Monthly Archives: June 2017

Treasuries Extend Downward Trend Following Upbeat Economic Data

By | June 30, 2017

Treasuries moved lower during the trading session on Friday, extending the downward trend seen over the previous few days.

Bond costs saw modest weakness in morning trading before seeing further drawback in the afternoon. As a result, the yield on the benchmark ten-year note, which moves opposite of its rate, climbed 3.5 basis points to 2.302 percent.

The ten-year yield closed higher for the fourth straight session, reaching its greatest closing level in well over a month.

The ongoing weak point amongst treasuries was partly due to the release of a batch of mainly positive U.S. financial data.

A report from the Commerce Department showed that individual earnings rose by somewhat more than prepared for in the month of May, while personal spending inched up in line with price quotes.

The Commerce Department stated individual earnings climbed up by 0.4 percent in May after rising by a downwardly modified 0.3 percent in April. Economists had expected income to rise by 0.3 percent.

Meanwhile, the report stated personal spending inched up by 0.1 percent in May after climbing up by 0.4 percent in April. The uptick in costs matched economist price quotes.

A reading on inflation stated to be chosen by the Federal Reserve revealed that core consumer prices were up 1.4 percent year-over-year in Might compared with the 1.5 percent boost seen in April.

“Although the real economy is succeeding, Fed authorities are concerned that isn’t really equating into stronger inflationary pressures,” stated Paul Ashworth, Chief U.S. Economist at Capital Economics.

He included, “Nevertheless, with the unemployment rate plummeting even further below its long-run sustainable level, we anticipate the Fed to press ahead with extra interest rate walkings.”

A separate report from MNI Indicators revealed an unexpected velocity in the rate of development in Chicago-area service activity in the month of June.

MNI Indicators said its Chicago business barometer jumped to 65.7 in June from 59.4 in May, with a reading above 50 indicating development in activity. The barometer reached its greatest level in over 3 years.

The noteworthy boost came as a surprise to economic experts, who had anticipated the business barometer to edge down to 58.0.

The University of Michigan also released a report showing that consumer sentiment reduced by less than initially estimated in June.

The report stated the consumer sentiment index for June was upwardly revised to 95.1 from the preliminary reading of 94.5. Economists had anticipated the index to be unrevised.

Despite the upward revision, the consumer sentiment index for June was still down from the last Might reading of 97.1.

Trading activity may be rather controlled next week due to the July Fourth holiday, although traders are most likely to keep an eye on the monthly jobs report due next Friday.

Reports on production and service sector activity may also draw in attention along with the minutes of the current Federal Reserve conference.

The material has been provided by InstaForex Company – www.instaforex.com

Petroleum Rises Above $46 To Pare 1H Losses

By | June 30, 2017

Crude oil futures rallied Friday, extending strong recent gains as the U.S. oil rig count dropped for the first time in 5 months.

Baker Hughes Friday reported that the number of active U.S. rigs drilling for oil declined by 2 to 756 rigs this week. The rig count had risen 23 weeks in a row.

Meanwhile, Baker Hughes investors authorized the business’s merger with GE Oil & & Gas.

August WTI oil leapt $1.11, or 2.5%, to settle at $46.04/ bbl, the highest in a couple of weeks.

Still, WTI oil rates ended the first half of the year down more than 14%, dropping to the lowest in 10 months a week earlier.

The material has been supplied by InstaForex Company – www.instaforex.com

Dollar Rising On Positive Economic Data

By | June 30, 2017

The dollar is gaining ground against all of its major rivals Friday afternoon. After being under pressure for much of the trading week, the buck is receiving a boost from the release of some positive economic data this morning.

Personal income in the U.S. rose by slightly more than anticipated in the month of May, according to a report released by the Commerce Department on Friday, while personal spending inched up in line with estimates.

The Commerce Department said personal income climbed by 0.4 percent in May after rising by a downwardly revised 0.3 percent in April. Economists had expected income to rise by 0.3 percent compared to the 0.4 percent increase originally reported for the previous month.

Meanwhile, the report said personal spending inched up by 0.1 percent in May after climbing by 0.4 percent in April. The uptick in spending matched economist estimates.

A report released by MNI Indicators on Friday showed that growth in Chicago-area business activity unexpectedly saw a significant acceleration in the month of June.

MNI Indicators said its Chicago business barometer jumped to 65.7 in June from 59.4 in May, with a reading above 50 indicating growth in activity. The barometer climbed to its highest level in over three years.

The notable increase came as a surprise to economists, who had expected the business barometer to edge down to 58.0.

Consumer sentiment in the U.S. decreased by less than initially estimated in the month of June, the University of Michigan revealed in a report on Friday. The report said the consumer sentiment index for June was upwardly revised to 95.1 from the preliminary reading of 94.5. Economists had expected the index to be unrevised.

The dollar has risen to around $1.1410 against the Euro Friday afternoon, from an early low of $1.1443.

Eurozone inflation eased to a 6-month low on energy prices in June, while core inflation increased after slowing in May, extending some support to the recent hawkish stance of the European Central Bank.

Consumer prices climbed 1.3 percent year-on-year in June, slightly slower than the 1.4 percent increase seen in May, flash data from Eurostat showed Friday.

This was the weakest rate seen so far this year. Inflation was forecast to slow to 1.2 percent. Final data is due on July 17.

Germany’s retail sales recovered at a faster than expected pace in May, figures from Destatis revealed Friday.

Retail sales grew by real 4.8 percent in May from a year ago, reversing a 0.4 percent drop in April. This was the fastest growth since April 2016, when they climbed 5.4 percent and exceeded the expected growth of 2.8 percent.

Germany’s jobless rate remained unchanged in May, figures from Destatis showed Friday. The jobless rate came in at adjusted 3.9 percent, the same rate as seen in April. In the same period of 2016, the rate was 4.2 percent.

Germany’s unemployment rate remained unchanged at a record low in June, the Federal Labor Agency reportedly said Friday. The jobless rate held steady at 5.7 percent in June, in line with expectations. The figure was the lowest since the reunification in 1990.

France’s consumer spending increased for the second straight month in May, figures from the statistical office INSEE showed Friday. Consumer spending climbed 1.0 percent month-over-month in May, faster than the 0.4 percent rise in April.

France’s inflation slowed slightly, as expected, in June on easing energy price growth, preliminary data from the statistical office Insee showed Friday. Consumer price inflation came in at 0.7 percent in June, down from 0.8 percent in May.

The buck climbed to a high of $1.2938 against the pound sterling Friday, but has since retreated to around $1.1.30.

The UK economy expanded as estimated in the first quarter, third estimate from the Office for National Statistics showed Friday.

Gross domestic product climbed 0.2 percent sequentially in the first quarter, unrevised from the previous estimate published on May 25. However, growth eased notably from 0.7 percent in the fourth quarter.

Year-on-year, GDP grew 2 percent, in line with the previous estimate.

Consumer confidence in the United Kingdom tumbled in June, the latest survey from GfK showed on Friday with an index score of -10. That missed expectations for -7 and was down from -5 in the previous month.

The greenback has advanced to around Y112.425 against the Japanese Yen Friday afternoon, from an early low of Y111.717.

The average of household spending in Japan was down 0.1 percent on year in May, the Ministry of Internal Affairs and Communications said on Friday, coming in at 283,056 yen. That beat forecasts for a decline of 0.7 percent following the 1.4 percent drop in April.

The jobless rate in Japan came in at a seasonally adjusted 3.1 percent in May, the Ministry of Internal Affairs and Communications said on Friday. That exceeded expectations for 2.8 percent, which would have been unchanged from the April reading.

Overall consumer Prices in Japan were up 0.4 percent in May, the Ministry of Internal Affairs and Communications said on Friday. That was unchanged from the previous month, although it was shy of expectations for 0.5 percent.

Industrial production in Japan was down a seasonally adjusted 3.3 percent on month in May, the Ministry of Economy, Trade and Industry said on Friday. That missed forecasts for a fall of 3.0 percent following the 4.0 percent gain in April.

Japan’s housing starts dropped for the first time in three months in May but the pace of decline was slower than expected, data from the Ministry of Land, Infrastructure, Transport and Tourism showed Friday.

Housing starts dropped 0.3 percent on a yearly basis in May, reversing a 1.9 percent rise in April. This was the first fall in three months. Economists had forecast a 0.7 percent decline.

The material has been provided by InstaForex Company – www.instaforex.com

Gold Down 2.6% For June

By | June 30, 2017

Gold futures were lower Friday, extending monthly losses amid expectations the Federal Reserve will soon raise interest rates.

August gold fell $3.50, or 0.3%, to settle at $1,242.30 an ounce for the session. It was down around 2.6% for the month, but has risen 8% since the start of the year.

Consumer sentiment in the U.S. decreased by less than initially estimated in the month of June, the University of Michigan revealed in a report on Friday.

The report said the consumer sentiment index for June was upwardly revised to 95.1 from the preliminary reading of 94.5. Economists had expected the index to be unrevised.

The material has been provided by InstaForex Company – www.instaforex.com

GBP/USD approaching major resistance, prepare to sell

By | June 30, 2017

Rate is approaching significant resistance at 1.3044 (Fibonacci extension, horizontal swing high resistance)and we expect a major response off this level for a drop to a minimum of 1.2935 (Fibonacci retracement, Elliott wave theory) which has to be broken to confirm a major drop.Stochastic (34,5,3)is evaluating 96%resistance and cost is certainly in strongly overbought territory.Sell below 1.3044. Stop loss at 1.3081. Take revenue at 1.2935. The product has been provided by InstaForex Business – www.instaforex.com

USD/CAD approaching major assistance, prepare to buy

By | June 30, 2017

Cost is dropping highly to major support at 1.2966 (numerous Fibonacci extensions, horizontal swing low assistance, Elliott wave theory) and we expect a bounce above this level to at least 1.3164 resistance (Fibonacci retracement, horizontal pullback resistance).

Stochastic (34,5,3) is seeing major assistance above 1% where we anticipate a bounce from.Buy above

1.2966. Stop loss at 1.2893. Take revenue at 1.3164.

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The material has been supplied by InstaForex Business – www.instaforex.com

USD/JPY revenue target reached completely, stay bullish for another bounce

By | June 30, 2017

Price has actually increased completely to our profit target before retracing back down. It is now on an excellent entry level and great assistance and we aim to buy above 111.94( Fibonacci retracement, horizontal overlap support )for a push up to 113.06 resistance(Fibonacci retracement, Fibonacci extension, horizontal pullback resistance).

RSI (34) stays above its assistance at 52% and we stay bullish on price as long as it holds above this level.Buy above 111.94. Stop loss at 111.40. Take revenue at 113.06.

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The material has actually been supplied by InstaForex Business – www.instaforex.com

AUD/USD now checking major resistance, prepare to cost a drop from here

By | June 30, 2017

Rate is approaching significant resistance at 0.7697(numerous Fibonacci extensions)and we expect a strong response

off this level for a drop to a minimum of 0.7634 support(Fibonacci retracement, horizontal pullback support). Stochastic(34,5,3) is seeing strong resistance listed below 93%where we anticipate a strong drop from.Correlation analysis: AUD/USD and NZD/USD are

both expecting drops today.Sell below 0.7697. Stop loss at 0.7725. Take earnings at 0.7634. The material has actually been provided by InstaForex Business – www.instaforex.com