U.S. Factory Orders Jump 1.0% In November, More Than Expected

Trading 06 Jan 2021 Commentaire »

A report released by the Commerce Department on Wednesday showed new orders for U.S. manufactured goods increased by more than expected in the month of November.

The Commerce Department said factory orders surged up by 1.0 percent in November after jumping by an upwardly revised 1.3 percent in October.

Economists had expected factory orders to climb by 0.7 percent compared to the 1.0 percent increase originally reported for the previous month.

The report said durable goods orders advanced by 1.0 percent in November following a 1.8 percent spike in October, with orders for transportation equipment helping to lead the way higher.

Orders for non-durable goods also increased by 1.1 percent in November after climbing by 0.8 percent in the previous month.

The Commerce Department said shipments of manufactured goods also rose by 0.7 percent in November after jumping by 1.2 percent in October.

Inventories of manufactured goods also climbed by 0.7 percent in November following a 0.3 percent uptick in the previous month.

With inventories and shipments both rising, the inventories-to-shipments ratio was unchanged from the previous month at 1.41.


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*U.S. Crude Oil Inventories Decrease By 8.0 Million Barrels In Week Ended 1/1

Trading 06 Jan 2021 Commentaire »

U.S. Crude Oil Inventories Decrease By 8.0 Million Barrels In Week Ended 1/1


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German Consumer Prices Continue To Fall

Trading 06 Jan 2021 Commentaire »

Germany's consumer prices kept falling at the end of the year 2020, preliminary data from Destatis showed on Wednesday. The consumer price index dropped 0.3 percent year-on-year in December, same as in November. That was in line with economists' expectations. Compared to the previous month, consumer prices rose 0.5 percent after a 0.8 percent slump in November. Economists were looking for a 0.6 percent increase. The harmonized index of consumer prices, which is meant for EU comparison, decreased 0.7 percent year-on-year, same as in November. Economists had forecast a 0.6 percent fall. On a monthly basis, the HICP rose 0.6 percent in December after a 1 percent drop in the previous month. Economists had predicted a 0.7 percent gain. The pace of annual decline in energy prices eased to 6 percent from 7.7 percent. The rate of growth in food prices slowed to 0.5 percent from 1.4 percent.

On an annual average, the CPI Inflation was 0.5 percent and the HICP inflation was 0.4 percent in 2020.


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*U.S. Factory Orders Jump 1.0% In November

Trading 06 Jan 2021 Commentaire »

U.S. Factory Orders Jump 1.0% In November


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

U.S. Private Sector Employment Unexpectedly Drops For First Time Since April

Trading 06 Jan 2021 Commentaire »

With the impact of the coronavirus pandemic on the labor market intensifying, payroll processor ADP released a report on Wednesday showing an unexpected drop in private sector employment in the U.S. in the month of December.

ADP said private sector employment fell by 123,000 jobs in December after jumping by a downwardly revised 304,000 jobs in November.

The decrease surprised economists, who had expected employment to climb by about 88,000 jobs compared to the addition of 307,000 jobs originally reported for the previous month.

"As the impact of the pandemic on the labor market intensifies, December posted the first decline since April 2020," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. "The job losses were primarily concentrated in retail and leisure and hospitality."

The report showed the service-providing sector lost 105,000 jobs, reflecting notable decreases in employment in leisure/hospitality and trade/transportation/utilities.

Employment in the goods-producing sector also edged down by 18,000 jobs, as the manufacturing industry lost 21,000 jobs.

The unexpected drop in private sector employment also reflected a notable decrease in employment at large businesses, which cut 147,000 jobs.

Employment at small businesses also dipped by 13,000 jobs, while employment at mid-sized businesses rose by 37,000 jobs.

On Friday, the Labor Department is scheduled to release its more closely watched monthly employment report, which includes both public and private sector jobs.

Economists currently expect employment to increase by 100,000 jobs in December after climbing by 245,000 jobs in November. The unemployment rate is expected to remain at 6.7 percent.

"The correlation between ADP and nonfarm payrolls is iffy, especially in big seasonal adjustment months like December," said Chris Low, Chief Economist at FHN Financial. "Still, the drop in ADP employment suggests at the very least any gain in employment this Friday will be small."


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Dollar Falls As Democrats Tipped To Win Georgia Runoff Elections

Trading 06 Jan 2021 Commentaire »

The U.S. dollar drifted lower against its major trading partners in the European session on Wednesday, as Democratic candidates Raphael Warnock and Jon Ossoff are projected to win crucial runoff elections in Georgia, enabling President-elect Joe Biden to push economic policies.

With 98 percent of the votes counted, Democrat Raphael Warnock had a lead of 1 percentage point over Kelly Loeffler, while Jon Ossoff is ahead by 3,500 votes over David Perdue.

Democratic control of the Senate would enable Biden to act on his ambitious plan, which includes fresh stimulus and infrastructure spending.

Victories by Warnock and Ossoff will increase the number of Democrats in the Senate to 50, splitting the chamber and providing them, de-facto, control.

Data from payroll processor ADP showed an unexpected drop in U.S. private sector employment in December.

ADP said private sector employment fell by 123,000 jobs in December after jumping by a downwardly revised 304,000 jobs in November.

The decrease surprised economists, who had expected employment to climb by about 88,000 jobs compared to the addition of 307,000 jobs originally reported for the previous month.

The Federal Reserve releases minutes from the December meeting at 2 pm ET, with investors seeking fresh guidance on its asset purchases.

The greenback dropped in the Asian session on expectations for a Democratic victory in crucial runoff elections in Georgia.

The greenback lost 0.3 percent against the pound, touching a 2-day low of 1.3672. The pound-greenback pair had ended yesterday's trading session at 1.3626. Immediate support for the greenback is possibly seen around the 1.42 level.

Final survey data from IHS Markit showed that the UK service sector contracted more than initially estimated at the end of 2020 with the downturn overwhelmingly linked to business disruptions, restrictions on trade and temporary closures due to the Covid-19 pandemic.

The final IHS Markit/Chartered Institute of Procurement & Supply services Purchasing Managers' Index rose to 49.4 in December from 47.6 in November.

The greenback weakened to the lowest level since April 2018 versus the euro, at 1.2350. The pair was worth 1.2296 when it closed deals on Tuesday. Should the dollar falls further, it is likely to test support around the 1.26 region.

Final data from IHS Markit showed that the Eurozone private sector contracted for the second straight month in December as services activity continued to drag on economic output.

The composite output index climbed to 49.1 in December from 45.3 a month ago. The final result was lower than the earlier flash score of 49.8 and a reading below 50 suggests contraction.

The U.S. currency shed 0.3 percent against the franc to hit over a 6-year low of 0.8758. At yesterday's trading close, the pair was quoted at 0.8783. The greenback is likely to face 0.85 as downside target level.

The greenback fell to near 3-year lows against the aussie and the kiwi, touching 0.7820 and 0.7315, respectively. The greenback had closed yesterday's deals at 0.7757 versus the aussie and 0.7246 versus the kiwi. The greenback is seen finding support around 0.82 versus the aussie and 0.76 versus the kiwi.

The greenback was down at 1.2630 against the loonie, a level not seen since April 2018. The greenback was trading at 1.2667 against the loonie at yesterday's close. On the downside, 1.22 is likely seen as its next support level.

In contrast, the greenback appreciated to 103.00 against the yen, after a drop to 102.59, which was its weakest level since March 9. The pair had closed Tuesday's deals at 102.71. Further rise in the currency may find resistance around the 106.5 level.

Data from the Cabinet Office showed that Japan's consumer confidence decreased to the lowest level in four months in December.

On a seasonally adjusted basis, the consumer confidence index decreased to 31.8 in December from 33.7 in November.

U.S. factory orders for November and the Fed minutes from the December 15-16 meeting are set for release in the New York session.


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Gold back tests break out area

Trading 06 Jan 2021 Commentaire »

Gold price could not break above the $1,950 resistance and is now pulling back to back test the break out area. Previous resistance at $1,900 is now support. This back test could provide a bullish signal if price bounces off $1,900 and moves to higher highs, but could also prove that this break out was a fake one.

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Green line -resistance broken now support

Red line - support trend line

Blue rectangle- horizontal resistance

Gold price is under pressure. After a sharp rally to $1,950, price is swiftly turning lower towards the break out area. Bulls remain in control of the trend as long as price holds above the red trend line support. A back test of the break out area and green trend line is not unusual price action. However after such a back test bulls will need to step in and provide a strong bounce off the support area. It is important to see where Gold price ends this week.

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This week's candle has a long upper tail. If at the end of the week the long upper tail remains, then bulls should be worried as they will be losing the fight to the bears. Such a candlestick pattern is a bearish sign. So bulls need to push price higher and end the week as closer to $1,950 as they can. Respecting $1,900-$1,890 is key for the bullish scenario.The material has been provided by InstaForex Company - www.instaforex.com

Ichimoku cloud analysis of NZDUSD

Trading 06 Jan 2021 Commentaire »

NZDUSD is in a bullish trend. Price continues making higher highs and higher lows and now it has reached as high as 0.7310. Using the Ichimoku cloud indicator we see that price remains above the Kumo (cloud) and continues to respect the kijun-sen indicator.

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NZDUSD is now above both the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). The Chikou span (black line indicator) is well above the candlestick pattern. All signs confirm the bullish trend NZDUSD is in. Support is found at 0.7250-0.7230. Breaking below this level will be the first warning sign of a deeper pull back. Until then bulls remain in control of the trend. Today price challenged the tenkan-sen and so far price is bouncing off the red line indicator(tenkan-sen).The material has been provided by InstaForex Company - www.instaforex.com

*Germany December Flash HICP Up 0.6% M/M Vs. -1.0% In Nov, Consensus 0.7%

Trading 06 Jan 2021 Commentaire »

Germany December Flash HICP Up 0.6% M/M Vs. -1.0% In Nov, Consensus 0.7%


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

U.S. Private Sector Employment Unexpectedly Drops In December

Trading 06 Jan 2021 Commentaire »

With the impact of the coronavirus pandemic on the labor market intensifying, payroll processor ADP released a report on Wednesday showing an unexpected drop in private sector employment in the U.S. in the month of December.

ADP said private sector employment fell by 123,000 jobs in December after jumping by a downwardly revised 304,000 jobs in November.

The decrease surprised economists, who had expected employment to climb by about 88,000 jobs compared to the addition of 307,000 jobs originally reported for the previous month.


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