Treasuries Give Back Ground Amid More Upbeat Vaccine News

Trading 24 Nov 2020 Commentaire »

After trending higher over the past few sessions, treasuries moved back to the downside during the trading day on Monday.

Bond prices moved lower early in the session and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.8 basis points to 0.857 percent.

The pullback by treasuries came as traders reacted to additional upbeat news regarding a potential coronavirus vaccine.

AstraZeneca (AZN) announced the its vaccine candidate being developed in collaboration with Oxford University had an average efficacy of 70 percent.

The drug maker said one dosing regimen showed vaccine efficacy of 90 percent when given as a half dose, followed by a full dose at least one month apart, while another dosing regimen showed 62 percent efficacy when given as two full doses at least one month apart.

In other coronavirus-related news, the FDA has granted an emergency use authorization for Regeneron's Covid-19 antibody treatment, while purportedly helped President Donald Trump fend off the disease.

Meanwhile, traders largely shrugged off mixed results from the Treasury Department's auctions of two-year and five-year notes.

The Treasury's auction of $56 billion worth of two-year notes attracted above average demand, while the auction of $57 billion worth of five-year notes attracted below average demand.

Trading on Tuesday may be impacted by reaction to the latest coronavirus-related news along with reports on home prices and consumer confidence.


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

Crude Oil Futures Close Notably Higher

Trading 24 Nov 2020 Commentaire »

Crude oil prices moved higher on Monday, extending gains from previous week, as rising optimism about potential Covid-19 vaccine raised hopes that energy demand will pick up soon.

Traders also bet on hopes that OPEC and other major oil producers will consider extending the curb on crude production by another few months.

OPEC meets on November 30 and December 1 and it appears traders have already factored in a three-month delay of production increases.

West Texas Intermediate Crude oil futures for January ended up $0.64 or about 1.5% at $43.06 a barrel.

Brent crude futures were gaining about $0.90 or nearly 2% at $45.87 a barrel.

Last week, both WTI and Brent futures added about 5% on positive news about the efficacy of coronavirus vaccines and hopes that the Organization of the Petroleum Exporting Countries, Russia and other producers will keep crude output in check.

After recent encouraging updates on the vaccine front, the Oxford University and British pharmaceutical giant AstraZeneca announced today that their vaccine for the novel coronavirus could be around 90% effective under one dosing regimen.

"Today marks an important milestone in our fight against the pandemic. This vaccine's efficacy and safety confirm that it will be highly effective against Covid-19 and will have an immediate impact on this public health emergency," AstraZeneca chief executive Pascal Soriot said in a statement.

Meanwhile, the FDA's outside advisers are slated to meet on Dec. 10 to review Pfizer's emergency-use application for its vaccine.


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Gold Futures Settle Sharply Lower As Risk Sentiment Improves On Vaccine News

Trading 24 Nov 2020 Commentaire »

Gold prices declined sharply on Monday as investors sought riskier assets amid improved risk sentiment after the latest positive updates on Covid-19 vaccine front.

The dollar's strength against most of its peers weighed as well on gold prices. The dollar index, which rose to 92.80 by late morning, pared some gains subsequently, but was still holding firm in positive territory at 92.54, up 0.17% from previous close.

Gold futures for December ended down $34.60 or about 1.8% at $1,837.80 an ounce.

Silver futures for December closed lower by $0.730 at $23.633 an ounce, while Copper futures for December settled at $3.2580 per pound, down $0.0330 from previous close.

After encouraging updates from Pfizer and Moderna last week, there is more cheerful news on the vaccine front now, with Oxford University and AstraZeneca pharma announcing that their vaccine for the novel coronavirus could be around 90% effective under one dosing regimen.

"Today marks an important milestone in our fight against the pandemic. This vaccine's efficacy and safety confirm that it will be highly effective against Covid-19 and will have an immediate impact on this public health emergency," AstraZeneca chief executive Pascal Soriot said in a statement.

Meanwhile, the FDA's outside advisers are slated to meet on Dec. 10 to review Pfizer's emergency-use application for its vaccine.


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

Five-Year Note Auction Attracts Below Average Demand

Trading 24 Nov 2020 Commentaire »

After announcing the results of the two-year note auction earlier in the day, the Treasury Department revealed later Monday that its sale of $57 billion worth of five-year notes attracted below average demand.

The five-year note auction drew a high yield of 0.397 percent and a bid-to-cover ratio of 2.38.

The Treasury sold $55 billion worth five-year notes last month, drawing a high yield of 0.330 percent and a bid-to-cover ratio of 2.38.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous five-year note auctions had an average bid-to-cover ratio of 2.49.


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Analytics and trading signals for beginners. How to trade GBP/USD on November 24? Plan for opening and closing trades on

Trading 23 Nov 2020 Commentaire »

Hourly chart of the GBP/USD pair

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Trading the GBP/USD pair on the first trading day of the week was very similar to the EUR/USD pair. The price increased in the first half of the day, however, it fell in the US session and started a rather strong downward movement. Unfortunately, the technical picture for the pound is not as beautiful as for the euro, which greatly complicates the process of trading and processing the signals. For example, the chart clearly shows two trend lines at once, but the price overcame both, afterwards we saw an upward trend. In fact, the upward trend was maintained all this time, however, signals to change the trend regularly appeared. Nevertheless, in our last review on the pound, we advised you to buy the pair if we can go beyond the 1.3313 level by reaching the 1.3377 target. Today this level has been overcome, and the goal was reached. Therefore, novice traders could earn about 60 points. At the same time, you were advised to sell the pound/dollar pair at a new MACD sell signal, and such a signal also appeared today (circled), thus, novice traders could open sell positions today, and you could have gained 60 points. Even if traders only opened one trade, they still remained in profit.

Today's fundamental component was rather ambiguous for the British pound. Service PMI in the UK was slightly above the forecasted values, but was still below the level of 50.0. Thus, the service sector is also shrinking in Britain, which is negative for the economy. Nevertheless, the pound continued to rise in the first half of the day, and only began to fall in the afternoon. Of course, US PMIs could have made such an impression on market participants. After all, these indicators mean that the British economy will contract thanks to a new lockdown at the end of 2021, but the US one will not. However, we still believe that the dollar grew due to technical reasons, although not without the influence of the macroeconomic background.

No major reports scheduled for release tomorrow in both the UK and the US. Nevertheless, traders may continue to await information regarding trade talks between London and Brussels, since this topic is really important for the pound. If we receive information that the negotiations have reached a deadlock again, this could pull down the pound again. Moreover, the technical picture is now ambiguous and does not provide serious support to either buyers or sellers.

Possible scenarios for November 24

1) The important and strong level of 1.3313 was overcome today, however, not a single trend line supports the upward trend. Moreover, we continue to expect that the pound will begin to sharply fall, which is supported by the fundamental background. Therefore, from our point of view, it is not safe to open buy positions now.

2) From our point of view, sell positions are more convenient, and for a large number of reasons. Both upward trend lines have been overcome, the pair has settled below the 1.3313 level. And so we would recommend selling the pair, but after a round of upward correction, since it is unlikely that the quotes will continue to fall after the pair has already gone down by about 100 points. And even if it continues, novice traders will have to follow the deal at night, which is not very convenient.

On the chart:

Support and Resistance Levels are the Levels that serve as targets when buying or selling the pair. You can place Take Profit near these levels.

Red lines are the channels or trend lines that display the current trend and show in which direction it is better to trade now.

Up/down arrows show where you should sell or buy after reaching or breaking through particular levels.

The MACD indicator (14,22,3) consists of a histogram and a signal line. When they cross, this is a signal to enter the market. It is recommended to use this indicator in combination with trend lines (channels and trend lines).

Important announcements and economic reports that you can always find in the news calendar can seriously influence the trajectory of a currency pair. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal.

Beginners on Forex should remember that not every single trade has to be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time.

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

Two-Year Note Auction Attracts Above Average Demand

Trading 23 Nov 2020 Commentaire »

The Treasury Department announced the results of this month's auction of $56 billion worth of two-year notes on Monday, revealing the sale attracted above average demand.

The two-year note auction drew a high yield of 0.165 percent and a bid-to-cover ratio of 2.71.

Last month, the Treasury sold $54 billion worth of two-year notes, drawing a high yield of 0.151 percent and a bid-to-cover ratio of 2.41.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous two-year note auctions had an average bid-to-cover ratio of 2.57.


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

Dollar Slides On Covid-19 Vaccine Hopes

Trading 23 Nov 2020 Commentaire »

The U.S. dollar declined against its major counterparts in the European session on Monday, as encouraging news on the vaccine front spurred hopes of a faster economic recovery from the virus crisis.

After a string of encouraging vaccine results in recent weeks, the Oxford University and British pharmaceutical giant AstraZeneca announced that their vaccine for the novel coronavirus could be around 90 percent effective under one dosing regimen.

One dosing regimen (n=2,741) showed vaccine efficacy of 90 percent when AZD1222 was given as a half dose, followed by a full dose at least one month apart, and another dosing regimen (n=8,895) showed 62 percent efficacy when given as two full doses at least one month apart.

The combined analysis from both dosing regimens (n=11,636) resulted in an average efficacy of 70 percent, it was said.

The FDA is looking to approve vaccine developed by Pfizer and German partner BioNTech in mid-December. The vaccine has shown almost 95 percent efficacy in preventing coronavirus.

The greenback slipped to 2-week lows of 1.1906 against the euro and 0.9077 against the franc, after rising to 1.1851 and 0.9113, respectively in early deals. The greenback is seen challenging support around 1.24 against the euro and 0.88 against the franc.

The greenback weakened to near a 3-month low of 1.3398 against the pound and a 5-day low of 103.68 against the yen, off its early highs of 1.3272 and 103.87, respectively. Immediate support for the greenback is possibly seen around 1.35 against the pound and 100.00 against the yen.

The U.S. currency depreciated to near a 2-year low of 0.6968 against the kiwi and a 6-day low of 0.7338 versus the aussie, easing from its early highs of 0.6923 and 0.7300, respectively. The greenback is likely to challenge support around 0.72 against the kiwi and 0.75 versus the aussie.

The greenback edged down to 1.3046 against the loonie, from a high of 1.3094 seen in early deals. On the downside, 1.25 is likely seen as its next support level.

Markit's U.S. flash composite PMI for November is scheduled for release shortly.


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

GBP/USD : la livre sterling profite des espoirs autour du Brexit

Trading 23 Nov 2020 Commentaire »
La livre sterling travaille une résistance clé à 1,3350$. L’accord commercial post-Brexit soutient la tendance.

Bearish break down for Gold

Trading 23 Nov 2020 Commentaire »

Gold has finally broken below $1,850 support level at the start of this week. We are not surprised by this price action as we believed this would be the most probable outcome. Gold price continued to trade below the Ichimoku cloud and this made us continue to expect the break down towards $1,800.

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Green rectangle -support (broken)

Red rectangle- resistance levels

Gold price has finally broken a key support level. We now see Gold trading at $1,838 and we expect this downward move to continue lower towards $1,800 and maybe towards $1,750. Trend remains bearish as long as price is below $1,900.

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With Gold price still below the Daily Kumo (cloud) there was only one way for price to go. Resistance is at $1,865 by the tenkan-sen (Red line indicator). Bulls need to see a close above this level in order to hope for a move towards $1,900. All indicators in the Daily chart confirm bearish trend and rejection at $1,900. Gold price is expected to be under pressure at least this week.

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

EURUSD bulls face another rejection at 1.19

Trading 23 Nov 2020 Commentaire »

EURUSD has turned lower sharply today towards the key short-term support of 1.18. The RSI continues to provide bearish divergence warnings and it is highly probable that Dollar strength will be the main scenario over this week.

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Blue lines - bearish divergence

Price has managed to peak above 1.19 but sellers have stepped in again, pushing price towards 1.18. The bearish RSI divergence provides a warning that this is not the time to enter long positions or remain bullish. This is the time to be neutral if not bearish as a pull back is imminent. As long as the bearish divergence stands bulls need be cautious. On the other hand bears will need to show more signs of strength in order for a deeper pull back to follow. Bears will need to break below 1.18-1.1750 support area, otherwise a sideways movement will relieve the RSI from overbought levels and could give bulls time to gather strength for the next upward move.

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