The dollar was hovering at two-week highs against the other majors currencies on Thursday, after the release of upbeat U.S. jobless claims data and as markets continued to come to terms with Donald Trump’s shock election victory.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending November 5 decreased by 11,000 to 254,000 from the previous week’s total of 265,000, while analysts had expected jobless claims to drop by 5,000 to 260,000 last week.
The dollar also regained some strength as investors began to think that a Trump presidency may not be as bad for financial markets as initially expected. Donald Trump was declared the 45th U.S. President on Wednesday, confounding expectations for a Democratic victory.
Today the U.S. is to round up the week with preliminary data on consumer sentiment and inflation expectations for the University of Michigan.
Mexico's peso sank again on Thursday, taking its biggest two-day tumble in more than 20 years, as investors worried about how U.S. President-elect Donald Trump's policies could hit exports from Latin America's No. 2 economy.
The peso lost more than 3% to trade around 20.51 per dollar. That follows a major slump on Wednesday during a sell-off after Trump's unexpected victory. The dollar has gained around 12% against the peso in the last two days, one of its biggest ever slumps since a 1994-1995 devaluation.
During his campaign, Trump vowed to rewrite or scrap the North American Free Trade Agreement on grounds that it favored Mexico at the expense of U.S. workers. He has also said he would tax the money sent home from the United States by Mexican migrants, to pay for building a wall along the U.S.-Mexico border. Nonetheless, on Thursday, Mexico's finance ministry said it would cut the amount of long-term peso bonds it would offer during the rest of the fourth quarter due to the increase in market volatility.
Pivot: 19.45Support: 19.45 19 18.54Resistance: 20.79 21.58 22Scenario 1: long positions above 19.4500 with targets at 20.7900 & 21.5800 in extension.Scenario 2: below 19.4500 look for further downside with 19.0000 & 18.5400 as targets.Comment: the RSI is bullish and calls for further upside.
Gold
Gold prices rose sharply during Europe's session on Thursday, as the U.S. dollar pulled back from a two-week high touched in wake of Donald Trump’s election victory.
The precious metal posted mild gains also in Asia on Friday, with investors awaiting further details on U.S. spending priorities to be set by president-elect Donald Trump that could drive demand for precious and industrial metals.
Today metal traders will focus on data on consumer sentiment and inflation expectations for the University of Michigan, to gain more information on the strength of the greenback.
Pivot: 1278.57Support: 1250 1242.25 1235Resistance: 1278.57 1290.75 1300Scenario 1: short positions below 1278.75 with targets at 1250.00 & 1242.25 in extension.Scenario 2: above 1278.75 look for further upside with 1290.75 & 1300.00 as targets.Comment: technically the RSI is below its neutrality area at 50.
WTI Oil
Oil [i] prices turned lower on Thursday, after the International Energy Agency warned that the market risks running another surplus in 2017 without an output cut from OPEC.
In its monthly report, the IEA said OPEC crude output hit record high of 33.83 million barrels a day in October and warned that 2017 could be another year of relentless global supply growth. Prices were also held in check after data showing a 2.4-million-barrel increase in U.S. crude inventories last week, adding to concerns about oversupply.
Today the Organization of Petroleum Exporting Counties will publish its monthly assessment of oil markets, while Baker Hughes will release weekly data on the U.S. oil rig count, both will be closely watched by energy traders.
Pivot: 45Support: 43.82 43.45 43.07Resistance: 45 45.65 45.95Scenario 1: short positions below 45.00 with targets at 43.82 & 43.45 in extension.Scenario 2: above 45.00 look for further upside with 45.65 & 45.95 as targets.Comment: technically the RSI is below its neutrality area at 50.
US 500
U.S. banking sector shares on Thursday surged to levels not seen since the midst of the 2008 financial crisis, pushing the Dow to an all-time high, while technology shares sank, as Wall Street rearranged its bets to benefit from Donald Trump's presidency.
The S&P 500 financial sector surged 3.70% to its highest since the 2008 financial crisis, bringing its gain since Trump's surprise victory in Tuesday's election to 7.9%, its biggest two-day gain since 2011.
With Thursday's gain, the Dow is up 8% in 2016 and the S&P 500 is up 6%.
Today investors will focus on data on consumer sentiment and inflation expectations for the University of Michigan, to gain more information on the strength of the American economy.
Pivot: 2100 Support: 2100 2054 2029 Resistance: 2183 2200 2216 Scenario 1: long positions above 2100.00 with targets at 2183.00 & 2200.00 in extension. Scenario 2: below 2100.00 look for further downside with 2054.00 & 2029.00 as targets. Comment: the RSI calls for a new upleg.