Crude Oil Futures Settle Lower After Inventory Data

Trading 24 avr 2019 Commentaire »

Crude oil prices edged lower on Wednesday after data from Energy Information Administration (EIA) showed a much higher than expected increase in crude stockpiles in the U.S.

According to the weekly data from the Energy Information Administration, crude stockpiles in the U.S. rose by 5.48 million barrels in the week ended April 19, compared to forecasts for an increase of about 1.26 million barrels.

Gasoline inventories were down 2.13 million barrels in the week, more than twice the expected drop. Meanwhile, distillate stockpiles decreased by 660,000 barrels last week, much less than the expected drop.

According to the weekly report released by the American Petroleum Institute on Tuesday, U.S. crude oil inventories rose by 6.9 million barrels in the week to April 19 to 459.6 million.

West Texas Intermediate Crude oil futures for June ended down $0.41, or 0.6%, at $65.89 a barrel.

On Tuesday, crude oil futures for June ended up $0.75, or 1.1%, at $66.30 a barrel, a near six-month high.

The International Energy Agency (IEA) said in a statement on Tuesday that markets are "adequately supplied" and that "global spare production capacity remains at comfortable levels," thanks to ample spare capacity from the Middle East dominated Organization of the Petroleum Exporting Countries (OPEC), Russian and also the United States.

Crude oil prices rallied to multi-month highs earlier this week after the U.S. government said that it would end all exemptions for sanctions against Iran and asked countries to stop importing oil from Iran or face punitive action.

Though United States said output from OPEC members and Saudi Arabia will help offset supply shortage that may arise out of the ban of Iranian oil, Saudi Arabia has reportedly said that it is unlikely to increase production anytime soon.

According to Reuters, Saudi Arabia's Energy Minister Khalid al-Falih said today that since inventories were actually rising despite disruptions in Venezuela and tightening of sanctions on Iran, Saudi doesn't see the need to do anything immediately.

Saudi Arabia intends to remain within its OPEC+ quota in May, the minister reportedly said, adding that "We think there will be an uptick in real demand but certainly we are not going to be pre-emptive and increase production."

OPEC and its partners will likely have "some level of production management beyond June," according to al-Falih, who reiterated that it was too early to predict details about targets and production.


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Treasuries See Further Upside On Disappointing European Economic Data

Trading 24 avr 2019 Commentaire »

Extending the upward move seen in the previous session, treasuries moved notably higher during the trading day on Wednesday.

Bond prices moved to the upside early in the day and remained firmly positive throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 4.8 basis points to 2.522 percent.

The continued strength among treasuries came amid concerns about the global economy following the release of disappointing European economic data.

German business confidence unexpectedly weakened in April to its lowest level in three years, survey data from the Ifo Institute showed.

The Ifo business climate indicator dropped to 99.2 from an upwardly revised 99.7 in March. Economists had expected the index to climb to 99.9 from March's original 99.6.

Separately, preliminary data from the statistical office INSEE showed French manufacturing confidence deteriorated for the first time in five months in April to its lowest level in over two-and-a-half years.

Treasuries remained firmly positive following the release of the results of the Treasury Department's auction of $41 billion worth of five-year notes, which attracted slightly above average demand.

The five-year note auction drew a high yield of 2.315 percent and a bid-to-cover ratio of 2.44, while the ten previous five-year note auctions had an average bid-to-cover ratio of 2.41.

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 Treasury is due to finish off this week's series of long-term securities auctions on Thursday with the sale of $32 billion worth of seven-year notes.

Trading on Thursday may also be impacted by reaction to a pair of U.S. economic reports on weekly jobless claims and durable goods orders.


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Five-Year Note Auction Attracts Slightly Above Average Demand

Trading 24 avr 2019 Commentaire »

Following yesterday's auction of $40 billion worth of two-year notes, the Treasury Department sold $41 billion worth of five-year notes on Wednesday, attracting slightly above average demand.

The five-year note auction drew a high yield of 2.315 percent and a bid-to-cover ratio of 2.44.

Last month, the Treasury also sold $41 billion worth of five-year notes, drawing a high yield 2.172 percent and a bid-to-cover ratio of 2.35.

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 five-year note auctions had an average bid-to-cover ratio of 2.41.

The Treasury is due to finish off this week's series of long-term securities auctions on Thursday with the sale of $32 billion worth of seven-year notes.


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April 24, 2019 : EUR/USD Intraday technical analysis and trade recommendations.

Trading 24 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 two days ago.

Conservative traders were advised to wait for a bullish pullback towards the newly-established supply zone around 1.1235 for a valid SELL entry.

On the long-term, bearish persistence below 1.1235 enhances further bearish decline towards 1.1170 then 1.1115 if enough bearish momentum is expressed.

Trade recommendations :

A valid SELL entry was suggested around 1.1235 upon Yesterday's bullish pullback.

TP levels to be located around 1.1170 and 1.1115. SL should lowered to 1.1197 to offset the associated risk.

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

April 24, 2019 : GBP/USD Intraday technical analysis and trade recommendations.

Trading 24 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.

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

Canadian Dollar Falls Sharply As BoC Retains Rate; Removes Rate Hike Bias

Trading 24 avr 2019 Commentaire »

The Canadian dollar drifted lower against its key counterparts in the New York session on Wednesday, after the Bank of Canada kept its benchmark rate unchanged and eliminated its wording suggesting the hint for rate hikes in future from the statement.

The BoC maintained its benchmark rate at 1.75 percent, in line with expectations.

The economic growth during the first half of 2019 is now estimated to be slower than anticipated in January, the bank said.

Inflation is forecast to dip in the third quarter, due to the dynamics of gasoline prices, before returning to about 2 percent by year end.

"Given all these developments, the Governing Council judges that an accommodative policy interest rate continues to be warranted," the bank noted.

This was in contrast with the March statement which suggested "about the timing of future rate increases."

The currency was trading higher against its major counterparts in the European session.

The loonie fell to 82.68 versus the yen, its lowest since March 29. This follows a high of 83.34 touched at 5:00 pm ET. The loonie is seen finding support around the 80.5 level.

The loonie that closed yesterday's trading at 1.3421 against the greenback depreciated to a 3-1/2-month low of 1.3521. The next possible support for the loonie is seen around the 1.36 level.

The loonie declined to an 8-day low of 1.5129 against the euro, compared to 1.5070 hit late New York Tuesday. If the loonie drops further, 1.525 is possibly seen as its next support level.

Survey data from the Ifo Institute showed that Germany's business confidence unexpectedly weakened in April to its lowest level in three years.

The Ifo business climate indicator dropped to 99.2 from an upwardly revised 99.7 in March. Economists had expected the index to climb to 99.9 from March's original 99.6.

The loonie pulled back to 0.9496 against the aussie, from a 3-week high of 0.9444 hit at 9:45 am ET. Next key support for the loonie is likely seen around the 0.96 level.


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*U.S. Crude Oil Inventories Jump By 5.5 Million Barrels In Week Ended 4/19

Trading 24 avr 2019 Commentaire »

U.S. Crude Oil Inventories Jump By 5.5 Million Barrels In Week Ended 4/19


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Belgium Business Confidence At 19-month Low

Trading 24 avr 2019 Commentaire »

Belgium's business confidence weakened in April to its lowest level in 19 months, the National Bank of Belgium said Wednesday.

The business confidence indicator dropped to -3.2 from -0.7 in March. Economists had expected the reading to remain unchanged.

Confidence deteriorated in manufacturing and construction, while morale improved for a second consecutive month in trade. Marginal improvement in sentiment was witnessed in the business services sector.

The weakening of confidence in manufacturing was mainly due to a decline in all components of the indicator, particularly the appraisal of total order books.

The bank also reported that the capacity utilization in the manufacturing industry fell in the April quarter to 80.1 percent from 81 percent in January.


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*Canadian Dollar Falls To 8-day Low Of 1.5129 Against Euro

Trading 24 avr 2019 Commentaire »

Canadian Dollar Falls To 8-day Low Of 1.5129 Against Euro


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*Canadian Dollar Declines To 82.68 Versus Yen, Lowest Since March 29

Trading 24 avr 2019 Commentaire »

Canadian Dollar Declines To 82.68 Versus Yen, Lowest Since March 29


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