The US Dollar traded higher on Wednesday against other major currencies with the US Dollar Index (USDX), which represents the Dollar against a basket of other currencies, closing 0.15% higher. The Canadian Dollar (CAD) declined as the Bank of Canada decided not to change interest rates at the meeting on Wednesday. The Turkish Lira (TRY) gained almost 2 percent against the Dollar, after the Turkish President Erdogan announced that elections would already take place in June this year, instead of November, 2019 as planned.
Oil now reached high since 2015 before the OPEC meeting to take place on Friday. US inventories according to the EIA indicated a higher draw than expected. Palladium was trading higher over concerns that additional sanctions on Russia, which is a major producer of the metal, could further affect global supplies.
US equities saw further advances on Wednesday, with Zacks Research indicating a double-digit percentage increase in earnings for Q1, compared to results seen at the same time last year.
Bitcoin recovered from its losses from Tuesday, when a big stakeholder offloaded a significant amount of Bitcoins to the market. The Attorney General of New York announced earlier that they are investigating 13 cryptocurrency exchanges in their jurisdiction, including the popular Coinbase exchange.
On Thursday in the US data about Jobless New Claims and the Philadelphia Fed General Business Conditions survey will be released. In the Asian trading session on Friday, in Japan inflation data and the Tertiary Index will be released.
The British Pound (GBP) further retreated from the earlier post Brexit-vote high it reached this week as inflation was lower than expected with the Consumer Price Index (CPI) at +2.5% y/y (expected +2.7%). PM Theresa May suffered a defeat on Wednesday as the House of Lords voted on a bill, for the United Kingdom to remain in a customs union with the EU.
On Thursday the United Kingdom is set to publish Retail Sales statistics.
Pivot:1.4245Support:1.4171.41451.4115Resistance:1.42451.4281.4315Scenario 1:short positions below 1.4245 with targets at 1.4170 & 1.4145 in extension.Scenario 2:above 1.4245 look for further upside with 1.4280 & 1.4315 as targets.Comment:the RSI is mixed to bearish.
Gold (EUR)
Gold traded higher on Wednesday, despite the advancing Dollar and also higher US Treasury Yields, which are also seen as safe haven. On Wednesday multiple commodities traded higher, which was among other sources seen in the higher value of the Bloomberg Commodity Index.
As Gold is predominantly traded in the US Dollar, data from the US economy can have effects on the commodity. On Thursday in the US the Philadelphia Fed General Business Conditions, Jobless New Claims, Leading Indicators and the Federal Reserve Bank Total Assets/Credit statistics will be released.
Pivot:1347Support:134713431337.5Resistance:13561358.51365Scenario 1:long positions above 1347.00 with targets at 1356.00 & 1358.50 in extension.Scenario 2:below 1347.00 look for further downside with 1343.00 & 1337.50 as targets.Comment:the RSI is mixed to bullish.
Oil raced towards a new 3-year high on Wednesday, with data from the Energy Information Administration (EIA) showing a higher draws for crude oil, gasoline and also distillates than expected. Crude oil inventories saw a draw of 1.1 million barrels (MMBBL), gasoline a draw of 3.0 MMBBL and distillates a draw of 3.1 MMBBL. Further contributing to the higher prices was the apparent commitment of Saudi-Arabia and OPEC to the production quotas in order to assure higher oil prices.
On Friday the US Baker Hughes Oil Rig Count will be released, indicating the number of operating oil rigs in the US. The OPEC and its partners in the production cut pact will hold a meeting on Friday in Jeddah.
Pivot:72.75Support:72.7572.1571.2Resistance:74.4575.476.5Scenario 1:long positions above 72.75 with targets at 74.45 & 75.40 in extension.Scenario 2:below 72.75 look for further downside with 72.15 & 71.20 as targets.Comment:the RSI shows upside momentum.
US 500
US equity indices continued to rise on Wednesday, with the S&P 500 (US 500) now on track for a second consecutive week with gains. The best performing sectors were industrial (US Industrial ETF +1.01%) and energy (US Energy ETF (NYSE:XLE) +1.55%) stocks. The price of oil at a new 3-year high supported the move in energy stocks.
American Express (NYSE:AXP) (+1.23%) was trading higher in after-hours trading, as the company reported $1.86 earnings per share (EPS), which was above investors’ expectations. IBM (NYSE:IBM) (-7.5%) shares had their worst day since 2013 despite better than expected earnings. Investors were critical of the company’s margins failing to meet their expectations.
Among other companies, on Thursday Philip Morris is set to release its earnings and on Friday Honeywell, General Electric (NYSE:GE) and Schlumberger are set to publish their earning figures.
Pivot: 2697 Support: 2697 2687 2673 Resistance: 2734 2746.5 2766 Scenario 1: long positions above 2697.00 with targets at 2734.00 & 2746.50 in extension. Scenario 2: below 2697.00 look for further downside with 2687.00 & 2673.00 as targets. Comment: the RSI is mixed with a bullish bias. The downside potential should be limited by the key support level at 2697.