Tag Archives: trade

German Construction Activity Falls Most In 7 Years On Covid-19 Outbreak

Germany’s construction activity decreased at the sharpest rate in seven years in March with declines in all sub-groups as firms cut jobs amid weaker demand due to the coronavirus outbreak, survey data from IHS Markit showed on Monday. The Construction Purchasing Managers’ Index, or PMI, fell to 42 from a 25-month high of 55.8 in February. A reading below 50 suggests contraction in activity. The construction sector shrunk for the first time in seven months. Housing activity logged its worst decline since March 2013, while commercial activity fell the most in over eight years. The deepest downturn in activity was witnessed in civil engineering that recorded its sharpest decline since early-2010. New work declined at the steepest rate since February 2010. Construction employment fell most since December 2010, thus ending a survey-record sequence of continuous job creation stretching back to mid-2015. Business expectations decreased the most in the survey’s 20-plus-year history, to hit its lowest since late-2008, following the collapse of Lehman Brothers. Input price inflation remained solid, albeit slowing to a three-month low. “The near 14-point fall in the headline Construction PMI in March is somewhat comparable to those seen previously during times of inaccessible conditions on site during…

EUR/USD and GBP/USD. Results of April 6. Coronavirus begins to recede in Europe. Euro and pound

4-hour timeframe
Average volatility over the past five days: 126p (high).
The first trading day of the week for the EUR/USD pair was held in absolutely calm, Monday trading. Like at a time when there was no epidemic of coronavirus yet, and panic did not engulf the currency, commodity and stock markets. The euro/dollar pair has passed only 68 points during the day. And this is absolutely the lowest figure for the past month and a half. Thus, we can confidently say that market participants continue to calm down after an almost one and a half month period of chaos and panic. This conclusion suggests that in the near future the markets will begin to recover. And so far, it is precisely and only about restoring markets, not the economies of the United States or the European Union. Markets are tricky, but even during a pandemic and crisis, they cannot contract and fall constantly. We need, so to speak, upward corrections. Whoever says anything, the number one energy price in the world — oil — cannot be $20-25 per barrel. Theoretically, this is possible. For a short period of time, but not constantly, and not in for the long…

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…

Ireland Industrial Production Declines In February

Ireland’s manufacturing output fell in February after rising in the previous month, figures from the Central Statistics Office showed on Monday. Manufacturing output fell 1.1 percent month-on-month in February, after a 5.9 percent increase in January. Industrial production decreased 1.3 percent monthly in February, after a 5.9 percent increase in the previous month. On an annual basis, manufacturing output declined 1.3 percent in February, after a 0.5 percent increase in the previous month. Industrial production fell 1.1 percent year-on-year in February, reversing a 1.2 percent rise in the previous month. Data also showed that the industrial turnover declined 10.0 percent monthly in February and 6.0 percent from a year ago. 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…

Evening review for EUR/USD for April 6th. Market optimism caused by expectations of epidemic decline

As we can see on the chart, S&P500 is moving up.
There is a rise amid expectations of the coronavirus decline in the US.
In Europe, the situation is improving. In Italy and Spain, a number of deaths ( around 500 and 700) dropped from the highest level of 1 thousand people a day. A number of infected people is advancing by 6%-7% every day.
In the US, the total number of infected people is 337 thousand. In New York, a number of confirmed coronavirus cases is 123 thousand. Of course, it is too much for such a city. Nevertheless, a number of new cases is below 10% a day (+7%).
Reports on coronavirus from the US are really fresh. The data is expected to be confirmed during the next two days.
This week can become a pivot point for the US.
In Russia, the epidemiological situation is getting worse and worse. A number of new cases grew by 15% a day to 6,346 people. More than 70% of all cases were recorded in Moscow.
Buy positions can be opened at 1.1040.
Sell positions can be opened at 1.0635.
The material has been provided by InstaForex Company…

April 6, 2020 : GBP/USD Intraday technical analysis and trade recommendations.

Recently, the GBPUSD has reached new LOW price levels around 1.1450, slightly below the historical low (1.1650) achieved in September 2016.That’s when the GBP/USD pair looked very OVERSOLD around the price levels of 1.1450 where a double-bottom reversal pattern was recently demonstrated.Technical outlook will probably remain bullish if bullish persistence is maintained above 1.1890-1.1900 (Double-Bottom Neckline) on the H4 Charts.Bullish breakout above 1.1900 (Latest Descending High) invalidated the bearish scenario temporarily & enabled a quick bullish movement to occur towards 1.2260.Next bullish targets around 1.2520 and 1.2680 were expected to be addressed if sufficient bullish momentum was maintained.However, early bearish pressure signs have originated around 1.2470 leading to another bearish decline towards 1.2265.That’s why, H4 Candlestick re-closure below 1.2265 is needed to hinder further bullish advancement and enhance the bearish momentum on the short term.If so, Initial Bearish target would be located around 1.1900 provided that quick H4 bearish closure below 1.2265 is achieved.On the other hand, bullish persistence above 1.2265 would probably enhance another bullish pullback movement up to the price level of 1.2470.Trade recommendations :Conservative traders should be waiting either for another bullish pullback towards 1.2350 or another H4 bearish closure below 1.2265 as a valid SELL signal. T/P…

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 recommendations for GBPUSD pair on April 6

From a comprehensive analysis, we see the first significant change and I suggest that we analyze the details. The entire past week has been squeezed in the range of 1.2280//1.2380//1.2480, where the activity dropped over time and the oscillation amplitude contracted. A cardinal change occurred only on Friday, where the compression reached its limits and was replaced by an impulse that overcame the lower limit of its aisle and there were impulses that led the quote to the area of 1.2200. In fact, this is the first significant change since the beginning of the week, and now the main question is, how stable is it? If we turn our attention to other trading instruments, for example, the euro/dollar, we will see that the dollar with all its problems with the labor market continues to strengthen, which means that investors trust it and pour their assets into it. Returning to the pound, we note that the dynamics differ from the correlating pair (EURUSD), but the strengthening of the dollar here was more significant a period earlier. Traders assume that now there is another accumulation of trading forces, where a return to historical lows is a possible scenario for the future.

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…