Canadian Dollar Falls On Weak Consumer Price Inflation

Trading 16 oct 2019 Commentaire »

The Canadian dollar declined against its major counterparts in the European session on Wednesday, following a data showing a decline in the nation's consumer prices in September.

Data from Statistics Canada showed that the CPI edged down 0.1 percent on a seasonally adjusted monthly basis in September, unchanged from August. Economists has forecast a 0.3 percent drop.

Core inflation, excluding food and energy, ticked up 0.1 percent after a 0.2 percent increase in the previous month.

The CPI rose 1.9 percent year-on-year in September, the same rate as in August.

Excluding gasoline, the CPI rose 2.4 percent for the third consecutive month.

The loonie slipped to 1.3231 against the greenback, after reaching a 2-day high of 1.3195 at 5:15 pm ET. The currency is likely to find support around the 1.30 mark, if it weakens further.

The loonie weakened to a 5-day low of 1.4620 against the euro from Tuesday's closing value of 1.4562. The loonie is seen finding support around the 1.50 level.

Having risen to a session's peak of 82.50 against the yen at 5:00 pm ET, the loonie changed course and depreciated to 82.04. The next likely support for the loonie lies around the 78.5 level.

The loonie eased off to 0.8906 versus the aussie, from a 2-week high of 0.8881 seen at 8:00 am ET. Should the loonie drops further, 0.90 is possibly seen as its next support level.


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

*China Accounted For Almost Half Of World's Patent Filings In 2018: WIPO

Trading 16 oct 2019 Commentaire »

China Accounted For Almost Half Of World's Patent Filings In 2018: WIPO


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

USDJPY remains in bullish short-term trend

Trading 16 oct 2019 Commentaire »

USDJPY has bounced off the 38% Fibonacci retracement and cloud support at 106.90 and now is making new highs at 108.73. In Ichimoku cloud terms we expect price to move higher towards 110.50.

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USDJPY has bounced off critical Fibonacci and cloud support. Price is now making new higher highs and I expect price to continue its up trend towards 110.80-111. Support is at 107.70. Any pull back towards that area is considered a buying opportunity. Bulls do not want to see price break below 107-106.80.

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

U.S. Business Inventories Virtually Unchanged In August

Trading 16 oct 2019 Commentaire »

The Commerce Department released a report on Wednesday showing little change in U.S. business inventories in the month of August.

The report said business inventories came in virtually unchanged in August after climbing by a revised 0.3 percent in July.

Economists had expected inventories to rise by 0.2 percent compared to the 0.4 percent increase originally reported for the previous month.

Business inventories came in unchanged as manufacturing inventories were flat and a 0.2 percent uptick in wholesale inventories was offset by a 0.1 percent dip in retail inventories.

Meanwhile, the Commerce Department said business sales rose by 0.2 percent in August, matching the revised increase in July.

Retail sales led the way higher, climbing by 0.6 percent, while wholesale sales were unchanged and manufacturing sales edged down by 0.1 percent.

Even with sales rising and inventories flat, the total business inventories/sales ratio came in unchanged from the previous month at 1.40.


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U.S. Homebuilder Confidence Unexpectedly Shows Continued Improvement

Trading 16 oct 2019 Commentaire »

Homebuilder confidence in the U.S. unexpectedly climbed to its highest level in well over a year in the month of October, the National Association of Home Builders revealed in a report on Wednesday.

The report said the NAHB/Wells Fargo Housing Market Index jumped to 71 in October after inching up to 68 in September. Economists had expected the index to come in unchanged from the previous month.

With the unexpected increase, the housing market index rose for the fourth straight month and reached its highest level since hitting a matching reading in February of 2018.

"The second half of 2019 has seen steady gains in single-family construction, and this is mirrored by the gradual uptick in builder sentiment over the past few months," said NAHB Chief Economist Robert Dietz.

He added, "However, builders continue to remain cautious due to ongoing supply side constraints and concerns about a slowing economy."

The continued increase by the housing market index reflected gains by all three component indices, with the index measuring sales expectations in the next six months surging up to 76 in October from 70 in September.

The measure charting traffic of prospective buyers also jumped to 54 in October from 50 in September, while the index gauging current sales conditions increased to 78 from 75.

On Thursday, the Commerce Department is scheduled to release a separate report on new residential construction in the month of September.

Economists expect housing starts to dip to an annual rate of 1.320 million in September after soaring to a rate of 1.364 million in August.

Building permits, an indicator of future housing demand, are also expected to drop to a rate of 1.350 million in September after jumping to a rate of 1.419 million in the previous month.


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

Dismal U.S. Retail Sales Send Dollar Down

Trading 16 oct 2019 Commentaire »

Unexpected decline in the U.S. retail sales in September dragged the U.S. dollar down in the European session on Wednesday.

Data from the Commerce Department showed that retail sales fell by 0.3 percent in September after climbing by an upwardly revised 0.6 percent in August.

Economists had expected sales to rise by 0.3 percent.

Excluding a notable pullback in auto sales, retail sales still edged down by 0.1 percent in September after rising by a revised 0.2 percent in August.

Economists had expected ex-auto sales to rise by 0.2 percent compared to the unchanged reading originally reported for the previous month.

Continued uncertainty about a possible U.S.-China trade deal undermined sentiment.

New media reports raised questions about the "phase one" deal announced by President Donald Trump last week.

A Wall Street Journal report noted questions remain about how much U.S. agricultural products China intends to buy and the time frame for the purchases, while a Bloomberg report said China wants tariffs rolled back before it moves forward.

The currency traded mixed against its major counterparts in the Asian session. While it fell against the franc and the yen, it was steady against the euro. Versus the pound, it rose.

The greenback fell to 108.56 against the yen, from a high of 108.87 hit at 5:15 pm ET. The currency is likely to find support around the 106.00 mark, if it weakens further.

The greenback hovered at a 2-day low of 0.9960 against the franc, after rising to 0.9991 at 5:15 am ET. Next near term support for the greenback is likely seen around the 0.98 level.

The greenback weakened to 1.2839 against the pound, its lowest since May 13. Further downtrend is likely to lead the currency to a support around the 1.30 region.

Data from the Office for National Statistics showed that UK consumer price inflation remained in September and factory gate price inflation was the weakest in three years.

Consumer prices advanced 1.7 percent year-on-year, the same pace of growth as seen in August. The rate was forecast to rise to 1.8 percent.

On the other hand, the greenback held steady against the euro, following a 5-day decline to 1.1060 at 2:15 am ET. The pair had ended Tuesday's trading at 1.1033.

Data from Eurostat showed that Eurozone inflation eased more than initially estimated in September.

Inflation slowed to 0.8 percent in September from 1 percent in August. Price growth was initially estimated at 0.9 percent.

The greenback appreciated to 1.3233 against the loonie, reversing from a 2-day low of 1.3195 it touched at 5:15 pm ET. The greenback is seen facing resistance around the 1.35 level.

The greenback climbed to a 6-day high of 0.6723 versus the aussie from Tuesday's closing value of 0.6752. On the upside, 0.63 is likely seen as the next resistance level for the greenback.

Following a 2-day decline to 0.6319 against the kiwi at 5:45 pm ET, the greenback reversed direction, reaching a 2-week high of 0.6241. The greenback is poised to find resistance around the 0.60 region.

Data from Statistics New Zealand showed that New Zealand consumer prices rose 0.7 percent on quarter in the third quarter of 2019 - surpassing expectations for an increase of 0.6 percent, which would have been unchanged from the previous three months.

Housing and household utilities rose 1.2 percent on quarter, influenced by higher prices for property rates and related services.


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

*Italy Draft Budget Unveils 3% Web Tax On Digital Giants From 2020: Reuters

Trading 16 oct 2019 Commentaire »

Italy Draft Budget Unveils 3% Web Tax On Digital Giants From 2020: Reuters


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

EURUSD short-term trend remains bullish

Trading 16 oct 2019 Commentaire »

EURUSD bounced off the critical support of 1.10 we mentioned yesterday and continues higher following our bullish scenario. Trend remains bullish in the short-term as long as price is above 1.10 as we also mentioned yesterday.

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EURUSD held above the tenkan-a and the kijun-sen yesterday. We have a weak bullish signal as the tenkan-sen is crossing above the kijun-sen. Daily trend is neutral as price has entered the Kumo. Support is at 1.10 and resistance at 1.1120-1.1140. As we mentioned yesterday, as long as price is above 1.10, we remain optimistic expecting 1.1130 to be reached.The material has been provided by InstaForex Company - www.instaforex.com

Gold struggles to recapture $1,490-$1,500.

Trading 16 oct 2019 Commentaire »

Gold price briefly moved below $1,480 but is now trading near $1,490 trying to recapture the key pivot point of $1,500. Short-term trend remains bearish and as long as price is below $1,525 we remain bearish expecting a pull back towards $1,460-$1,420.

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Gold daily trend is neutral as price is inside the Kumo (cloud). Short-term trend is bearish as we have been given a weak bearish signal once the tenkan-sen (red line indicator) crossed the kijun-sen (green line indicator). Support is at the lower cloud boundary at $1,469 while short-term resistance is at the kijun- and tenkan-sen around $1,497. Daily trend changes to bullish on a break above $1.520.The material has been provided by InstaForex Company - www.instaforex.com

*U.S. Business Inventories Unchanged In August

Trading 16 oct 2019 Commentaire »

U.S. Business Inventories Unchanged In August


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