*Fed Chair Powell Begins Testimony Before House Financial Services Committee

Trading 17 juin 2020 Commentaire »

Fed Chair Powell Begins Testimony Before House Financial Services Committee


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Malta Inflation Eases For Second Month

Trading 17 juin 2020 Commentaire »

Malta's consumer price inflation slowed for a second straight month in May, driven by declines in prices in the education and clothing and footwear categories, preliminary data from the National Statistics Office showed on Wednesday.

The harmonized index of consumer prices, or HICP, which is meant for EU comparison rose 0.9 percent after a 1.1 percent increase in April. In March, the index had risen 1.1 percent.

Prices of food and non-alcoholic beverages grew 2.4 percent and those of transport rose 2.3 percent. Education costs decreased 9.6 percent and prices of clothing and footwear fell 1.6 percent. Compared to the previous month, the HICP rose 1.2 percent in May.


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

*U.S. Crude Oil Inventories Rise By 1.2 Million Barrels In Week Ended 6/12

Trading 17 juin 2020 Commentaire »

U.S. Crude Oil Inventories Rise By 1.2 Million Barrels In Week Ended 6/12


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

U.S. Housing Starts Jump 4.3% In May But Miss Estimates

Trading 17 juin 2020 Commentaire »

New residential construction in the U.S. showed a notable rebound in the month of May, according to a report released by the Commerce Department on Wednesday, although housing starts still came in well below economist estimates.

The report said housing starts jumped by 4.3 percent to an annual rate of 974,000 in May after plummeting by 26.4 percent to a revised rate of 934,000 in April.

Economists had expected housing starts to soar by 22.9 percent to a rate of 1.095 million from the 891,000 originally reported for the previous month.

New construction of multi-family homes led the rebound in housing starts, surging up by 15.0 percent to a rate of 299,000 in May following a 33.2 percent nosedive to a rate of 260,000 in April.

Meanwhile, single-family family housing starts inched up by just 0.1 percent to a rate of 675,000 in May after tumbling by 23.4 percent to a rate of 674,000 in the April.

The Commerce Department also said building permits spiked by 14.4 percent to an annual rate of 1.220 million in May after plunging by 21.4 percent to a revised rate of 1.066 million in April.

Building permits, an indicator of future housing demand, had been expected to surge up by 14.3 percent to a rate of 1.228 million from the 1.074 million originally reported for the previous month.

Permits for single-family and multi-family homes both showed substantial rebounds. Single-family permits jumped 11.9 percent to a rate of 745,000, while multi-family permits vaulted by 18.8 percent to a rate of 475,000.

Despite the monthly increases, housing starts and building permits were down by 23.2 percent and 8.8 percent, respectively, compared to the same month a year.

"We look for strong demand, improving homebuilder confidence and an ongoing shortage of supply to support growth in housing starts over the rest of the year, but we still expect starts to be down on average across 2020 overall," said a note from economists at Oxford Economics.

On Tuesday, the National Association of Home Builders released a separate report showing a continued rebound in U.S. homebuilder confidence in the month of June.

The report said the NAHB/Wells Fargo Housing Market Index spiked to 58 in June from 37 in May, continuing to rebound from the nearly eight-year low of 30 set in April. Economists had expected the index to climb to 45.


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

Sweden Unemployment Rate Rises In May

Trading 17 juin 2020 Commentaire »

Sweden's unemployment rate increased in May from last year amid ongoing coronavirus pandemic, data published by Statistics Sweden showed Wednesday.

The jobless rate rose to 9 percent from 7.1 percent in the same period last year. The number of unemployed persons increased 110,000 from a year ago to 497,000 in May.

At the same time, the unemployment rate among youth aged between 15 and 24 advanced 6.1 percentage points to 29.8 percent in May.

Smoothed and seasonally adjusted data showed an increase of 46,000 in the number of unemployed and an increase of 0.9 percentage points in the unemployment rate compared with February 2020. The unemployment rate was 8 percent.

Further, data showed that there were 5.02 million employed persons in May. The employment rate was 66.7 percent.


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

Comprehensive analysis of movement options for #USDX vs EUR/USD, GBP/USD, and USD/JPY (Daily) on June 18, 2020

Trading 17 juin 2020 Commentaire »

Minor operational scale (Daily)

The third week of the first month of summer. Adjusting? Options for the development of the movement for #USDX vs EUR/USD, GBP/USD, and USD/JPY (Daily) on June 18, 2020.

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US dollar index

From June 18, 2020, the movement of the dollar index #USDX will continue depending on the direction of the breakout of the range:

  • resistance level of 97.2- the lower border of the channel ISL38.2 equilibrium zone of the Minuette operational scale fork;
  • support level of 96.90 - the upper border of channel 1/2 Median Line Minuette.

Breakdown of ISL38.2 Minuette - the resistance level of 97.20 - the development of the movement of the dollar index will occur in the equilibrium zone (97.20-97.70-98.20) of the Minuette operational scale forks with the prospect of reaching the initial SSL line (98.70) of the Minor operational scale forks and the final FSL Minute line (99.80).

If the support level of 96.90 breaks, the development of the #USDX movement will continue in the 1/2 Median Line channel (96.90-96.40-96.00) of the Minuette operational scale forks with the ability to update the local minimum of 95.72 and reach the initial SSL Minute line (95.50), as well as the upper limit of ISL38.2 (95.30) of the Minor operational scale forks.

The layout of the #USDX movement options from June 18, 2020 is shown on the animated chart.

analytics5eea448ce2000.jpg

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Euro vs US dollar

The single European currency EUR/USD from June 18, 2020 will continue to develop its movement depending on the development and direction of the breakdown of the range:

  • resistance level of 1.1250 - upper limit of the channel 1/2 Median Line of the Minuette operational scale forks;
  • support level of 1.1190 - 1/2 Median Line Minuette.

If the support level of 1.1290 is broken by 1/2 Median Line Minute followed by a break of the median line (1.1170) of the Minor operational scale forks and the lower border of the channel 1/2 Median Line Minute (1.1140), it will be possible for the single European currency to reach the boundaries of the equilibrium zone (1.1115-1.1020-1.0930) of the Minuette operational scale forks.

If the resistance level of 1.1250 is broken at the upper border of the channel 1/2 Median Line of the Minuette operational scale forks and the upper border of ISL61.8 (1.1280) of the balance zone of the Minor operational scale forks, the upward movement of EUR/USD can be resumed and it will be directed to the goals:

  • final Shiff Line (1.1350) of the Minor operational scale fork;
  • initial SSL line (1.1405) of the Minuette operational scale forks;
  • local maximum 1.1422;
  • control line UTL Minute (1.1470);
  • with the prospect of updating the maximum of 1.1495.

The EUR/USD movement options from June 18, 2020 are shown on the animated chart.

analytics5eea44adbbd49.jpg

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Great Britain pound vs US dollar

The development of the movement of Her Majesty's currency GBP/USD from June 18, 2020 will be due to the development and direction of the breakdown of the boundaries of the 1/2 Median Line channel (1.2575-1.2510-1.2435) of the Minuette operational scale forks - details of movement inside the specified channel are shown on the animated chart.

The breakdown of the lower border of the channel 1/2 Median Line Minute - the support level of 1.2435 - will determine the further development of the GBP/USD movement already in the equilibrium zone (1.2435-1.2335-1.2230) of the Minuette operational scale forks with the prospect of reaching the final Shiff Line Minute (1.2170) and updating the local minimum of 1.2073.

If the resistance level of 1.2575 is broken at the upper border of the channel 1/2 Median Line of the Minuette operational scale forks, it will be possible to continue the upward movement of the currency of Her Majesty to the goals:

  • lower bound of ISL38.2 (1.2640) of the Minor operational scale forks;
  • initial SSL line (1.2765) of the Minuette operational scale forks;
  • control line UTL Minute (1.2855);
  • Median Line (1.2940) of the Minor operational scale forks;
  • final Shiff Line Minor (1.2995).

From June 18, 2020, we look at the GBP/USD movement options on the animated chart.

analytics5eea44cf9ed4b.jpg

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US dollar vs Japanese yen

Starting from June 18, 2020, the development of the USD/JPY currency movement of the "Land of the Rising Sun" will be determined by working out and the direction of breakdown of the borders of the equilibrium zone (106.45-107.10-107.55) of the Minuette operational scale forks - we look at the animated chart for details of the movement inside this equilibrium zone.

In the breakdown ISL61.8 Minute - resistance level of 107.55 - the development of the upward movement the USD/JPY may continue to order:

  • Median Line (108.05) of the Minor operational scale forks;
  • initial line SSL Minute (109.25);
  • upper bound of ISL61.8 (109.45) equilibrium zone of the Minor operational scale forks;
  • control line UTL Minute (110.00).

A breakout of the lower border ISL38.2 zone equilibrium of the Minuette operational scale forks - support level of 106.45 - will make the actual achievement currency "Land of the rising sun" borders of the channel 1/2 Median Line (106.00-104.70-103.40) of the Minor operational scale forks.

The marking of USD/JPY movement options since June 18, 2020 is shown on the animated chart.

analytics5eea44ec1c644.jpg

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The review is compiled without taking into account the news background, the opening of trading sessions of the main financial centers, and is not a guide to action (placing "sell" or "buy" orders).

Formula for calculating the dollar index:

USDX = 50.14348112 * USDEUR0.576 * USDJPY0.136 * USDGBP0.119 * USDCAD0.091 * USDSEK0.042 * USDCHF0.036.

Where the power coefficients correspond to the weights of currencies in the basket:

Euro - 57.6 %;

Yen - 13.6 %;

Pound sterling - 11.9 %;

Canadian dollar - 9.1 %;

Swedish Krona - 4.2 %;

Swiss franc-3.6 %.

The first coefficient in the formula brings the index value to 100 on the starting date - March 1973, when the main currencies began to be freely quoted relative to each other.

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

June 17, 2020 : GBP/USD Intraday technical analysis and trade recommendations.

Trading 17 juin 2020 Commentaire »

analytics5eea40fc7fc5b.jpg

Recently, Bullish breakout above 1.2265 has enhanced many bullish movements up to the price levels of 1.2520-1.2590 where temporary bearish rejection as well as a sideway consolidation range were established (In the period between March 27- May 12).

Shortly after, transient bearish breakout below 1.2265 (Consolidation Range Lower Limit) was demonstrated in the period between May 13 - May 26.

However, immediate bullish rebound has been expressed around the price level of 1.2080. This brought the GBPUSD back above the depicted price zone of 1.2520-1.2600 which failed to offer sufficient bearish rejection.

Hence, short-term technical outlook has turned into bullish, further bullish advancement may be expressed towards 1.2780 (Previous Key-Level) where signs of bearish rejection were expressed.

Short-term bearish pullback was being expressed, initial bearish destination was located around 1.2600 and 1.2520.

Moreover, any bearish breakdown below 1.2500 pauses the bullish outlook for sometime and should be considered as an early exit signal for short-term buyers.

Trade recommendations :

Intraday traders can consider the current bearish pullback towards the price zone around 1.2520 ( Backside of the broken uptrend & a recent demand level) as a valid BUY signal.

T/P level to be located around 1.2600, 1.2715 and 1.2750 while S/L should be placed below 1.2450.

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

June 17, 2020 : EUR/USD Intraday technical analysis and trade recommendations.

Trading 17 juin 2020 Commentaire »

analytics5eea402fd2ac3.jpg

On March 20, the EURUSD pair has expressed remarkable bullish recovery around the newly-established bottom around 1.0650.

Bullish engulfing H4 candlesticks as well as the recently-demonstrated ascending bottoms indicated a high probability bullish pullback at least towards 1.1065 (Fibo Level 50%).

However, a bearish Head & Shoulders pattern was demonstrated around the price zone between (1.1075-1.1150).

Shortly after, a sideway consolidation range was established in the price range extending between 1.0770 1.1000.

The price zone of (1.0815 - 1.0775) has been standing as a prominent Demand Zone providing quite good bullish support for the pair so far.

On May 14, Evident signs of Bullish rejection have been manifested around this price zone.

Moreover, recent ascending bottom has been established around 1.0870 which enhances the bullish side of the market in the short-term.

Intermediate-term technical outlook remains bullish as long as bullish persistence is maintained above the recently-established ascending bottom around 1.0850-1.0870.

Bullish breakout above 1.1000 has enhanced further bullish advancement towards 1.1175 (61.8% Fibonacci Level) then 1.1315 (78.6% Fibonacci Level) where bearish rejection was anticipated.

Although the EUR/USD pair has temporarily expressed a bullish breakout above 1.1315 (78.6% Fibonacci Level), negative divergence as well as bearish rejection were being demonstrated n the period between June 10th- June 12th.

Moreover, after such a quick bullish movement, the EURUSD pair looked oversold. This suggested a probable bearish reversal around the Price Zone of (1.1270-1.1315) to be watched by Intraday traders.

That's why, Bearish persistence below 1.1250-1.1240 (Head & Shoulders Pattern neckline) is needed to confirm the pattern & to enhance further bearish decline towards 1.1150.

Trade recommendations :

Any bullish pullback towards the price Zone around 1.1300-1.1350 (recently-established supply zone) should be considered as a valid SELL Signal. T/P levels to be located around 1.1175 then 1.1100 while S/L to be located above 1.1390.

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

Gold physical assets grow rapidly

Trading 17 juin 2020 Commentaire »

analytics5eea35445fe0d.jpg

Today, the price of gold again shows a decline. On the trading floor in New York, futures for precious metals for August delivery became 0.25% cheaper, which pushed them to the mark of $ 1,732.20 per troy ounce. Support for gold was at $ 1,706.20 per troy ounce, while resistance was in the region of $ 1,754.90 per troy ounce.

According to incoming data, the total amount of physical gold in ETFs increased rapidly during the last spring month, which allowed it to break a new record. Moreover, the inflow of capital in these funds was also at record levels, which has never been recorded before. But only five months have passed this year so far, and further growth can still intensify.

According to the World Gold Council, assets in physical gold have increased by a significant figure of 154 tons. Their current level, therefore, moved to the mark of 3510 tons.

All this became evidence that over the past twelve months, assets in funds have doubled. The capital inflow in monetary terms became 33.7 billion more in five months of this year. Recall, that four years ago, gold achieved such significant results. Records broke the general level of the value of the inflow of assets in gold, which totaled to $195 billion.

The bulk of the increase came from funds located in North America. At the same time, in May and in April, assets grew by about 102 tons per month. Assets of funds in Europe rose in volume by 45 tons, while most of them fell to the UK about 65%. Assets in the Asia-Pacific region increased by 4.8 tons.

Four main factors are worth highlighting as the main causes of the events. Firstly, the crisis associated with the COVID-19 pandemic has put serious pressure. Many countries are still in no hurry to open their economies. Secondly, the conflict between the United States of America and China also did not go unnoticed. Despite the fact that investors had other reasons for concern, this also made them save their assets. Thirdly, the high level of unemployment, which is recorded not only in key economic powers (which include, in particular, the USA), but also in almost all countries of the world, makes us recall the times of the Great Depression. The repetition of the situation does not cause any delight. And finally, an active soft stimulating monetary policy of the main regulators of countries, which is traditionally a support factor for the precious metals market. All this, taken together, could well support gold, which ultimately led to the growth of physical assets.

In general, over the current year, the precious metal showed the best dynamics among other commodity assets. The loss index for gold, for example, has so far amounted to only 15%. Oil, on the other hand, already jumped to 40%.

Futures for silver with delivery in July became cheaper today by 0.46%, which moved it to the level of 17.570 dollars per troy ounce.

Futures for copper with delivery in July also declined at around 0.27%, and the level of trade is $2,558 per pound.

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

Trader’s diary on June 17, 2020. Outlook for EUR/USD. Ruble and COVID-19 in Russia.

Trading 17 juin 2020 Commentaire »

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Let's take a look at the number of active virus cases in Russia on June 17. The chart reflects the number of people under treatment. Today, there are 244 thousand.

There is no decline. However, we can see consolidation on the levels close to the highs.

In Moscow, the number of confirmed virus cases dropped below 1,500 (yesterday, 1,065 people were tested positively) from 6 thousand in the middle of May. At the same time, the number of people under treatment declined to 80 thousand from 116 thousand.

However, in other regions, the number of new cases is rising.

Saint Petersburg is also leaving the pandemic. The number of new cases is below 250 a day. It is smaller than in Nizhny Novgorod region and Khanty-Mansyisk.

The situation in most regions is alarming. It is very dangerous to organize mass voting.

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At the same time, the Russian ruble is gaining round amid higher oil prices.

I suppose that the ruble has already hit its highest level. You can see on the chart.

It is possible to buy the US dollar and the euro at the current prices.

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EUR/USD:

Buy deals could be opened from the 1.1355 level.

Sell positions could be initiated from the 1.1210 level.

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