Tag Archives: trade copper

Dollar Gains Against Rivals On Strong Economic Data

The U.S. dollar exhibited strength against most major currencies on Friday, riding on fairly encouraging economic data from China and the U.S. Chinese economy expanded in line with expectations in the fourth quarter. Data released today showed GDP was up 6% year-on-year in the fourth quarter, the same rate as seen in the third quarter. It was in line with expectations as well. The data also showed that industrial production in China rose 6.9% in December, compared to the year-ago quarter. Retails sales surged up 8% in the month, over the same month in the previous year. According to the data released by the Commerce Department Friday morning, U.S. housing starts skyrocketed by 16.9% to an annual rate of 1.608 million in December after jumping by 2.6% to a revised rate of 1.375 million in November. Economists had expected housing starts to rise by 0.7% to a rate of 1.375 million. Building permits tumbled by 3.9% in December, after climbing 0.9% in November. A report from the University of Michigan 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…

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…

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…

Oil Prices Inch Up On Growth Optimism

Oil prices inched higher on Friday amid optimism that a more conciliatory approach on trade between the United States and China will help revive growth. A raft of Chinese economic data either met or beat analyst estimates, fueling hopes of an uptick in demand. Benchmark Brent crude edged up 0.3 percent to $64.81 per barrel, while U.S. crude futures were up 0.2 percent at $58.62. The formal signing of the Sino-U.S. trade agreement on Wednesday helped remove a degree of near-term uncertainty as U.S. President Donald Trump heads into a re-election campaign. Under the Phase 1 deal, China will purchase $50 billion worth of U.S. energy products over the next two years. In another development, the U.S. Senate on Thursday approved a revamp of the 26-year-old North American Free Trade Agreement that includes tougher rules on labor and automotive content. On the data front, China’s GDP data came in line with expectations and there was growth in industrial output and retail sales, suggesting the world’s second-biggest economy ended the year on a firmer note. In the whole year of 2019, China’s gross domestic product grew 6.1 percent, which was well within the target of 6-6.5 percent. The material…

EUR/USD. January 17. Overbought euro still caused a fall

EUR/USD – 4H.

As seen on the 4-hour chart, the EUR/USD pair performed a reversal in favor of the US currency and resumed the process of falling in the direction of the low level of 1.1086. A new downward trend corridor has been formed, which now points to the “bearish” mood of most traders. The reversal of quotes in favor of the US dollar occurred with some delay, I was waiting for it 1-2 days earlier. However, in this case, it turned out not so bad, and now I expect a fall to the lower line of the corridor – 1.1040 (approximate goal). A bearish divergence was also formed for the MACD indicator, which also worked in favor of the US currency. The report on inflation in the European Union was not weaker than forecasts, but not stronger than them. Inflation was 1.3% y/y in December, which remains far from the ECB’s target level, which is now 2.0% but can be lowered in the future. Now the main thing is that the information background from America does not scare off bear traders from the plan. In the US, the consumer confidence index and the level of industrial production will be released today.
Forecast…

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…

*Nigeria Dec CPI +0.85% On Month Vs. 1.02% In November

Nigeria Dec CPI +0.85% On Month Vs. 1.02% In November The material has been provided by InstaForex Company – www.instaforex.com…

Trading recommendations for GBP/USD – prospects for further movement

From the point of view of a comprehensive analysis, we see a continuing upward interest from the area of the psychological level of 1.3000, where the quotes had previously found a foothold. In fact, we continue to observe the development of the theory of the Zigzag-shaped model [03.12.19-14.01.20], where the subsequent measure almost reached the control value. The most remarkable situation is that for several weeks there has been a gradual compression of the quote amplitude, which is just expressed in the Zigzag-shaped model. That is, the first correction phase of the Zigzag-shaped model had a value of 609 points, the second phase was already 329 points. The third phase has not yet arrived, since the pulse cycle has not yet been completed, but the deceleration is already evident. Hence, many traders agree that the market is preparing a platform to greatly accelerate quotes, which may come in the near future.
In terms of volatility, we have a kind of confirmation of the previously spoken words, that is, there is a slowdown in average daily indicators [95; 79; 57.57 points] from the beginning of the week. From the point of view of the emotional component, we see a similar picture,…

Is Euro playing cat and mouse with the dollar?

At the end of the week, the European currency cheered up, after a worthy competition with the dollar. Its classic rival for the EUR / USD pair is also on the alert, strengthening against the backdrop of the relatively successful signing of the first phase deal. Experts expect to achieve a balance in tandem, and these hopes can be justified.
According to experts, the euro tried to capitalize on the signing of an agreement between Washington and Beijing, but these actions are more reminiscent of stealth maneuvers, like a cat and mouse game. However, analysts warn that it is better not to play such games with the dollar.
Recall that on Wednesday, January 15, the leaders of the two leading powers signed a document on the first phase of the trade deal. The negotiation process associated with it lasted more than six months. According to experts, this event did not provide significant support to the greenback. The pound, on the other hand, took advantage of this and tried to break out into the leaders in the EUR/USD pair and thus teasing his rival.
According to the agreement, within two years, the Celestial Empire pledged to import a number of…