Oil Futures Settle Sharply Lower For 2nd Straight Day

Trading 18 sept 2019 Commentaire »

Crude oil prices drifted lower on Wednesday, extending losses to a second straight session, after having climbed sharply higher on Monday amid an escalation in geopolitical tensions after the drone attacks on Saudi's oil facilities.

Oil's decline on Wednesday was due to the data showing an increase in U.S. crude stockpiles last week and a sooner than expected recovery in Saudi Arabia's output levels.

West Texas Intermediate Crude oil futures for October ended down $1.23, or about 2.1%, at $58.11 a barrel.

On Tuesday, WTI crude oil futures for October plunged $3.56, or 5.7%, to 59.34 a barrel, a day after soaring more than $8 a barrel.

Data released by the Energy Information Administration Wednesday morning showed crude inventories in the U.S. rose by 1.06 million barrels in the week ended September 13, compared with expectations for a drawdown of 2.5 million barrels.

Gasoline inventories were up by 780,000 barrels last week, as against forecasts for a drop of 540,000 barrels. Meanwhile, distillate stockpiles increased by 440,000 barrels, compared with forecasts for a rise of 535,000 barrels.

Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman said on Tuesday that average oil production in September and October would be 9.89 million barrels per day and that the world's top oil exporter would ensure full oil supply commitments to its customers this month.

Meanwhile, U.S. President Donald Trump President Donald Trump revealed in a post on Twitter on Wednesday that he has ordered Treasury Secretary Steven Mnuchin to impose additional sanctions on Iran.

The announcement follows the attacks on Saudi Arabian oil facilities over the weekend, with the U.S. pointing the finger at Iran.

"I have just instructed the Secretary of the Treasury to substantially increase Sanctions on the country of Iran!" Trump tweeted.

Trump previously indicated the U.S. was prepared to respond militarily but stopped short of definitively blaming Iran for the attacks.


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Treasuries Pull Back Off Best Levels But Close Modestly Higher

Trading 18 sept 2019 Commentaire »

After an early move to the upside, treasuries gave back some ground after the Federal Reserve's monetary policy announcement on Wednesday but remained modestly higher.

A late-day advance helped bond prices to close in positive territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dipped by 2.6 basis points to 1.786 percent.

Treasuries pulled back off their best levels after the Fed revealed its widely expected decision to cut rates by another 25 basis points, lowering the target range for the federal funds rate to 1-3/4 to 2 percent.

The latest rate cut was once again attributed to the implications of global developments for the economic outlook as well as muted inflation pressures.

The accompanying statement was largely unchanged from July, with the Fed reiterating that the labor market remains strong and that economic activity has been rising at a moderate rate.

The Fed did acknowledge in its latest statement that exports have weakened along with business fixed investment, although the central bank noted household spending has been rising at a strong pace.

The decision to cut rates was widely expected by economists but was not without dissent from members of the Federal Open Market Committee.

The FOMC voted 7 to 3 to lower rates by 25 basis points, with St. Louis Fed President James Bullard preferring a 50 basis point cut and Kansas City Fed President Esther George and Boston Fed President Eric Rosengren preferring to leave rates unchanged.

The Fed's economic projections suggest that the meeting participants are also divided about the outlook for interest rates.

While seven participants expect another rate cut before the end of year, five expect rates to remain unchanged and another five expect rates to be raised back to 2 to 2-1/4 percent.

The central bank reiterated that it will act as appropriate to sustain the economic expansion, with a strong labor market and inflation near its symmetric 2 percent objective.

Today's modest rate cut was not well received by President Donald Trump, who recently urged the Fed to lower interest rates to zero or less

"Jay Powell and the Federal Reserve Fail Again. No 'guts,' no sense, no vision! A terrible communicator!" Trump tweeted shortly after the announcement.

Fed Chairman Jerome Powell said in his post-meeting press conference that the central bank is prepared for a more "extensive sequence of rate cuts" in the face of an economic downturn but noted that is not currently expected.

Powell also told reporters that he does not foresee the Fed using negative interest rates as a policy tool, as Trump has suggested.

"If we were to find ourselves at some future date again at the effect of a lower bound, again not something we are expecting, then I think we would look at using large scale asset purchases and forward guidance," Powell said.

Trading on Thursday may continue to be impacted by reaction to the Fed announcement, although reports on weekly jobless claims, existing home sales and Philadelphia-area manufacturing activity may also attract attention.


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Gold Settles Modestly Higher Ahead Of Fed Rate Decision

Trading 18 sept 2019 Commentaire »

Gold futures settled modestly higher on Wednesday, extending gains to a third successive session. However, prices edged lower after the Federal Reserve cut interest rate by 25 basis points.

A fairly steady dollar limited gold's uptick. The dollar index, which was trading marginally above the flat line for much of the session till the Fed announced its rate decision, rose notably higher after that, advancing to 98.69.

Gold futures for December ended up $2.40, or 0.2%, at $1,515.80 an ounce, after having advanced to $1,519.50 a little before noon.

On Tuesday, gold futures for December settled with a gain of $1.90, or about 0.1%, at $1,513.40 an ounce.

Silver futures for December ended down $0.221, at $17.919 an ounce, while Copper futures for December settled at $2.6130 per pound, down $0.0140 from previous close.

Data released by the Labor Department Wednesday morning showed new residential construction in the U.S. showed a substantial rebound in the month of August. The report said housing starts soared by 12.3% to an annual rate of 1.364 million in August after slumping by 1.5% to a revised rate of 1.215 million in July.

Economists had expected housing starts to surge up by 5% to a rate of 1.250 million from the 1.191 million originally reported for the previous month.

The Commerce Department said building permits also spiked by 7.7% to an annual rate of 1.419 million in August after jumping by 6.9% to a revised rate of 1.317 million in July.

Building permits, an indicator of future housing demand, had been expected to drop by 2.7% to a rate of 1.300 million from the 1.336 million originally reported for the previous month.

The Federal Reserve cut rates by 25 basis points as widely expected, lowering the target range for the federal funds rate to 1-3/4 to 2%.

The Fed attributed the cut to the implications of global developments for the economic outlook as well as muted inflation pressures.

The much anticipated accompanying statement was largely unchanged from July, with the Fed reiterating that the labor market remains strong and that economic activity has been rising at a moderate rate.

The central bank reiterated that it will act as appropriate to sustain the economic expansion, with a strong labor market and inflation near its symmetric 2% objective.

Shortly after the announcement, U.S. President Donald Trump tweeted, "Jay Powell and the Federal Reserve Fail Again. No 'guts,' no sense, no vision! A terrible communicator!"


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*Fed Chairman Powell Holding Post-Meeting Press Conference

Trading 18 sept 2019 Commentaire »

Fed Chairman Powell Holding Post-Meeting Press Conference


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Fed Cuts Rates As Expected But Leaves Outlook Murky

Trading 18 sept 2019 Commentaire »

After lowering interest rates for the first time in over a decade in late July, the Federal Reserve announced another interest rate cut following a two-day monetary policy meeting that ended on Wednesday.

The Fed revealed its widely expected decision to cut rates by another 25 basis points, lowering the target range for the federal funds rate to 1-3/4 to 2 percent.

The latest rate cut was once again attributed to the implications of global developments for the economic outlook as well as muted inflation pressures.

The accompanying statement was largely unchanged from July, with the Fed reiterating that the labor market remains strong and that economic activity has been rising at a moderate rate.

The Fed did acknowledge in its latest statement that exports have weakened along with business fixed investment, although the central bank noted household spending has been rising at a strong pace.

The decision to cut rates was widely expected by economists but was not without dissent from members of the Federal Open Market Committee.

The FOMC voted 7 to 3 to lower rates by 25 basis points, with St. Louis Fed President James Bullard preferring a 50 basis point cut and Kansas City Fed President Esther George and Boston Fed President Eric Rosengren preferring to leave rates unchanged.

The Fed's economic projections suggest that the meeting participants are also divided about the outlook for interest rates.

While seven participants expect another rate cut before the end of year, five expect rates to remain unchanged and another five expect rates to be raised back to 2 to 2-1/4 percent.

The central bank reiterated that it will act as appropriate to sustain the economic expansion, with a strong labor market and inflation near its symmetric 2 percent objective.

Today's modest rate cut was not well received by President Donald Trump, who recently urged the Fed to lower interest rates to zero or less

"Jay Powell and the Federal Reserve Fail Again. No 'guts,' no sense, no vision! A terrible communicator!" Trump tweeted shortly after the announcement.

Federal Reserve Chairman Jerome Powell is scheduled to begin his post-meeting press conference at 2:30 pm ET.


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*Federal Reserve Lowers Interest Rates By 25 Basis Points

Trading 18 sept 2019 Commentaire »

Federal Reserve Lowers Interest Rates By 25 Basis Points


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September 18, 2019 : GBP/USD Intraday technical analysis and trade recommendations.

Trading 18 sept 2019 Commentaire »

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On July 26, Bearish breakdown below 1.2385 (Wedge-Pattern Key-Level) facilitated further bearish decline towards 1.2210 and 1.2100 which corresponded to significant key-levels on the Weekly chart.

In Early August, another consolidation-range was temporarily established above 1.2100 before August 9 when temporary bearish movement was executed towards 1.2025 (Previous Weekly-Bottom).

Recent bullish recovery was demonstrated off the recent bottom (1.2025).

This brought the GBP/USD pair back above 1.2100 (Lower limit of the recently established consolidation-zone) within the depicted short-term bullish channel.

As expected, further bullish advancement was demonstrated towards 1.2230 then 1.2280 where recent bearish rejection was demonstrated (near the upper limit of the recent movement channel).

That's why, another quick bearish decline was demonstrated towards 1.2100 then 1.2000 (corresponding to the previous bottom established on August 9).

Last Week, Early signs of bullish recovery (Bullish Engulfing candlesticks) were manifested around 1.1960 bringing the GBPUSD back above 1.2100 and 1.2220 where the GBPUSD pair looked overbought.

However, further bullish momentum was demonstrated towards 1.2320 bringing the pair back inside the depicted movement channel again.

As Expected, Temporary bullish advancement was demonstrated towards 1.2475 - 1.2500 where the upper limit of the current movement channel comes to meet the GBP/USD pair.

Another bullish trial is currently being expressed towards 1.2500 where a possible Double-Top reversal pattern may be established.

The Long-term outlook remains bearish as long as the upper limit of the current movement channel around 1.2475-1.2500 remains defended by the GBP/USD bears.

On the other hand, Bearish breakdown below 1.2400 (Reversal-Pattern Neckline) can turn the short-term outlook into bearish, thus allowing more bearish decline towards the lower limit of the movement channel around 1.2330.

Trade Recommendations:

Conservative traders can look for a valid SELL entry anywhere around the price levels of 1.2475-1.2500 for a valid SELL entry.

T/P level to be placed around 1.2330, 1.2280 and 1.2220 while S/L should be placed above 1.2550.

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

September 18, 2019 : EUR/USD Intraday technical analysis and trade recommendations.

Trading 18 sept 2019 Commentaire »

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Two weeks ago, a quick bearish decline was demonstrated towards 1.0965 - 1.0950 where the backside of the broken channel came to meet the EURUSD pair again.

Risky traders were advised to look for a valid BUY entry anywhere around the price levels of 1.0950. All T/p levels were successfully reached within the recent bullish movement during last weeks' consolidations.

Earlier last week, the EUR/USD pair was testing the backside of both broken trends around 1.1060-1.1080 where significant bearish pressure pushed the pair directly towards 1.0940 (Prominent Weekly Bottom).

Bearish Breakdown below the price level of 1.0940 was needed to enhance further bearish decline towards 1.0900 and 1.0840 (Fibonacci Expansion Key-Levels).

However, SIGNIFICANT bullish rejection was demonstrated as a quick bullish spike towards 1.1100 where a recent episode of bearish rejection was expressed.

Currently, the GBPUSD is trapped within a narrow consolidation range extending between 1.1090 - 1.0995 until breakout occurs in either directions.

Bearish Breakout below 1.1030 is needed to render the recent bullish spike as a bullish trap. If so, bearish decline would be expected initially towards 1.0940-1.0920.

On the other hand, Bullish breakout above 1.1080 gives an early signal of short-term bullish reversal possibility as a bullish double-bottom pattern with a projected target towards 1.1175.

Trade recommendations :

Risky traders are advised to have a short-term BUY Entry upon bullish breakout above (1.1090-1.1110).

S/L should placed below 1.1050 while target level should be located at 1.1175.

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

*U.S. Crude Oil Inventories Rise By 1.1 Million Barrels In Week Ended 9/13

Trading 18 sept 2019 Commentaire »

U.S. Crude Oil Inventories Rise By 1.1 Million Barrels In Week Ended 9/13


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Canadian Dollar Advances After Consumer Inflation Data

Trading 18 sept 2019 Commentaire »

The Canadian dollar strengthened against its major counterparts in the European session on Wednesday, following the release of better than expected inflation data for August.

Data from Statistics Canada showed that the inflation came in flat on a seasonally adjusted monthly basis in August, after rising 0.4 percent in the previous month. Economists had expected a 0.2 percent drop.

Core CPI, excluding food and energy, grew 0.2 percent in August, unchanged from last month.

On an annual basis, consumer prices rose an unadjusted 1.9 percent in August, following a 2.0 percent increase in July. The rate was forecast to rise 2.0 percent.

The loonie traded mixed against its major rivals in the previous session. While it held steady against the yen and the euro, it fell against the greenback. Against the aussie, it rose.

The loonie advanced to 1.3237 against the greenback, from an early low of 1.3272. The next possible resistance for the loonie is seen around the 1.30 level.

Reversing from its early lows of 0.9098 against the aussie and 1.4676 against the euro, the loonie edged up to 0.9059 and 1.4630, respectively. Next immediate resistance for the loonie is eyed around 0.89 against the aussie and 1.44 against the euro.

The loonie gained to 81.71 against the yen, off an early low of 81.54. The loonie is poised to find resistance around the 83.5 level.

Data from the Ministry of Finance showed that Japan posted a merchandise trade deficit of 136.329 billion yen in August.

That beat forecasts for a shortfall of 365.4 billion yen following the 250.7 billion yen deficit in July.

Looking ahead, at 2:00 pm ET, the Fed announces its decision on interest rates. Economists widely expect the Fed to cut federal funds rate to between 1.75 percent and 2.00 percent.


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