The dollar rose to one-week highs against the other major currencies on Wednesday, despite the release of disappointing U.S. economic reports, as the greenback continued to recover from sharp losses posted earlier in the week. The U.S. Census Bureau said that retail sales fell by 0.3% in March, disappointing expectations for a 0.1% rise and after a 0.1% fall the previous month. Core retail sales, which exclude automobiles, rose by 0.2% last month, compared to expectations for a 0.4% gain. A separate report showed that the U.S. producer price index fell by 0.1% in March, while forecasts anticipated an increase of 0.2%. Core PPI, which excludes food and energy, slipped 0.1% last month, disappointing expectations for a 0.1% increase. The Australian dollar did not react to better than expected jobs data as an easing in Singapore pressured Asian currencies on growth concerns. The Monetary Authority of Singapore on Thursday said it would adopt a neutral currency stance against a basket of currencies after it said the regional economic picture had dimmed. For today, the euro zone is to produce revised data on consumer inflation, the Bank of England is to announce its benchmark interest rate and publish the minutes of its monetary policy meeting while the U.S. is to release the weekly report on initial jobless claims and data on consumer inflation.
The euro fell sharply against the dollar on Wednesday, dropping to its lowest closing level in more than two weeks, as a wave of strong economic data eased fears of a global slowdown and providing support to the dollar against other major currencies. The currency pair traded in a broad range between 1.1268 and 1.1391, before settling 0.93% higher on the day. The dollar has come under intense pressure in recent weeks amid strong indications from the Federal Reserve that it will delay the timing of its first interest rate hike of 2016. The dollar recovered from near-eight month lows on Wednesday after the Chinese government reported on Wednesday that exports grew by 11.5% in March on an annual basis, above expectations for a 2.5% gain. For today, the euro zone is to produce revised data on consumer inflation while the U.S. is to release the weekly report on initial jobless claims and data on consumer inflation.
Pivot:1.1315Support:1.1231.11851.115Resistance:1.13151.13451.137Scenario 1:short positions below 1.1315 with targets @ 1.1230 & 1.1185 in extension.Scenario 2:above 1.1315 look for further upside with 1.1345 & 1.1370 as targets.Comment:the RSI is mixed to bearish.
Gold
Gold prices fell sharply on Wednesday due to a stronger dollar, as solid trade data in China eased concerns on slowing growth in the world's second-largest economy, weakening demand for the precious metal a safe-haven asset. The Chinese government reported on Wednesday that exports surged by 11.5% in March on an annual basis, defying expectations for slight gains of 2.5%. Dollar-denominated commodities such as gold become more expensive for foreign purchasers when the dollar appreciates. For today, gold traders’ attention is shifted towards the U.S. weekly report on initial jobless claims and data on consumer inflation.
Pivot:1240Support:122512171209Resistance:124012511263Scenario 1:short positions below 1240.00 with targets @ 1225.00 & 1217.00 in extension.Scenario 2:above 1240.00 look for further upside with 1251.00 & 1263.00 as targets.Comment:the RSI lacks upward momentum.
WTI Oil
Crude oil prices retreated from 2016-yearly highs and posted considerable losses on Wednesday, as after Saudi Arabia energy minister Ali al-Naimi lowered prospects of coordinated production cuts between Russia, Venezuela, Qatar and the Saudi kingdom at a highly-anticipated meeting in Doha on Sunday. Also on Wednesday, OPEC cut its forecasts for global oil demand growth in 2016 warning of potential reductions among customers in China and Latin America. Meanwhile, crude oil prices fell further after the U.S. Energy Information Administration said that domestic crude oil inventories increased by 6.6 million barrels for the week ending on April 8. Baker Hughes oil rigs count will be in focus now for oil traders.
Pivot:40.3Support:40.339.238.25Resistance:42.543.244.2Scenario 1:long positions above 40.30 with targets @ 42.50 & 43.20 in extension.Scenario 2:below 40.30 look for further downside with 39.20 & 38.25 as targets.Comment:a support base at 40.30 has formed and has allowed for a temporary stabilisation.
US 500
U.S. stocks rose sharply on Wednesday, as JPMorgan Chase & Co (NYSE:JPM) led a broad rally among financial stocks with stronger than expected quarterly earnings and China bolstered the major indices with upbeat monthly export data, easing concerns of slowing growth in the world's second-largest economy. On Wednesday morning, JP Morgan Chase reported first quarter revenues of $24.083 billion and earnings per share of 1.35, eclipsing analysts' sales forecasts of $23.399 billion and EPS estimates of 1.26 respectively. Despite significant losses from the energy sector during the three-month period, analysts said the world's largest bank's overall loan portfolio showed little signs of weakening. The S&P 500 gained by 1.00%, as eight of 10 sectors closed in the green. Stocks in the Financials, Technology and Industrials sectors led the rise, each gaining more than 1.4%. For today, the U.S. weekly report on initial jobless claims and data on consumer inflation will be in focus.
Pivot: 2020 Support: 2020 1970 1950 Resistance: 2080 2100 2130 Scenario 1: long positions above 2020.00 with targets @ 2100.00 & 2115.00 in extension. Scenario 2: below 2020.00 look for further downside with 1970.00 & 1950.00 as targets. Comment: investors have to remain cautious since these levels may trigger profit taking. .