The dollar was slightly weaker against a basket of currencies on Monday as investors worried that a speech by U.S. President Donald Trump on Tuesday would not provide many details on his economic agenda.
Treasury Secretary Steven Mnuchin said on Sunday that Trump would use the event to preview some elements of his plans to cut taxes for the middle class, simplify the tax system and make U.S. companies more globally competitive, with lower rates and changes to encourage U.S. manufacturing.
The euro gained from polls showing that far-right anti-EU leader Marine Le Pen was losing traction in France's presidential race. French independent candidate Emmanuel Macron would easily beat Le Pen in the second round of the election in May, two opinion polls showed on Sunday.
Sterling slipped to a 12-day low of $1.2382 on a report that Scotland was preparing to call another independence referendum when formal Brexit negotiations are triggered in March.
Today, the U.S. is to release revised data on fourth quarter growth and a report on consumer confidence. San Francisco Fed President John Williams and St. Louis Fed President James Bullard are to speak. Also, President Donald Trump will make his first major address to Congress.
The euro continues to gain against the dollar, ahead of President Donald Trump’s speech to Congress on Tuesday, as investors await details on Trump’s economic agenda.
The dollar made a weak start to the trading week, despite a better-than-expected durable goods orders report for January, as President’s Trump’s speech to congress on Tuesday remained in focus.
The Commerce Department said on Monday that orders for durable goods rose 1.8 percent in January after two months of declines.
The euro made strong gains from polls showing that far-right anti-EU leader Marine Le Pen was losing traction in France's presidential race.
Today, the U.S. is to release revised data on fourth quarter growth and a report on consumer confidence.
Pivot: 1.0625Support: 1.56 1.054 1.052Resistance: 1.0625 1.0655 1.068Scenario 1: short positions below 1.0625 with targets at 1.0560 & 1.0540 in extension.Scenario 2: above 1.0625 look for further upside with 1.0655 & 1.0680 as targets.Comment: the RSI lacks upward momentum.
Gold
Gold prices gained early on Monday, reaching 3.5 month highs and crossing the $1260 level, only to retreat later in the day as investors await President Trump’s outline on his economic agenda, which includes tax reforms, infrastructure spending and foreign policy.
Concerns regarding President Trump’s address to congress on Tuesday weighed on the dollar, while continued uncertainty ahead of the elections in the Netherlands, France and Germany drew support for the yellow-metal’s ‘safe haven’ status.
A speech by some key Fed members will remain in focus for Tuesday.
Pivot: 1258Support: 1249 1245.5 1240.75Resistance: 1258 1261 1263.75Scenario 1: short positions below 1258.00 with targets at 1249.00 & 1245.50 in extension.Scenario 2: above 1258.00 look for further upside with 1261.00 & 1263.75 as targets.Comment: the RSI is bearish and calls for further downside.
WTI Oil
Oil prices ended little changed on Monday as the prospect for U.S. crude production to continue growing offset reports of high compliance to the OPEC production cut agreement and record bullish bets that prices would rise further.
U.S. drillers added five oil rigs in the week to Feb. 24, bringing the total count up to 602, the most since October 2015, energy services firm Baker Hughes Inc said on Friday.
Brent futures for April delivery lost six cents to settle at $55.93 a barrel, while U.S. West Texas Intermediate crude gained six cents to $54.05.
Later on Tuesday in the U.S., the American Petroleum Institute will report crude and refined product inventory data at the end of last week.
Pivot: 54.35Support: 53.95 53.72 53.48Resistance: 54.35 54.55 54.8Scenario 1: short positions below 54.35 with targets at 53.95 & 53.72 in extension.Scenario 2: above 54.35 look for further upside with 54.55 & 54.80 as targets.Comment: the RSI is mixed to bearish.
US 30
U.S. stocks ended slightly higher on Monday and the Dow closed at a record high for a 12th straight session, as President Donald Trump said he would make a "big" infrastructure statement on Tuesday.
The Dow's streak of record-high closes matches a 12-day run in 1987, with Boeing (NYSE:BA) and UnitedHealth among the biggest boosts for the Dow on Monday. The S&P 500 also closed at a record high. Energy gave the biggest boost to the S&P 500, with the energy index up 0.9 percent.
Today, the U.S. is to release revised data on fourth quarter growth and a report on consumer confidence and President Donald Trump will make his first major address to Congress.
Pivot: 20840 Support: 20765 20727 20700 Resistance: 20840 20900 21000 Scenario 1: short positions below 20840.00 with targets at 20765.00 & 20727.00 in extension. Scenario 2: above 20840.00 look for further upside with 20900.00 & 21000.00 as targets. Comment: the RSI is mixed with a bearish bias. An intraday rising wedge pattern seems to be forming now.