Tag Archives: oil trading

Gold Futures Settle At Over 7-year High

Gold prices rose sharply on Monday, extending gains to a third successive session, amid hopes central banks across the globe will announce further stimulus to revive the economies that are falling into a deep recession due to the coronavirus outbreak. Gold futures recorded their highest settlement since December 2012, as investors picked up the safe-have commodity even as global stocks rebounded after data showed a drop in new coronavirus cases in some of the virus hot spots in the European region. The dollar index, despite a choppy ride, held in positive territory. It was last seen at 100.70, up 0.12% from previous close, after moving between 100.48 and 100.93. Gold futures ended up $48.20, or about 2.9%, at $1,693.90 an ounce, the highest settlement price since December 17, 2012. Gold futures for June ended up $8.00, or about 0.5%, at $1,645.70 an ounce on Friday, after scoring a gain of 2.9% a session earlier. Silver futures for May ended up $0.675 at $15.193 an ounce, while Copper futures for May settled at $2.2175 per pound, gaining $0.0250 for the session. With dismal monthly jobs data from the Labor Department on Friday, and weak economic data from the euro area…

BDI Sees German Economy Shrinking 3-6% This Year On Covid-19 Disruption

The biggest euro area economy is set to shrink severely this year due to containment measures in place to slow the spread of the coronavirus, or Covid-19, pandemic, the industry group BDI said Monday. Germany’s gross domestic product is likely to decline 3 to 6 percent this year, if economic activity is interrupted for a maximum of six weeks, BDI said. Global economic output is forecast to fall 3 percent, which will be the second fall in the past 50 years. In 2009, the world economy declined 1.7 percent. In a best case scenario, the global trade will fall 3 to 5 percent, the BDI said. A strong recession in the US, Europe and Japan can no longer be avoided this year, the group predicted. Eurozone and the EU is set to witness a 3-5 percent decline in output and the United States may see a 2-4 percent fall. The Japanese economy may shrink 1 to 3 percent, while China may log growth of up to 2 percent, the BDI said. The fiscal support and revitalization packages in the EU are still insufficient and further strong measures are required in may countries, the BDI said. Germany has advanced with a…

Singapore Announces S$5.1 Bln Additional Stimulus On Covid-19 Shock

Singapore announced an additional S$5.1 billion (US$3.6 billion) stimulus to save jobs and protect the livelihoods of people amid the spread of coronavirus, or COVID-19, pandemic. This is the third stimulus package, which was unveiled by Deputy Prime Minister Heng Swee Keat on Monday, and covers wage subsidies and cash payout. With the latest announcement, the government’s response to COVID-19 will total S$59.9 billion or around 12 percent of GDP. The budget deficit is estimated to rise to 8.9 percent of GDP this year. The government obtained President’s in-principle support for a draw of up to S$17 billion from past reserves to finance its second package. The central bank had eased its monetary policy last week as the city-state is expected to enter a deep recession due to the interruptions to economic activity caused by the outbreak of COVID-19. “The primary aim of this Solidarity Budget is to take further steps to save jobs and protect the livelihoods of our people during this temporary period of heightened measures,” Heng said. “We will also help businesses preserve their capacity and capabilities, to resume activities when the circuit breaker is lifted,” he added. The wage subsidy for all firms…

Pound Appreciates As Virus Spread Slows

The pound strengthened against its major counterparts in the European session on Monday, as investors cheered news of a slowdown in coronavirus deaths across Europe. While Italy reported the fewest deaths in more than two weeks, France’s daily death count from the novel coronavirus dropped in the past 24 hours and admissions into intensive care also slowed. Elsewhere in Spain, the death rate fell for the third straight day. In the United States, President Donald Trump warned the country could be headed into its “toughest” weeks, but expressed hope the country was seeing a “levelling off” of the virus crisis. News that UK Prime Minister Boris Johnson has been admitted to hospital has sent the Pound lower at the beginning of the new week. The recovery came after housing minister Robert Jenrick said Johnson was fine and was expected to be back at 10 Downing Street soon. Survey data from IHS Markit and Chartered Institute of Procurement & Supply showed that the UK construction sector contracted at the steepest rate since April 2009 reflecting the impact of the COVID-19 pandemic. The construction Purchasing Managers’ Index dropped to 39.3 in March from 52.6 in February. A score below 50 indicates contraction….

Gold Prices Rise 1% As Dollar Stays Flat

Gold prices rose on Monday after the U.S. Labor Department’s report on Friday showed that the economy shed 701,000 jobs in March, halting decade-long record of growth. Coronavirus fears also drove investors towards the safe-haven metal. Spot gold rose about 1 percent to $1,634.99 per ounce, while U.S. gold futures were up 1.1 percent at $1,663.00 per ounce. U.S. employment plunged by 701,000 jobs in March after an increase of an upwardly revised 275,000 jobs in February. Economists had expected employment to slump by 100,000 jobs compared to the addition of 273,000 jobs originally reported for the previous month. The much bigger than expected decrease came as employment in the leisure and hospitality sector plummeted by 459,000 jobs, mainly in food services and drinking places. The jobless rate rose to 4.4 percent from 3.5 percent in February. Meanwhile, the United States on Sunday entered one of the most critical weeks so far in the coronavirus crisis, with government officials warning that the death toll in places such as New York, Michigan and Louisiana was a sign of trouble to come in other states. The material has been provided by InstaForex Company – www.instaforex.com…

USD/JPY. Japan declares state of emergency, yen falls

Anti-risk sentiment in the currency market continues to grow, but the Japanese currency ignores these trends. This time, the yen can not take advantage of the status of a protective asset, as traders are concerned about the fate of the Japanese economy directly due to the latest decisions of the official Tokyo. Therefore, investors have to look for other options in this situation. In fact, they don’t have much of a choice: either the dollar or gold. These two assets are growing today, while the other instruments show a downward trend.

Rumors that Japan will introduce a state of emergency appeared at the end of last week. Reacting to such assumptions, the USD/JPY pair pushed off from the local minimum of 106.93 and headed back up towards the 110th figure. After the publication of the failed non-farms, this growth increased – despite everything, the dollar not only did not lose its position, but also strengthened throughout the market. Traders were clearly discouraged by the published figures, which turned out to be much worse than the rather weak forecasts. No joke – the number of people employed in the non-agricultural sector decreased in March by 700,000. The same dynamics was recorded in the…

Pound Climbs Ahead Of UK Construction PMI Data

At 4.30 am ET Monday, UK Markit/CIPS construction PMI data is due. Economists forecast the index to fall to 44.0 in March from 52.6 in February. Ahead of the data, the pound advanced against its major rivals. The pound was worth 1.2291 against the greenback, 134.14 against the yen, 1.2010 against the franc and 0.8793 against the euro as of 4:25 am ET. The material has been provided by InstaForex Company – www.instaforex.com…

Trading plan for EUR/USD for April 06, 2020

Technical outlook:EUR/USD might have completed its corrective drop that had begun from 1.1150 levels. A bottom might be in place at 1.0775 on Friday and that EUR/USD might begin to rally towards 1.1500 levels. Initial resistance is seen 1.0866 levels and a break higher would confirm that bulls are back in control. Also, a push above the resistance trend line would be quite encouraging for bulls to continue further. On the flip side, if prices drop below 1.0775, the next support should come towards 1.0745 levels, which is also the fibonacci 0.786% retracement of the previous rally. The overall bullish structure remains intact until prices stay above the 1.0636 levels. Trading point of view, it remains good to hold on the long side with risk at 1.0636 respectively. Please be prepared for a marginal low below 1.0775 levels before the rally could resume.Trading plan:Remain long and add further @ 1.0745, stop @ 1.0636, target is 1.1500Good luck!The material has been provided by InstaForex Company – www.instaforex.com…

BTC analysis for 04.06.2020 – Important pivot resistance at the price of $7.245 on the test, watch for potential downside

News :Since the price of bitcoin plunged to historic lows last month, the bitcoin network’s hash rate has also been on a constant decline. Nearly 2.3 million S9 miners were wiped out in China recently as it became hard for miners to make profits. Network’s hash rate indicates how secure and strong the blockchain network is.Bitcoin’s hashrate dropped from 133.29 EH/S, the highest since the start of 2020, to 108.16 on 12th March, when the price of the leading cryptocurrency plunged below $4,000. Since then, the hashrate has been continuously falling as miners face tough times to continue their operations. On 4th April, hashrate was at 96.9888EH/S, an increase in hashrate must be accompanied by an increase in the price of bitcoin for miners to maintain healthy profit margins. Technical analysis: BTC has been trading upwards. The price is at the very critical pivot level at $7.245. This is decision level for BTC and you should watch carefully this level.I do expect potential downside rotation and rejection towards the level at the price of $5.827. Watch for selling opportunities.Only if you see the breakout of the $7.245, watch for possible rise towards the $7.691.MACD oscillator is showing neutral stance and no…

German Factory Orders Fall Less Than Expected

Germany’s factory orders declined less than expected in February, data from Destatis revealed Monday. Factory orders fell 1.4 percent month-on-month in February after rising by revised 4.8 percent in January. Orders were expected to fall 2.5 percent. Domestic orders grew 1.7 percent, while foreign demand fell 3.6 percent in February from the previous month. On a yearly basis, factory orders grew 1.5 percent, in contrast to a 0.8 percent drop in January. Economists had forecast a marginal drop of 0.2 percent. Data showed that manufacturing turnover edged up 0.1 percent in February but slower than the 1.1 percent increase seen in January. The material has been provided by InstaForex Company – www.instaforex.com…