Dollar Drops To 2-week Low

Trading 12 avr 2019 Commentaire »

The U.S. dollar weakened to a two-weak low on Friday, amid growing signs the Federal Reserve will continue to hold interest rates unchanged this year.

The dollar shed ground despite a rise in producer price indices.

The dollar index dropped to a low of 96.75 around noon, and despite recovering to 96.95 subsequently, was still languishing below the unchanged line, losing about 0.2%.

The Euro was trading at $1.1298, gaining about 0.4% from $1.1254. The euro strengthened to a high of $1.1327 at one stage.

The greenback was lower against the Sterling as well. After weakening to $1.3132, it recovered to $1.3071, but was still quite some way off from Thursday's $1.3049.

The dollar was stronger against the yen, with a unit fetching around 112 yen, a more than one-month high.

In U.S. economic news today, data released by the Labor Department showed U.S. import prices increased by more than expected in the month of March, due to another spike in prices of fuel imports.

The report said import prices climbed by 0.6% in March after jumping by an upwardly revised 1% in February.

Economists had expected prices to rise by 0.4%, compared to the 0.6% increase originally reported for the previous month.

A report from the University of Michigan showed consumer sentiment has deteriorated by more than anticipated in the month of April.

The preliminary report showed the consumer sentiment index dropped to 96.9 in April from the final March reading of 98.4. Economists had expected the index to edge down to 98.0.

The bigger than expected decrease by the headline index reflected less optimism about the economic outlook, as the index of consumer expectations slid to 85.8 in April from 88.8 in March.

On the other hand, the report said the current economic conditions index inched up to 114.2 in April from 113.3 in the previous month.


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

Crude Oil Futures Settle Higher

Trading 12 avr 2019 Commentaire »

Crude oil futures ended higher on Friday with escalating unrest in Libya, the U.S. sanctions on Iran and Venezuela and OPEC-led output cuts tightening crude supply in the global market.

Data showing showing a notable jump in exports eased concerns about energy demand from the world's second largest economy.

West Texas Intermediate Crude oil futures for May ended up $0.31, or 0.5%, at $63.89 a barrel, after rising to a high of $64.65 a barrel intraday.

On Thursday, crude oil futures for May ended down $1.03, or 1.6%, at $63.58 a barrel. Crude oil futures gained about 1.5% in the week.

According to the latest report from the International Energy Agency, Venezuela's average daily production rate fell to 870,000 barrels per day and OPEC-wide production fell by 550,000 barrels per day in March.

Crude production in Saudi Arabia fell as well, dropping to the lowest level in two years, after the kingdom slashed its production by more than the promised cut.

According to reports, Libya's oil production is likely to be severely impacted due to renewed fighting between warring armed groups. The situation could become as bad as it was during the 2011 civil war, the National Oil Corporation's chairman, Mustafa Sanalla, is reported to have told the Financial Times.

"I am afraid the situation could be much worse than 2011 because of the size of forces now involved," Sanalla told the FT, adding "Unless the problem is solved very quickly, I am afraid this will affect our operations, and soon we will not be able to produce oil or gas."

Data released by the Energy Information Administration on Wednesday showed crude supplies in the U.S. increased by 7 million barrels last week, significantly larger than the expected rise.

The report said U.S. crude stockpiles rose to their highest level since November 2017, amid rising imports.

A report released by Baker Hughes this afternoon showed the active rig count in the U.S. dropped by 3 to 1,022 this week.

The Chinese trade data released today proved to be a mixed bag, with exports rebounding to a five-month high while imports fell more than expected.

The data showed that China's exports rose 14.2% in March from a year earlier, beating analysts' expectations and marking the strongest growth in five months.

Imports dropped an annual 7.6%, worse than analysts' forecasts for a 1.3% fall and widening from February's 5.2% fall.


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Treasuries Move Lower Amid Upbeat Corporate Results

Trading 12 avr 2019 Commentaire »

Treasuries moved notably lower over the course of the trading session on Friday, extending the downward move seen in the previous session.

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, advanced by 5.6 basis points to 2.560 percent.

The weakness among treasuries came as upbeat earnings news from financial giant JPMorgan Chase (JPM) reduced the appeal of safe havens like bonds.

JPMorgan kicked off the earnings season by reporting record first quarter earnings and revenues that exceeded analyst estimates.

The better than expected results from JPMorgan partly offset some of the recent concerns about corporate results for the quarter.

A report from the Labor Department showing a biggest than expected increase in import prices also weighed on treasuries, although the price growth was largely due to another spike in prices for fuel imports.

The Labor Department said import prices climbed by 0.6 percent in March after jumping by an upwardly revised 1.0 percent in February.

Economists had expected prices to rise by 0.4 percent compared to the 0.6 percent increase originally reported for the previous month.

The report said export prices also increased by 0.7 percent in March, matching the upwardly revised advance in February.

Export prices had been expected to edge up by 0.2 percent compared to the 0.6 percent increase originally reported for the previous month.

Meanwhile, the University of Michigan released a separate report showing consumer sentiment has deteriorated by more than anticipated in the month of April.

The preliminary report showed the consumer sentiment index dropped to 96.9 in April from the final March reading of 98.4. Economists had expected the index to edge down to 98.0.

Corporate results will continue to attract attention next week, although traders are also likely to keep an eye on reports on industrial production, homebuilder confidence, retail sales, and housing starts.


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

Gold Ends Modestly Higher As Dollar Eases

Trading 12 avr 2019 Commentaire »

Gold futures edged higher on Friday, regaining some ground after recording their biggest single session loss in about two weeks in the previous session. A softer dollar contributed to the yellow metal's modest rise.

Strong results from JP Morgan Chase and Wells Fargo and a few other top notch U.S. companies, and rising optimism over a trade agreement between the U.S. and China helped keep investors inclined towards stocks and this limited the gains of the bullion.

The dollar index dropped by more than 0.2% to 96.55.

Gold futures for June ended up $1.90, or 0.2%, at $1,295.20 an ounce.

On Thursday, gold futures for June ended down $20.60, or 1.6%, at $1,293.30 an ounce. Dollar futures posted a slender loss of about $0.40 in the week.

Silver futures for May ended up $0.096, at $14.963 an ounce, while Copper futures for May settled at $2.9460 per pound, gaining $0.0590.

In U.S. economic news today, a report from thee University of Michigan showed consumer sentiment has deteriorated by more than anticipated in the month of April.

The preliminary report showed the consumer sentiment index dropped to 96.9 in April from the final March reading of 98.4. Economists had expected the index to edge down to 98.0.

The bigger than expected decrease by the headline index reflected less optimism about the economic outlook, as the index of consumer expectations slid to 85.8 in April from 88.8 in March.

On the other hand, the report said the current economic conditions index inched up to 114.2 in April from 113.3 in the previous month.

Data released by the Labor Department showed U.S. import prices increased by more than expected in the month of March, due to another spike in prices of fuel imports.

The report said import prices climbed by 0.6% in March after jumping by an upwardly revised 1% in February.

Economists had expected prices to rise by 0.4%, compared to the 0.6% increase originally reported for the previous month.

In news from China, the trade data released today proved to be a mixed bag, with exports rebounding to a five-month high while imports fell more than expected.

Official data showed that China's exports rose 14.2% in March from a year earlier, beating analysts' expectations and marking the strongest growth in five months.

Imports dropped an annual 7.6%, worse than analysts' forecasts for a 1.3% fall and widening from February's 5.2% fall.


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

April 12, 2019 : shall the GBP/USD respect the current confluence of supply levels around 1.3150-1.3170.

Trading 12 avr 2019 Commentaire »

analytics5cb0c9ae909bd.jpg

On January 2nd, the market initiated the depicted uptrend line around 1.2380.

This uptrend managed to initiate two successive bullish waves towards 1.3200 (Jan. 25) then 1.3350 (Feb. 27) before the bearish pullback brought the GBPUSD pair towards the uptrend on March 8th.

A weekly bearish gap pushed the pair below the uptrend line (almost reaching 1.2960) before the bullish breakout above short-term bearish channel was achieved on March 11.

Shortly after, the GBPUSD pair demonstrated weak bullish momentum towards 1.3200 then 1.3360 where the GBPUSD failed to achieve a higher high above the previous top achieved on February 27.

Instead, the depicted bearish channel was established.

Significant bearish pressure was demonstrated towards 1.3150 - 1.3120 where the depicted uptrend line failed to provide any bullish support leading to obvious bearish breakdown.

On March 29, the price levels of 1.2980 (the lower limit of the depicted movement channel) demonstrated significant bullish rejection. This brought the GBPUSD pair again towards the price zone of (1.3160-1.3180) where the upper limit of the depicted bearish channel as well as the backside of the depicted uptrend line came to meet the pair.

Currently, the price zone of 1.3140-1.3170 currently corresponds to the upper limit of the depicted bearish channel where another bearish movement may be initiated.

Bearish rejection is still anticipated around the current price levels (1.3140-1.3170).

Further bearish decline is expected towards 1.2920-1.2900 where the lower limit of the depicted channel is located.

Trade Recommendations:

Any bullish pullback towards 1.3150-1.3170 should be considered for another SELL entry. TP levels to be located around 1.3100, 1.3020 then 1.2950 - 1.2920.

S/L to be located above 1.3190.

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

April 12, 2019 : EUR/USD demonstrating recent bearish rejection around 1.1320, shall it hold ?

Trading 12 avr 2019 Commentaire »

analytics5cb0c5744c006.jpg

On January 10th, the market initiated the depicted bearish channel around 1.1570.

Since then, the EURUSD pair has been moving within the depicted channel with slight bearish tendency.

On March 7th, recent bearish movement was demonstrated towards 1.1175 (channel's lower limit) where significant bullish recovery was demonstrated.

Bullish persistence above 1.1270 enhanced further bullish advancement towards 1.1290-1.1315 (the Highlighted-Zone) which failed to provide adequate bearish pressure.

On March 18, a significant bullish attempt was executed above 1.1380 (the upper limit of the Highlighted-channel) demonstrating a false/temporary bullish breakout.

On March 22, significant bearish pressure was demonstrated towards 1.1280 then 1.1220.

By the end of last week, a bullish Head and Shoulders reversal pattern was demonstrated around 1.1200.

As expected, this enhanced further bullish advancement towards 1.1300-1.1315 (supply zone) where recent bearish rejection is being demonstrated now.

Short-term outlook turns to become bearish towards 1.1280 (61.8% Fibonacci) where price action should be watched cautiously.

For Intraday traders, the price zone around 1.1280 stands as a prominent demand area to be watched for another valid BUY entry if enough bullish rejection is expressed.

On the other hand, bearish breakdown below 1.1280 opens the way for further bearish decline towards 1.1250-1.1235.

Trade recommendations :

Conservative traders were suggested to have a valid BUY entry around 1.1235. It's running in profits now.

TP levels to be located around 1.1320 and 1.1440. SL should be advanced to 1.1270 to offset the associated risk.

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

U.S. Consumer Sentiment Index Drops More Than Expected In April

Trading 12 avr 2019 Commentaire »

After reporting a notable improvement in U.S. consumer sentiment in the previous month, the University of Michigan released a report on Friday showing sentiment has deteriorated by more than anticipated in the month of April.

The preliminary report showed the consumer sentiment index dropped to 96.9 in April from the final March reading of 98.4. Economists had expected the index to edge down to 98.0.

The bigger than expected decrease by the headline index reflected less optimism about the economic outlook, as the index of consumer expectations slid to 85.8 in April from 88.8 in March.

On the other hand, the report said the current economic conditions index inched up to 114.2 in April from 113.3 in the previous month.

Surveys of Consumers chief economist Richard Curtin described the decrease by the consumer sentiment as "insignificant," saying, Consumer confidence continued its sideways shuffle in early April."

"Overall, the level of the Sentiment Index during the past 30 months was higher than any other time since 1997 to 2000, the final phase of the record 10-year expansion," Curtin said.

With regard to inflation, one-year inflation expectations edged down to 2.4 percent in April from 2.5 percent in March and five-year inflation expectations dipped to 2.3 percent from 2.5 percent.


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

Dollar Ticks Down Following U.S. Consumer Sentiment Index

Trading 12 avr 2019 Commentaire »

After the release of the University of Michigan's preliminary consumer sentiment index for April at 10:00 am ET Friday, the greenback inched down against its major counterparts.

The greenback was trading at 111.87 against the yen, 1.1317 against the euro, 1.3122 against the pound and 1.0000 against the franc around 10:02 am ET.


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

*U.S. Consumer Sentiment Index Drops To 96.9 In April

Trading 12 avr 2019 Commentaire »

U.S. Consumer Sentiment Index Drops To 96.9 In April


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Dollar Falls Vs Most Majors Ahead Of U.S. Consumer Sentiment Index

Trading 12 avr 2019 Commentaire »

The University of Michigan's preliminary consumer sentiment index for April is scheduled for release at 10:00 am ET Friday. Ahead of the data, the greenback traded mixed against its major counterparts. While the greenback held steady against the yen, it dropped against the rest of major counterparts.

The greenback was worth 111.96 against the yen, 1.1312 against the euro, 1.3111 against the pound and 1.0006 against the franc as of 9:55 am ET.


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