Tag Archives: market watch

Treasuries Extend Pullback On Spike In Housing Starts

Extending the pullback seen over the course of the previous session, treasuries moved to the downside during trading on Friday. Bond prices regained some ground after seeing early weakness but remained stuck in the red. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.7 basis points to 1.836 percent. The early drop by treasuries came after a report from the Commerce Department showed a substantial increase in U.S. housing starts in the month of December. The Commerce Department said housing starts skyrocketed by 16.9 percent to an annual rate of 1.608 million in December after jumping by 2.6 percent to a revised rate of 1.375 million in November. The surge came as a big surprise to economists, who had expected housing starts to rise by 0.7 percent to a rate of 1.375 million from the 1.365 million originally reported for the previous month. With the much bigger than expected increase, housing starts soared to their highest level since hitting a rate of 1.649 million in December of 2006. Meanwhile, the Federal Reserve released a report showing a modest pullback in U.S. industrial production in the month of December. The Fed…

U.S. Consumer Sentiment Shows Slight Deterioration In January

A report released by the University of Michigan on Friday showed a slight deterioration in U.S. consumer sentiment in the month of January. Preliminary data showed the consumer sentiment index edged down to 99.1 in January from the final December reading of 99.3. Economists had expected the index to come in unchanged. The slight decrease by the headline index came as the index of consumer expectations dipped to 88.3 in January from 88.9 in December. On the other hand, the report said the current economic conditions index crept up to 115.8 in January from 115.5 in December. Surveys of Consumers chief economist Richard Curtin noted the impeachment of President Donald Trump was mentioned but just 1 percent of consumers. “While those that mentioned impeachment were also somewhat less optimistic than other consumers, the small numbers had a negligible impact on the overall level in consumer sentiment,” Curtin said. With regard to inflation, one-year inflation expectations rose to 2.5 percent in January from 2.3 percent in December, while five-year inflation expectations climbed to 2.5 percent from 2.2 percent. The University of Michigan noted the data was initially unavailable on its website due to an accidental cut of fiber networking on…

Dollar Stronger On Upbeat U.S., China Economic Data

The U.S. dollar drifted higher against its most major trading partners in the European session on Friday, as solid economic data from China and the U.S. eased concerns about global growth. Official data showed that the Chinese economy expanded in line with expectations in the fourth quarter. Gross domestic product grew 6.0 percent year-on-year in the fourth quarter, the same rate as seen in the third quarter and in line with expectations. Chinese industrial production and retail sales beat forecasts in December, rising 6.9 percent and 8.0 percent, respectively year-on-year. Overnight data showed that U.S. retail sales rose 0.3 percent in December, in line with forecasts. Separate reports showed that weekly jobless claims unexpectedly fell in the week ended January 11 and NAHB housing market index came in near a 20-year high in January. The data reduced the possibility of further interest rate cuts from the Federal Reserve. Investors await U.S. industrial production, consumer confidence index, building permits and housing starts data due in the American session for more direction. The currency traded mixed against its major counterparts in the Asian session. While it rose against the yen and the franc, it held steady against the euro. Versus the pound,…

Eurozone Construction Output Recovers In November

Eurozone construction output recovered in November, Eurostat reported Friday. Construction output increased 0.7 percent on a monthly basis, in contrast to a 0.5 percent fall in October. The recovery was driven by a 1.1 percent rise in building construction and a 0.3 percent rise in civil engineering. On a yearly basis, construction output growth accelerated to 1.4 percent from 0.9 percent a month ago. In the EU28, construction output increased 1.1 percent on month, taking the annual growth to 1.4 percent. The material has been provided by InstaForex Company – www.instaforex.com…

January 17, 2020 : GBP/USD Intraday technical analysis and trade recommendations.

On December 13, the GBPUSD pair looked overpriced around the price levels of 1.3500 while exceeding the upper limit of the newly-established bullish channel.On the period between December 18 – 23, bearish breakout below the depicted channel followed by initial bearish closure below 1.3000 were demonstrated on the H4 chart.However, earlier signs of bullish recovery were manifested around 1.2900 denoting high probability of bullish pullback to be expected.Thus, Intraday technical outlook turned into bullish after the GBP/USD has failed to maintain bearish persistence below the newly-established downtrend line.That’s why, bullish breakout above 1.3000 was anticipated. Thus, allowing the recent Intraday bullish pullback to pursue towards 1.3250 (the backside of the broken channel) where bearish rejection and another bearish swing were suggested for conservative traders in previous articles.Intraday bearish target are projected towards 1.3000 and 1.2980 provided that the current bearish breakout below 1.3170 is maintained on the H4 chart.Please also note that two descending highs were recently demonstrated around 1.3120 and 1.3090 which enhances the bearish side of the market.Conservative traders should wait for bearish breakdown below 1.2980, This is needed first to enhance further bearish decline towards 1.2900, 1.2800 and 1.2780 where the backside of the previously-broken downtrend is located.In…

Swiss Producer And Import Prices Fall In December

Switzerland’s producer and import prices declined in December, data from the Federal Statistical Office showed on Friday. The producer and import prices fell 1.7 percent year-on-year in December. On a monthly basis, producer and import prices edged up 0.1 percent in December. On an average, producer and import prices declined 1.4 percent in 2019, after a 2.4 percent rise in 2018. The latest decline was mainly due to lower prices for pharmaceutical products, scrap, mineral oil products, and metals and semi-finished metal products. The producer prices fell 1.0 percent annually in December and edged up 0.1 percent from the previous month. Likewise, import prices dropped 3.2 percent from last year but rose 0.2 percent on month. The material has been provided by InstaForex Company – www.instaforex.com…

GBP/USD. January 17. We are waiting for a new sales signal. The Briton embarrassed in front of another weak statistics from

GBP/USD – 4H.

As seen on the 4-hour chart, the GBP/USD pair performed a consolidation above the corrective level of 23.6% (1.3048). Along with this consolidation, quotes of the pair closed above two trends and corridors. I have built a small correction line based on the movement of the last days, and if the pair closes below it, then traders will again be able to count on a reversal in favor of the US currency and a resumption of the fall in the direction of the corrective level of 0.0% (1.2904). As we can see, the goal remains the same, however, too long growth of the pound before the expected fall suggests a possible different scenario. In any case, I recommend trying to sell the pair when it is fixed below the Fibo level of 23.6% and the correction line. The “foundation”, in the case of the pound-dollar pair, remains in favor of the dollar. Retail sales in the UK declined by 0.6% m/m in December, with forecasts of +0.7%. These numbers were supposed to cause the British dollar to fall, however, the pair continues to trade with a small amplitude, showing no particular desire to move at the end of the…

Evening review for EURUSD for 01/17/2020. The pressure on the euro intensified

Investor sentiment is getting worse and the global economy is getting more negative. The growth rate in China has fallen to +6.1% and the negative is coming. Investment, sales, and the auto market are all slowing down.In Britain, new retail sales data is weak and the Bank of England is likely to cut the rate.Against this background, the US-Europe trade contradictions are intensifying.EURUSD: The euro is falling towards the support of 1.1100.In the case of a break below 1.1085, we sell.Purchases from 1.1180.The material has been provided by InstaForex Company – www.instaforex.com…

Trading recommendations for EUR/USD

Using complex analysis, we can see that the correction phase from the range of 1.1080 reached its local peak. This was located near the level of 1.1180. Since Wednesday, the correction has been under pressure, confirmed by a temporary lateral movement, and the structure of which there were impulses, locally reaching the area of the control level with shadows. The amount of the change in the correction was much larger than initially considered, which is more than 50% relative to the downward movement since the beginning of the year.
Because of this, traders are not losing faith in the resumption of the downward trend, snd considers the recent correction as a kind of a variable component that does not carry a fracture of earlier bars. In fact, if the quote manages to fix at least below 1.1115, this theory will sparkle with new colors and most traders will believe in a downward move.
In terms of volatility, we have extremely stable indicators that are close to the average daily value. Such statistics confirm a rather good emotional background of the market, where both speculators and intraday traders get along, which cannot be said about conservative market participants.
Analyzing the past…