Treasuries Move Higher Following Disappointing Consumer Sentiment Data

By | July 13, 2018

After ending the previous session modestly lower, treasuries moved back to the upside over the course of the trading day on Friday.

Bond prices fluctuated early in the session before climbing firmly into positive territory as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.2 basis points to 2.831 percent.

The higher close by treasuries came following the release of a report from the University of Michigan showing an unexpected deterioration in U.S. consumer sentiment in the month of July.

The preliminary report said the consumer sentiment index dipped to 97.1 in July from the final June reading of 98.2. Economists had expected the index to come in unchanged.

Despite the unexpected decrease, Surveys of Consumers chief economist Richard Curtin noted the reading for July remained nearly equal to the 97.7 average in the prior twelve months.

“So far, the strength in jobs and incomes has overcome higher inflation and interest rates,” Curtin said. “The darkening cloud on the horizon, however, is due to rising concerns about the potential negative impact of tariffs on the domestic economy.”

He added, “Negative concerns about the impact of tariffs have recently accelerated, rising from 15% in May, to 21% in June, and 38% in July.”

Meanwhile, traders largely shrugged off the Federal Reserve’s semi-annual monetary policy to Congress, which offered few surprises.

The Fed described economic growth in the first half of the year as solid and reiterated it expects further gradual increases in interest rates.

“The Federal Reserve remains positive on the U.S. economic outlook with barely any mention of the trade or yield curve worries that are preoccupying markets,” said James Knightley, Chief International Economist at ING.

Next week’s trading may be impacted by reaction to some key U.S. economic data, including reports on retail sales, industrial production, and housing stocks.

Fed Chairman Jerome Powell’s two days of testimony on Capitol Hill are also likely to attract attention, as traders look for clues about the outlook for interest rates.

Traders are also likely to keep an eye on President Donald Trump’s highly anticipated meeting with Russian President Vladimir Putin in Helsinki, Finland, on Monday.

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

BRAZIL: Provider Income Falls By 3.8% In May On A Yearly Basis

By | July 13, 2018

Real services income in Brazil, which refers to the evolution of the volume of activity in the sector in real terms, discounting inflation, fell 3.8% in May compared with April – the largest regular monthly decrease in the historical series for the period, stated the country’s stats workplace.

Compared to a year previously, the drop was likewise 3.8%, the sharpest because April 2017. Through May, real services revenue in Brazil builds up falls of 1.3% because January and 1.6% in 12 months.

The negative outcome was highly influenced by the truckers’ strike in May.

The product has actually been offered by InstaForex Business – www.instaforex.com

NZD/USD Intraday technical levels and trading suggestions for July 13, 2018 888011000 110888 The NZD/USD pair had actually been caught between the rate levels of 0.7170 and 0.7350 until the bearish breakdown of 0.7200 occurred on April 23.Breakdown of 0.7220-0.7170(neck line zone)was needed to confirm the illustrated turnaround pattern. Bearish target levels around 0.7050 and 0.7000 have been achieved already.The price level of 0.7050 was thought about a key-level for the NZD/USD bears That’s why bearish determination below 0.7050 enabled even more bearish decrease to happen to the rate levels around 0.6800. As anticipated, the current bullish pullback to the cost level of 0.7050(Damaged Demand-Level)used a great chance for a legitimate SELL entry.The fast bearish decrease occurred towards 0.6800 where a false bearish breakdown happened. This allowed short-term bearish movement to happen to 0.6680. The set stopped working to maintain adequate bearish momentum.On July 7, recent bullish rejection pressed the NZD/USD set above 0.6820 once again. This was followed by another bearish breakout below 0.6750 which happened earlier on Wednesday.Trade Recommendations: Currently, the price zone 0.6750-0.6800 constitutes a need zone to be protected by the NZD/USD bulls. Possible bullish targets would lie around 0.6900-0.6980.Please beware if the present bearish decline extends listed below 0.6680 as this invalidates the previous bullish scenario.The product has actually been provided by InstaForex Business -www.instaforex.com

By | July 13, 2018

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The NZD/USD pair had been trapped between the price levels of 0.7170 and 0.7350 until the bearish breakdown of 0.7200 occurred on April 23.

Breakdown of 0.7220-0.7170 (neckline zone) was needed to confirm the depicted reversal pattern. Bearish target levels around 0.7050 and 0.7000 have been achieved already.

The price level of 0.7050 was considered a key-level for the NZD/USD bears That’s why bearish persistence below 0.7050 allowed further bearish decline to occur towards the price levels around 0.6800.

As anticipated, the recent bullish pullback towards the price level of 0.7050 (Broken Demand-Level) offered a good opportunity for a valid SELL entry.

The quick bearish decline took place towards 0.6800 where a false bearish breakdown occurred. This allowed temporary bearish movement to occur towards 0.6680. However, the pair failed to maintain enough bearish momentum.

On July 7, recent bullish rejection pushed the NZD/USD pair above 0.6820 again. This was followed by another bearish breakout below 0.6750 which took place earlier on Wednesday.

Trade Recommendations:

Currently, the price zone 0.6750-0.6800 constitutes a demand zone to be defended by the NZD/USD bulls. Potential bullish targets would be located around 0.6900-0.6980.

Please be cautious if the current bearish decline extends below 0.6680 as this invalidates the previous bullish scenario.

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

Intraday technical levels and trading recommendations for EUR/USD for July 13, 2018 888011000 110888 Daily Outlook In April 2018, the EUR/USD pair outlook turned to end up being bearish when the set pursued trading below the damaged uptrend as well as the lower limitation of the depicted combination range.Shortly after, the rate zone (1.1850-1.1750)used short-term bullish rejection to 1.1990. The EUR/USD bulls cannot pursue towards greater bullish targets. Instead, a descending high was developed around 1.1990. This was followed by a bearish breakdown below the rate zone of 1.1850-1.1750. This rate zone has been standing as a considerable Supply zone because June 2018. On the other hand, the rate zone of 1.1520-1.1420 was thought about a prominent demand zone where a legitimate bullish BUY entry was used throughout previous weeks’consolidations.Hence, the EUR/USD set remains trapped inside a debt consolidation range in between the illustrated key-levels 1.1520 and 1.1800 up until a breakout occurs in either direction.Recent indications of bearish rejection around 1.1800 were currently manifested on the chart. That’s why, even more bearish movement towards was expected to 1.1650 at first. Next bearish target would lie around 1.1520. Please keep in mind that any bullish breakout above 1.1750 will probably improve further bullish development initially to 1.1850( low possibility). The material has been offered by InstaForex Company – www.instaforex.com

By | July 13, 2018

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Daily Outlook

In April 2018, the EUR/USD pair outlook turned to become bearish when the pair pursued trading below the broken uptrend as well as the lower limit of the depicted consolidation range.

Shortly after, the price zone (1.1850-1.1750) offered temporary bullish rejection towards 1.1990. The EUR/USD bulls failed to pursue towards higher bullish targets. Instead, a descending high was established around 1.1990.

This was followed by a bearish breakdown below the price zone of 1.1850-1.1750. This price zone has been standing as a significant Supply zone since June 2018.

On the other hand, the price zone of 1.1520-1.1420 was considered a prominent demand zone where a valid bullish BUY entry was offered during previous weeks’ consolidations.

Hence, the EUR/USD pair remains trapped inside a consolidation range between the depicted key-levels 1.1520 and 1.1800 until a breakout occurs in either direction.

Recent signs of bearish rejection around 1.1800 were already manifested on the chart. That’s why, further bearish movement towards was anticipated towards 1.1650 initially. Next bearish target would be located around 1.1520.

Please note that any bullish breakout above 1.1750 will probably enhance further bullish advancement initially towards 1.1850 (low probability).

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