The dollar moved lower against most major currencies on Wednesday, but remained close to a seven-month high as growing expectations for a U.S. rate hike before the end of the year continue to support the U.S. currency. The greenback remained affected by last week's strong U.S. employment data which open the way for the Federal Reserve to raise interest rates at its December meeting. The Labor Department reported on Friday that the U.S. economy added 271,000 jobs last month, well ahead of expectations of the 180,000 expected by economists and the largest increase since December. The unemployment rate fell to a seven-and-a-half year low of 5.0%. For today, Canada is to publish data on new house price inflation today, while the U.S. is to publish data on initial jobless claims. The main focus is shifted towards Friday where the U.S. will announce data on retail sales, producer prices, and a preliminary report on consumer sentiment.
The dollar moved lower against most major currencies on Wednesday, but remained close to a seven-month high as growing expectations for a U.S. rate hike before the end of the year continue to support the U.S. currency. The greenback remained affected by last week's strong U.S. employment data which open the way for the Federal Reserve to raise interest rates at its December meeting. The Labor Department reported on Friday that the U.S. economy added 271,000 jobs last month, well ahead of expectations of the 180,000 expected by economists and the largest increase since December. The unemployment rate fell to a seven-and-a-half year low of 5.0%. For today, Canada is to publish data on new house price inflation today, while the U.S. is to publish data on initial jobless claims. The main focus is shifted towards Friday where the U.S. will announce data on retail sales, producer prices, and a preliminary report on consumer sentiment.
Pivot: 1.079Support: 1.0705 1.067 1.0625Resistance: 1.079 1.083 1.086Scenario 1: Short positions below 1.079 with targets @ 1.0705 & 1.067 in extension.Scenario 2: Above 1.079 look for further upside with 1.083 & 1.086 as targets.Comment: As long as 1.079 is resistance, look for choppy price action with a bearish bias.
Gold
Gold prices fell on Wednesday to remain near three-month lows, on a quiet day of trading due to the Veterans' Day holiday. Last Friday, gold prices crashed by more than 1.5% on the session after strong October U.S. jobs data raised expectations that the Federal Reserve will raise interest rates in December. The yellow metal is receiving strong pressures as it is competing against interest bearing assets due to expectations of a December rate hike. On Thursday, several FOMC members including Fed chair Janet Yellen are due to make appearances at the Federal Reserve's two-day conference on Monetary Policy Implementation and Transmission in the Post-Crisis period. Later in the day, gold traders will be watching closely on initial jobless claims data from the U.S., while tomorrow, U.S. retail sales, producer prices and consumer sentiment will be in focus.
Pivot: 1096Support: 1082 1079 1072Resistance: 1096 1103 1111Scenario 1: Short positions below 1096 with targets @ 1082 & 1079 in extension.Scenario 2: Above 1096 look for further upside with 1103 & 1111 as targets.Comment: As long as 1096 is resistance, look for choppy price;ke 1103 majd 1111.
WTI Oil
Overnight, U.S. crude oil prices fell sharply to fresh two-week lows on Wednesday, following a considerably stronger than expected inventory build from the American Petroleum Institute last Tuesday. Investors on Wednesday reacted to bearish supply data from the previous session when the API reported that U.S. weekly crude inventories surged by 6.3 million barrels for the week ending on Nov. 6. A survey of analysts by Platts anticipated a build of only 500,000 on the week. A more closely-watched government report from the U.S. Energy Information Administration (EIA) will be released on Thursday, one day later than usual due to the Veterans Day. Any major increases in crude inventories as well as the recent strength in the dollar are typically viewed as negative for WTI prices. Investors also continue to digest warnings from the International Energy Agency earlier this week on the consequences of a severe decrease of investments in the industry.
Pivot: 44.12Support: 42.55 42 41.49Resistance: 44.12 44.7 45.65Scenario 1: Short positions below 44.12 with targets @ 42.55 & 42 in extension.Scenario 2: Above 44.12 look for further upside with 44.7 & 45.65 as targets.Comment: As long as 44.12 is resistance, look for choppy price action with a bearish bias. The contract is currently trading in a bearish channel.
Stocks ended another day in negative territory, with lower oil prices and a troubled retail sector giving the market little reason to move higher. The S&P 500 closed down 0.26%, Dow Jones Industrial Average fell 0.21%, and the Nasdaq declined 0.22%. Oil giant Exxon Mobil (N:XOM)'s shares declined nearly 1%, while Chevron (N:CVX) fell more than 1%, and Marathon Oil (N:MRO) took a 8.36% hit as lower oil prices pressured the sector. Further losses from retailers such as Macy's which dropped 14%, J.C. Penney which fell by 2% and Ali Baba which also fell by 2% added some strong pressure on the main U.S. indices. The Dow and S&P lost ground late in the day after trading close to their opening price for much of the session. For today, the U.S. is to publish data on initial jobless claims but the main focus is shifted towards Friday where the U.S. will announce data on retail sales, producer prices, and a preliminary report on consumer sentiment.
Pivot: 1990 Support: 2116 2135 2180 Resistance: 1990 1900 1867 Scenario 1: Long positions above 1990 with targets @ 2116 & 2135 in extension. Scenario 2: Below 1990 look for further downside with 1900 & 1867 as targets. Comment: Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.