Bitcoin continues higher as price remains inside a bullish channel.

Trading 06 fév 2020 Commentaire »

BTCUSD continues to rise towards the 50% Fibonacci retracement and the $10,100 resistance level. Price continues to trade inside the bullish channel after exiting the downward sloping wedge pattern.

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Red lines- wedge pattern

Green lines - bullish channel

BTCUSD is approaching important Fibonacci resistance. Short-term support is at $9030. If price breaks below this support level we should expect selling pressure to push price towards $7,500-$7,200 for a back test of the broken wedge pattern.

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Canadian Dollar Higher On China Tariff Cuts

Trading 06 fév 2020 Commentaire »

The Canadian dollar appreciated against its most major counterparts in the European session on Thursday, as the Chinese government's decision to cut tariffs on U.S. imports bolstered sentiment.

China said it would slash tariffs on $75 billion of U.S. imports by half from February 14.

China's finance ministry said that it would lower tariffs on some U.S. goods from 10 percent to five percent and on others from five percent to 2.5 percent.

Washington would reduce levies on Chinese goods on the same day, as agreed in Phase One of the trade deal.

The move triggered hopes that the global economy is likely to withstand long-term impact from the coronavirus outbreak.

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

The loonie rose to 1.3270 against the greenback, from a low of 1.3288 hit at 7:30 pm ET. The loonie is poised to find resistance around the 1.30 level.

The loonie climbed to a 6-day high of 1.4595 against the euro from Wednesday's closing value of 1.4608. If the loonie rises further, 1.44 is likely seen as its next resistance level.

Survey data from IHS Markit showed that German construction sector expanded at the fastest pace in ten months in January and was the second fastest over past two years, led by home building and commercial activity.

The construction Purchasing Managers' Index rose to 54.9 in January from 53.8 in December.

The loonie firmed to an 8-day high of 82.83 against the yen from yesterday's closing quote of 82.68. On the upside, 84.00 is seen as the next resistance level for the loonie.

In contrast, the loonie retreated to 0.8977 against the aussie, from an early high of 0.8952. The next possible support for the loonie is seen around the 0.945 level.

Data from the Australian Bureau of Statistics showed that the total value of retail sales in Australia was down a seasonally adjusted 0.5 percent on month in December, coming in at A$27.765 billion. That missed expectations for a decline of 0.2 percent following the 0.9 percent gain in November.


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ECB’s Lagarde Says Eurozone Showing Tentative Signs Of Stabilization

Trading 06 fév 2020 Commentaire »

European Central Bank President Christine Lagarde said on Thursday that there are tentative signs of stabilization in the euro area economy, while the novel coronavirus outbreak in China is a source of concern.

"While uncertainties surrounding the global economic environment remain elevated, those related to trade tensions between the United States and China are receding," Lagarde said in a hearing at the European Parliament's Economic and Monetary Affairs Committee. "Other risks, however, are still lingering or - as for the uncertainty surrounding the impact of the coronavirus - are a renewed source of concern." Eurozone economy continues to grow, though at modest momentum, and remains relatively resilient, the ECB chief said.

The economy is being largely supported by domestically-oriented factors such as private consumption, employment, services and construction, she said. Meanwhile, global factors weigh on the euro area growth, Lagarde added.

The moderate growth is delaying the pass-through from wage increases to prices and hence, inflation remains subdued, she noted. "The euro area economy therefore continues to require support from our monetary policy, which provides a shield from global headwinds," Lagarde said. Regarding the ECB strategy review, Lagarde said it has just started and it will be a thorough and intense process. "Over the next 11 months, the dialogue between our institutions will be frequent and deep."


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U.S. Labor Productivity Rebounds Amid Jump In Output

Trading 06 fév 2020 Commentaire »

After reporting a modest decrease in U.S. labor productivity in the previous quarter, the Labor Department released a report on Thursday showing a notable rebound in productivity in the fourth quarter.

The Labor Department said labor productivity jumped by 1.4 percent in the fourth quarter after edging down by 0.2 percent in the third quarter. Economists had expected productivity to surge up by about 1.5 percent.

The rebound in productivity, a measure of output per hour, came as output spiked by 2.5 percent compared to the 1.1 percent increase in hours worked.

In the third quarter, output and hours worked both showed significant increases, jumping by 2.3 percent and 2.5 percent, respectively.

The report said unit labor costs also shot up by 1.4 percent in the fourth quarter after spiking by 2.5 percent in the previous quarter. The continued increase in labor costs matched economist estimates.

Hourly compensation surged up by 2.8 percent in the fourth quarter following a 2.3 percent advance in the third quarter.

However, taking changes in consumer prices into account, real hourly compensation crept up by just 0.3 percent in the fourth quarter after rising by 0.5 percent in the third quarter.

Compared to the same quarter a year ago, productivity in the fourth quarter was up by 1.8 percent, as output spiked by 2.7 percent and hours worked rose by 0.9 percent.

Unit labor costs were up by 2.4 percent year-over-year, with hourly compensation surging up by 4.2 percent and real hourly compensation climbing by 2.1 percent.

"Productivity growth reached its fastest pace since 2010 last year, but we do not believe such performance will be sustained given lower domestic and global growth prospects," said a note from economists at Oxford Economics.

They added, "Meanwhile, labor cost pressures continue to build amid limited companies' pricing power, suggesting that profit margins will remain under pressure and continue to deter business investment and hiring in 2020."


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U.S. Jobless Claims Drop More Than Expected To 202,000

Trading 06 fév 2020 Commentaire »

A day ahead of the release of the more closely watched monthly jobs report, the Labor Department released a report on Thursday showing first-time claims for U.S. unemployment benefits fell by much more than expected in the week ended February 1st.

The report said initial jobless claims slid to 202,000, a decrease of 15,000 from the previous week's revised level of 217,000.

Economists had expected jobless claims to edge down to 215,000 from the 216,000 originally reported for the previous week.

With the bigger than expected decrease, jobless claims fell to their lowest level since hitting 193,000 in the week ended April 13, 2019.

The Labor Department said the less volatile four-week moving average also slipped to 211,750, a decrease of 3,000 from the previous week's revised average of 214,750.

Meanwhile, the report said continuing claims, a reading on the number of people receiving ongoing unemployment assistance rose by 48,000 to 1.751 million in the week ended January 25th.

The four-week moving average of continuing claims still fell to 1,742,250, a decrease of 13,250 from the previous week's unrevised average of 1,755,500.

On Friday, the Labor Department is scheduled to release its more closely watched monthly employment report for January.

Employment is expected to increase by about 160,000 jobs in January after rising by 145,000 jobs in December, while the unemployment rate is expected to hold at 3.5 percent.


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Czech Central Bank Hikes Key Interest Rate Unexpectedly

Trading 06 fév 2020 Commentaire »

The Czech National Bank raised its key interest rate unexpectedly on Thursday, after holding it unchanged for five policy sessions in a row.

The Bank Board, led by CNB Governor Jiri Rusnok, decided to raise the two-week repo rate by 25 basis points to 2.25 percent, the central bank said in a statement on Wednesday.

Economists had widely expected the rate to be left unchanged.

The previous change in the key rate was a quarter-point hike in May last year. The discount rate was raised to 1.25 percent and the lombard rate to 3.25 percent.

Capital Economics economist Liam Peach said the latest rate hike is likely to a one-off. "With inflation likely to ease and growth to slow, we think the policy rate will be lowered by next year," the economist said. Rusnok is set to hold a press conference to explain the rationale behind the latest rate decision at 9.15 am ET. "The central bank will probably maintain its hawkish bias, although we suspect it won't flag another hike," Peach said.


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U.S. Labor Productivity Shows Notable Rebound In Q4

Trading 06 fév 2020 Commentaire »

After reporting a modest decrease in U.S. labor productivity in the previous quarter, the Labor Department released a report on Thursday showing a notable rebound in productivity in the fourth quarter.

The Labor Department said labor productivity jumped by 1.4 percent in the fourth quarter after edging down by 0.2 percent in the third quarter. Economists had expected productivity to surge up by about 1.5 percent.

The report said unit labor costs also shot up by 1.4 percent in the fourth quarter after spiking by 2.5 percent in the previous quarter. The continued increase in labor costs matched economist estimates.


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U.S. Weekly Jobless Claims Drop More Than Expected

Trading 06 fév 2020 Commentaire »

A day ahead of the release of the more closely watched monthly jobs report, the Labor Department released a report on Thursday showing first-time claims for U.S. unemployment benefits fell by much more than expected in the week ended February 1st.

The report said initial jobless claims slid to 202,000, a decrease of 15,000 from the previous week's revised level of 217,000.

Economists had expected jobless claims to edge down to 215,000 from the 216,000 originally reported for the previous week.

The Labor Department said the less volatile four-week moving average also slipped to 211,750, a decrease of 3,000 from the previous week's revised average of 214,750.


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Dollar Little Changed After Weekly Jobless Claims

Trading 06 fév 2020 Commentaire »

At 8:30 am ET Thursday, U.S. weekly jobless claims for the week ended February 1 have been released. After the data, the greenback changed little against its major counterparts.

The greenback was trading at 109.91 against the yen, 0.9745 against the franc, 1.2960 against the pound and 1.1003 against the euro around 8:31 am ET.


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*U.S. Labor Productivity Jumps 1.4% In Q4, Unit Labor Costs Also Increase 1.4%

Trading 06 fév 2020 Commentaire »

U.S. Labor Productivity Jumps 1.4% In Q4, Unit Labor Costs Also Increase 1.4%


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