Ireland GDP Falls In Q4

Trading 05 Mar 2021 Commentaire »

Ireland's economy shrunk in the fourth quarter of 2020 due to a weaker performance of exports and a decline in consumer spending amid a resurgence of coronavirus infections across Europe, figures from the statistical office showed Friday.

Gross domestic product decreased 5.1 percent from the third quarter, when the economy expanded 11.8 percent.

Gross national product, which is a measure of economic activity that excludes the profits of multinationals, increased 8.5 percent following a 0.8 percent fall in the previous three months. For the full year 2020, GDP 3.4 percent after a 5.6 percent increase in 2019. GNP grew 0.6 percent following a 3.4 percent increase in the previous year. The fall in personal consumption was more than offset by the combined effect of the growth in exports of goods & services, the Central Statistics Office Assistant Director General with responsibility for Economic Statistics Jennifer Banim said.


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Dollar Extends Advance After Robust U.S. Jobs Data

Trading 05 Mar 2021 Commentaire »

The U.S. dollar extended gains against its key counterparts in the European session on Friday, after a report showed that the nation's job growth accelerated more than expected in February, driven by reopening of businesses following a drop in new coronavirus infections and the rollout of the vaccines.

Data from the Labor Department showed much stronger than expected U.S. job growth in February amid a significant rebound in employment in the leisure and hospitality industry.

The non-farm payroll employment jumped by 379,000 jobs in February after climbing by an upwardly revised 166,000 jobs in January.

Economists had expected employment to increase by 182,000 jobs compared to the uptick of 49,000 jobs originally reported for the previous month.

The unemployment rate unexpectedly edged down to 6.2 percent in February from 6.3 percent in January. Economists had expected the unemployment rate to remain unchanged.

Data from the Commerce Department showed that the U.S. trade deficit widened in the month of January.

The Commerce Department said the trade deficit widened to $68.2 billion in January from a revised $67.0 billion in December.

Fed Chair Jerome Powell on Thursday reiterated a commitment to maintain ultra-easy monetary policy until the economy is too far from recovery.

The Fed Chief said that the recent sell-off in Treasuries was not "disorderly" or likely to drive long-term rates far higher.

There will be "some upward pressure on prices" due to improving economic conditions, Powell said. But he acknowledged that the rise would be temporary and would not be sufficient for the central bank to change ultra-loose policies aimed to support the economy.

The dollar has been trading in a positive territory during today's trading session, amid a spike in the U.S. Treasury yields as Powell's comments failed to calm worries about higher borrowing costs.

The USD/JPY pair gained 0.6 percent to 108.64, its biggest level since June 2020. The pair had closed Thursday's deals at 107.97. The greenback is seen finding resistance around the 110.00 area.

The greenback added 0.6 percent to hit more than a 3-month high of 1.1893 against the euro. The pair was worth 1.1964 when it closed deals on Thursday. The greenback may face resistance around the 1.16 region, if it gains again.

Data from Destatis showed that Germany's factory orders growth exceeded expectations in January underpinned by robust foreign demand.

Factory orders expanded 1.4 percent month-on-month in January, reversing a revised 2.2 percent fall in the previous month. Orders were forecast to climb 0.7 percent.

The greenback was up by 0.8 percent against the pound, at a 3-week high of 1.3778. The GBP/USD pair had ended yesterday's trading session at 1.3893. Immediate resistance for the dollar is likely seen around the 1.34 level.

Data from the Lloyds Bank subsidiary Halifax and IHS Markit showed that U.K. house prices dropped for the second straight month in February.

House prices fell 0.1 percent on month, but slower than the 0.4 percent decline seen in January. This was the second consecutive fall and confounded expectations for an increase of 0.3 percent.

The greenback climbed to a 4-week high of 0.7621 against the aussie and a 4-day high of 1.2737 against the loonie, up from Thursday's closing quotes of 0.7721 and 1.2666, respectively. Further rally in the currency may challenge resistance around 0.75 against the aussie and 1.29 against the loonie.

The greenback reached as high as 0.7099 against the kiwi, setting a 1-1/2-month high. The pair was valued at 0.7188 at Thursday's close. Extension of the greenback's upward trading is likely to lead it to a resistance around the 0.68 level.

The greenback wobbled against the franc, with the pair trading at 0.9289. This followed a 7-1/2-month peak of 0.9311 set at 3:15 am ET. At yesterday's trading close, the pair was quoted at 0.9286.


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Ichimoku cloud analysis on EURUSD

Trading 05 Mar 2021 Commentaire »

EURUSD has broken below 1.1950 low that was made at the end of January. As we showed in our last analysis, EURUSD is forming a bearish pattern and by breaking below 1.1950 we have now expectations of a target towards 1.1860.

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EURUSD has broken the Daily Kumo (cloud). The tenkan-sen (Red line indicator) is about to cross below the kijun-sen (yellow line indicator) and this will be a bearish signal. The Chikou span (black line indicator) is below the candlestick pattern and below the cloud. The Chikou span is bearish.

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On a weekly basis EURUSD is breaking below the kijun-sen. This is a sign of weakness and usually when price breaks below the yellow indicator, we see a move closer to the Ichimoku cloud. The weekly cloud is now found at 1.16. I expect price to move towards that area of support. The longer it takes for price to move there, the higher the cloud moves.The material has been provided by InstaForex Company - www.instaforex.com

Ichimoku cloud analysis of Gold

Trading 05 Mar 2021 Commentaire »

Gold price is trading at $1,700. Trend remains bearish as price continues making lower lows and lower highs. Gold weekly chart shows that for a second week on a row price is below the Kumo. All parts of the ichimoku indicator continue to confirm bearish trend.

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In the weekly chart price is below the Kumo, the Chikou span (black line indicator) is below the candlestick pattern and might find support at the cloud at $1,580. So our next target and support is at $1,580. This target will be achieved if price does not bounce from current levels of $1,700-$1,690.

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Green lines - bearish channel

Red line - support

Gold price is at the lower channel boundary and breaking below the red support trend line. Next week is very important. If price continues to remain under pressure then we might see a sharp decline without any considerable bounce, towards $1,580-$1,500.

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NZDUSD at major support

Trading 05 Mar 2021 Commentaire »

NZDUSD is trading right above the key support level of 0.7150 and right on top of the lower channel boundary. NZDUSD has been trading inside this bullish channel since March 2020 and exiting the channel will be big news.

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Blue lines - bullish channel

For a year price has been steadily making higher highs and higher lows. With an RSI bearish divergence and price right at the edge of the bullish channel, I expect price to break out of the channel and continue lower. The bullish trend has weakened and I expect soon to get a reversal confirmation with a break below 0.71.

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U.S. Trade Deficit Widens In January As Imports Rise More Than Exports

Trading 05 Mar 2021 Commentaire »

With imports increasing by slightly more than exports, a report released by the Commerce Department on Friday showed the U.S. trade deficit widened in the month of January.

The Commerce Department said the trade deficit widened to $68.2 billion in January from a revised $67.0 billion in December.

Economists had expected the trade deficit to widen to $67.5 billion from the $66.6 billion originally reported for the previous month.

The wider trade deficit came as the value of imports climbed by 1.2 percent to $260.2 billion, while the value of exports rose by 1.0 percent to $191.9 billion.

The increase in imports was led by a jump in imports of consumer goods, particularly pharmaceuticals, which helped offset a steep drop in imports of passenger cars.

Meanwhile, notable increases in exports of industrial supplies and materials and capital goods were partly offset by a decrease in exports of automotive vehicles, parts, and engines.

The report also showed the goods deficit widened to $85.4 billion in January from $84.1 billion in December, while the services surplus inched up to $17.2 billion from $17.1 billion.

"While the services surplus improved marginally, it was due to the weakness in imports, which remain near eight-year lows," James Watson, Senior U.S. Economist at Oxford Economics.

He added, "Fiscally-stimulated US demand may propel total import volumes to recovery this quarter, but still-struggling global demand and travel restrictions will keep export volumes much further behind."


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Why Bitcoin bulls need to break above $51,700?

Trading 05 Mar 2021 Commentaire »

BTC/USD has reached the resistance area of $51,700 and has turned back below $50k once again. However price continues to respect the recent major low at $43,121 and has most probably formed an inverted head and shoulders pattern.

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In the 4 hour chart above we depict the possible inverted head and shoulder pattern in play. So far the left shoulder and the Head have been formed and we are now in the process of creation of the right hand shoulder. The neckline resistance is at $51,700 and this is the level bulls need to break in order to activate the pattern. Activation of the pattern will give us a target equal to the height of the Head, close to $60,000. Support is found at recent low at $46,350 area and bulls would not want this level to be broken downwards.The material has been provided by InstaForex Company - www.instaforex.com

U.S. Job Growth Far Exceeds Estimates In February

Trading 05 Mar 2021 Commentaire »

Reflecting a significant rebound in employment in the leisure and hospitality industry, the Labor Department released a report on Friday showing much stronger than expected U.S. job growth in the month of February.

The Labor Department said non-farm payroll employment jumped by 379,000 jobs in February after climbing by an upwardly revised 166,000 jobs in January.

Economists had expected employment to increase by 182,000 jobs compared to the uptick of 49,000 jobs originally reported for the previous month.

The stronger than expected job growth was primarily due to a rebound in employment in the leisure and hospitality industry, which added 355,000 jobs.

The report showed smaller job gains in temporary help services, health care and social assistance, retail trade, and manufacturing, while employment declined in state and local government education, construction, and mining.

"Even with upward revisions to the gain in January and the strength last month, employment is still 9.5 million short of the pre-pandemic level, with 3.5 million of those jobs lost in the leisure and hospitality sector specifically," said Paul Ashworth, Chief U.S. Economist at Capital Economics.

He added, "Nevertheless, with COVID case numbers still falling sharply, more large-scale fiscal stimulus on the way and the vaccination program likely to reach critical mass before mid-year, the U.S. is well-placed to recover a significant number of those lost jobs this year."

With the stronger than expected job growth, the unemployment rate unexpectedly edged down to 6.2 percent in February from 6.3 percent in January. Economists had expected the unemployment rate to remain unchanged.

The unexpected dip in the unemployment rate came as household employment rose by 208,000 persons compared with a 50,000-person increase in the size of labor force.

The Labor Department also said average hourly employee earnings crept up $0.07 or 0.2 percent to $30.01 in February. Annual wage growth was unchanged from the previous month at 5.3 percent.


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*U.S. Dollar Extends Gain To 1.3779 Vs Pound, 108.64 Vs Yen

Trading 05 Mar 2021 Commentaire »

U.S. Dollar Extends Gain To 1.3779 Vs Pound, 108.64 Vs Yen


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U.S. Trade Deficit Exceeds Estimates In January

Trading 05 Mar 2021 Commentaire »

With imports increasing by slightly more than exports, a report released by the Commerce Department on Friday showed the U.S. trade deficit widened in the month of January.

The Commerce Department said the trade deficit widened to $68.2 billion in January from a revised $67.0 billion in December.

Economists had expected the trade deficit to widen to $67.5 billion from the $66.6 billion originally reported for the previous month.

The wider trade deficit came as the value of imports climbed by 1.2 percent to $260.2 billion, while the value of exports rose by 1.0 percent to $191.9 billion.


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