Oil prices rose on Tuesday ahead of the release of the weekly US crude stocks on Wednesday. Last week oil inventories surprised markets with a 9.6-million-barrel drawdown and this week’s report could still show tightening supplies. Disruptions to supplies in Venezuela and another drawdown reported this week are boosting the price of the black stuff.
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
Wednesday, March 27, 2019
EUR/USD 3/27
EUR/USD continues to drift this week. In Wednesday trade, the pair is trading at 1.1276, up 0.09% on the day. On the release front, there are no major eurozone or German numbers, but ECB Mario Draghi speaks at an ECB event in Frankfurt. The U.S. releases current account and trade balance. On Thursday, Germany releases CPI and the U.S. publishes GDP and unemployment claims.
German confidence indicators continue to raise concerns about the health of the economy. Consumer climate slipped in March to 10.4 points, after two successive readings of 10.8 points. With the eurozone mired in an economic slowdown and German numbers pointing to weaker growth, it’s not surprising that the German consumer has become less optimistic. On Tuesday, German business confidence improved slightly in March, with a reading of 99.6 points. The markets have been accustomed to releases above the 100-level, and the February reading of 98.5 was the weakest since November 2014. The survey noted that any improvement was confined to domestic sectors, such as construction and retail services.
German confidence indicators continue to raise concerns about the health of the economy. Consumer climate slipped in March to 10.4 points, after two successive readings of 10.8 points. With the eurozone mired in an economic slowdown and German numbers pointing to weaker growth, it’s not surprising that the German consumer has become less optimistic. On Tuesday, German business confidence improved slightly in March, with a reading of 99.6 points. The markets have been accustomed to releases above the 100-level, and the February reading of 98.5 was the weakest since November 2014. The survey noted that any improvement was confined to domestic sectors, such as construction and retail services.
Tuesday, March 26, 2019
EUR/USD continues to drift this week
EUR/USD continues to drift this week. Currently, the pair is trading at 1.1325, up 0.11% on the day. On the release front, German GfK Consumer Climate fell to 10.4, shy of the estimate of 10.8 points. In the U.S., building permits is projected to dip to 1.32 million. CB consumer confidence is expected to improve to 132.1 points.
German consumer confidence disappointed in March. The indicator slipped to 10.4, after two successive readings of 10.8 points. With the eurozone mired in an economic slowdown and German numbers pointing to weaker growth, it’s not surprising that the German consumer is less optimistic. This release comes on the heels of German business confidence, which improved slightly in March, with a reading of 99.6 points. The markets have been accustomed to releases above the 100-level, and the February reading of 98.5 was the weakest since November 2014. The survey noted that any improvement was confined to domestic sectors, such as construction and retail services. The manufacturing sector remains weak, battered down by the ongoing global trade war, which has dampened the appetite for German exports, such as vehicles and auto parts. Germany’s economy slowed down in the fourth quarter, and this bodes poorly for the rest of the eurozone.
German consumer confidence disappointed in March. The indicator slipped to 10.4, after two successive readings of 10.8 points. With the eurozone mired in an economic slowdown and German numbers pointing to weaker growth, it’s not surprising that the German consumer is less optimistic. This release comes on the heels of German business confidence, which improved slightly in March, with a reading of 99.6 points. The markets have been accustomed to releases above the 100-level, and the February reading of 98.5 was the weakest since November 2014. The survey noted that any improvement was confined to domestic sectors, such as construction and retail services. The manufacturing sector remains weak, battered down by the ongoing global trade war, which has dampened the appetite for German exports, such as vehicles and auto parts. Germany’s economy slowed down in the fourth quarter, and this bodes poorly for the rest of the eurozone.
Monday, March 25, 2019
USD/CAD
The Canadian dollar is unchanged on Monday, after USD/CAD rallied late last week. In the North American session, the pair is trading at 1.3430, unchanged on the day. There are no economic indicators on the schedule. In the U.S., we’ll hear from two FOMC members. On Tuesday, the U.S. publishes building permits and CB consumer confidence.
The Canadian dollar ended the week on a sour note, as soft consumer spending data weighed on the currency. Retail sales fell 0.3% in January, marking a third straight decline. Core retail sales gained a negligible 0.1%, shy of the estimate of 0.2%. There was better news on the inflation front, as CPI posted a sharp gain of 0.7% in January, edging above the forecast of 0.6%. The negative effect of weak oil prices has eased, which could bode well for inflation numbers in the first quarter. Still, the outlook for the Canadian economy is cloudy, with the ongoing global trade war weighing on Canada’s export-reliant economy.
Professional Techniques For Short-Term Currency TradingThe Canadian dollar ended the week on a sour note, as soft consumer spending data weighed on the currency. Retail sales fell 0.3% in January, marking a third straight decline. Core retail sales gained a negligible 0.1%, shy of the estimate of 0.2%. There was better news on the inflation front, as CPI posted a sharp gain of 0.7% in January, edging above the forecast of 0.6%. The negative effect of weak oil prices has eased, which could bode well for inflation numbers in the first quarter. Still, the outlook for the Canadian economy is cloudy, with the ongoing global trade war weighing on Canada’s export-reliant economy.
foreign exchange market 3/25
The foreign exchange market is likely to stabilize on Monday after the sell-off in risk assets on Friday on the back of the yield curve inverting in the U.S., says ING. The three-month Treasury yield turned higher than the 10-year last week, prompting investors to worry about the future of the global economy, which then led to a sell-off in emerging market currencies. On Monday, EM currencies stage a recovery against the U.S. dollar, with the Turkish lira leading the way. USD/TRY falls 1.4% to 5.6921. "Although the U.S. yield curve inversion sent shockwaves to markets on Friday, our economists still don't see a U.S. recession either this year or next given the still solid U.S. economy
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