The dollar fell against most major currencies on Wednesday, after data showed that U.S. economic growth slowed more sharply than expected in the first quarter, lowering expectations for a potential interest rate hike. The Commerce Department reported that the U.S. gross domestic product grew by 0.2% in the three months to March, from 2.2% in the final quarter of 2014, posting the slowest rate of growth in a year. Following the release, the euro reached as high as 1.1186 and later in the day, fell back towards 1.11 level. The Federal Reserve remained cautious on the timing of an interest rate hike following soft GDP data. The Fed removed all calendar references on when it could begin raising rates and repeated that it will employ a data driven approach for increasing rates. In its statement, the FOMC said it will start to raise Fed Funds Rate when it sees improvements in the labor market and is confident that inflation will move back toward 2%. Market speculators will be watching closely on U.S jobless claims data for further indications on the status of U.S employment.
The euro posted a sharp rebound against the dollar in recent days, reaching two-month highs against the dollar following weak U.S. GDP data for the first quarter of the year. The Commerce Department reported that the U.S. gross domestic product grew by 0.2% in the 1st quarter of 2015, from 2.2% in the final quarter of 2014. Following the GDP report, in the long awaited FOMC no change was announced in the Federal Reserve's monetary policy, however comments remained cautious on the timing of an interest rate hike. The Fed said it will take into account labor market conditions and inflationary pressures but it removed all calendar references for a potential rate hike. For today, Germany is to report on retail sales and unemployment, while Spain is to release data on inflation and economic growth. The euro zone is also to release preliminary data on consumer prices and the unemployment rate. In the U.S. front, data on initial jobless claims are due.
Pivot
1.1035
Support
1.1185
1.1215
1.1245
Resistance
1.1035
1.0985
1.0945
Scenario 1: Long positions above 1.1035 with targets @ 1.1185 & 1.1215 in extension.
Scenario 2: Below 1.1035 look for further downside with 1.0985 & 1.0945 as targets.
Comment: Technically the RSI is above its neutrality area at 50.
Gold prices fell on Thursday despite weak U.S GDP growth and data from the U.S. Federal Reserve that indicate further delay of the widely expected rate hike this year. The Federal Reserve, as expected kept interest rates at its current levels following the FOMC meeting on Wednesday, but was very unclear as to the timing of its first rate hike. The soft data weighs on the dollar and supports gold prices. Gold traders will be focusing on U.S. jobless claims data for further indications on the status of the U.S employment.
Pivot
1199
Support
1199
1088
1180
Resistance
1216
1224
1230
Scenario 1: Long positions above 1199 with targets @ 1216 & 1224 in extension.
Scenario 2: Below 1199 look for further downside with 1188 & 1180 as targets.
Comment: The RSI is mixed.
OIL/USD
Crude oil prices closed in positive territory yesterday despite the weak growth data from the U.S , supported by recent weakness in the dollar and by positive demand indications from the EIA inventory report. In its weekly inventory data, the Energy Information Administration (EIA) showed a rise in stockpiles by 1.9 million barrels for last week, below estimates for a 3.3 million barrel increase. In addition, crude inventories at the Cushing Oil Hub in Oklahoma fell by 514,000 on the week, well below forecasts of a 400,000 gain. For the rest of the week, energy traders will be watching closely on geopolitical news involving Saudi Arabia, one of the world's largest exporters.
Pivot
57.2
Support
57.2
56.5
56.1
Resistance
59.3
60
60.9
Scenario 1: Long positions above 57.2 with targets @ 59.3 & 60 in extension.
Scenario 2: Below 57.2 look for further downside with 56.5 & 56.1 as targets.
Comment: The RSI is mixed to bullish.
DOW JONES
The main U.S. indices fell on Wednesday, pressured mainly by soft GDP data for the first quarter of the year. A strong winter weather combined with a strong dollar and low investments from energy companies weighed on the economy in the first quarter, as GDP expanded by 0.2% far below analysts' forecasts of 1% growth. Exports remain the biggest drag on the U.S. economy, highlighting the impact of the stronger dollar. The Dow Jones Industrial Average fell by more than 0.4%yesterday and for today, traders will be focusing on U.S. jobless claims data for further indications on the status of the U.S employment.
Pivot
17585
Support
17585
17040
16330
Resistance
18290
18900
19200
Scenario 1: Long positions above 17585 with targets @ 18290 & 18900 in extension.
Scenario 2: Below 17585 look for further downside with 17040 & 16330 as targets.
Comment: The RSI is supported by a bullish trend line.
APPLE
Shares of Apple (NASDAQ:AAPL) were dropping on Wednesday following a report that defective components of the Taptic Engine contributed to the slow roll out of the Apple Watch. A component of the engine made by one of two suppliers of Apple Watch caused Apple to limit availability of the smartwatch, according to the Wall Street Journal. The Taptic Engine produces the tapping sensation in the Apple Watch. Reliability tests found that some of the engines supplied by AAC Technologies broke down over time, according to the Journal.
Pivot
130.3
Support
130.3
128
126.3
Resistance
134
135.8
137
Scenario 1: Long positions above 130.3 with targets @ 134 & 135.8 in extension.
Scenario 2: Below 130.3 look for further downside with 128 & 126.3 as targets.
Comment: The RSI is bullish and calls for further upside.