Dollar Mostly Subdued Against Major Currencies

Trading 22 avr 2019 Commentaire »

The U.S. dollar stayed mostly subdued against most major currencies on Monday, after having scored some gains last week.

With most of the markets across Europe shut for Easter Monday holiday, volumes are relatively thin today.

The dollar index eased to a low of 97.26 and was last seen at 97.29, down 0.19% from previous close. The index had surged to a 2-week high of 97.48 last week.

After the U.S., aiming to toughen its sanctions on Iran, said it will no longer exempt five countries Japan, India, South Korea, China and Turkey from U.S. sanctions if they continue to import oil from Iran from May 2, currencies of Canada and Russia saw some notably upside today.

The Canadian loonie gained about 0.33% at 1.3349, a four-day high, rallying from 1.3391.

Against the Euro, the dollar was down 0.13% at 1.1259 and against Pound Sterling, it was gained about 0.05% at 1.2982.

The Japanese yen was down marginally at with a dollar fetching 111.94 yen. The Russian rouble hit a one-month high against the greenback.

The U.S. Secretary of State Mike Pompeo announced today that the country will not extend waivers to buy Iranian crude oil for five countries Turkey, India, China, South Korea and Japan when those waivers expire early next month.

U.S. President Donald Trump's tweet that output from Saudi Arabia and other OPEC members will "more than make up the oil flow difference in our Full Sanctions on Iranian Oil" failed to any significantly halt oil's rise today.

In U.S. economic news today, a report released by the National Association of Realtors showed existing home sales in the country plunged by 4.9% to an annual rate of 5.21 million in March after soaring by 11.2% to a revised rate of 5.48 million in February.

Economists had expected existing home sales to tumble by 3.8% to a rate of 5.30 million from the 5.51 million originally reported for the previous month. Compared to March 2018, existing home sales were down 5.4%.

The Commerce Department's report on new home sales for March, is due on Tuesday. New home sales are expected to drop to an annual rate of 650,000 in March after jumping to a rate of 667,000 in February.


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Oil Futures End Sharply Higher As U.S. Ends Waivers On Iran Oil Imports

Trading 22 avr 2019 Commentaire »

Crude oil prices rose sharply on Monday after the U.S. decided to end the waivers it had offered to major importers of Iranian oil in November last year.

U.S. President Donald Trump's tweet that output from Saudi Arabia and other OPEC members will "more than make up the oil flow difference in our Full Sanctions on Iranian Oil" failed to any significantly halt oil's rise today.

West Texas Intermediate Crude oil futures soared to $65.91 a barrel at one stage, gaining more than 3%, before cooling a bit and eventually settling at $65.70 on the expiration day, up $1.70, or 2.66% from previous close.

On Thursday, crude oil futures for May ended up $0.24, or 0.45%, at $64.00 a barrel.

Crude oil futures for June delivery ended up $1.48, or 2.3%, at $65.55 a barrel.

In November 2018, the Trump administration had granted six-month waivers to major importers of Iranian oil, including India, China, Turkey, Japan and South Korea.

The U.S. Secretary of State Mike Pompeo announced today that the country will not extend waivers to buy Iranian crude oil for five countries Turkey, India, China, South Korea and Japan when those waivers expire early next month.

Pompeo tweeted : "Maximum pressure on the Iranian regime means maximum pressure. That's why the U.S. will not issue any exceptions to Iranian oil importers. The global oil market remains well-supplied. We're confident it will remain stable as jurisdictions transition away from Iranian crude."

Following U.S.'s decision, Iran has threatened that it will shut the Strait of Hormuz, a key chokepoint for Persian Gulf crude producers, according to a report in Bloomberg.

Sanctions on Venezuela, supply disruptions in Libya, last week's report showing an unexpected drop in U.S. crude inventories and the drop in U.S. oil rigs count too supported oil's rise.

Recent encouraging data out of China that showed the world's second largest economy is recovering gradually, has eased concerns about global growth and energy demand.


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Treasuries Move Back To The Downside

Trading 22 avr 2019 Commentaire »

Treasuries showed a notable move back to the downside during the trading session on Monday, offsetting the strength seen last Thursday.

Bond prices came under pressure early in the session and saw some further downside as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3 basis points to 2.590 percent.

The pullback by treasuries came as traders returned to their desks following the long holiday weekend, shrugging off uncertainty about the slew of corporate results due to be released this week.

Trading activity remained somewhat subdued, however, as the Easter Monday holiday overseas kept some traders on the sidelines.

On the U.S. economic front, the National Association of Realtors released a report showing a significant pullback in existing home sales in the month of March.

NAR said existing home sales plunged by 4.9 percent to an annual rate of 5.21 million in March after soaring by 11.2 percent to a revised rate of 5.48 million in February.

Economists had expected existing home sales to tumble by 3.8 percent to a rate of 5.30 million from the 5.51 million originally reported for the previous month.

The bigger than expected pullback came after existing home sales reached their highest level in almost a year in February.

"It is not surprising to see a retreat after a powerful surge in sales in the prior month," said NAR chief economist Lawrence Yun. "Still, current sales activity is underperforming in relation to the strength in the jobs markets."

On Tuesday, the Commerce Department is scheduled to release a separate report on new home sales in the month of March.

New home sales are expected to drop to an annual rate of 650,000 in March after jumping to a rate of 667,000 in February.

Bond traders are also likely to keep an eye on the results of the Treasury Department's auction of $40 billion worth of two-year notes.


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Gold Futures Settle Slightly Higher

Trading 22 avr 2019 Commentaire »

Gold prices ended marginally up on Monday, recovering slightly from near 4-month lows touched late last week. A sharp rise in crude oil prices and sluggish stock markets supported the yellow metal.

However, gains were just marginal as the dollar displayed some strength early on in the session.

Gold futures for June settled at $1,277.60 an ounce, up $1.60, or 0.13%, from previous close.

On Thursday, gold futures ended down $0.80, or about 0.06%, at $1,276.00 an ounce, after plunging 1.1% a couple of sessions earlier.

Silver futures for May settled at $14.975 an ounce, up $0.020 from Thursday's close.

Copper futures for May ended down $0.0185, at $2.9015 per pound.

Crude oil's jump supported gold a bit. Oil prices soared today after the U.S. Secretary of State Mike Pompeo announced that the country will not extend waivers to buy Iranian crude oil for five countries Turkey, India, China, South Korea and Japan when those waivers expire early next month.

U.S. President Donald Trump posted on Twitter that the U.S. and other big oil producers will more than make up for any loss of Iranian oil.

Equities were largely subdued today as investors stayed reluctant to make significant moves ahead of first quarter results from several top ranking companies during the course of this week.

In U.S. economic news today, a report released by the National Association of Realtors showed existing home sales in the country plunged by 4.9% to an annual rate of 5.21 million in March after soaring by 11.2% to a revised rate of 5.48 million in February.

Economists had expected existing home sales to tumble by 3.8% to a rate of 5.30 million from the 5.51 million originally reported for the previous month.

With the monthly drop, existing home sales in March were down by 5.4% compared to 5.51 million in the same month a year ago.

"It is not surprising to see a retreat after a powerful surge in sales in the prior month," said NAR chief economist Lawrence Yun. "Still, current sales activity is underperforming in relation to the strength in the jobs markets. The impact of lower mortgage rates has not yet been fully realized."

The Commerce Department's report on new home sales for March, is due on Tuesday. New home sales are expected to drop to an annual rate of 650,000 in March after jumping to a rate of 667,000 in February.


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

April 22, 2019 : GBP/USD Intraday technical analysis and trade recommendations.

Trading 22 avr 2019 Commentaire »

analytics5cbe0043512fe.jpg

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

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 recent 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.

Bearish rejection was anticipated around the mentioned price levels (1.3150-1.3180). However, the GBPUSD bullish pullback failed to pursue towards the mentioned zone.

Instead, significant bearish rejection was demonstrated earlier around the price level of 1.3120.

Since then, Short-term outlook has turned into bearish towards 1.2920-1.2900 where the lower limit of the depicted channel is located.

Trade Recommendations:

Any bullish pullback towards 1.3120-1.3140 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 1.3170.

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

April 22, 2019 : EUR/USD Intraday technical analysis and trade recommendations.

Trading 22 avr 2019 Commentaire »

analytics5cbdfe3f9448d.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.

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.

Few weeks ago, a bullish Head and Shoulders reversal pattern was demonstrated around 1.1200. This enhanced further bullish advancement towards 1.1300-1.1315 (supply zone) where recent bearish rejection was being demonstrated.

Short-term outlook turned to become bearish towards 1.1280 (61.8% Fibonacci) followed by further bearish decline towards 1.1235 (78.6% Fibonacci).

For Intraday traders, the price zone around 1.1235 (78.6% Fibonacci) stood as a prominent demand area where a valid short-term BUY entry was suggested on Friday.

On the other hand, conservative traders should be waiting for a bullish pullback towards 1.1280-1.1290 (backside of the broken bullish channel) for a valid SELL entry.

Moreover, earlierbearish breakdown below 1.1235 opens the way for further bearish decline towards 1.1180-1.1170.

Trade recommendations :

A valid SELL entry can be taken around 1.1280 - 1.1290 when a bullish pullback occurs.

TP levels to be located around 1.1250, 1.1235 and 1.1170. SL should be placed above 1.1320.

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

Pound Falls On U.K. Political Tensions

Trading 22 avr 2019 Commentaire »

The pound came under pressure against its major counterparts in the New York session on Monday, amid media reports that U.K. Prime Minister Theresa May is likely to face no-confidence challenge over her handling of Brexit.

The Conservatives have called for an extraordinary general meeting with an aim to overthrow May by the end of June, media reports said.

The meeting and another no-confidence vote could be held within 28 days.

As per party rules, lawmakers cannot challenge May's leadership again until a year has passed, but lawmaker Graham Brady may demand her to quit, or opt to change the relevant party rules.

The currency has been trading lower against its major counterparts in the European session.

The pound declined to a 5-day low of 0.8670 against the euro, from a high of 0.8643 hit at 5:00 pm ET. The pound is seen finding support around the 0.88 level.

The pound hovered at 145.24 against the yen, a 10-day low. This follows a high of 145.51 touched at 11:00 pm ET. Next likely support for the pound is seen around the 142.00 level.

The U.K. currency reversed from an early high of 1.3000 against the greenback, falling to 1.2978. The pound is poised to find support around the 1.28 level.

Data from the National Association of Realtors showed a significant pullback in U.S. existing home sales in the month of March.

NAR said existing home sales plunged by 4.9 percent to an annual rate of 5.21 million in March after soaring by 11.2 percent to a revised rate of 5.48 million in February.

On the flip side, the pound recovered to 1.3189 against the franc, from a 4-day low of 1.3161 touched at 5:00 pm ET. If the pound rises further, 1.325 is seen as its next resistance level.


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U.S. Existing Home Sales Pull Back More Than Expected In March

Trading 22 avr 2019 Commentaire »

A report released by the National Association of Realtors on Monday showed a significant pullback in U.S. existing home sales in the month of March.

NAR said existing home sales plunged by 4.9 percent to an annual rate of 5.21 million in March after soaring by 11.2 percent to a revised rate of 5.48 million in February.

Economists had expected existing home sales to tumble by 3.8 percent to a rate of 5.30 million from the 5.51 million originally reported for the previous month.

The bigger than expected pullback came after existing home sales reached their highest level in almost a year in February.

With the monthly drop, existing home sales in March were down by 5.4 percent compared to 5.51 million in the same month a year ago.

"It is not surprising to see a retreat after a powerful surge in sales in the prior month," said NAR chief economist Lawrence Yun. "Still, current sales activity is underperforming in relation to the strength in the jobs markets. The impact of lower mortgage rates has not yet been fully realized."

The report said the median existing home price in March was $259,400, up 3.7 percent from $250,100 in February and up 3.8 percent from $249,800 in March of 2018.

Total housing inventory increased to 1.68 million existing homes available for sale at the end of March, representing 3.9 months of supply at the current sales pace.

"Further increases in inventory are highly desirable to keep home prices in check," said Yun. "The sustained steady gains in home sales can occur when home price appreciation grows at roughly the same pace as wage growth."

NAR said single-family existing home sales slumped by 4.9 percent to an annual rate of 4.67 million in March, while existing condominium and co-op sales plummeted by 5.3 percent to a rate of 540,000.

On Tuesday, the Commerce Department is scheduled to release a separate report on new home sales in the month of March.

New home sales are expected to drop to an annual rate of 650,000 in March after jumping to a rate of 667,000 in February.


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

Dollar Little Changed Following U.S. Existing Home Sales

Trading 22 avr 2019 Commentaire »

After the release of the U.S. existing home sales for March at 10:00 am ET Monday, the greenback changed little against its major counterparts.

The greenback was trading at 1.1254 against the euro, 111.92 against the yen, 1.0153 against the franc and 1.2988 against the pound around 10:02 am ET.


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*U.S. Existing Home Sales Tumble 4.9% In March

Trading 22 avr 2019 Commentaire »

U.S. Existing Home Sales Tumble 4.9% In March


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