Tag Archives: commodities

Oil Futures Rise To Near 3-month High As OPEC Deepens Output Cuts

Crude oil prices rose sharply on Friday after Saudi Arabia and Russia agreed on further output curbs. Positive comments on the trade deal front and upbeat U.S. jobs data contributed as well to oil’s sharp rise. The OPEC and a 10-nation coalition led by Russia called OPEC+ have agreed to deepen oil production cuts in order to prevent oversupply in the market. The new deal agreed upon during the Vienna meet will apply for the first three months of 2020. The move follows the recommendation of the oil exporting countries to deepen the cuts by 500,000 barrels per day to existing 1.2 million barrels per day. The total curb of 1.7 million barrels per day would amount to 1.7% of global crude supply. Saudi Arabia’s energy minister Prince Abdulaziz bin Salman told reporters today that the kingdom’s quota would be an additional 167,000 barrels per day and that it would continue to exceed its quota by 400,000 barrels a day, thus bringing the overall production cut to closer to 2.1 million barrels a day. West Texas Intermediate Crude oil futures for January ended up $0.77, or about 1.3%, at $59.20 a barrel, the highest settlement since September 17. On Thursday,…

Surge In U.S. Non-farm Payrolls Lifts Dollar

The U.S. dollar was notably higher against its major trading partners in the European session on Friday, as the economy created much more jobs than forecast in the month of November, supporting hopes for the Federal Reserve to keep policy unchanged when it meets next week. Data from the Labor Department showed that U.S. job growth was in a substantial acceleration in November. The report said non-farm payroll employment surged by 266,000 jobs in November after climbing by an upwardly revised 156,000 jobs in October. Economists had expected an increase of about 180,000 jobs compared to the addition of 128,000 jobs originally reported for the previous month. The unemployment rate edged down to 3.5 percent in November from 3.6 percent in October. The unemployment rate was expected to remain unchanged. The Federal Reserve’s final rate setting meeting of the year is due next week. The Central Bank is expected to keep rates on hold at 1.50-1.75 percent. Investors focused on developments in China-U.S. trade front after President Donald Trump commented that the talks were “moving right along.” Trump’s remarks came after Beijing asserted that some U.S. tariffs should be rolled back as part of an interim deal. U.S. Treasury Secretary…

December 6, 2019 : GBP/USD Intraday technical analysis and trade recommendations.

On October 21, the GBP/USD pair was demonstrating an ascending wedge reversal pattern while approaching the depicted SUPPLY-zone (1.2980-1.3000). This pattern was confirmed on October 22. Since Then, the GBP/USD pair has failed to achieve a persistent bullish breakout above the depicted SUPPLY-zone (1.2980-1.3000) which corresponds to a previous Prominent-TOP that goes back to May 2019.This indicated a high probability of bearish reversal around the mentioned price zone. Hence, a quick bearish movement was initiated towards 1.2780 (Key-Level) where bullish recovery was demonstrated on two consecutive visits.That’s why, the GBP/USD pair has been trapped between the mentioned price levels (1.2780-1.3000) until Wednesday when bullish breakout above 1.3000 was achieved.Short-term technical outlook remains bullish as long as consolidations are maintained above 1.3000 on the H4 chart.On the other hand, the pair is currently testing the upper limit of the newly-established depicted short-term bullish channel. That’s why, high probability of bearish rejection exists around the current price levels.Conservative traders may have to wait for a bearish pullback towards 1.2980-1.3000 for a valid BUY signal. Estimated bullish target would be located around 1.3120 and 1.3150.On the other hand, please note that any bearish closure below 1.2980 invalidates the bullish scenario for the short-term allowing…

Technical analysis of USD/CAD for Decembre 06, 2019

Overview: The USD/CAD pair is trading at the spot of 1.3196 and 1.3252. Right now, the pair has already been corrected by 50.0% and may yet continue trading towards 61.8% or 38.2% Fibonacci retracement levels at 1.3252 or 1.3196. The USD/CAD pair was argumentative as it was trading in a narrow sideways channel, the market showed signs of instability. Resistance and support are seen at the levels of 1.3252 and 1.3196 respectively. The support is the low at 1.3196. Equally important, the USDCAD pair is still moving around the key level at 1.3225, which represents a daily pivot in the H1 time frame at the moment. All these signals taken together indicate further sideways trend movement. Immediate resistance is seen around 1.3252 levels, which coincides with the first resistance. In case of a successful breakout at 1.3252 , the next target will be at the level of 1.3291. This would suggest a bulish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to rise higher towards at least 1.3344 so as to test the daily support 3. On the other hand, if a breakout happens at the…

Japan Household Spending Declines After Sales Tax Hike

Japan household spending declined notably in October after the government implemented the sales tax hike on October 1, official data showed Friday. Data from the Ministry of Internal Affairs and Communications showed that household spending decreased 5.1 percent annually in October, in contrast to a 9.5 percent increase in September. This was the biggest fall since March 2016. Economists had forecast a moderate 3.5 percent fall for October. On a monthly basis, household spending declined 11.5 percent in October, following a 5.5 percent rise in September. Total cash earnings rose 0.5 percent year-on-year in October, the same as seen in September, report from the Ministry of Health, Labor and Welfare showed. Economists had expected a 0.2 percent increase. This was also the second consecutive growth. Contractual gross earnings increased 0.6 percent in October, while special cash earnings declined by 4.4 percent. Real cash earnings edged up 0.1 percent in October, following a revised 0.2 percent rise in the previous month. Economists had expected a 0.3 percent decline. Wage growth remained relatively strong in October but with the labor market loosening, earnings growth is likely to settle around 0.5 percent, Tom Learmouth, an economist at Capital Economics, said….

Eternal impeachment (EUR/USD and GBP/USD review on 12/06/2019)

Democrats are not giving up their attempts to impeach Donald Trump, trying to deprive the Republicans of any hope in the upcoming presidential election. After all, the Republicans have no other candidate, and if Donald Trump is impeached, they will not have time to prepare for a new candidate for the presidency of the United States. The circus arranged by the Democrats include the participation of several law professors. One of whom agreed to the point where by his actions, Donald Trump seeks to establish a monarchy in the United States, despite all his comicality and absurdity, seriously worries investors. After all, this increases the uncertainty that investors fear like the devil. All previous attempts at impeachment in the history of the United States have failed, and no one can predict the political consequences if everything works out this time. It’s clear that nothing good will happen, because it’s like opening Pandora’s box. Once you release this gin from the bottle, you can’t get it back. In fact, if Democrats reach their goal, then one can forget about the presidential election in the United States since political opponents will regularly impeach each other. Therefore, certain concern of investors which were…

USD is declining in anticipation of the employment report, CAD and JPY are trading neutrally, but keep chances of growth

The US dollar remains under pressure, declining for the fifth day in a row. Thus, there has been an ambiguous silence around trade negotiations over the past 24 hours. On the other hand, Trump is “maintaining confidence,” while China insists that all inflated tariffs should roll back to their previous levels.
At the same time, non-farm growth for November is expected to increase by 185 thousand, which looks suspicious after a very weak ADP report and a higher growth in unemployment applications. Therefore, trading will go in a narrow range before the publication of data, and after the publication, any surprises are possible.
USD/CAD
The decision of the Bank of Canada to leave the rate at 1.75% was perceived by the markets as neutral, since it coincided with forecasts. In addition, some strengthening of the loonie in the last two days is most likely due to other factors – a general decline in the dollar amid weak ISMs and oil growth.
Meanwhile, BoC focuses on key parameters of the state of the economy, such as inflation, unemployment and GDP. In all three parameters, the dynamics is neutral, current levels look stable, and government bond yields have recovered to a 6-month…

Trading plan for EURUSD for December 06, 2019

Technical outlook:EURUSD might have print an interim high at 1.1116, which could hold for at least a few trading sessions. We are expecting at least a retracement from current levels towards 1.1030, before finding support to resume rally. As discussed yesterday, probability also remains for a dip below 1.0981 levels to complete a complex corrective drop that began from 1.1180 levels earlier. In either case, expect a brief correction from current levels before the medium term bullish trend could resume. The larger wave which is being worked upon is between 1.0879 and 1.1181 levels respectively and until prices stay above 1.0879, the structure remains in favor of bulls. Immediate price support is also seen at 1.0940 along with Fibonacci 0.786 retracement of previous rally. A drop towards 1.0940 cannot be ruled out, and if prices manage to reach there, a sharp bullish reversal can be expected.Trading plan:Remain long and add further around 1.0940 levels, stop at 1.0879, target is 1.1500Good luck!The material has been provided by InstaForex Company – www.instaforex.com…