US indices were mixed after the release of the ADP Non-Farm Employment Change and the Beige Book. The NASDAQ rose by 0.20%, and the Dow Jones lost 0.22% from its value. The German DAX 30 index rose sharply to close the gap at the 9,600 resistance level. Today, the interest rate decision is likely to cause high volatility and a rise to around 9,670. Breaching this level could lead to a further rise to 9,750. Gold closed unchanged at $1,336. Gold is trading in an ascending channel with the support level at 1,325. Crude Oil has fallen sharply in the last two days following the release of the Crude Oil Inventories which came out higher than anticipated. The EUR/USD traded almost unchanged despite the Retail Sales report coming out better than expected. According to 1-hour chart, the pair has created a symmetrical triangle. Over the next few hours, the pair may break either above or below this pattern. It really depends on how the European markets react to the US data and the Minimum Bid Rate, which is expected today. The Pound rose against most of the major currencies as the Services PMI came out higher than expected. The GBP/USD failed to cross below the support level at 1.6600 and this is a strong signal for a continuation in the pair’s bullish momentum. Today the official Bank Rate is expected at 0.50% and the Asset Purchase Facility expected unchanged at 375B. Any change may cause high volatility. The Canadian Dollar rose against the other majors with the Overnight Rate coming out as expected at 1.00%. The USD/CAD finished the trading day around the 1.1030 support level. Breaking the 1.1000 may lead the pair to 1.0900. However, any change in momentum could lead to a Continue reading →
Wall Street finished in the green with the S&P 500 hitting another record high. The Dow Jones rose by 1.41% and the NASDAQ added 1.41% to its value. The S&P 500 rose by 1.53% to reach a new record at 1,873. The US Dollar remained almost unchanged against its major counterparts with the release of no significant economic data. This Friday the Labor Department will release its February jobs report which is expected at 151k vs. 113K previously. Today, the Beige Book is due for release at 19:00 GMT. Gold dropped by 1.07% closing at $1,336 an ounce. Crude Oil fell by 1.28% to close at $103.32 a barrel. The Euro rose slightly against the US Dollar after the Spanish Unemployment Change report which came out better than expected at -1.9K vs. 74.2K forecast. The EUR/USD has created a descending triangle pattern, with the support at 1.3720 and resistance at 1.3760. Breaching the resistance level may take the pair back to around 1.3800 areas again. Today, the Retail Sales report is expected at 0.9% vs. -1.6% previously. The Pound remained unchanged against the US Dollar even the Construction PMI report came out worse than expected at 62.6 vs. 63.6 forecast. The GBP/USD is trading in a Symmetrical Triangle. Should the pair breach above the resistance of 1.6700, it may continue rising towards 1.6760. If it crosses below the support level of 1.6630, we expect it to fall to around 1.6550. Today, the Services PMI report is expected at 09:30 GMT. The Japanese Yen fell against the US Dollar as the Average Cash Earnings report came out worse than predicted at -0.2% vs. 0.3% forecast. Technically, according to the 1-hour chart, the USD/JPY is meeting strong resistance at 102.26 and from this point the pair is starting Continue reading →
Wall Street finished trading in the red due to rising tensions in Ukraine. The S&P 500 fell by 0.74%, the Dow Jones by 0.94%, and the NASDAQ lost 0.75% from its value. The US Dollar rose against its major counterparts after the release of positive economic data. The Personal Spending report came out at 0.4% vs. 0.2% forecast, and the ISM Manufacturing PMI report at 53.2 vs. 52.3. The Federal Reserve continues to monitor the economy to determine the need to continue the reduction in bond purchases and whether to begin to raise the interest rate. This Friday sees the release of the Non-Farm Payrolls. Gold rose by 0.94% closing at $1,350 an ounce. Crude Oil rose slightly by 0.17% to close at $104.66 a barrel. The Euro fell against the US Dollar after the release of the Spanish Manufacturing report which came out worse than expected at 52.5 vs. 53.2 the forecast. The EUR/USD is moving in a negative momentum, and is moving towards the support of 1.3710. If the pair succeeds in breaking the support, it may continue dropping towards 1.3640. The Pound fell against the US Dollar as the Net Lending to Individuals report came out worse than expected at 2.1B vs. 2.5B forecast. The GBP/USD is trading below the resistance level of 1.6766. The pair has created a double top pattern which may cause a drop in price to around 1.6400. This may happen should the pair breach the support level of 1.6580. The RSI indicator points to a negative momentum. The Australian Dollar rose against the US Dollar after the ANZ Job Advertisements revealed a rise of 5.1%. The AUD/USD has been trading below the strong resistance level of 0.8970 since December 2013. As long as the pair continues to maintain Continue reading →
Wall Street finished the trading session mixed last Friday after the GDP report came out lower than estimated. The S&P 500 rose by 0.28%, the Dow Jones by 0.30%, and the NASDAQ lost 0.10% from its value. The US Dollar fell against the other major currencies after the GDP report came out worse than predicted at -0.5% vs. -0.2% forecast, and the Pending Home Sales report also worse at 0.1% vs. 2.9% forecast. Today, the Personal Spending report is expected, and the ISM Manufacturing PMI at 52.3 vs. 51.3. Gold fell by 0.40% closing at $1,326 an ounce as investors prefer to seek gains in equities. Crude Oil rose 0.69% to close at $102.67 a barrel. The Euro rose against the US Dollar after the CPI Flash Estimate came out better than predicted, and German Retail Sales at 2.5% vs. 1.2%. The EUR/USD has created a Triple Top pattern at the resistance level of 1.3817, which is a strong position on the weekly chart that might cause a further heavy drop. If the EUR/USD holds this condition, it may fall to around 1.3600 again. Today, the Spanish Manufacturing PMI report is expected at 53.2 vs. 52.2, and European Central Bank President Mario Draghi will speak at 14:00 GMT. The Pound rose against the US Dollar as the Nationwide HPI report came out unchanged at 0.6%. The GBP/USD is trading below the resistance level of 1.6761, and is expected to continue in this negative momentum supported by the RSI indicator. If the pair crosses below the support of 1.6695, it may fall to around 1.6620 again. However, if it breaches the resistance level, it may rise to 1.6800. The Australian Dollar fell against the US Dollar after the Private Sector Credit report came out worse than expected at Continue reading →
In currencies news, the US Dollar posted its worst month since September even after Janet Yellen, the new Chairman of the Federal Reserve, told the Senate Banking Committee that the central bank will likely maintain its current policy of trimming bond purchases. Another major headline from last week involved the Chinese Yuan, which decreased against all but 2 of the emerging-market currencies after the Bank of China announced its decision to consider widening the Yuan’s trading band.
The euro posted its most significant monthly gain since April in response to higher than expected inflation numbers, as a result of which investors are now speculating that the European Central Bank will not implement additional stimulus measures at its upcoming meeting,
The euro was last trading against the US Dollar at the level of 1.3800, an increase of 0.67%.
The Pound also advanced against the US Dollar after the release of positive data regarding business investment, which helped the British economy gain for the 4th straight quarter and increased the appeal of the Pound. According to the Office for National Statistics, Britain’s economy expanded by 2.7%, the most in nearly 6 years. After four quarters of contraction, business investment increased by 8.5%.
The Pound was last trading against the US Dollar at the level of 1.6741, an increase of 0.32%.
In commodities news, WTI Crude Oil capped a monthly gain as the euro strengthened and as inventories dropped at Cushing, Oklahoma. According to a report released by the Energy Information Administration on February 26, stockpiles decreased to 34.8 million last week. News of a stronger euro further contributed to the rising appeal of crude oil as an investment.
Trading closed mixed on Wall Street despite the release of positive economic data. The S&P 500 remained unchanged, the NASDAQ fell by 0.07%, and the Dow Jones added 0.12% to its value. The US Dollar strengthened versus most of the major currencies after the New Home Sales report came out better than expected at 468K vs. 406K forecast. Investors speculate that the Federal Reserve will continue to reduce monetary stimulus, causing a rise in the Dollar. Today, Federal Reserve Chair Janet Yellen will testify and speak about the future monetary policy of the Fed. High volatility is expected. The New Zealand Dollar dropped slightly versus the US Dollar despite better than expected economic data. The Trade Balance came out at 306M vs. 230M forecast. The NZD/USD is trading between the support level of 0.8050 and the resistance level of 0.8390. Breaching above the resistance level may lead the currency towards 0.8500 again. Gold dropped by 0.86%, closing at $1,328 an ounce, after positive US data caused a significant drop in demand for the commodity. Crude Oil added 0.64% to its value, closing at $102.64 a barrel after the Crude Oil Inventories came out at 0.1M vs. 1.01M forecast. The euro fell versus the US Dollar over mounting concerns about possible deflation in the Eurozone. Holding above the support level of 1.3660 should lead the EUR/USD towards 1.3750 again. However, breaking below the support level may cause the pair to drop towards the next support level of 1.3620. Today, the German Unemployment Change is expected at -10K vs. -28K previously. The Pound remained almost unchanged versus the US Dollar as the Revised GDP report came out as expected at 0.7% – the same as previously. As long as the GBP/USD is trading above the support level of 1.6610 the Continue reading →
Wall Street finished trading in the red following the release of worse than expected economic data. The S&P 500 fell by 0.13%, the NASDAQ by 0.13%, and the Dow Jones lost 0.17% from its value. Tesla’s shares rose by 13.94% closing at $248.00 after Morgan Stanley raised its price target to $320 per share. The US Dollar traded lower versus most of its major counterparts in response to a disappointing CB Consumer Confidence report, which came out worse than expected at 78.1 vs. 80.2. Today, the New Home Sales is expected at 406K vs. 414K previously. Gold rose by 0.44% closing at $1,341, while Crude Oil fell by -0.59% to close at $102.03 a barrel. The euro rose versus the US Dollar after the release of an encouraging EU Economic Forecast report and German Final GDP, which came out as forecast at 0.4%. The EUR/USD is trading between support at 1.3685 and resistance at 1.3770. Breaching resistance may lead the pair towards 1.3800, while crossing below support could take the pair back to 1.3650 once again. No major economic data is expected today. The Pound rose against the US Dollar in response to an encouraging BBA Mortgage Approvals report, which came out better than expected at 50K vs. 47.9K. The GBP/USD has failed to breach the upper band of the Bollinger Band indicator, and as long as the pair holds this condition it is expected to keep falling towards the lower band. Today, the Second Estimate GDP is expected unchanged at 0.7% vs. 46.5K previously. Sign Off