The dollar trimmed gains, but remained broadly supported against the other majors currencies on Tuesday, as the release of strong U.S. data added to optimism over the strength of the economy.
Official data showed that the second estimate of third quarter U.S. gross domestic product rose 3.2%, up from the initial reading of a 2.9% expansion, while analysts were looking for a smaller upward revision to just 3.0%. In addition, the Conference Board said its consumer confidence index rose to 107.1 this month from a reading of 100.8 in October, whose figure was revised from a previously reported 98.6, while analysts had expected the index to increase to 101.2 in November.
The upbeat data added to optimism over the outlook for the U.S. economy amid expectations that increased fiscal spending and tax cuts under the Trump administration will spur economic growth and inflation. The strong report also added to expectations that the Federal Reserve will decide to raise interest rates at its December policy meeting.
Today the OPEC is to hold a meeting in Vienna aimed at finalizing the details of a proposed output cut.
Australia is to release data on building approvals. Germany is to report on retail sales and the change in the number of people unemployed. The euro zone is to release a preliminary estimate of consumer price inflation. ECB head Mario Draghi is to speak at an event in Madrid. The U.S. is to release the ADP nonfarm payrolls report for November, as well data on pending home sales and the Chicago PMI. Canada is to release its monthly GDP report.
GBP/USDGBP/USD gained 0.76% to trade at 1.2509 on Tuesday.
Earlier Tuesday, the Bank of England said net lending to individuals rose by £4.9 billion in October, compared to expectations for an increase of £4.8 billion and after a £4.7 billion gain the previous month.
Today Germany is to report on retail sales and the change in the number of people unemployed; the euro zone is to release a preliminary estimate of consumer price inflation; while ECB head Mario Draghi is to speak at an event in Madrid.
Pivot: 1.244Support: 1.244 1.2385 1.2365Resistance: 1.253 1.2575 1.2615Scenario 1: long positions above 1.2440 with targets at 1.2530 & 1.2575 in extension.Scenario 2: below 1.2440 look for further downside with 1.2385 & 1.2365 as targets.Comment: even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Gold prices were lower on Tuesday, as upbeat U.S. economic reports underlined the view that the Federal Reserve will hike interest rates in December, underpinning dollar demand. Data on Tuesday showed that the U.S. economy grew at a quicker than expected rate in the third quarter, expanding at the fastest pace in two years.
The precious metal prices were quoted lower also ahead of early Asian trade on Wednesday, with investors on the watch for news on prospects for an OPEC effort to curb output in a move that has implications for global growth and inflation outcomes.
Today metal traders will focus on U.S. release of the ADP nonfarm payrolls report for November, as well as on data on pending home sales and the Chicago PMI, to gain further information on the strength of the greenback.
Pivot: 1180Support: 1180 1171 1160Resistance: 1208 1215 1221Scenario 1: long positions above 1180.00 with targets at 1208.00 & 1215.00 in extension.Scenario 2: below 1180.00 look for further downside with 1171.00 & 1160.00 as targets..Comment: the RSI is mixed to bullish.
Crude oil prices rebounded mildly in Asia on Wednesday after a draw reported in industry inventory data from the U.S. and as speculation swirls on OPEC's production plans ahead of a crucial meeting in Vienna. Prices were weighed Tuesday by conflicting media comments that call into question OPEC's ability to come to agreement about a cut in production.
The American Petroleum Institute late Tuesday said crude oil inventories fell 720,000 barrels last week, 120,000 barrels more than expected and which followed a draw of 1.28 million barrels the previous week. Gasoline inventories jumped 3.4 million barrels last week, and distillates rose 2.2 million barrels, the largest build in more than over two months. Cushing recorded a gain of 2.4 million barrels.
Today the OPEC is to hold a meeting in Vienna aimed at finalizing the details of a proposed output cut, which will be closely watched by energy traders.
Pivot: 46.55Support: 44.65 43.85 42.93Resistance: 46.55 47.65 48.25Scenario 1: short positions below 46.55 with targets at 44.65 & 43.85 in extension.Scenario 2: above 46.55 look for further upside with 47.65 & 48.25 as targets.Comment: the RSI lacks upward momentum.
U.S. stocks edged higher on Tuesday, as an upbeat outlook from UnitedHealth lifted health insurers, though a sharp drop in oil prices weighed on energy shares and limited the advance.
The day's small gains followed a decline in the market on Monday. Analysts said the post-U.S. election rally may be losing momentum, with the S&P 500 now up roughly 8% for the year to date.
For the day the Dow Jones industrial average rose 0.12%, while the S&P 500 gained 0.13% and the Nasdaq Composite added 0.21%, after hitting a record intraday high.
Today investors will focus on U.S. release of the ADP nonfarm payrolls report for November, as well as on data on pending home sales and the Chicago PMI, to gain further information on the strength of the greenback
Pivot: 2195 Support: 2195 2179 2169 Resistance: 2216 2225 2247 Scenario 1: long positions above 2195.00 with targets at 2216.00 & 2225.00 in extension. Scenario 2: below 2195.00 look for further downside with 2179.00 & 2169.00 as targets. Comment: the RSI is mixed with a bullish bias.