Tag Archives: automated trading

U.S. Dollar Higher Amid Coronavirus Fears

The U.S. dollar firmed against its major counterparts in the European session on Friday, as investors sought safe-haven assets following grim Eurozone business survey, as well as continued COVID-19 concerns after virus cases exceeded one million. The IHS Markit eurozone services purchasing managers index slumped to a reading of 26.4 in March from 52.6 in February, the worst-ever reading in the history of the series, as the covid-19 pandemic and associated measures taken to contain the outbreak through Europe weighed heavily on business performance. The number of confirmed coronavirus cases crossed the 1 million mark globally with a death toll of 53,030, according to the new tally from Johns Hopkins University. Around 1,015,403 people have been diagnosed with the novel coronavirus across the world. Investors didn’t react to the disappointing U.S. jobs data for March. Data from the Labor Department showed that the U.S. employment fell much more than expected in the month of March. The report said employment plunged by 701,000 jobs in March after jumping by an upwardly revised 275,000 jobs in February. Economists had expected employment to slump by 100,000 jobs compared to the addition of 273,000 jobs originally reported for the previous month. With the much…

*ISM U.S. Non-Manufacturing Index Drops To 52.5 In March

ISM U.S. Non-Manufacturing Index Drops To 52.5 In March The material has been provided by InstaForex Company – www.instaforex.com…

Comprehensive analysis of movement options of AUD/USD, USD/CAD, and NZD/USD (daily) in April 2020. The analysis of the APLs

Minor operational scale (daily time frame)
In the second month of spring – what will happen with the “raw” currencies AUD/USD, USD/CAD, and NZD/USD? Overview of the development of the traffic movement from April 4, 2020.____________________
Australian Dollar vs US Dollar
Testing and direction of the range breakdown:
resistance level of 0.6100 – median line minute;support level of 0.6000 – the upper border of the channel 1/2 median line fork operational scale minuteIt will determine the development of the movement of the Australian dollar AUD/USD from April 4, 2020.
Sequential breakdown of support levels:
0.6000 – upper limit of the channel 1/2ML minute;0.5965 – lower bound of ISL61.8 equilibrium zone of the forks of the operational scale minor;0.5930 – lower bound of ISL61. 8 equilibrium zone of the forks of the operational scale minute;Confirm the development of the movement of the Australian dollar in the channel 1/2 median line minute (0.6000 – 0.5860 – 0.5730) with the prospect of reaching the minimum price of 0.5510.
When sharing the breakdown of the median lines (resistance of 0.6100) and median line minor (0.6130) – option of the movement AUD/USD to the upper limit of ISL61.8 (0.6240) zone equilibrium fork operational scale minute and channel borders 1/2 median line (0.6275 -…

Sweden Services Sector Activity Weakest Since 2012

Sweden’s services sector contracted at the fastest rate in 15 years to hit its lowest level since 2012, survey data from Swedbank and the logistics association SILF showed on Wednesday. The Purchasing Managers’ Index for the services sector decreased to 46.9 in March from 56.4 in February.Any reading below 50 suggests contraction in the sector. The latest monthly decline was the largest in the survey’s fifteen-year history and the reading was the lowest since 2012. The order index and production sub-indices recorded the biggest declines in March followed by employment. The sub-index for the suppliers’ delivery times increased for the second straight month, reaching a record high. “Normally, rising delivery times mean increased demand pressure, but this time it is rather a lack of supply that contributes to longer delivery times partly because of the corona virus and closed borders,” Swedbank analyst Jorgen Kennemar said. Service sector companies plans contracted in March, which indicates a darker economic outlook in the future. The Composite PMI, which combines manufacturing and services, fell to 45.9 in March from 55.4 in the previous month. The material has been provided by InstaForex Company – www.instaforex.com…

Pound Falls Sharply As U.K. Services PMI Shrinks To Record Low

The pound moved down against its major counterparts in the European session on Friday, as coronavirus cases exceeded one million worldwide and U.K. service sector activity slumped in March amid business shutdowns and order cancellations in response to the coronavirus pandemic. Survey data from IHS Markit/CIPS showed that the U.K. services PMI fell to 34.5 in March from 53.2 in February. This was also weaker than the flash estimate of 35.7. This reading was the lowest since the survey began in July 1996. The composite output index dropped to 36.0 in March from 53.0 in February. The flash score was 37.1. Weak Eurozone purchasing manager data rekindled recession concerns. The IHS Markit eurozone services purchasing managers index slumped to a reading of 26.4 in March from 52.6 in February, the worst-ever reading in the history of the series, as the covid-19 pandemic and associated measures taken to contain the outbreak through Europe weighed heavily on business performance. The pound fell to 132.95 against the yen, from a high of 134.09 set at 7:00 pm ET. The next likely support for the pound is seen around the 127.00 level. The latest survey from Jibun Bank showed that the services…

Spain Industrial Production Decline Slows In February

Spain’s industrial production fell at a softer pace in February, data from the statistical office INE showed on Friday. Industrial production declined a calendar adjusted 1.3 percent annually in February, following a 2.2 percent fall in January. Energy output had the biggest decline of 4.1 percent annually in February and non-durable consumer goods decreased 1.2 percent. Meanwhile, durable consumer goods remained unchanged. On an unadjusted basis, industrial output rose 0.1 percent in February, after a 3.8 percent decline in the preceding month. On a month-on-month basis, industrial production remained unchanged in February. The material has been provided by InstaForex Company – www.instaforex.com…

Eurozone Private Sector Logs Record Fall In March

The euro area private sector logged its biggest monthly fall on record in March as the coronavirus disease, or covid-19, pandemic impacted heavily on economic activity, final data from IHS Markit showed Friday. The final composite output index fell sharply to 29.7 in March from 51.6 in February. This was also weaker than the flash estimate of 31.4. Both services and manufacturing sectors recorded notable declines in output in March. Manufacturers posted the sharpest fall in production since April 2009. At the same time, services activity declined at a record pace. The final services Purchasing Managers’ Index plunged to a record low of 26.4 from 52.6 a month ago. The reading was also below the preliminary estimate of 28.4. The covid-19 pandemic and associated measures taken to contain the outbreak through Europe weighed heavily on business performance. Chris Williamson, chief business economist at IHS Markit said, the data indicate that the eurozone economy is already contracting at an annualized rate approaching 10 percent, with worse inevitably to come in the near future. Incoming new work deteriorated to the greatest extent in the 22-year survey history. Further, confidence about the future was the lowest recorded by the survey since…

GBP/USD: plan for the US session on April 3. Bears are counting on a major flight of the pound down. The support of 1.2315

To open long positions on GBPUSD, you need:Bears managed to gain a foothold below the support of 1.2315 in the first half of the day after very poor data on activity in the UK services sector. This is clearly visible on the 5-minute chart. However, the continuation of the downward trend in the pound will depend on data on the state of the US labor market. In the second half of the day, the bulls urgently need to return a pair back to the level of 1.2315, since only in this scenario will it be possible to maintain the advantage. If the decline continues in GBP / USD, it is best to return to long positions only after the support test of 1.2150 or to rebound from the larger minimum of 1.1985, in the expectation of correction of 60-70 within the day. A breakout and consolidation above 1.2315 will push purchases to the maximum area of 1.2473, where I recommend fixing the profits.To open short positions on GBPUSD, you need:The bears coped with the weekly task and broke below the support of 1.2315 from the 5th time. Sellers of the pound in the second half of the day need to achieve…

Will the dollar stop plan B?

All attempts by the Fed to rein in the US dollar were futile. Neither a sharp reduction in the federal funds rate, nor the launch of unlimited purchases of Treasury and mortgage bonds under QE, nor the transfer of liquidity to foreign central banks using swaps and repos has dampened investors’ interest in buying the USD index. If this continues, I am afraid that currency interventions will be necessary. According to BofA Merrill Lynch, this will happen when the EUR/USD pair falls to 1.05.
In theory, this scale of dollar liquidity and the rapid expansion of the Fed’s balance sheet should have knocked the “American” down. Nevertheless, the number of supporters of the “dollar smile” theory is growing rapidly. It assumes that at the first stage, the USD index is strengthened due to the strength of the US economy and the associated inflow of capital to the US securities market. When a recession begins, the dollar peaks as investors flee to safe-haven assets. Then, thanks to those who want to save stock indices from falling into the abyss with the help of aggressive monetary expansion, the Fed forms the bottom of the smile. After that, the dollar begins to grow again, as…

Analysis for Gold 04.03.2020 – Watch for the potential breakout of the channel to confirm downside. Gold is at the major

Corona virus news:China seeks to lead amid talk of 10m potential global casesResidents of Wuhan, the Chinese city where the Covid-19 pandemic began, have been told to stay indoors and remain vigilant ahead of an easing of travel restrictions. Meanwhile, Beijing is stepping up a media campaign in the west to frame its handling of the disease as an example of global leadership. The country’s Covid-19 statistics have been called into question, but on Thursday China recorded just 31 new cases, 29 of them in people arriving from other countries.Technical analysis: Gold has been trading upwards.The price tested and rejected of the very important pivot level at $1.619, which is sign that there is potential for downside rotation.I found the upward channel that is active and the eventual breakout to the downside may confirm further drop towards the levels at $1.566 and $1.515. Selling opportunities will be preferable in case of the downside break.If you see the breakout of $1.620 level, watch for buying opportunities on the dips with the target at $1.643. Stochastic oscillator is showing overbought condition and potential for the downside movement.Intraday resistance level is set at the price of $1.619Support levels and downward targets are set at…