Dollar Gains Against Major Rivals On Results, Economic Data

Trading 23 avr 2019 Commentaire »

The U.S. dollar rose against most of its major rivals and Tuesday and the dollar index surged to a 22-month high, with upbeat results and an unexpected jump in new home sales triggering the move up north.

The sharp jump in crude oil prices following the U.S. government's decision to stop granting sanctions waivers to major importers of Iranian oil contributed as well the greenback's gains.

Traders now look ahead to the U.S. GDP data for the January-March 2019 quarter, due on Friday.

The dollar index rose to its best level since June 2017, as it climbed to 97.79.

Against the Swiss franc, the dollar gained about 0.43% at 1.0202, and against the Aussie, it was up by about 0.5% at 0.7099.

The euro shed about 0.3% at $1.1190, while the British Pound Sterling declined about 0.4% to $1.2940 due to concerns over Brexit.

The Japanese yen, considered another safe haven, managed to eke out a small gain, edging up to 111.83 a dollar.

The Canadian dollar was trading at $1.3432 a dollar, compared to previous close of $1.3350, while the Swedish Krona was down 0.5% at 9.3543 a dollar.

The Commerce Department report said new home sales surged up by 4.5% to an annual rate of 692,000 in March after soaring by 5.9% to a revised rate of 662,000 in February.

The continued increase surprised economists, who had expected new home sales to drop by 2.5% to a rate of 650,000 from the 667,000 originally reported for the previous month.

With the unexpected spike, new home sales reached their highest annual rate since hitting 712,000 in November of 2017.


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Treasuries Rebound Amid Reports Of Asian Buying

Trading 23 avr 2019 Commentaire »

Following the pullback seen in the previous session, treasuries moved back to the upside during the trading day on Tuesday.

Bond prices moved higher early in the session and remained firmly positive throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposites of its price, dipped by 2 basis points to 2.570 percent.

The rebound by treasuries was partly attributed to reports of Asian interest in long-term notes, with CNBC citing indications of Japanese real money buying on the long-end of the Treasury curve.

Treasuries saw continued strength even though the Treasury Department's auction of $40 billion worth of two-year notes attracted below average demand.

The two-year note auction drew a high yield of 2.355 percent and a bid-to-cover ratio of 2.51, while the ten previous two-year note auctions had an average bid-to-cover ratio of 2.63.

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

Traders also seemed to shrug off a Commerce Department report showing new home sales in the U.S. unexpectedly jumped to their highest level in well over a year in the month of March.

The Commerce Department said new home sales surged up by 4.5 percent to an annual rate of 692,000 in March after soaring by 5.9 percent to a revised rate of 662,000 in February.

The continued increase surprised economists, who had expected new home sales to drop by 2.5 percent to a rate of 650,000 from the 667,000 originally reported for the previous month.

With the unexpected spike, new home sales reached their highest annual rate since hitting 712,000 in November of 2017.

Amid a quiet day on the U.S. economic front, trading on Wednesday may be impacted by reaction to the results of the Treasury's auction of $41 billion worth of five-year notes.


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Oil Futures Settle At Near 6-month High

Trading 23 avr 2019 Commentaire »

Crude oil prices ended notably higher, extending gains from previous session, amid rising prospects of a shortage in crude supply in the global market.

The U.S. government's decision to stop granting sanctions waivers that allow limited imports of Iranian crude pushed oil prices up north on Monday and the trend continued today as well.

West Texas Intermediate Crude oil futures for June ended up $0.75, or 1.1%, at $66.30 a barrel, a near six-month high.

Brent crude futures for June rose to a high of $74.73, the best level in about six months, before dropping down to around $74.55 a barrel.

On Monday, crude oil futures for June ended up $1.70, or 2.66%, at $65.70 a barrel.

The U.S. on Monday came out with an announcement on Monday, saying it would not extend waivers to buy Iranian crude oil for India, China, Turkey, Japan and South Korea when those waivers expire early next month.

The buyers of Iranian oil have to stop purchases by May 1 or face sanctions, it said.

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.

Saudi Arabia's energy minister Khalid Al-Falih said in a statement that the country would coordinate with other crude producers to ensure that adequate supplies are available and the market "does not go out of balance."

"In the next few weeks, the Kingdom will be consulting closely with other producing countries and key oil consuming nations to ensure a well-balanced and stable oil market, for the benefits of producers and consumers as well as the stability of the world economy."

Meanwhile, traders are looking ahead to the weekly oil reports. The American Petroleum Institute is scheduled to release its weekly oil report later in the day, while the Energy Information Administration's crude inventory data is due Wednesday morning.


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Gold Futures Settle At Near 4-month Low As Dollar Rises

Trading 23 avr 2019 Commentaire »

Gold prices drifted lower on Tuesday, as the dollar gained in strength against most major currencies and the dollar index rose to a near two-year peak.

Fairly strong quarterly earnings and the recent better than expected economic data out of the U.S. and China have dimmed gold's prospects.

Traders are increasingly leaning towards riskier assets such as equities.

The dollar index rose to 97.78, gaining about 0.5%.

Gold futures for June settled at $1,273.20 an ounce, down $4.40, or 0.34% from previous close.

On Monday, gold futures for June ended up $1.60, or 0.13%, at $1,277.60 an ounce.

Silver futures for May settled at $14.791 an ounce, down $0.181 from previous close, while Copper futures for May ended down $0.0080, at $2.8935 per pound.

In addition to upbeat earnings reports from a few big-name U.S. companies, data showing an unexpected jump in new home sales in the month of March contributed to increased risk appetite of investors.

The Commerce Department report said new home sales surged up by 4.5% to an annual rate of 692,000 in March after soaring by 5.9% to a revised rate of 662,000 in February.

The continued increase surprised economists, who had expected new home sales to drop by 2.5% to a rate of 650,000 from the 667,000 originally reported for the previous month.

With the unexpected spike, new home sales reached their highest annual rate since hitting 712,000 in November of 2017.


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Two-Year Note Auction Attracts Below Average Demand

Trading 23 avr 2019 Commentaire »

On Tuesday, 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, attracting below average demand.

The two-year note auction drew a high yield of 2.355 percent and a bid-to-cover ratio of 2.51.

The Treasury also sold $40 billion worth of two-year notes last month, drawing a high yield of 2.261 percent and a bid-to-cover ratio of 2.60.

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 2.63.

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


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April 23 2019 : EUR/USD Intraday technical analysis and trade recommendations.

Trading 23 avr 2019 Commentaire »

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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 temporary demand area which paused the ongoing bearish momentum for a while before bearish breakdown could be executed today.

Conservative traders should be waiting for a bullish pullback towards the newly-established supply zone around 1.1235 for a valid SELL entry.

Moreover, bearish persistence below 1.1235 enhances further bearish decline towards 1.1170 then 1.1115.

Trade recommendations :

A valid SELL entry can be taken around 1.1235 when a bullish pullback occurs.

TP levels to be located around 1.1170 and 1.1115. SL should be placed above 1.1260.

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

U.S. New Home Sales Unexpectedly Jump To 16-Month High In March

Trading 23 avr 2019 Commentaire »

New home sales in the U.S. unexpectedly jumped to their highest level in well over a year in the month of March, according to a report released by the Commerce Department on Tuesday.

The Commerce Department said new home sales surged up by 4.5 percent to an annual rate of 692,000 in March after soaring by 5.9 percent to a revised rate of 662,000 in February.

The continued increase surprised economists, who had expected new home sales to drop by 2.5 percent to a rate of 650,000 from the 667,000 originally reported for the previous month.

With the unexpected spike, new home sales reached their highest annual rate since hitting 712,000 in November of 2017.

The report also showed new home sales in March were up by 3.0 percent compared to the same month a year ago, reflecting a notable turnaround from the revised 0.2 percent annual drop in February.

The unexpected monthly increase in new home sales was partly due to strength in the Midwest, where new home sales skyrocketed by 17.6 percent to a rate of 87,000.

New home sales in the West and South also jumped by 6.7 percent and 3.6 percent, respectively, while new home sales in the Northeast plunged by 22.2 percent.

Meanwhile, the Commerce Department said the median sales price of new houses sold in March was $302,700, down by 4 percent from $315,200 in February and down by 9.7 percent from $335,400 a year ago.

The estimate of new houses for sale at the end of March also edged down to 344,000, representing 6.0 months of supply at the current sales rate.

On Monday, the National Association of Realtors released a separate 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.


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April 23, 2019 : GBP/USD Intraday technical analysis and trade recommendations.

Trading 23 avr 2019 Commentaire »

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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 1.2900, 1.2850 then 1.2800 where the lower limit of the depicted channel comes to meet the GBPUSD pair.

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

*Eurozone Apr Flash Consumer Sentiment -7.9 Vs. -7.2 In Feb, Consensus -7

Trading 23 avr 2019 Commentaire »

Eurozone Apr Flash Consumer Sentiment -7.9 Vs. -7.2 In Feb, Consensus -7


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Dollar Little Changed Following U.S. New Home Sales

Trading 23 avr 2019 Commentaire »

The U.S. new home sales for March has been released at 9:00 am ET Tuesday. Following the data, the greenback changed little against its major counterparts.

The greenback was trading at 111.93 against the yen, 1.1209 against the euro, 1.2957 against the pound and 1.0217 against the franc around 10:05 am ET.


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