Tag Archives: trade

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. Industrial Production Dips Amid Slump In Heating Demand

With utilities output plummeting amid a slump in demand for heating, the Federal Reserve released a report on Friday showing a modest pullback in U.S. industrial production in the month of December. The Fed said industrial production fell by 0.3 percent in December after climbing by a downwardly revised 0.8 percent in November. Economists had expected industrial production to dip by 0.2 percent compared to the 1.1 percent jump originally reported for the previous month. The pullback in production came as utilities output plunged by 5.6 percent in December after surging up by 1.0 percent in November, with unseasonably warm weather leading to a large decrease in demand for heating. Meanwhile, the report said manufacturing output crept up by 0.2 percent in December after spiking by 1.0 percent in November, while mining output jumped by 1.3 percent following a 0.2 percent decrease. The Fed also said capacity utilization for the industrial sector slid to 77.0 percent in December after climbing to an upwardly revised 77.4 percent in November. Economists had expected capacity utilization to slip to 77.1 percent from the 77.3 percent originally reported for the previous month. Capacity utilization in the utilities sector led the way lower, tumbling…

U.S. Housing Starts Skyrocket To 13-Year High In December

After reporting significant increases in new residential construction in the two previous months, the Commerce Department released a report on Friday showing U.S. housing starts saw an even more substantial spike 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. Single-family housing starts jumped by 11.2 percent to a rate of 1.055 million, while multi-family starts spiked by 29.8 percent to a rate of 553,000. Meanwhile, the report said building permits tumbled by 3.9 percent to an annual rate of 1.416 million in December after climbing by 0.9 percent to a revised rate of 1.474 million in November. Building permits, an indicator of future housing demand, had been expected to slide…

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,…

UK Retail Sales Fall Unexpectedly During Festive Season

UK retail sales declined unexpectedly even in festive season in December signaling that weak consumer spending weighed on economic growth in the last quarter of 2019. Retail sales volume, including auto fuel, dropped 0.6 percent month-on-month, following a 0.8 percent decrease in November, data from the Office for National Statistics showed Friday. This was the fifth consecutive month of no growth. Economists had forecast a monthly growth of 0.6 percent. Excluding auto fuel, retail sales fell 0.8 percent, the same pace of decline as logged in November and in contrast to the expected growth of 0.8 percent. Food store sales fell 1.3 percent, which was the largest drop since December 2016. At the same time, non-food store sales slid 0.9 percent in December. Meanwhile, automotive fuel sales advanced 1.6 percent. Annual growth in retail sales volume, including auto fuel, improved marginally to 0.9 percent from 0.8 percent a month ago. However, this was much slower than the expected growth of 2.7 percent. Similarly, excluding auto fuel, retail sales volume increased 0.7 percent after rising 0.6 percent in November. Economists had forecast an annual growth of 3 percent. In the fourth quarter, retail sales declined 1 percent….

BTC analysis for 01.17.2020 – Bearish divergence on the 4H time-frarrme, selling opporutnities are preferable

Industry news:It seems that crypto-custody has been kept a secret from institutional investors.Few things have improved in 2019 as much as the custody of cryptocurrency, and the regulators’ attitude towards it. While a Bitcoin Exchange Traded Fund still waits on the doorsteps of the SEC, institutional companies entering the cryptocurrency custody market has grown.Coinbase snapped up custody provider Xapo, Fidelity entered the crypto-storage space, and the Intercontinental Exchange’s digital assets platform Bakkt launched offering both trading and custody. Yet, investors have been kept in the dark.According to a survey by Bitcoin ETF hopeful Bitwise Asset Management, institutional investors have a crypto-custody problem. The problem, however, is a lack of information, not a lack of solutions.Technical analysis:BTC has been trading upside but it found solid supply near the $9.000 level. I found the bearish divergence on the MACD oscillator, which is sign that buyers got exhausted.Watch for selling opportunities on the rallies with the downward targets at the price of $8.590 and $8.445.Major resistance is set at the price of $9.000.Support levels and downward target are set at the price of $8.592 and $8.445.The material has been provided by InstaForex Company – www.instaforex.com…

GBP/USD 01.17.2020 – Broken bearish flag on the daily time-frrame, watch for selling on rallies with main target at 1.2960

GBP has been trading downwards. The price tested and rejected of the level of 1.3120. I see further downside on the GBP and potential re-test of 1.2960 and 1.2910. The rejection of the Bollinger middle line is the early trigger for the downside. I also found potential for bearish outside candle. My advice is to watch for selling opportunities on the rallies using the hourly/4H time-frame.MACD oscillator is showing bearish stance and reading below the zeroMajor resistance is set at the price of 1.3120.Support levels and downward targets are set at the price of 1.2960 and 1.2910.The material has been provided by InstaForex Company – www.instaforex.com…

Pound Strengthens Ahead Of U.K. Retail Sales Data

At 4.30 am ET Friday, the Office for National Statistics releases UK retail sales data. Sales are forecast to grow 0.6 percent on month in December, reversing a 0.6 percent fall in November. Ahead of the data, the pound climbed against its major rivals. The pound was worth 1.3099 against the greenback, 144.32 against the yen, 1.2643 against the franc and 0.8498 against the euro as of 4:25 am ET. 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…