Varengold Bank Research Team
Varengold Wertpapierhandelsbank AG
Good morning from Hamburg and welcome to our latest Daily FX Report. The Germanwings co- pilot suspected of deliberately crashing a plane in the French Alps in March, killing all 150 people on board, practiced a descent on the previous flight, German newspaper Bild said on Tuesday.
Prosecutors believe 27-year-old German co-pilot Andreas Lubitz locked the captain out of the cockpit and veered the plane into an early descent on a flight from Barcelona to Duesseldorf on March 24. Bild, citing sources close to France's BEA crash investigation agency, said an interim report that BEA was planning to publish on Wednesday would say that Lubitz had practiced reducing flight altitude on the outbound flight from Duesseldorf to Barcelona the same day as the crash.
Anyway, we wish you a successful trading day!
Market Review – Fundamental Perspective
Oil prices hit their highest for the year on Tuesday, aided by a disruption in Libyan crude exports, higher selling prices for Saudi oil and a weaker dollar that tends to inflate commodity prices. Since April's price rally of between 20 and 25 percent, oil bulls have been pushing the market up on the notion that a supply glut was easing from tightening world production despite continuous builds in U.S. crude stockpiles. U.S. crude settled up $1.47 at $60.40 a barrel, after hitting a 2015 high of $61.10. Crude prices have risen 50 percent in just over three months, after the June-to-January selloff hammered the market down to around $40 a barrel from last summer's highs above $100. OPEC meets next month to discuss production policy. Analysts see little chance it will restrain output as members battle for market share. U.S. stocks finished sharply lower on Tuesday after a surprisingly wide March U.S. trade deficit raised concerns that the economy shrank in the first quarter. The $51.4 billion March deficit was the highest in nearly 6- 1/2 years and larger than the $45.2 billion the government assumed in its snapshot of first- quarter gross domestic product last week, suggesting the economy had contracted. With corporate earnings season winding down, U.S. investors are bracing for an April payroll report due on Friday that could give a hint of when the U.S. Federal Reserve will begin raising interest rates. The Dow Jones industrial average fell 142.2 points, or 0.79 percent, to end at 17,927.2. The S&P 500 lost 25.03 points, or 1.18 percent, to 2,089.46 and the Nasdaq Composite dropped 77.60 points, or 1.55 percent, to end the session at 4,939.33.
Daily Technical Analysis
XAU/USD (Weekly)
Looking long-term, Gold has experienced a high volatility and the price moved to a low at around $1139. The level around $1158.82 is the next available support lelevel, as the price rebounded there several times. Since August 2014 it is moving in a range between $1303 and $1158.The CCI is showing that the the metal is moving under the Center line upward. The price touched once the highest Fibonacci resistance level (61.8).
Support & Resistance (Weekly)
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 rebounds to 1.0650 on renewed USD weakness
EUR/USD gained traction and rose to the 1.0650 area in the early American session on Tuesday. Disappointing housing data from the US seem to be weighing on the US Dollar, helping the pair stretch higher.
GBP/USD climbs above 1.2450 after US data
GBP/USD extended its recovery from the multi-month low it touched near 1.2400 and turned positive on the day above 1.2450. The modest selling pressure surrounding the US Dollar after dismal housing data supports the pair's rebound.
Gold retreats to $2,370 as US yields push higher
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
XRP struggles below $0.50 resistance as SEC vs. Ripple lawsuit likely to enter final pretrial conference
XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court.
US outperformance continues
The economic divergence between the US and the rest of the world has become increasingly pronounced. The latest US inflation prints highlight that underlying inflation pressures seemingly remain stickier than in most other parts of the world.