Global stocks were relatively unmoved today as investors waited for important economic and earnings data. On economic data, this week investors will receive the first quarter’s economic growth of China, inflation numbers from the European Union and employment numbers from the United Kingdom. On earnings, investors will receive the numbers from companies like Bank of America, Netflix, Goldman Sachs and UnitedHealth among others.
The price of crude declined today as investors wondered about the demand and supply issue. The decline came after data from Baker Hughes showed that the number of wells in the United States had increased in the previous week. The wells increased by 2 from 831 to 833. This is an indication that US producers are continuing to boost production as oil price stabilizes. Still, the number of wells was lower than where they were in November last year.
The price of gold declined slightly as investors continued to focus on the Federal Reserve. Over the weekend, the current and former central bank officials voiced their concerns about the stability and independence of the Federal Reserve. This is after a few months of criticism from the US president, who has even considered replacing the Fed chair he appointed. He has also announced that he will appoint Stephen Moore and Herman Cain to the Fed’s board. The two are not very experienced in Fed operations but have voiced their support of Trump’s polices.
The XAU/USD pair started declining on April 11, when it reached a high of 1310. Today, the pair reached a low of 1285, which was the lowest level since April 5. On the hourly chart below, the pair’s price is below the 25-day and 50-day moving averages. It is also along the lower line of the Bollinger Bands. The RSI has remained along the oversold level of 30 while the Average Directional Index (ADX) has increased to 38. The pair will likely continue moving lower to test the important support of 1280.
The XBR/USD pair declined slightly to the intraday low of 70.40. On the hourly chart, this price is close to the important support of 70.30. In the past week, the pair has been trading within the 70.30 and 71.50 range. Today’s price is below the 25-day and 50-day moving averages while the RSI has moved slightly lower. It is also along the lower line of the Bollinger Bands. The pair is likely to continue moving lower, to test the 70.30 resistance level.
The EUR/USD started moving higher on April 2. Since then, the pair has moved from a low of 1.1183 to a high of 1.1323. On the hourly chart, the price is above the 25-day and 50-day moving averages. The money flow index has also moved higher while the on-balance volume has remained relatively stable. The pair could resume the upward trend to test the important resistance level of 1.1330.
General Risk Warning for FX & CFD Trading. FX & CFDs are leveraged products. Trading in FX & CFDs related to foreign exchange, commodities, financial indices and other underlying variables, carry a high level of risk and can result in the loss of all of your investment. As such, FX & CFDs may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with FX & CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to FX or CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever.