New York Manufacturing Index Climbs To Three-Year High In October

By | October 16, 2017

A report released by the Federal Reserve Bank of New York on Monday said manufacturing firms in New York reported that business activity continued to expand strongly in the month of October.

The New York Fed said its general business conditions index climbed to 30.2 in October from 24.4 in September, with a positive reading indicating growth in regional manufacturing activity.

The increase came as a surprise to economists, who had expected the New York manufacturing index to drop to 20.7.

With the unexpected increase, the New York manufacturing index reached its highest level since a matching reading in September of 2014.

The unexpected increase by the headline index was partly due to a notable acceleration in shipment growth, as the shipments index jumped to 27.5 in October from 16.2 in September.

The number of employees index also rose to 15.6 in October from 10.6 in September, indicating faster job growth in the New York manufacturing sector.

On the other hand, the report said the new orders index dropped to 18.0 in October from 24.9 in September, suggesting a slowdown in the pace of growth in new orders.

The prices paid index also slid to 27.3 in October from 35.8 in September, while the prices received index fell to 7.0 from 13.8.

Looking ahead, indexes assessing the six-month outlook suggested that firms continued to be optimistic about future conditions.

The New York Fed said the index for future business conditions climbed to 44.8 in October from 39.3 in the previous month.

On Thursday, the Philadelphia Federal Reserve is scheduled to release its report on regional manufacturing activity. The Philly Fed Index is expected to dip to 20.2 in October from 23.8 in September.

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

Jonathon Alexander

Global macro introduction for 16/10/2017:

By | October 16, 2017

International macro introduction for 16/10/2017: Potential renewed US nuclear sanctions against Iran, as well as the dispute in Iraq, are currently supporting the rates of Petroleum. Last Friday, the Trump administration refused to certify, that Iran is adhering to the requirements agreed during 2015 meeting. On the other hand, independent inspectors claim that Iran’s nuclear program meets the contract limits. The last sanctions on Iran were considerable as the output of 1mln barrels each day was cut off from the global supply market. This time the consequences of the scenario might be different as the United States is likely to act alone on sanctions to Iran.Under US law

policies, the United States president should license every 90 days that Iran is complying with the offer. Congress will now have 60 days to decide whether to reimpose financial sanctions on Tehran. OPEC must extend the production cuts to prevent a new rise in oversupply and a slide in the cost of oil. As a result, Iran’s economy may suffer a substantial loss as most of the economists approximate that if sanctions are executed, it could put a couple of hundred thousand barrels of Iranian oil exports at danger. As an outcome of this circumstance, the cost of oil cloud easily breaks out above 2017 high at the level of $55.25.

Let’s now take a look at the Petroleum technical image in the H4 timespan. A strong reversal from 50% Fibo at the level of $49.22 has struck the gray supply zone in between the levels of $51.98 – $52.86. There is a visible bearish divergence in between the rate and momentum indicator, so the intraday correction is due. The nearest technical support is seen at the level of $51.45.

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

Jonathon Alexander

India'’s Wholesale Cost Inflation Eases Unexpectedly

By | October 16, 2017

India’s wholesale price inflation alleviated unexpectedly in September, after accelerating in the previous 2 months, information from the Ministry of Commerce & & Market revealed Monday.

Wholesale prices climbed up 2.60 percent year-over-year in September, slower than the 3.24 percent in August. Economic experts had actually anticipated the inflation to increase somewhat to 3.3 percent.

Develop inflation rate in the financial year up until now was 0.97 percent compared to a develop rate of 3.44 percent in the corresponding period of the previous year.

Prices of food short articles grew 2.04 percent yearly in September and those of primary posts increased by 0.15 percent.

Official data launched recently revealed that customer rate inflation held consistent at 3.28 percent in September.

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

Jonathon Alexander

Breaking forecast 10/16/2017

By | October 16, 2017

Breaking forecast 10/16/2017 EURUSD: Prepare to break the boundaries of the range.The scenario on EURUSD is uncertain. Last week, its increase stopped

-buyers faced strong resistance

from sellers in the zone of 1.1870-1.1880.

At the same time, it’s too early to discuss a complete reversal.Formed a variety within the borders of 1.1668-1.1880. It is suggested to wait on an exit from the variety and take positions in the direction of exit: buy at breakthrough of 1.1880 upward-or sell at breakthrough of 1.1668 down.In a more aggressive relocation, you can sell from 1.1820. The primary news event of the week is the Fed’s report on the economy”Beige Book”on Wednesday at 6:00 pm London Time. The product has actually been supplied by InstaForex Business-www.instaforex.com

Jonathon Alexander

Trading strategy 16 – 10/20/2017

By | October 16, 2017

Trading plan 16 -10/20/2017 The basic image: News did not clarify.

Last week there were two centerpieces: The ECB and news on inflation in the US.The ECB unexpectedly combined information about the decrease in the QE program 2 times given that January (from 60 billion euros to the market each month to 30). The information is informal, however the possibility is extremely high. Still, the official decision in a week, October 26.

News on the United States: Inflation rose to + 2.2% per annum but without gasoline and items remained + 1.7%, below the lower FRS threshold of 2%. Retail sales, however, sped up growth to + 1.6% for the month.

The market aimed to press EUR/USD above 1.1880 but got strong resistance from sellers. Unpredictability.

EUR/USD: We are preparing to break the boundaries of the variety.

The scenario on EUR/USD is uncertain. Recently, growth stopped and buyers dealt with strong resistance from sellers in the zone 1.1870 – 1.1880.

At the very same time, it’s prematurely to discuss a full turn.

Formed a variety with the limits of 1.1668 – 1.1880.

We propose to wait for an exit from the variety and take positions in the instructions of exit: Buy at the advancement level of 1.1880 upward or sell at advancement 1.1668 down.The main news event of the week is the Fed’s report on the economy “Beige Book” on Wednesday at 19.00.

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

Jonathon Alexander

Ichimoku indication analysis of USDX for October 16, 2017 888011000 110888 The Dollar index has not managed yet to make a correction approximately the 38% Fibonacci retracement. Rate is below the Kumo (cloud) implying weakness and failure to bounce more difficult. The Dollar index is trading in between the kijun-and the tenkan-sen. Cost is listed below the Kumo (cloud)in the 4-hour chart. Once this restorative bounce is over, Trend is bearish and expect the downward move to resume. The Dollar index assistance is at 92.60 and resistance at 93.35. Black lines-bearish channel On a weekly basis, pattern remains bearish. Support is at 92.60. A weekly close below 92.60 will open the way to 90 or lower. Even an everyday close below 92.60 would be a similarly crucial bearish sign. I believe a medium-term top was made around 94 and we have begun the final leg down.The product has been offered by InstaForex Business-www.instaforex.com

By | October 16, 2017

The Dollar index has not managed yet to make a correction up to the 38% Fibonacci retracement. Price is below the Kumo (cloud) implying weakness and inability to bounce harder.

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The Dollar index is trading between the kijun- and the tenkan-sen. Price is below the Kumo (cloud) in the 4-hour chart. Trend is bearish and expect the downward move to resume once this corrective bounce is over. The Dollar index support is at 92.60 and resistance at 93.35.

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Black lines – bearish channel

On a weekly basis, trend remains bearish. Support is at 92.60. A weekly close below 92.60 will open the way towards 90 or lower. Even a daily close below 92.60 would be an equally important bearish sign. I believe a medium-term top was made around 94 and we have started the final leg down.

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

Jonathon Alexander

UK Home Rates Increase 1.1% In October – Rightmove

By | October 16, 2017

The average asking rate for a house in the United Kingdom was up 1.1 percent on month in October, home tracking site Rightmove said on Monday.

That follows the 1.2 percent regular monthly decrease in September.

On a yearly basis, home prices climbed 1.4 percent – speeding up from 1.1 percent in the previous month.

Eight of the 10 areas saw higher asking rates, while the average time on the market for a home came in at 63 days.

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

Jonathon Alexander

The euro and the pound will continue to decrease

By | October 15, 2017

Eurozone The growth of commercial production in the eurozone increased in August by 1.4 %compared to July, an annual growth rate of 3.8%, and the greatest level growth rate over the past 9 years. Strong information has actually been anticipated by the market. Currently the focus is on the ECB conference on October 26, which

may reveal changes in the monetary policy.The ECB’s management is aiming to extinguish the bullish sentiments of investors. Mario Draghi said on Friday that inflation in the euro area stays too weak, regardless of the acceleration of economic development. As Draghi stated at a meeting in Washington, the inflation rate to the ECB’s target level of simply under 2% “is not yet persuading enough,

“which suggests that”considerable monetary accommodation “is still required. ECB Vice President Vitor Constancio said about the exact same -inflation expectations “never ever emerged”and the method of inflation near the target level “has become rather a challenge.” The ECB’s guidance makes it clear-one must not base upon extreme expectations, and the bank will do whatever possible to avoid the fortifying of the euro. Officially, low inflation offers the right to the bank to hold off the exit of the stimulus program, and the euro, appropriately, loses the chauffeur of growth.On Tuesday, inflation data will be released in September, and they will mainly clarify the future expectations for the euro. So far, while the rise to 1.1870 looks too appealing for selling, the actual goal stays the decrease of EURUSD to 1.16. UK The absence of macroeconomic news forces which can solicit a reaction on the pound makes it entirely responsive the situation around Brexit. Price quotes in the market

are simple-if negotiations achieve success and both sides see a chance to close an offer, then this is a bullish element for the pound and it starts to rise. And, on the contrary, any delays or difficulties develop problems for the pound, which in the duration of uncertainty declines due to increased risks.At the moment, expectations are not in favor of the pound. European Commission President Jean-Claude Juncker stated the process will take longer than originally thought, and Angela Merkel, the spokeswoman for the German Chancellor, stated it was prematurely to go over any conditions for Britain’s withdrawal from the EU.These comments reduced the effects of the statement of the EU’s chief arbitrator for Brexit, Michel Barnier, who a day earlier announced the possibility of giving the UK a two-year transition duration.

Undoubtedly, the EU leadership does not plan to give up, and the pound, hence, was under pressure both against the euro and against the dollar.On Tuesday, an inflation report for September will be released. It is expected that inflation will continue to rise, it is a bullish factor for the pound. On Tuesday, 3 BOE members will resolve

the parliament, the markets will thoroughly inspect whether they have altered their position before the November meeting.Currently, the market estimates the likelihood of a 0.25%rate increase on November 2 at 60 %; this is the primary reason for the conditioning of the pound in recent weeks. Nevertheless, in the long term, the dollar’s drive is likely to be intercepted, the growth of GBPUSD to 1.3330 will be utilized for selling, and the pound has a chance to decline in the coming week to 1.30. Oil On Friday, Oil grew progressively for a variety of reasons. The first of these is the development of China’s oil imports to 9 million barrels each day, which significantly lowered issues

about a possible slowdown in the Chinese economy.The second factor is the growth of geopolitical threats. United States President Trump announced the possibility of “at any time terminate the handle Iran,” which threatens the stability of exports from Iran, which, as part of the”nuclear deal”, increased production to 3.8 million barrels daily. The reassessment of geopolitical threats is capable of giving the oil a serious bullish momentum.The material has actually been provided by InstaForex Company- www.instaforex.com

Jonathon Alexander