Weekly bearish divergence in Gold

Trading 20 fév 2020 Commentaire »

Gold price is making new higher highs. Price remains in a bullish trend but the weekly RSI is giving us some warning signs with a bearish divergence signal. I believe there is no upside potential left at this point in time and it is better to stay neutral and not to chase Gold price in order to open new long positions.

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Red lines - bullish channel

Green lines -bearish divergence

Gold price continues to move higher. The RSI does not follow. The RSI makes a lower high. This is a warning for bulls. Support is at last weeks low at $1,561. The stochastic oscillator is also at overbought levels. This is not the time to chase price to go long. This is the time to raise protective stops, to be cautious and take profits.

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

EURUSD is approaching our weekly target area

Trading 20 fév 2020 Commentaire »

EURUSD remains in a bearish trend making lower lows and lower highs. Price has broken below 1.08 is now approaching our target area of 1.0750-1.07 as we pointed out in our weekly analysis back in February 12th.

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Red lines- wedge pattern

The Daily RSI is finally at oversold levels. Price is falling sharply without any considerable bounce since the beginning of February. Price is expected to bounce but our target of 1.0750-1.07 remains intact and I believe we are going to touch the lower wedge boundary at least. If bulls manage to push above 1.0840 then we could see a bigger bounce unfold.

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

Treasury Reveals Details Of Two-Five, Five-Year And Seven-Year Note Auctions

Trading 20 fév 2020 Commentaire »

On Thursday, the Treasury Department announced the details of this month's auctions of two-year, five-year and seven-year notes.

The Treasury revealed it plans to sell $40 billion worth of two-year notes, $41 billion worth of five-year notes and $32 billion worth of seven-year notes.

The results of the two-year note auction will be announced next Tuesday, the results of the five-year note auction will be announced next Wednesday and the results of the seven-year note auction will be announced next Thursday.

Last month, the Treasury also sold $40 billion worth of two-year notes, $41 billion worth of five-year notes and $32 billion worth of seven-year notes.

The two-year auction attracted above average demand, while the five-year and seven-year note auctions attracted below average demand.


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*U.S. Crude Oil Inventories Edge Up By 400,000 Barrels In Week Ended 2/14

Trading 20 fév 2020 Commentaire »

U.S. Crude Oil Inventories Edge Up By 400,000 Barrels In Week Ended 2/14


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U.S. Leading Economic Index Climbs Much More Than Expected In January

Trading 20 fév 2020 Commentaire »

Indicating the current economic expansion will continue through the first half of 2020, the Conference Board released a report on Thursday showing a much bigger than expected increase by its reading on leading U.S. economic indicators.

The Conference Board said its leading economic index climbed by 0.8 percent in January after falling by 0.3 percent in December. Economists had expected the index to rise by 0.3 percent.

The bigger than expected rebound by the index reflected a sharp drop in initial jobless claims, increasing housing permits, an improvement in consumers' outlook on the economy and positive contributions from financial indicators.

"The LEI's six-month growth rate has returned to positive territory, suggesting that the current economic expansion - at about 2 percent - will continue through early 2020," said Ataman Ozyildirim, Senior Director of Economic Research at the Conference Board.

He added, "While weakness in manufacturing appears to show signs of softening, the COVID-19 outbreak may impact manufacturing supply chains in the US in the coming months."

The report also said the coincident economic index inched up by 0.1 percent in January after showing no change in December.

Meanwhile, the lagging economic index came in unchanged in January after edging down by 0.1 percent in the previous month.


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*U.S. Leading Economic Index Climbs 0.8% In January

Trading 20 fév 2020 Commentaire »

U.S. Leading Economic Index Climbs 0.8% In January


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

Philly Fed Index Unexpectedly Jumps To Three-Year High In February

Trading 20 fév 2020 Commentaire »

Partly reflecting a jump in demand, the Federal Reserve Bank of Philadelphia released a report on Thursday unexpectedly showing another substantial acceleration in the pace of growth in Philadelphia-area manufacturing activity in the month of February.

The Philly Fed said its diffusion index for current general activity skyrocketed to 36.7 in January after spiking to 17.0 in January, with a positive reading indicating growth in regional manufacturing activity.

The continued increase by the Philly Fed Index came as a surprise to economists, who had expected the index to dip to 12.0. With the unexpected jump, the Philly Fed Index reached its highest reading since February of 2017.

The unexpected spike by the headline index partly reflected a jump in demand, with the new orders index surging up to 33.6 in February from 18.2 in January. The index hit its best level since May of 2018.

The shipments index also crept up to 25.2 in February from 23.4 in January, although the number of employees index slumped to 9.8 from 19.3, indicating a slowdown in the pace of job growth.

On the inflation front, the prices paid index fell to 16.4 in February from 22.1 in January, while the prices received index rose to 17.1 from 14.7.

The Philly Fed said the survey's broad future indexes also showed improvement this month, indicating that growth is expected to continue over the next six months.

The diffusion index for future general activity climbed to 45.4 in February from 38.4 in January, its fifth consecutive month of improvement.

"This report adds to the shine of the Empire Manufacturing report released earlier this week and suggests manufacturing growth may be past its trough," said a note from economists at Oxford Economics.

On Tuesday, the New York Fed released a separate report showing a notable acceleration in regional manufacturing activity in the month of February.

The New York Fed said its general business conditions index climbed to 12.9 in February from 4.8 in January. Economists had expected the index to inch up to 5.0.


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Euro Muted After ECB Minutes

Trading 20 fév 2020 Commentaire »

The euro showed muted trading against its major counterparts in the European trading session on Thursday, after minutes from the European Central Bank's January meeting showed that policymakers agreed that the latest data pointed to a moderate growth in the euro area economy, but they would await additional data to see if there were firmer grounds for optimism.

Incoming economic data confirmed the Governing Council's previous assessment of ongoing but moderate growth, with slightly more positive signals from forward-looking indicators, the minutes of the bank's January 22-23 meeting showed.

Considering the tentative signs of stabilization in the euro area economy, the Governing Council would await further data to see if there were firmer grounds for optimism.

Members assessed that underlying inflation had remained generally muted, although there were further indications of a moderate increase in line with previous expectations.

The risk of adverse spillovers from the continued weakness in the manufacturing sector to other sectors of the economy still required to be monitored closely.

Survey by the market research firm GfK showed that Germany's consumer confidence is set to ease slightly in March, as a modest gain in economic expectations were offset by moderate losses in income outlook and the propensity to buy.

The forward-looking GfK consumer confidence index fell to 9.8 points for March from 9.9 in February. That was in line with economists' expectations.

The currency showed mixed trading in the Asian session. While it held steady against the franc and the pound, it rose against the greenback and the yen.

The EUR/GBP pair touched a weekly high of 0.8397 earlier in the session and held steady in subsequent deals. At Wednesday's close, the pair was valued at 0.8358.

The euro bounced off to 1.0806 against the greenback, from an early near a 3-year low of 1.0778, and traded steadily thereafter. This may be compared to a 2-day peak of 1.0815 set in the Asian session. On the upside, resistance is seen closer to the 1.10 level.

After approaching a fresh 2-week peak of 121.10 against the yen at 5:45 am ET, the single currency held steady. The pair had finished Wednesday's trading at 120.31.

The euro slipped to a day's low of 1.0606 against the franc earlier in the session and moved sideways thereafter. At yesterday's trading close, the pair was worth 1.0632.

Data from the Federal Customs Administration showed that Switzerland's exports rose for the first time in four months, while imports declined in January.

Exports increased by a real 1.7 percent month-on-month in January, whereas imports fell 1.8 percent.

Looking ahead, U.S. leading indicators for January are scheduled for release at 10:00 am ET.

Simultaneously, Eurozone consumer sentiment for February is set for release.


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U.S. Weekly Jobless Claims Show Modest Increase

Trading 20 fév 2020 Commentaire »

A report released by the Labor Department on Thursday showed a modest increase in first-time claims for U.S. unemployment benefits in the week ended February 15th.

The Labor Department said initial jobless claims crept up to 210,000, an increase of 4,000 from the previous week's revised level of 206,000

Economists had expected jobless claims to inch up to 210,000 from the 205,000 originally reported for the previous week.

Meanwhile, the report said the less volatile four-week moving average edged down to 209,000, a decrease of 3,250 from the previous week's revised average of 212,250.

The Labor Department also said continuing claims, a reading on the number of people receiving ongoing unemployment assistance, rose by 25,000 to 1.726 million in the week ended February 8th.

The four-week moving average of continuing claims still dipped to 1,722,250, a decrease of 5,250 from the previous week's revised average of 1,727,500.


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Philly Fed Index Unexpectedly Indicates Faster Growth In February

Trading 20 fév 2020 Commentaire »

Partly reflecting a jump in demand, the Federal Reserve Bank of Philadelphia released a report on Thursday unexpectedly showing another substantial acceleration in the pace of growth in Philadelphia-area manufacturing activity in the month of February.

The Philly Fed said its diffusion index for current general activity skyrocketed to 36.7 in January after spiking to 17.0 in January, with a positive reading indicating growth in regional manufacturing activity.

The continued increase by the Philly Fed Index came as a surprise to economists, who had expected the index to dip to 12.0. With the unexpected jump, the Philly Fed Index reached its highest reading since February of 2017.


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