Good morning from Hamburg and welcome to our latest Daily FX Report. National Guard troops and police aimed to head off a third night of violence on Wednesday in Ferguson, Missouri, as more than 400 people have been arrested in the St. Louis suburb and around the United States in unrest after a white policeman was cleared in the killing of an unarmed black teenager. There have been protests in Boston, New York, Los Angeles, Dallas, Atlanta and other cities decrying Monday's grand jury decision not to indict officer Darren Wilson in the Aug. 9 shooting death of 18-year-old Michael Brown in a case that has touched off a debate about race relations in the United States.
Anyway, we wish you a successful trading day!
Market Review – Fundamental Perspective
The dollar held losses against the yen and the euro as investors digestes U.S. economic data, while the Standard & Poor´s 500 Index climbed to a fresh record ahead of the Thanksgiving holiday. It was steady at 117.70 yen in the morning, following a second day of declines in the Bloomberg Dollar Spot Index. Jobless claims rose to an almost three-month high, demand for capital goods unexpectedly fell and new homes sold at a slower pace than forecast, according to data in the U.S., where equity volumes were about 21 percent below the 30-day average. Oil ministers from the 12 Organization of Petroleum Exporting Countries meet today in Vienna. Saudi Arabia said sliding prices will stabilize on their own after Venezuela, Saudi Arabia, Mexico and Russia failed this week to agree to an a supply cut. The group, which pumps about 40 percent of the world´s oil, will discuss its official production target of 30 million barrels a day at the meeting today. Crude has collapsed into a bear market amid the hghest U.S. oil output in three decades and signs of slowing demand globally. WTI crude for January delivery fell to $73.69 a barrel in New York last session, its lowest settlement since Sept. 21, 2010. Prices have tumbled 25 percent this year.
U.S. equity and bond markets are closed today for the Thanksgiving holiday, and trading is shortened Nov. 28. The Dow gained 0.1 percent to 17,827.75 yesterday after falling less than 0.1 percent the day before. The Nasdaq 100 Index of technology shares climbed 0.7 percent to its highest level since March 2000. The euro was little changed at $1.250 after climbing 0.3 percent yesterday in a third straight day of gains.
Daily Technical Analysis
EUR/GBP (Daily)
Since the middle of March this currency pair is experiencing a storng control of the bears as it is falling below an downward Fibonacci fan. It could break through the first resistance line (38.2) twice but couldn’t strengthen its position and dropped back below it. Recently it touched the third resistance level. It tried several times to break through the resistance level 0.8038, but dropped back. Looking at the Stochastic one can see that it moves above the 20-line toward the Center line, signaling that wins are possible.
Support & Resistance (Daily)
This document is issued and approved by Varengold WPH Bank AG. The document is only intended for market counterparties and intermediate customers who are expected to make their own investment decisions without undue reliance on the information set out within the document. It may not be reproduced or further distributed, in whole or in part, for any purpose. Due to international laws/regulations not all financial instruments/services may be available to all clients. You should have informed yourself about and observe any such restrictions when considering a potential investment decision. This electronic communication and its contents are intended for the recipient only and may contain confidential, non public and/or privileged information. If you have received this electronic communication in error, please advise the sender immediately, and delete it from your system (if permitted by law). Varengold does not warrant the accuracy, completeness or correctness of any information herein or the appropriateness of any transaction. Nothing herein shall be construed as a recommendation or solicitation to purchase or sell any financial product. This communication is for informational purposes only. Any market or other views expressed herein are those of the sender only as of the date indicated and not of Varengold. Varengold reserves the right to consider any order sent electronically as not received unless it is confirmed verbally or through other means.
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.