data rekindled investor concerns over slowing global growth.

Spot gold rose $5.20 or 0.42 percent to $1,283.93 per ounce while U.S. gold futures were up 0.32 percent at $1,285.55 an ounce.

China's official Purchasing Managers' Index (PMI) for manufacturing unexpectedly fell to 50.1 in April from 50.5 in March, while the Caixin-Markit China PMI slipped to 50.2 against the 50.8 reading in the previous month. Growth in China's services sector also slowed in the month, an official survey showed.

A raft of Eurozone data proved to be a mixed bag, with Germany's unemployment continuing to decline in April while the jobless figure dropped more than double the pace expected. Eurozone GDP grew 0.4 percent sequentially in the three months to March 2019, beating forecasts for 0.3 percent growth.

The forward-looking GfK consumer sentiment for Germany held steady, supported by robust improvement in income expectations and the propensity to buy.


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*Taiwan Flash Q1 GDP Up 1.98% On Quarter Vs. 1.50% In Q4

Trading 30 avr 2019 Commentaire »

Taiwan Flash Q1 GDP Up 1.98% On Quarter Vs. 1.50% In Q4


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*Taiwan Flash Q1 GDP Up 1.72% On Year Vs. 1.78% In Q4, Consensus 1.40%

Trading 30 avr 2019 Commentaire »

Taiwan Flash Q1 GDP Up 1.72% On Year Vs. 1.78% In Q4, Consensus 1.40%


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*Lithuania Flash Q1 GDP Up 1% On Quarter Vs. 1.4% In Q4

Trading 30 avr 2019 Commentaire »

Lithuania Flash Q1 GDP Up 1% On Quarter Vs. 1.4% In Q4


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U.S. Pending Home Sales Jump Much More Than Expected In March

Trading 30 avr 2019 Commentaire »

A report released by the National Association of Realtors on Tuesday showed pending home sales in the U.S. jumped by much more than expected in the month of March.

NAR said its pending home sales index surged up by 3.8 percent to 105.8 in March after slumping by 1 percent to 101.9 in February. Economists had expected pending home sales to jump by 1.1 percent.

Despite the monthly rebound, pending home sales in March were still down by 1.2 percent compared to the same month a year ago, reflecting the 15th straight month of annual decreases.

A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.

NAR chief economist Lawrence Yun noted the pending home sales data has been exceptionally fluid over the past several months but predicted that numbers will begin to climb more consistently.

"We are seeing a positive sentiment from consumers about home buying, as mortgage applications have been steadily increasing and mortgage rates are extremely favorable," Yun said.

The bigger than expected increase in pending home sales was partly due to strength in the West, where pending sales soared by 8.7 percent.

Pending home sales in the South and Midwest also spiked by 4.4 percent and 2.3 percent, respectively, while pending sales in the Northeast tumbled by 1.7 percent.


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