The dollar pushed higher against the other major currencies on Tuesday, after data showing that U.S. consumer confidence unexpectedly jumped in September to more than a nine-year high boosted optimism over the strength of the economy.
The Conference Board said its consumer confidence index increased to 104.1 this month, from a reading of 101.8 in August, and this was its highest level since August 2007; while analysts had expected the index to slip to 99.0 in September.
The greenback also found support as analysts considered that Hillary Clinton did better than her rival Donald Trump, during Monday night’s Presidential debate. Markets tend to see Clinton as a status quo candidate, while few are sure what a Trump presidency might mean for international trade deals or the U.S. economy.
The commodity currencies were hit by dropping oil prices on Tuesday, following reports differences between Saudi Arabia and Iran remained too wide to achieve a production freeze deal this week.
Today ECB President Draghi is to speak about current developments in the euro area at the German Bundestag, in Berlin ; the U.S. is to publish data on durable goods orders ; Fed Chair Janet Yellen is scheduled to testify before the House Financial Services Committee on regulation and supervision ; while St. Louis Fed chief James Bullard is to speak in St. Louis.
The yen eased after early gains in Asia on Wednesday as investors noted comments from a key Fed official and mulled the state of the U.S. presidential race following the first of three debates ahead of the early November polls.
Earlier, Federal Reserve Vice Chair Stanley Fischer said Tuesday that the U.S. economy has started to generate better wages, but he would like to see
them going higher.
Also on the radar of the markets, OPEC members, led by Saudi Arabia and other big Middle East crude exporters, such as Iran and Iraq, will meet non-OPEC producer Russia at the International Energy Forum in Algeria today at 14:00GMT.
Pivot:101.1Support:100.0599.698.95Resistance:101.1101.6102.05Scenario 1:short positions below 101.10 with targets @ 100.05 & 99.60 in extension.Scenario 2:above 101.10 look for further upside with 101.60 & 102.05 as targets.Comment:the RSI lacks upward momentum.
Gold
Gold prices were lower on Tuesday, extending overnight losses, as markets declared Democrat Hillary Clinton as the winner of her first U.S. presidential debate with Republican Donald Trump.
Traders are mostly expecting Democratic candidate Hillary Clinton to win the presidency and have not factored in the implications of a victory for Donald Trump. The idea of Trump in the White House is a worrying one for some investors who balk at his populist, unpredictable style.
Recent polls have shown a tightening race with just around six weeks to go until the November 8 election. The next presidential debate is scheduled for October 9, with the third and final clash set for October 19.
Pivot:1333.6Support:1322.513181312Resistance:1333.613381343.5Scenario 1:short positions below 1333.60 with targets @ 1322.50 & 1318.00 in extension.Scenario 2:above 1333.60 look for further upside with 1338.00 & 1343.50 as targets.Comment:technically the RSI is below its neutrality area at 50.
WTI Oil
Oil prices plunged nearly 3% on Tuesday, extending overnight losses, after both Saudi Arabia and Iran played down expectations for a deal to freeze or cut oil production at the closely watched informal OPEC meeting on Wednesday.
Infact, oil ministers from both countries said on Tuesday that talks among OPEC and non-OPEC oil producers in Algiers are "consultative," casting doubt on the chances of any policy decision during the meeting. According to market experts, chances that the meeting would yield any action to reduce the global glut appeared minimal. Instead, most believe that oil producers will continue to monitor the market and possibly postpone freeze talks to the official OPEC meeting in Vienna on November 30.
But crude oil prices gained further in Asia on Wednesday, as industry data showed a continued demand trend for crude and refined product stockpiles and an OPEC meeting later in the day looms.
Today oil traders will focus on OPEC-non OPEC meeting in Algeria and on the U.S. Energy Information Administration release of weekly data on oil and gasoline stockpiles.
Pivot:51.2Support:39.136.234.4Resistance:51.25456.5Scenario 1:short positions below 51.20 with targets @ 39.10 & 36.20 in extension.Scenario 2:above 51.20 look for further upside with 54.00 & 56.50 as targets.Comment:Crude oil is capped by a declining trend line in place since June top. The RSI is around its neutrality level at 50 and lacks upward momentum. Additionally, 51.2 is playing a key resistance role, which should limit the upside potential.
US 500
Consumer and technology stocks, including Amazon (NASDAQ:AMZN), led gains on Wall Street on Tuesday, while a perceived win by Democrat Hillary Clinton in Monday's first presidential debate gave broader support to equities.
The S&P 500 technology sector rallied 1.15%, powered by a 1.85% gain in Microsoft (NASDAQ:MSFT) and a 1.08% rise in Facebook (NASDAQ:FB).
Today investors will focus on U.S. data on durable goods orders, but the main focus will be on Fed Chair Janet Yellen’ speech before the House Financial Services Committee on regulation and supervision and on St. Louis Fed chief James Bullard’ speech in St. Louis, to gain more information on the strength of the American economy.
Pivot: 2137.75 Support: 2137.75 2131 2123 Resistance: 2157 2163 2173 Scenario 1: long positions above 2137.75 with targets @ 2157.00 & 2163.00 in extension. Scenario 2: below 2137.75 look for further downside with 2131.00 & 2123.00 as targets. Comment: the RSI is mixed to bullish.