XAU/USD -Gold Recovers on Uncertainty over Trump Tax Plan

Gold has posted strong gains in the Wednesday session, erasing the losses from Tuesday. In North American trade, the spot price for an ounce of gold is $1285.57, up 0.83% on the day. On the release front, there are no key events on the schedule. On Thursday, the US releases unemployment claims.

After failing to pass a new healthcare act, President Trump has his sights set on tax reform, a key item in his domestic platform. Trump wants Congress to pass legislation overhauling the tax code before the end of the year, but that could prove to be too tight of a deadline. Most Democrats have come out against the proposal, and not all Republicans are on board. The bill would cut corporate taxes from 35% to 20%, but predictably, Democrat and Republican lawmakers are at odds as to whether the bill will lower taxes for the middle class. The bill is presently being debated in a congressional committee and is expected to move to the House floor next week. The Senate will present its version of the bill on Thursday, so we can expect plenty of activity in Congress in the next few weeks. Tax reform faces an uphill battle, which has weighed on investor risk appetite and pushed gold prices higher.

The labor market remains very strong, and this was reflected in another sharp employment report on Tuesday. JOLT Jobs Openings was almost unchanged at 6.09 million, easily beating the forecast of 5.98 million. Unemployment claims are also expected to show little movement on Thursday, with a forecast of 232 thousand. The unemployment rate is at a sizzling 4.1%, but wage growth remains a concern, reflective of weak inflation. In October, Average Hourly Earnings posted a flat 0.0.%, the first time wages have not increased since November 2016.

 

XAU/USD Fundamentals

Wednesday (November 8)

  • 10:30 US Crude Oil Inventories. Estimate -2.5M. Actual +2.2M
  • 13:01 US 10-year Bond Auction

Thursday (November 9)

  • 8:30 US Unemployment Claims. Estimate 232K

*All release times are GMT

*Key events are in bold

XAU/USD for Wednesday, November 8, 2017

XAU/USD November 8 at 12:35 EST

Open: 1275.20 High: 1287.26 Low: 1275.20 Close: 1285.57

XAU/USD Technical

S3 S2 S1 R1 R2 R3
1213 1240 1260 1285 1307 1337
  • 1260 is providing support
  • 1285 is under pressure in resistance
  • Current range: 1260 to 1285

Further levels in both directions:

  • Below: 1260, 1240 and 1213
  • Above: 1285, 1307, 1337 and 1367

OANDA’s Open Positions Ratio

XAU/USD ratio is showing little movement in the Wednesday session. Currently, long positions have a majority (72%), indicative of trader bias towards XAU/USD reversing directions and moving towards higher ground.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

The post XAU/USD -Gold Recovers on Uncertainty over Trump Tax Plan appeared first on Forex news – Binary options.

CAC Edges Lower, French Trade Deficit Matches Forecast

The CAC index has posted slight losses in the Wednesday session. Currently, the CAC is trading at 5,503.80, down 0.17% on the day. On the release front, there are no major events in the eurozone. France posted a trade deficit of EUR 4.7 billion, which matched the estimate.

In the eurozone, retail sales reports were mixed on Tuesday. Retail PMI came in at 51.1 in October, pointing to muted expansion in the retail sector. There was much better news from September retail sales, as gain of 0.7% came after two straight declines, and was the strongest gain since February. The markets are hoping for strong euorozone consumer spending in the fourth quarter, given the robust German economy and stronger economic conditions in the eurozone.

It’s been a banner year for global stock markets, thanks in large part to Donald Trump. Expectations that Trump will cut taxes has improved risk appetite and sent share prices higher. Investors are keeping a close eye on Trump’s determined push for tax reform. Trump wants Congress to pass legislation overhauling the tax code before the end of the year, in what is a very tight deadline. Most Democrats have come out against the proposal, and not all Republicans are on board. The bill is presently being debated in a congressional committee and is expected to move to the House floor next week. The Senate will present its version of the bill on Thursday, so we can expect plenty of activity in Congress in the next few weeks. If the Republicans can pass the bill through Congress, the CAC rally should continue. The index has looked sharp, jumping 6.9 percent since September 1.

Economic Calendar

Wednesday (November 8)

  • 2:45 French Trade Balance. Estimate -4.7B. Actual -4.7B

Thursday (November 9)

  • 4:00 ECB Economic Bulletin
  • 5:00 EU Economic Forecasts

*All release times are GMT

*Key events are in bold

CAC, Wednesday, November 8 at 8:30 EDT

Open: 5489.50 High: 5498.80 Low: 5462.50 Close: 5471.30

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

The post CAC Edges Lower, French Trade Deficit Matches Forecast appeared first on Forex news – Binary options.

EUR/USD – Euro Unchanged as Investors Search for Cues

The euro has inched lower in the Wednesday session. Currently, EUR/USD is trading at 1.1566, up 0.08% on the day. There are no major events in the eurozone or the US, it could remain a quiet day for the euro. France posted a trade deficit of EUR 4.7 billion, which matched the estimate. On Thursday, Germany releases Trade Balance and the US publishes unemployment claims.

Eurozone retail sales rebounded sharply in September, pointing to an improvement in consumer spending. The gain of 0.7% came after two straight declines, and was the strongest gain since February. The markets are hoping for strong euorozone consumer spending in the fourth quarter, given the robust German economy and stronger economic conditions in the eurozone.

German coalition talks appear to be closer to a breakthrough, as Angela Merkel’s conservative bloc and two small parties have managed to narrow gaps on taxation climate control and immigration. The parties started exploratory talks on Tuesday, and Merkel could have a government in place in December.

German Coalition Close to a Reality After Concessions Made

After failing to pass a new healthcare act, President Trump has his sights set on tax reform, a key item in his domestic platform. Trump wants Congress to pass legislation overhauling the tax code before the end of the year, but that could prove to be too tight of a deadline. Most Democrats have come out against the proposal, and not all Republicans are on board. The bill would cut corporate taxes from 35% to 20%, but predictably, Democrat and Republican lawmakers are at odds as to whether the bill will lower taxes for the middle class. The bill is presently being debated in a congressional committee and is expected to move to the House floor next week. The Senate will present its version of the bill on Thursday, so we can expect plenty of activity in Congress in the next few weeks. Expectations that Trump will cut taxes has been the catalyst for a stock market rally over the past year, and if the bill does become law, the US dollar will likely gain ground.

Next Four Days Will Be Crucial for the GOP Tax Bill

EUR/USD Fundamentals

Wednesday (November 8)

  • 2:45 French Trade Balance. Estimate -4.7B. Actual -4.7B
  • 10:30 US Crude Oil Inventories. Estimate -2.5M
  • 13:01 US 10-year Bond Auction

Thursday (November 9)

  • 2:00 German Trade Balance. Estimate 21.0B
  • 4:00 ECB Economic Bulletin
  • 5:00 EU Economic Forecasts
  • 8:30 US Unemployment Claims. Estimate 232K
  • 10:00 US Final Wholesales Inventories. Estimate 0.3%
  • 10:30 US Natural Gas Storage. Estimate 15B
  • 13:01 US 30-year Bond Auction

*All release times are GMT

*Key events are in bold

EUR/USD for Wednesday, November 8, 2017

EUR/USD for November 8 at 6:00 EDT

Open: 1.1586 High: 1.1611 Low: 1.1585 Close: 1.1597

EUR/USD Technical

S1 S2 S1 R1 R2 R3
1.1366 1.1489 1.1574 1.1657 1.1777 1.1876

EUR/USD has been flat in the Asian and European sessions

  • 1.1489 is providing support
  • 1.1574 has switched to a resistance role after losses by EUR/USD on Tuesday

Further levels in both directions:

  • Below: 1.1574, 1.1489, 1.1366 and 1.1268
  • Above: 1.1657, 1.1777 and 1.1876
  • Current range: 1.1574 to 1.1657

OANDA’s Open Positions Ratio

EUR/USD is unchanged this week. Currently, short positions have a majority (62%), indicative of EUR/USD continuing to move downwards.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

The post EUR/USD – Euro Unchanged as Investors Search for Cues appeared first on Forex news – Binary options.

USD/JPY – Tax Reform Bill, Strong US Job Report Pushes Dollar Higher

USD/JPY has posted gains in the Tuesday session, erasing the gains seen on Monday. In North American trade, USD/JPY is trading at 114.09 up 0.34% on the day. On the release front, Japanese Average Cash Earnings remained unchanged at 0.9%, above the forecast of 0.6%. In the US, JOLT Job Openings edged up to 6.09 million, easily beating the estimate of 5.98 million. Later in the day, Fed Chair Janet Yellen will speak at an event in Washington.

Investors can expect more of the same from the Bank of Japan regarding its ultra-accommodative stimulus package. The minutes from the October meeting indicated that many of the board members were satisfied that the inflation target of around 2 percent would be met under current policy, even though inflation has persistently remained well below the target. BoJ Governor Kuroda echoed the message in the minutes, expressing optimism that the improving economy will boost inflation. Kuroda called the economic expansion “highly sustainable”, and the markets took his optimism as a sign that the BoJ has no plans to inject further stimulus in the near future.

The markets are wishing President Trump godspeed, as he tries to pass his tax reform bill through Congress. If Trump is successful, it would mark the first major tax reform since President Reagan was president. Trump suffered a humiliating defeat with his failed health care proposal, and the President has now set his sights on tax reform. Trump wants new legislation in place before the end of the year, but that will be a tall order, as most Democrats have come out against the proposal and not all Republicans are on board. The bill would cut corporate taxes from 35% to 20%, but predictably, Democrat and Republican lawmakers are at odds as to whether the bill will lower taxes for the middle class. Expectations that Trump will cut taxes has been the catalyst for a stock market rally over the past year, and if the bill does become law, the US dollar will likely gain ground.

U.S Tax Reform Optimism Fuels Markets

USD/JPY Fundamentals

Monday (November 6)

  • 19:00 Japanese Average Cash Earnings. Estimate 0.6%. Actual 0.9%

Tuesday (November 7)

  • 10:00 US IBD/TIPP Economic Optimism. Estimate 51.2. Actual 53.6
  • 10:00 US JOLTS Job Openings. Estimate 5.98M. Actual 6.09M
  • 12:35 US FOMC Member Randal Quarles Speaks
  • 14:30 US Federal  Reserve Chair Janet Yellen Speaks
  • 15:00 US Consumer Credit. Estimate 18.4B

*All release times are GMT

*Key events are in bold

USD/JPY for Tuesday, November 7, 2017

USD/JPY November 7 at 11:00 EDT

Open: 113.71 High: 114.34 Low: 113.70 Close: 114.05

USD/JPY Technical

S3 S2 S1 R1 R2 R3
111.53 112.57 113.55 114.49 115.50 116.54

USD/JPY edged higher in the Asian and European sessions but retracted in European trade. The pair is steady in the North American session

  • 113.55 is providing support
  • 114.49 is the next resistance line

Current range: 113.55 to 114.49

Further levels in both directions:

  • Below: 113.55, 112.57, 110.94 and 110.10
  • Above: 114.49, 115.50 and 116.54

OANDA’s Open Positions Ratios

USD/JPY ratio is showing slight movement towards short positions. Currently, short positions have a majority (56%), indicative of trader bias towards USD/JPY reversing directions and moving upwards.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

The post USD/JPY – Tax Reform Bill, Strong US Job Report Pushes Dollar Higher appeared first on Forex news – Binary options.

USD/JPY – Tax Reform Bill, Strong US Job Report Pushes Dollar Higher

USD/JPY has posted gains in the Tuesday session, erasing the gains seen on Monday. In North American trade, USD/JPY is trading at 114.09 up 0.34% on the day. On the release front, Japanese Average Cash Earnings remained unchanged at 0.9%, above the forecast of 0.6%. In the US, JOLT Job Openings edged up to 6.09 million, easily beating the estimate of 5.98 million. Later in the day, Fed Chair Janet Yellen will speak at an event in Washington.

Investors can expect more of the same from the Bank of Japan regarding its ultra-accommodative stimulus package. The minutes from the October meeting indicated that many of the board members were satisfied that the inflation target of around 2 percent would be met under current policy, even though inflation has persistently remained well below the target. BoJ Governor Kuroda echoed the message in the minutes, expressing optimism that the improving economy will boost inflation. Kuroda called the economic expansion “highly sustainable”, and the markets took his optimism as a sign that the BoJ has no plans to inject further stimulus in the near future.

The markets are wishing President Trump godspeed, as he tries to pass his tax reform bill through Congress. If Trump is successful, it would mark the first major tax reform since President Reagan was president. Trump suffered a humiliating defeat with his failed health care proposal, and the President has now set his sights on tax reform. Trump wants new legislation in place before the end of the year, but that will be a tall order, as most Democrats have come out against the proposal and not all Republicans are on board. The bill would cut corporate taxes from 35% to 20%, but predictably, Democrat and Republican lawmakers are at odds as to whether the bill will lower taxes for the middle class. Expectations that Trump will cut taxes has been the catalyst for a stock market rally over the past year, and if the bill does become law, the US dollar will likely gain ground.

U.S Tax Reform Optimism Fuels Markets

USD/JPY Fundamentals

Monday (November 6)

  • 19:00 Japanese Average Cash Earnings. Estimate 0.6%. Actual 0.9%

Tuesday (November 7)

  • 10:00 US IBD/TIPP Economic Optimism. Estimate 51.2. Actual 53.6
  • 10:00 US JOLTS Job Openings. Estimate 5.98M. Actual 6.09M
  • 12:35 US FOMC Member Randal Quarles Speaks
  • 14:30 US Federal  Reserve Chair Janet Yellen Speaks
  • 15:00 US Consumer Credit. Estimate 18.4B

*All release times are GMT

*Key events are in bold

USD/JPY for Tuesday, November 7, 2017

USD/JPY November 7 at 11:00 EDT

Open: 113.71 High: 114.34 Low: 113.70 Close: 114.05

USD/JPY Technical

S3 S2 S1 R1 R2 R3
111.53 112.57 113.55 114.49 115.50 116.54

USD/JPY edged higher in the Asian and European sessions but retracted in European trade. The pair is steady in the North American session

  • 113.55 is providing support
  • 114.49 is the next resistance line

Current range: 113.55 to 114.49

Further levels in both directions:

  • Below: 113.55, 112.57, 110.94 and 110.10
  • Above: 114.49, 115.50 and 116.54

OANDA’s Open Positions Ratios

USD/JPY ratio is showing slight movement towards short positions. Currently, short positions have a majority (56%), indicative of trader bias towards USD/JPY reversing directions and moving upwards.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

The post USD/JPY – Tax Reform Bill, Strong US Job Report Pushes Dollar Higher appeared first on Forex news – Binary options.

USD/CAD – Canadian Dollar Dips, Investors Eye Poloz, Yellen Speeches

The Canadian dollar has posted losses in the Tuesday session, erasing the gains from Monday. Currently, USD/CAD is trading at 1.2763, up 0.43% on the day. On the release front, there are no Canadian indicators on the schedule. Bank of Canada Governor Stephen Poloz will speak at event in Montreal. In the US, today’s highlight JOLTS Job Openings, which is expected to soften to 5.98 million. As well, Fed Chair Janet Yellen will deliver remarks at an event in Washington.

Will Donald Trump succeed in overhauling the tax code for the first time in 30 years? Trump suffered a humiliating defeat with his failed health care proposal, and the President has now set his sights on tax reform. Trump wants Congress to pass legislation overhauling the tax code before the end of the year, but that will be a tall order, as most Democrats have come out against the proposal, and not all Republicans are on board. The bill would cut corporate taxes from 35% to 20%, but predictably, Democrat and Republican lawmakers are at odds as to whether the bill will lower taxes for the middle class. Expectations that Trump will cut taxes has been the catalyst for a stock market rally over the past year, and if the bill does become law, the US dollar will likely gain ground.

The Bank of Canada has said that it has no plans to raise interest rates, but it may have to reconsider if Canadian employment numbers continue to impress. In October, the economy produced 35.3 thousand jobs, well above the estimate of 15.3 thousand. This marked the highest gain since June. South of the border, job numbers were a disappointment. After a decline in September, a result of the hurricanes which battered the US, nonfarm payrolls rebounded sharply with a reading of 261 thousand. This was a respectable number, but still fell short of the forecast of 312 thousand. Wage growth also disappointed, slowing to 0.0%, short of the estimate of 0.2%. This marked the first time in 2017 that wage growth did not increase, underlining persistent weak inflation. Although Fed Chair Yellen and other Fed policymakers have expressed confidence that inflation levels will rise, this is still yet to occur, despite strong growth and a labor market at capacity.

 

USD/CAD Fundamentals

Tuesday (November 7)

  • 10:00 US IBD/TIPP Economic Optimism. Estimate 51.2
  • 10:00 US JOLTS Job Openings. Estimate 5.98M
  • 12:35 US FOMC Member Randal Quarles Speaks
  • 12:55 BoC Governor Stephen Poloz Speaks
  • 14:30 US Federal  Reserve Chair Janet Yellen Speaks
  • 15:00 US Consumer Credit. Estimate 18.4B

Wednesday (November 8)

  • 8:15 Canadian Housing Starts. Estimate 220K
  • 8:30 Canadian Building Permits

*All release times are GMT

*Key events are in bold

 

USD/CAD for Tuesday, November 7, 2017

USD/CAD Monday, November 7 at 7:00 EDT

Open: 1.2704 High: 1.2767 Low: 1.2703 Close: 1.2763

 

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2441 1.2598 1.2701 1.2778 1.2943 1.3032

USD/CAD was flat in the Asian session and has posted gains in European trade

  • 1.2701 is providing support
  • 1.2778 is under pressure in resistance
  • Current range: 1.2701 to 1.2778

Further levels in both directions:

  • Below: 1.2701, 1.2598 and 1.2441
  • Above: 1.2778, 1.2943, 1.3032 and 1.3126

OANDA’s Open Positions Ratio

USD/CAD ratio is unchanged in the Tuesday session. Currently, long and short positions are almost evenly split, indicative of a lack of trader bias as to what direction USD/CAD takes next.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

The post USD/CAD – Canadian Dollar Dips, Investors Eye Poloz, Yellen Speeches appeared first on Forex news – Binary options.

USD/CAD – Canadian Dollar Dips, Investors Eye Poloz, Yellen Speeches

The Canadian dollar has posted losses in the Tuesday session, erasing the gains from Monday. Currently, USD/CAD is trading at 1.2763, up 0.43% on the day. On the release front, there are no Canadian indicators on the schedule. Bank of Canada Governor Stephen Poloz will speak at event in Montreal. In the US, today’s highlight JOLTS Job Openings, which is expected to soften to 5.98 million. As well, Fed Chair Janet Yellen will deliver remarks at an event in Washington.

Will Donald Trump succeed in overhauling the tax code for the first time in 30 years? Trump suffered a humiliating defeat with his failed health care proposal, and the President has now set his sights on tax reform. Trump wants Congress to pass legislation overhauling the tax code before the end of the year, but that will be a tall order, as most Democrats have come out against the proposal, and not all Republicans are on board. The bill would cut corporate taxes from 35% to 20%, but predictably, Democrat and Republican lawmakers are at odds as to whether the bill will lower taxes for the middle class. Expectations that Trump will cut taxes has been the catalyst for a stock market rally over the past year, and if the bill does become law, the US dollar will likely gain ground.

The Bank of Canada has said that it has no plans to raise interest rates, but it may have to reconsider if Canadian employment numbers continue to impress. In October, the economy produced 35.3 thousand jobs, well above the estimate of 15.3 thousand. This marked the highest gain since June. South of the border, job numbers were a disappointment. After a decline in September, a result of the hurricanes which battered the US, nonfarm payrolls rebounded sharply with a reading of 261 thousand. This was a respectable number, but still fell short of the forecast of 312 thousand. Wage growth also disappointed, slowing to 0.0%, short of the estimate of 0.2%. This marked the first time in 2017 that wage growth did not increase, underlining persistent weak inflation. Although Fed Chair Yellen and other Fed policymakers have expressed confidence that inflation levels will rise, this is still yet to occur, despite strong growth and a labor market at capacity.

 

USD/CAD Fundamentals

Tuesday (November 7)

  • 10:00 US IBD/TIPP Economic Optimism. Estimate 51.2
  • 10:00 US JOLTS Job Openings. Estimate 5.98M
  • 12:35 US FOMC Member Randal Quarles Speaks
  • 12:55 BoC Governor Stephen Poloz Speaks
  • 14:30 US Federal  Reserve Chair Janet Yellen Speaks
  • 15:00 US Consumer Credit. Estimate 18.4B

Wednesday (November 8)

  • 8:15 Canadian Housing Starts. Estimate 220K
  • 8:30 Canadian Building Permits

*All release times are GMT

*Key events are in bold

 

USD/CAD for Tuesday, November 7, 2017

USD/CAD Monday, November 7 at 7:00 EDT

Open: 1.2704 High: 1.2767 Low: 1.2703 Close: 1.2763

 

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2441 1.2598 1.2701 1.2778 1.2943 1.3032

USD/CAD was flat in the Asian session and has posted gains in European trade

  • 1.2701 is providing support
  • 1.2778 is under pressure in resistance
  • Current range: 1.2701 to 1.2778

Further levels in both directions:

  • Below: 1.2701, 1.2598 and 1.2441
  • Above: 1.2778, 1.2943, 1.3032 and 1.3126

OANDA’s Open Positions Ratio

USD/CAD ratio is unchanged in the Tuesday session. Currently, long and short positions are almost evenly split, indicative of a lack of trader bias as to what direction USD/CAD takes next.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

The post USD/CAD – Canadian Dollar Dips, Investors Eye Poloz, Yellen Speeches appeared first on Forex news – Binary options.

USD/CAD – Canadian Dollar Dips, Investors Eye Poloz, Yellen Speeches

The Canadian dollar has posted losses in the Tuesday session, erasing the gains from Monday. Currently, USD/CAD is trading at 1.2763, up 0.43% on the day. On the release front, there are no Canadian indicators on the schedule. Bank of Canada Governor Stephen Poloz will speak at event in Montreal. In the US, today’s highlight JOLTS Job Openings, which is expected to soften to 5.98 million. As well, Fed Chair Janet Yellen will deliver remarks at an event in Washington.

Will Donald Trump succeed in overhauling the tax code for the first time in 30 years? Trump suffered a humiliating defeat with his failed health care proposal, and the President has now set his sights on tax reform. Trump wants Congress to pass legislation overhauling the tax code before the end of the year, but that will be a tall order, as most Democrats have come out against the proposal, and not all Republicans are on board. The bill would cut corporate taxes from 35% to 20%, but predictably, Democrat and Republican lawmakers are at odds as to whether the bill will lower taxes for the middle class. Expectations that Trump will cut taxes has been the catalyst for a stock market rally over the past year, and if the bill does become law, the US dollar will likely gain ground.

The Bank of Canada has said that it has no plans to raise interest rates, but it may have to reconsider if Canadian employment numbers continue to impress. In October, the economy produced 35.3 thousand jobs, well above the estimate of 15.3 thousand. This marked the highest gain since June. South of the border, job numbers were a disappointment. After a decline in September, a result of the hurricanes which battered the US, nonfarm payrolls rebounded sharply with a reading of 261 thousand. This was a respectable number, but still fell short of the forecast of 312 thousand. Wage growth also disappointed, slowing to 0.0%, short of the estimate of 0.2%. This marked the first time in 2017 that wage growth did not increase, underlining persistent weak inflation. Although Fed Chair Yellen and other Fed policymakers have expressed confidence that inflation levels will rise, this is still yet to occur, despite strong growth and a labor market at capacity.

 

USD/CAD Fundamentals

Tuesday (November 7)

  • 10:00 US IBD/TIPP Economic Optimism. Estimate 51.2
  • 10:00 US JOLTS Job Openings. Estimate 5.98M
  • 12:35 US FOMC Member Randal Quarles Speaks
  • 12:55 BoC Governor Stephen Poloz Speaks
  • 14:30 US Federal  Reserve Chair Janet Yellen Speaks
  • 15:00 US Consumer Credit. Estimate 18.4B

Wednesday (November 8)

  • 8:15 Canadian Housing Starts. Estimate 220K
  • 8:30 Canadian Building Permits

*All release times are GMT

*Key events are in bold

 

USD/CAD for Tuesday, November 7, 2017

USD/CAD Monday, November 7 at 7:00 EDT

Open: 1.2704 High: 1.2767 Low: 1.2703 Close: 1.2763

 

USD/CAD Technical

S3 S2 S1 R1 R2 R3
1.2441 1.2598 1.2701 1.2778 1.2943 1.3032

USD/CAD was flat in the Asian session and has posted gains in European trade

  • 1.2701 is providing support
  • 1.2778 is under pressure in resistance
  • Current range: 1.2701 to 1.2778

Further levels in both directions:

  • Below: 1.2701, 1.2598 and 1.2441
  • Above: 1.2778, 1.2943, 1.3032 and 1.3126

OANDA’s Open Positions Ratio

USD/CAD ratio is unchanged in the Tuesday session. Currently, long and short positions are almost evenly split, indicative of a lack of trader bias as to what direction USD/CAD takes next.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

The post USD/CAD – Canadian Dollar Dips, Investors Eye Poloz, Yellen Speeches appeared first on Forex news – Binary options.

Gold Starts Week With Strong Gains

Gold has posted considerable gains in the Monday session. In North American trade, the spot price for an ounce of gold is $1282.27, up 1.05% on the day. On the release front, there are no major events on the schedule. William Dudley, President of the New York Federal Reserve, announced his retirement. On Tuesday, Fed Chair Janet Yellen will speak at an event in Washington.

US numbers ended the week on a disappointing note, as payrolls and wage growth missed their forecasts. After a decline in September, a result of the hurricanes which battered the US, nonfarm payrolls rebounded sharply with a reading of 261 thousand. This was a respectable number, but still fell short of the forecast of 312 thousand. Wage growth also disappointed, slowing to 0.0%, short of the estimate of 0.2%. This marked the first time in 2017 that wage growth did not increase, underlining persistent weak inflation. Although Fed Chair Yellen and other Fed policymakers have expressed confidence that inflation levels will rise, this is still yet to occur, despite strong growth and a labor market at capacity.

The Federal Reserve remains in the news, after FOMC member William Dudley announced that he will retire in mid-2018. This move could have implications for monetary policy, depending on who will replace Dudley. A possible candidate is Kevin Warsh, who made the short list for the successor to Fed Chair Janet Yellen. Warsh is in favor of higher rates and favors less regulation of the banking sector, and if he would certainly support a more hawkish stance on monetary policy.

 

XAU/USD Fundamentals

Monday (November 6)

  • 12:10 US FOMC Member William Dudley Speaks
  • Tentative – US Loan Officer Survey

Tuesday (November 7)

  • 14:30 US Federal Chair Janet Yellen Speaks

*All release times are GMT

*Key events are in bold

 

XAU/USD for Monday, November 6, 2017

XAU/USD November 6 at 12:20 EST

Open: 1268.90 High: 1280.84 Low: 1266.02 Close: 1282.27

 

XAU/USD Technical

S3 S2 S1 R1 R2 R3
1213 1240 1260 1285 1307 1337
  • XAU/USD showed little movement in the Asian and European sessions. The pair has posted strong gains in North American trade
  • 1260 is providing support
  • 1285 is the next resistance line
  • Current range: 1260 to 1285

Further levels in both directions:

  • Below: 1260, 1240 and 1213
  • Above: 1285, 1307, 1337 and 1367

OANDA’s Open Positions Ratio

In the Monday session, XAU/USD ratio is showing long positions with a majority (72%). This is indicative of trader bias towards XAU/USD continuing to move towards to higher ground.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

The post Gold Starts Week With Strong Gains appeared first on Forex news – Binary options.

GBP/USD – Pound Claws Back After BoE Setback

The British pound has posted gains at the start of the week. In Monday’s North American trade, GBP/USD is trading at 1.3121, up 0.35% on the day. On the release front, there are no major releases out of the UK or the US. The UK will release British BRC Retail Sales Monitor, an important consumer spending indicator. On Tuesday, the UK releases Halifax HPI and Fed Chair Janet Yellen will speak at event in Washington.

After taking a bath on Thursday, the British pound has made up some ground. The pound plunged 1.4 percent after the BoE raised rates for the first time since 2007. The rate hike had been expected for weeks, and the markets treated the BoE’s move as a dovish rate, as the Bank indicated that this could be a “one and done” rate hike, given that the UK economy has lost a step, and the uncertainty of Brexit continues to concern investors. Thursday’s rate hike reversed the rate cut back in August 2016, which was an “emergency cut” which the cautious BoE implemented to cushion the economy following the stunning Brexit vote in June 2016.

The Federal Reserve remains in the news, after FOMC member William Dudley announced that he will retire in mid-2018. This move could have implications for monetary policy, depending on who will replace Dudley. A possible candidate is Kevin Warsh, who made the short list for the successor to Fed Chair Janet Yellen. Warsh is in favor of higher rates and favors less regulation of the banking sector.

New York Fed President Dudley to Retire

On Thursday, US President Trump nominated Federal Reserve Governor Jerome Powell to head the Federal Reserve. Powell will take over in February 2018 when Yellen’s term expires. Powell is expected to hold the course with monetary policy, which has been marked by incremental and small rate hikes since December 2015. It’s all but a given that the Fed will raise interest rates in December, but the forecast for 2018 is less clear. If the US economy continues to grow at current levels, we could see up to three rate hikes next year. Powell will also be tasked with continuing to trim the Fed’s huge balance sheet of $4.2 billion. Last month, the Fed has started trimming the balance sheet by $10 billion/mth, but these cuts are expected to increase in size next year.

 

GBP/USD Fundamentals

Monday (November 6)

  • 12:10 US FOMC Member William Dudley Speaks
  • Tentative – US Loan Officer Survey
  • 19:01 British BRC Retail Sales Monitor

Tuesday (November 7)

  • 3:30 British Halifax HPI. Estimate 0.2%
  • 14:30 US Federal Chair Janet Yellen Speaks

*All release times are GMT

*Key events are in bold

 

GBP/USD for Monday, November 6, 2017

GBP/USD November 6 at 11:15 EDT

Open: 1.3067 High: 1.3127 Low: 1.3059 Close: 1.3121

 

GBP/USD Technical

S1 S2 S1 R1 R2 R3
1.2705 1.2811 1.3022 1.3122 1.3224 1.3347

GBP/USD edged higher in the Asian session. The pair plunged in the European session and continues to move lower in North American trade

  • 1.3022 is providing support
  • 1.3122 has switched to a resistance role following sharp losses by GBP/USD on Thursday. It remains a weak line

Further levels in both directions:

  • Below: 1.3022, 1.2904, 1.2811 and 1.2705
  • Above: 1.3122, 1.3224 and 1.3347
  • Current range: 1.3022 to 1.3122

OANDA’s Open Positions Ratio

On Monday, GBP/USD ratio is showing long positions with a strong majority (60%). This is indicative of trader bias towards GBP/USD continuing to move higher.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

The post GBP/USD – Pound Claws Back After BoE Setback appeared first on Forex news – Binary options.