The dollar gained on Tuesday, as Federal Reserve members raised expectations of a rate hike this month, while U.S. President Donald Trump offered Congress little details on his stimulus plans, as some investors had expected.
The dollar extended gains against the yen by 0.6 percent, reaching 113.48 yen while the euro dropped 0.2 percent against the dollar to $1.0555.
In a long-awaited speech to Congress, Trump spoke about the immigration system and vowed to pursue massive tax relief for the middle class but did not give any details on the size and the schedule of his tax cuts and spending.
Earlier in the day New York Fed President William Dudley, among the most influential U.S. central bankers, said that the case for tightening monetary policy "has become a lot more compelling".
U.S. economic data released on Tuesday showed a moderate growth path, as the economy expanded at a slower pace than anticipated in the fourth quarter.
For today, Germany is to release preliminary inflation data and a report on unemployment change, the U.K. is to release its manufacturing index and a report on bank lending while later in the day, the U.S. Institute of Supply Management is to report on manufacturing activity and Dallas Fed head Kaplan and Fed Governor Lael Brainard are scheduled to speak.
The euro fell against the dollar on Tuesday, despite a lower than anticipated U.S. growth rate, with the GDP rising at 1.9% when analysts expected a 2.1% annual rate increase. The Consumer Confidence Index, hit 114.8 in February, according to data, better than the 111 anticipated.
Momentum in the greenback was mainly supported by rising expectations for a March rate hike, after New York Fed President William Dudley, among the most influential U.S. central bankers, said that the case for tightening monetary policy "has become a lot more compelling".
For today, Germany is to release preliminary inflation data and a report on unemployment change while later in the day, the Institute of Supply Management is to report on manufacturing activity and Dallas Fed head Kaplan and Fed Governor Lael Brainard are scheduled to speak.
Pivot: 1.059Support: 1.054 1.052 1.049Resistance: 1.059 1.061 1.063Scenario 1: short positions below 1.0590 with targets at 1.0540 & 1.0520 in extension.Scenario 2: above 1.0590 look for further upside with 1.0610 & 1.0630 as targets.Comment: the RSI is mixed to bearish.
Gold
Gold fell on Tuesday, pressured by renewed expectations of a March rate hike and by comments from the U.S. president regarding illegal immigration and a repeated call for wall on the border with Mexico, while calling for a vast overhaul of the nation's tax system and increased spending on infrastructure and defense.
Further pressure on the precious metal came after upbeat manufacturing figures came out from China that set the stage for global growth hopes.
For today, gold traders will be focusing on a speech by Dallas Fed head Kaplan and Fed Governor Lael Brainard for further indications on the future monetary policy steps of the Federal Reserve.
Pivot: 1248.8Support: 1240.75 1235.5 1231Resistance: 1248 1252 1258.5Scenario 1: short positions below 1248.80 with targets at 1240.75 & 1235.50 in extension.Scenario 2: above 1248.80 look for further upside with 1252.00 & 1258.50 as targets.Comment: the RSI is bearish and calls for further decline.
WTI Oil
The price of WTI crude oil fell on Tuesday, with U.S. crude oil inventories rising for seven straight weeks. Prices were pressured by forecasts for another build last week, this time of 3.1 million barrels, which have fueled worries that demand growth may not be sufficient to soak up the global crude oil glut.
U.S. inventories rose 2.5 million barrels in the week to Feb. 24, according to a report from the American Petroleum Institute. Gasoline stockpiles rose unexpectedly and distillate stockpiles fell more than expected, the API said.
The official report from the U.S. Energy Information Administration is due at 1530 GMT on Wednesday.
Pivot: 53.82Support: 53.82 53.65 53.45Resistance: 54.23 54.5 54.75Scenario 1: long positions above 53.82 with targets at 54.23 & 54.50 in extension.Scenario 2: below 53.82 look for further downside with 53.65 & 53.45 as targets.Comment: the RSI lacks downward momentum.
US 30
The main U.S. indices moved lower on Tuesday, as losses in the Consumer Services, Industrials and Technology sectors led shares lower.
At the close in NYSE, the Dow Jones Industrial Average lost 0.12%, while the S&P 500 index lost 0.26%, and the NASDAQ Composite index declined 0.62%.
Some of the best performers of the session on the Dow Jones Industrial Average were Coca-Cola Company (NYSE:KO) which rose 0.70% and McDonald’s Corporation that was up 0.52%.
Some of the worst performers of the session were Wal-Mart Stores Inc (NYSE:WMT) which fell 1.13% and Nike Inc (NYSE:NKE) which declined 0.92%.
For today, traders will be focusing on a speech by Dallas Fed head Kaplan and Fed Governor Lael Brainard for further indications on the future monetary policy steps of the Federal Reserve.
Pivot: 20900 Support: 20800 20765 20727 Resistance: 20900 20945 21000 Scenario 1: short positions below 20900.00 with targets at 20800.00 & 20765.00 in extension. Scenario 2: above 20900.00 look for further upside with 20945.00 & 21000.00 as targets. Comment: the RSI is mixed and calls for caution.