iFOREX Daily Analysis – 26/11/2015
iFOREX | Nov 26, 2015 05:25AM ET
The U.S. dollar rallied to a fresh eight-month high against a basket of six other major currencies on Wednesday, after a deluge of mostly upbeat U.S. economic data reinforced the case for a Fed rate hike next month, in its December 15-16 meeting.
The U.S. Commerce Department reported on Wednesday that new home sales rose by 10.7% to 495,000 units last month. The report came shortly after the U.S. Department of Labor said first time jobless claims declined by 12,000 last week to 260,000, from the previous week’s revised total of 272,000. Analysts expected jobless claims to fall by 2,000 last week. A separate report showed that durable goods orders jumped 3.0% in October, easily surpassing forecasts for 1.5%. Core durable goods orders, excluding volatile transportation items, rose 0.5%, beating expectations for an increase of 0.3%.
Today U.S. markets will be closed for the Thanksgiving holiday and Friday will be a half day, resulting in thin liquidity conditions.
EUR/USD
The U.S. dollar rallied to a fresh eight-month high against a basket of six other major currencies on Wednesday, after a deluge of mostly upbeat U.S. economic data reinforced the case for a Fed rate hike next month, in its December 15-16 meeting.
The U.S. Commerce Department reported on Wednesday that new home sales rose by 10.7% to 495,000 units last month. The report came shortly after the U.S. Department of Labor said first time jobless claims declined by 12,000 last week to 260,000, from the previous week’s revised total of 272,000. Analysts expected jobless claims to fall by 2,000 last week. A separate report showed that durable goods orders jumped 3.0% in October, easily surpassing forecasts for 1.5%. Core durable goods orders, excluding volatile transportation items, rose 0.5%, beating expectations for an increase of 0.3%.
Today U.S. markets will be closed for the Thanksgiving holiday and Friday will be a half day, resulting in thin liquidity conditions.
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Gold
Gold inched down on Wednesday amid a stronger dollar, as mixed U.S. inflation data for October largely lacked the firepower to sway policymakers at the Federal Reserve, as it weighs whether to raise short-term interest rates at a critical meeting next month.
Over the last several weeks, a number of key policymakers from the Federal Open Market Committee have sent strong indications that it is ready to tighten policy as the economy and labor market continues to show improvement. Earlier this month, Fed vice chairman Stanley Fischer said he believes that long-term inflation will move back toward its targeted goal of 2% as temporary factors from a stronger dollar and weaker energy prices continue to recede.
Pivot:1067Support:10671063.51061Resistance:1081.210841088Scenario 1:Long positions above 1067 with targets @ 1081.2 & 1084 in extension.Scenario 2:Below 1067 look for further downside with 1063.5 & 1061 as targets.Comment:The RSI is above its neutrality area at 50%.
WTI Oil
Crude oil inched up on Wednesday after reversing territory late in the session, as global oversupply and the wide-ranging geopolitical ramifications of the downing of a Russian jet by Turkey remained in focus.
On Wednesday morning, the U.S. Energy Information Administration said that U.S. commercial crude inventories rose by 1.0 million barrels for the week ending on November 20, slightly below expectations of a 1.1 million barrel build. It came one day after the American Petroleum Institute reported an increase of 2.6 million barrel in crude stockpiles last week.
Elsewhere, at a press conference on Wednesday morning U.S. president Barack Obama continued to outline the nation's plan of attack in collaboration with more than 60 other nations as part of a comprehensive effort to defeat terrorists from the Islamic State. Obama also urged Turkey president Erdogan to take steps to prevent any escalation of Tuesday's downing of a Russian fighter jet on the Turkish-Syrian border.
NASDAQ 100
The major U.S. indexes were virtually unchanged at the close of a quiet trading day on Wednesday with gains in healthcare and consumer stocks after data showed U.S. modest economic growth.
Trading volume was low as many market participants were away in the last session before the U.S. Thanksgiving holiday.
The Dow Jones industrial average rose 0.01% to 17,813.39, the S&P lost 0.01% to 2,088.87 and the Nasdaq added 0.26% to 5,116.14.
Traders are now turning their focus to the crucial U.S. holiday shopping season, which starts around Thanksgiving, and which is considered to be the key, the swing factor, for the next couple of weeks. Infact by analyzing how holiday sales shape up investors can gain more information on the status of the American economy.
Markets will be closed today and most of Friday afternoon.
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