The dollar traded higher against most major currencies on Thursday, despite the release of mostly weak economic data while the euro fell, after comments from European Central Bank President Mario Draghi.
The ECB left its benchmark interest unchanged at a record low 0.00%, in line with expectations. The euro lost ground against the dollar, after European Central Bank President Mario Draghi said the eurozone’s economic recovery is “increasingly solid” but tempered sentiment by insisting that inflationary pressure “remain subdued”.
In the U.S. front, its Pending Home Sales Index, declined 0.8 percent to 111.4 and initial claims for state unemployment benefits increased 14,000 to a seasonally adjusted 257,000 for the week ended April 22, the Labor Department said on Thursday.
Meanwhile, new orders for U.S. durable goods rose 0.7 percent in March, which was far less than the 2.3 percent rise in February and well below expectations for a 1.2 percent increase.
Today, the UK is to release a preliminary estimate for first quarter economic growth, the euro zone is to publish a preliminary inflation estimate and Canada is to release data on monthly economic growth.
The U.S. is to round up the week with the long anticipated first quarter growth data, as well as a report on manufacturing activity in the Chicago region and revised data on consumer sentiment.
EUR/USD fell by 0.25% on Thursday, at $1.0877, after the ECB left rates unchanged and as European Central Bank President Mario Draghi mentioned that inflationary pressure “remain subdued”.
The dollar continued its march higher for a second straight day, despite weaker than expected economic data from the U.S. as both Initial Jobless Claims and Durable Goods Orders were weaker than expected while pending Home Sales fell.
Today, the U.S. will close the week with the long anticipated first quarter growth data, as well as a report on manufacturing activity in the Chicago region and revised data on consumer sentiment.
In addition, Trump is facing a deadline in Washington where he needs to pass a spending bill to avoid a government shutdown.
Pivot:1.0895Support:1.0851.08151.0775Resistance:1.08951.0921.095Scenario 1:short positions below 1.0895 with targets at 1.0850 & 1.0815 in extension.Scenario 2:above 1.0895 look for further upside with 1.0920 & 1.0950 as targets.Comment:a break below 1.0850 would trigger a drop towards 1.0815.
Gold
Gold prices were almost unchanged on Thursday, as investors’ optimism that President Donald Trump’s tax reform plan would boost the dollar offset weaker than expected economic data.
The release of economic data from the U.S. in both Initial Jobless Claims and Durable Goods Orders fell short of expectations while pending Home Sales was the only positive release.
For Friday, preliminary estimates of first quarter growth from the U.S and Trump’s deadline to pass a spending bill funding the government through September remain in the spotlight.
Pivot:1261.5Support:1261.51257.51252Resistance:1267.512711274.5Scenario 1:long positions above 1261.50 with targets at 1267.50 & 1271.00 in extension.Scenario 2:below 1261.50 look for further downside with 1257.50 & 1252.00 as targets.Comment:a support base at 1261.50 has formed and has allowed for a temporary stabilization.
WTI Oil
Crude oil futures settled lower on Thursday, pressured by an increase in global production after two of Libya’s key oilfields resumed output.
Libya’s Sharara and El Feel oilfields, which combined produced 390,000 barrels per day, have restarted after protests that had blocked pipelines came to an end, a Libyan oil source said Thursday.
OPEC Secretary-General Mohammad Barkindo said Thursday, the oil cartel is working to get a consensus before oil ministers meet next month in Vienna to discuss on whether to extend their deal to cut output.
WTI is still set for a small weekly loss and is around 8 percent below its April peak.
In the week ahead, traders will focus on the next oil rig count report from Baker Hughes.
Pivot:48.85Support:48.8548.548.2Resistance:49.750.250.85Scenario 1:long positions above 48.85 with targets at 49.70 & 50.20 in extension.Scenario 2:below 48.85 look for further downside with 48.50 & 48.20 as targets.Comment:the RSI shows upside momentum.
US 500
The main U.S. indices closed higher on Thursday, as gains in the Technology, Consumer Services and Industrials sectors provided support.
At the close in NYSE, the Dow Jones Industrial Average rose 0.03%, while the S&P 500 index gained 0.06%, and the NASDAQ added 0.39%.
Some of the best performers of the session were Intel Corporation (NASDAQ:INTC) which rose 1.35%, Home Depot Inc (NYSE:HD) which added 1.23% and Cisco Systems Inc (NASDAQ:CSCO) that was up 1.05%.
For Friday, investors will be watching closely on preliminary estimates of first quarter growth from the U.S and Trump’s deadline, to pass a spending bill funding the government through September.
Pivot: 2377 Support: 2377 2365 2356 Resistance: 2395 2400 2405 Scenario 1: long positions above 2377.00 with targets at 2395.00 & 2400.00 in extension. Scenario 2: below 2377.00 look for further downside with 2365.00 & 2356.00 as targets. Comment: the RSI is mixed to bullish.