The dollar gained ground against the euro on Friday, after Federal Reserve Chair Janet Yellen signaled the possibility for a rate hike before the end of the year.
The comments came after a string of U.S. data released on Thursday painted a mixed picture of the health of the economy.
The U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits increased by 3,000 to 267,000 last week, compared to expectations for a 7,000 rise. Separately, the U.S. Commerce Department said that durable goods orders decreased by 2.0% last month, matching forecasts, while core durable goods orders were flat, compared to expectations for an increase of 0.1%. Data also showed that U.S. new home sales increased by 5.9% to 552.000 units in August, beating expectations for a 1.6% rise.
Today the U.S. is to round up the week with revised data on second quarter economic growth and a revised report on consumer sentiment.
The dollar gained ground against the euro on Friday, after Federal Reserve Chair Janet Yellen signaled the possibility for a rate hike before the end of the year.
The comments came after a string of U.S. data released on Thursday painted a mixed picture of the health of the economy.
The U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits increased by 3,000 to 267,000 last week, compared to expectations for a 7,000 rise. Separately, the U.S. Commerce Department said that durable goods orders decreased by 2.0% last month, matching forecasts, while core durable goods orders were flat, compared to expectations for an increase of 0.1%. Data also showed that U.S. new home sales increased by 5.9% to 552.000 units in August, beating expectations for a 1.6% rise.
Today the U.S. is to round up the week with revised data on second quarter economic growth and a revised report on consumer sentiment.
Pivot:1.1235
Support:1.11051.1071.102
Resistance:1.12351.12951.133
Scenario 1:Short positions below 1.1235 with targets @ 1.1105 & 1.107 in extension.
Scenario 2:Above 1.1235 look for further upside with 1.1295 & 1.133 as targets.
Comment:The RSI is bearish and calls for further downside.
Gold
On Thursday gold surged more than $20 an ounce ahead of Janet Yellen's first public appearance on since the Federal Reserve held short-term interest rates at its current near-zero level last week.
But gold prices fell again in Asia on Friday, after Fed Chair Janet Yellen said that an interest rate hike this year is still very much on the cards.
Today gold traders will carefully watch US revised data on second quarter economic growth and a revised report on consumer sentiment, further clues on the greenback strength.
Pivot:1142S
Support:114211331129
Resistance:115711621170
Scenario 1:Long positions above 1142 with targets @ 1157 & 1162 in extension.
Scenario 2:Below 1142 look for further downside with 1133 & 1129 as targets.
Comment:Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
WTI Oil
Oil prices rose as much as 1% on Thursday, supported by a drop in inventories at the main U.S. delivery point, although gains were limited by a drop in stock prices on Wall Street.
Market intelligence firm Genscape estimated a decrease by 625,000 barrels at the Cushing, Oklahoma delivery point for the week ending September 22.
Crude oil prices are so far down by more than 25% this quarter.
For Friday, oil traders expect some volatility with the revised reading for U.S. economic growth in the second quarter due, and the weekly U.S. oil rig count data by Baker Hughes (NYSE:BHI) company.
Pivot:45.4
Support:44.443.8543.3
Resistance:45.446.146.9
Scenario 1:Short positions below 45.4 with targets @ 44.4 & 43.85 in extension.
Scenario 2:Above 45.4 look for further upside with 46.1 & 46.9 as targets.
Comment:Intraday technical indicators are mixed and call for caution.
Dow Jones
US Stocks made a big recovery from session lows by the final hour of trading on Thursday, though remained in the red as investors eagerly awaited a speech from Federal Reserve Chair Janet Yellen after markets close.
The S&P 500 closed down 0.34% with 6 out of its 10 major sectors ending lower and with the health sector leading the drop. The Dow Jones Industrial Average fell 0.48%, and the Nasdaq slid 0.38%. Yellen gave a speech on "inflation dynamics and monetary policy" and mentioned in her remarks that investors should expect a rate hike later this year.
Mixed data from the U.S with regards to the housing market, employment and durable goods orders failed to give any indication as to where the equity markets will move.
Investors will now be closely watching on today’s revised reading for U.S. economic growth in the second quarter, for further clues on the Fed’s monetary policy.
Pivot: 17570
Support: 15370 14765 14200
Resistance: 17570 18350 18650
Scenario 1: Short positions below 17570 with targets @ 15370 & 14765 in extension.
Scenario 2: Above 17570 look for further upside with 18350 & 18650 as targets.
Comment: The RSI is capped by a declining trend line.