10 June, 2015
During yesterday trading, the USD slightly rose against all major currencies; but in the afternoon, it fell against the Pound. UK trade balance deficit amounted to 2.094 billion pounds, which was much better than the forecasted 3 billion pound and the previous deficit of 3.429 billion. The data on retail sales, released by the British Retail Consortium (BRC), remained at the previous level of 0%, while the last month’s sales fell by 2.4%.
Demand for the USD is still rising in the wake of the positive data on the US employment, released last Friday. However, at the G7 Summit on Monday, Obama said that the strong dollar can become a problem for the economic development of the country.
Today, the British industrial production data will be released as well as the evaluation of GDP growth, which can provide a strong support to the Pound if statistics are positive.
Support and resistance
The nearest resistance level is the high of the last week (1.5440). Support level is the moving average line with the period of 20 (1.5331).
It is recommended to open long positions from the level of 1.5383 with the target of 1.5440 and stop-loss at 1.5331.In case of the negative statistics release, close the positions at the current price.
US stock indices went up on Wednesday after the release of the minutes of the US Fed meeting in January, which was devoted to the US monetary policy. Dow Jones Industrial Average rose by 1.6%, Nasdaq Composite - by 2.2%.
Past week was marked by a two-day speech of Janet Yellen, the head of the US Fed. Mrs. Yellen did not give a straightforward answer regarding the interest rate increase at the US Fed meeting in March...
On Thursday, the price of gold strengthened by 4% and reached its year highs. The price has been growing amid an increase in demand for safe-haven assets, such as gold and the Yen...
Yesterday, US Ministry of Energy announced about unexpected decline of oil and oil products reserves by 754 million barrels over the last week. Spot-price of crude oil Brent has grown over 31.80 USD per barrel...
Over the past 2 weeks the Yen has significantly strengthened its positions against the USD due to the increasing demand for the safe-haven currency. Mixed macro-economic data on the US economy has decreased a chance that the US Fed will tighten monetary policy...
The currency pair is traded at the strong level of 1.0960 –1.1060. In case of maintenance and testing of the level and respective confirmation (for example, a pattern Price Action), we recommend to open long positions. Stop order can be placed below the signal line...
Despite that fact that the data on Non-FarmPayRolls was below the forecast (151 000 against the forecast of 190 000 and 262 000 new jobs in December), the USD has grown against the major currencies. The rise was caused by the other data on the US labor market in January...
While market participants are waiting for the release of NFPR (Non-Farm PayRolls), oil prices are gradually declining since the opening of the trading day and at the beginning of the European session...
API (American Petroleum Institute) report, released this Tuesday, showed that last week US oil stocks rose by 3.8 million barrels. Obviously, it was a bad news for oil prices, as heavy stocks of oil in the USA creates situation when supply outruns demand in the world market...