Gold Futures Settle At Near 7-year High

Gold prices rose sharply on Tuesday on safe-haven appeal amid renewed concerns about the impact of the coronavirus outbreak on the global economy and corporate earnings. Disappointing earnings news from Walmart also weighed on stocks and prompted investors to seek the safe haven asset. The Chinese central bank’s recent move to cut lending rates to boost growth contributed as well to gold’s rise. The dollar gained as well thanks to its safe-haven appeal. The dollar index advanced to 99.47, and was last seen at 99.40, up 0.4% from previous close. Gold futures for April ended up $17.20, or about 1.1%, at $1,603.60 an ounce, the highest settlement since end March 2013. Silver futures for March ended up $0.416 at $18.150 an ounce, while Copper futures for March settled at $2.6040 per pound, up $0.0045 from previous close. Apple Inc said it expects to miss its forecast for second quarter revenue of $63 billion to $67 billion due to lower iPhone production and weak Chinese demand as a result of the coronavirus outbreak. According to a report released by the Federal Reserve Bank of New York, growth in New York manufacturing activity saw a notable acceleration in the month of…

Weak ZEW index accelerated the euro sale, pound still hopes for a new stimulus package

European stock exchanges, following Asian ones, are trading in the red zone, as published macroeconomic statistics turned out to be noticeably worse than forecasts. German 10-year bonds lost 6.3% at one point, demand for securities in the UK and Switzerland has sharply increased. Oil is losing almost 2% amid growing concerns about demand for raw materials, and there is no reason to believe that the growth in demand for risky assets may resume in the short term.
But until recently, it seemed that the peak of panic was over. The OECD composite indicator, which usually reacts ahead of schedule, shows that as of early February, the business cycle has formed a turning point, that is, a half-wave of growth has begun, which means that demand for risky assets will be outstripped.
At the same time, the OECD in the comments emphasizes that the indicator does not yet reflect the potential negative effect of coronovirus. Of course, China will suffer the most, its real GDP growth will slow down significantly, however, data for the first quarter will be available only in April.
China is also trying to be proactive, and therefore reports of new incentive measures are taken with understanding,…

German Investor Confidence Plummets On Coronavirus Concerns

Germany’s economic sentiment logged a steep fall in February as investors increasingly grew concerned about the impact of the coronavirus outbreak in China, results of a closely watched survey showed on Tuesday. The investor confidence indicator slumped to 8.7 from 26.7 in January, survey results from the ZEW – Leibniz Centre for European Economic Research revealed. The latest score was the weakest since November, when it was -2.1. The reading was much worse than the 21.5 economists had expected. The current conditions index of the survey fell to -15.7 from -9.5 in January. Economists had forecast a score of -10.3. “The feared negative effects of the Coronavirus epidemic in China on world trade have been causing a considerable decline of the ZEW Indicator of Economic Sentiment for Germany,” ZEW President Achim Wambach said. Expectations regarding the development of the export-intensive sectors of the economy have dropped particularly sharply, he noted. Further, the German economy has remained weak at the end of 2019 and at the start of this year. “Both the downward revision of the assessment of the economic situation and the downturn in expectations show clearly that economic development is rather fragile at the moment,” Wambach added. The…

UK Employment Climbs To New Record, Jobless Rate Unchanged

UK employment increased further in the three months to December to set a fresh record, while joblessness remained unchanged, indicating the resilience of the labor market amid the uncertainty surrounding Brexit and the general election. The number of employed rose 180,000 from the previous three months, figures from the Office for National Statistics showed on Tuesday, which exceeded the 145,000 growth economists had forecast. Job growth was mainly driven by quarterly increases for full-time workers by 203,000, which was the largest increase since March to May 2014, and for women by 150,000, which was the biggest gain since February to April 2014. The number of women working full-time increased by 150,000, marking the largest rise since November 2012 to January 2013. The employment rate rose by 0.4 percentage points to a record high of 76.5 percent. The number of unemployed fell by 16,000 people quarterly to 1.29 million, while the jobless rate was unchanged at 3.8 percent as expected. The rate was the joint lowest since early 1975. The economic inactivity rate fell by 0.3 percentage points to a record low of 20.5 percent in the three months to December. Meanwhile, vacancies grew by 7,000 to 810,000 for the November…

New York Manufacturing Index Climbs Much More Than Expected In February

Growth in New York manufacturing activity saw a notable acceleration in the month of February, according to a report released by the Federal Reserve Bank of New York on Tuesday. The New York Fed said its general business conditions index climbed to 12.9 in February from 4.8 in January, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to inch up to 5.0. The bigger than expected increase by the headline index came as the new orders index shot up 16 points to 22.1 and the shipments index climbed to 18.9. The material has been provided by InstaForex Company – www.instaforex.com…

February 18, 2020 : EUR/USD Intraday technical analysis and trade recommendations.

On December 30, a bearish ABC reversal pattern was initiated around 1.1235 (Previous Key-zone) just before another bearish movement could take place towards 1.1100 (In the meanwhile, the EURUSD pair was losing much of its bearish momentum).One more bullish pullback was executed towards 1.1175 where the depicted key-zone as well as the recently-broken uptrend were located. That’s why, quick bearish decline was executed towards 1.1100 then 1.1035 which failed to provide enough bullish SUPPORT for the EURUSD pair.Further bearish decline took place towards 1.1000 where the pair looked quite oversold around the lower limit of the depicted bearish channel where significant bullish rejection was able to push the pair back towards the nearest SUPPLY levels around 1.1080-1.1100 (confluence of supply levels (including the upper limit of the channel).Since then, the pair has been down-trending within the depicted bearish channel until last week when bearish decline went further below 1.0950 and 1.0910 (Fibonacci Expansion levels 78.6% and 100%) establishing a new low around 1.0790.Currently, the EUR/USD pair looks quite oversold after such a long bearish decline and if bullish recovery is expressed above 1.0845-1.0860, further bullish advancement would be expected towards 1.0910 then 1.0950.Intraday traders are advised to look for signs of…

Hong Kong Jobless Rate Highest In Over 3 Years

Hong Kong’s jobless rate rose marginally during the November to January period to its highest level in over three years, the Census and Statistics Department said on Tuesday. The jobless rate rose to 3.4 percent during the November to January period from 3.3 percent during the October to December period. The latest unemployment rate was the highest in more than three years. However, the number of unemployed persons decreased to 122,300 during the three months ended in January from 124,000 in the previous three months. The number of employed persons declined by around 14,600 persons to 3.803 billion during the November to January period. “The labor market slackened further as economic conditions stayed weak,” the Secretary for Labor and Welfare Law Chi-kwong said. The year-on-year decline in total employment widened noticeably further to 1.8 percent, the largest since the third quarter of 2003, the official noted. This sharp fall in employment combined with a modest increase in unemployment rate suggested that some people may have chosen to leave the labor force when losing their jobs, Law added. “The labor market will be subject to even more pressure in the near term, as the threat of the novel…