Dollar Turns Easy After Recent Gains As Jobs Data Weighs

Trading 11 jan 2020 Commentaire »

The U.S. dollar turned weak on Friday, despite having edged higher early on in the session, weighed by the Labor Department's data showing a slower than expected job growth in the month of December.

The dollar index, which eased to 97.30 after having stayed above 97.50 earlier in the day, was last seen at 97.36, down nearly 0.1% from previous close.

Against the Euro, the dollare weakened to $1.1122, from $1.1105.

The Pound Sterling shed some ground against the dollar, easing to $1.3055, from Thursday's close of $1.3066.

Against Japanese Yen, the dollar was little changed at 109.50 around late afternoon. Earlier in the day, the dollar was firmly placed at 109.69 yen.

The dollar was down more than 0.6% against the Aussie, with the AUD-USD pair trading at 0.6902.

Against the loonie, the dollar was flat at 1.3057, and against Swiss franc, it was down marginally at 0.9729.

According to the data released by the Labor Department, the pace of job growth slowed by more than expected in the month of December.

The report said non-farm payroll employment climbed by 145,000 jobs in December after spiking by a revised 256,000 in November.

Economists had expected employment to increase by about 164,000 jobs compared to the jump of 266,000 jobs originally reported for the previous month.

The Labor Department said notable job gains occurred in the retail trade and healthcare sectors, while mining lost jobs.

Meanwhile, the report said the unemployment rate came in at 3.5 percent in December, unchanged from the previous month and in line with economist estimates.

In geopolitical news, the U.S. today imposed fresh sanctions on Iran. U.S. Secretary of State Mike Pompeo and Treasury Secretary Steven Mnuchin announced new sanctions on Iran's metal exports and eight senior Iranian officials.

U.S. President Donald Trump had said earlier this week that he would not respond militarily to the Iranian missile strikes on Iraqi bases housing U.S. troops. Trump, who had earlier threatened harsh responses to any attack by Iran, said later that he will only impose new sanctions on Iran's already struggling economy.


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Oil Settles Lower Again, Sheds Nearly 6.5% In Week

Trading 11 jan 2020 Commentaire »

Crude oil prices drifted lower on Friday, declining for a fourth successive session, amid easing tensions in the Middle East, after the U.S. decided against military action on Iran, which had attacked some U.S. army bases in Iraq earlier in the week.

Crude oil had some moments in positive territory on Friday after the U.S. imposed fresh sanctions on Iran.

West Texas Intermediate Crude oil futures for February ended down $0.52, or about 0.9%, at $59.04 a barrel.

Brent Crude oil futures were down by about $0.45 to $64.92 a barrel in late afternoon trades.

On Thursday, WTI Crude oil futures ended marginally down at $59.56 a barrel, after having shed nearly 5% a session earlier. WTI Crude oil futures shed about 6.4% in the week, the biggest weekly decline in more than five months.

Higher crude inventories in the U.S. and uninterrupted crude production in the Middle East despite the tensions between the U.S. and Iran weighed on oil prices.

A somewhat disappointing monthly non-farm payroll data from the U.S. Labor Department contributed a bit to oil's decline.

A report from Baker Hughes today said the number of active U.S. rigs drilling for oil fell by 11 to 659 this week, declining for a third straight week. The total active U.S. rig count now stands at 781, the report showed.

In a significant development, the U.S. House of Representatives on Thursday approved a resolution that would force President Trump to seek consent from Congress before taking new military action against Iran.


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Gold Futures Settle Modestly Higher, Post Third Weekly Gain

Trading 11 jan 2020 Commentaire »

Gold prices edged higher on Friday, shrugging off a weak start, after a somewhat weaker-than-expected monthly jobs data from the Labor Department prompted traders to seek the safe-haven asset.

A subdued dollar too supported gold's rise.

However, amid easing concerns about U.S.-Iran tensions, gold's upside was not any significantly pronounced.

The dollar index, which declined to 97.30, was last seen at 97.38, down 0.07% from previous close.

Gold futures for February ended up $5.80, or about 0.4%, at $1,560.10 an ounce.

On Thursday, gold futures for February ended down $5.90, or 0.4%, at $1,554.30 an ounce.

For the week, gold futures gained about 0.5%, recording their third straight weekly gains.

Silver futures for March ended up $0.169 at $18.105 an ounce, while Copper futures for March settled at $2.8135 per pound, up $0.0115 from previous close.

Data released by the Labor Department showed the pace of job growth in the U.S. slowed by more than expected in the month of December.

The report said non-farm payroll employment climbed by 145,000 jobs in December after spiking by a revised 256,000 in November. Economists had expected employment to increase by about 164,000 jobs compared to the jump of 266,000 jobs originally reported for the previous month.

Meanwhile, the report said the unemployment rate came in at 3.5 percent in December, unchanged from the previous month and in line with economist estimates.

The U.S. today imposed fresh sanctions on Iran. U.S. Secretary of State Mike Pompeo and Treasury Secretary Steven Mnuchin announced new sanctions on Iran's metal exports and eight senior Iranian officials.

U.S. President Donald Trump had said earlier this week that he would not respond militarily to the Iranian missile strikes on Iraq bases housing U.S. troops. Trump, who had earlier threatened harsh responses to any attack by Iran, said later that he will only impose new sanctions on Iran's already struggling economy.


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

Weekly EURUSD analysis

Trading 11 jan 2020 Commentaire »

EURUSD challenged the 1.12 level once again, but bulls were not strong enough for a second time to hold above 1.12. Price is back below the horizontal resistance (red rectangle) at 1.1170. Price so far has respected short-term higher highs and higher lows. In order for bulls to remain in control of the trend, we should see price starting to rise after Monday.

analytics5e190a788c3b3.png

Red rectangle - resistance

Blue rectangle - support

Green lines- bullish channel

EURUSD has made another negative weekly performance and it is testing the weekly bullish green channel. Price has not managed once again to close above the red rectangle resistance. As long as price is below it bulls need to be very cautious. This past week's low is important short-term support. Bulls need to recapture 1.1170-1.12 in order to have hopes for a move towards 1.13.

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Weekly candlestick pattern in Gold implies the start of a correction

Trading 11 jan 2020 Commentaire »

The last time we had a weekly RSI bearish divergence in Gold price, we saw prices pull back around $200. Gold price has formed a bearish reversal candlestick and combined with the RSI divergence makes us believe that we should expect more downside.

analytics5e190967db06b.png

Green line- bearish divergence

Both the RSI and the stochastic are providing weekly bearish divergence warnings. The weekly candlestick with the long upper tails confirms this warning. Also in Elliott wave terms, Gold price we can say that it has made 5 waves up from the August of 2018 low. So it it is time for a pull back. Back in December of 2017 where we had a similar weekly bearish divergence, Gold price pulled back $200. We continue to expect such a pull to be very possible. First short-term target is the $1,500 area.

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