the daily chartist

WTI Crude Oil recap for 15.09.2015

published 5 years ago
WTI Daily

 Crude is still in a correction zone trading from 39.51 to 48.58 and currently supported from the production cut outlook from the Middle East. Lets note that the price finds renewed support at the levels from 18.03.2015 and 29.01.2015 as historical bottoms. This was a double-bottom configuration back then and it did played out very well. Today we have Crude Oil Inventories coming up and expectations are that they will drop at 0.7 M barrels from the previous 2.6 M barrels. For a positive move in Oil we must have in mind the fact that US has decline in shale output and last week the American Petroleum Institute reported a 3.1 million barrels drop in inventories. Also White House withdrew its support for House bill to lift ban on US crude exports, effectively prolong the US supply glut. Currently, US shale oil can only be sold to Canada and in a much lesser extend to Mexico. We will see today's report how will come up. On the downside - 44.34 is a support if it brakes from the volatility ahead the price may free fall to 39.51 again and if it supported by the glut from shortage of barrels, the price may again go up to 48.58. From there, if supported by the strong demand and lesser over-supply from the Middle East, US and shale output continues to decline, we may see Crude going up to 52.82.  

USD/JPY recap for 15.09.2015

published 5 years ago

 No major events for the Yen yesterday except for Kuroda's speech. As noted, the zone around 119.267 is a buy zone and the price dipped as the speech went on to the zone and then bounced back sharply for 80 pips for a close at 120.403. The pair is still consolidating and this from my view will continue until Thursday. 

S&P500 recap for 15.09.2015

published 5 years ago
S&P500 Daily

 Risk appetite! Yeah! And why? Because the dissapointing data for the US gives a hope that the FED will dellay their rate hike this Friday for (December maybe), but the best shot is for Q1 in 2016. Core Retail Sales coming at 0.1% from forecast of 0.2% and previous (revised) 0.6%. Retail Sales coming in at 0.2% from forecast of 0.3% and previous (revised) 0.7%. And the biggest blow was from Empire State Manufacturing Index: -14% from forecast of -0.5% and previous value of -14.9%. Expectations were destroyed. Business Sentiment is hurt and and sells, spending. Drop in the Automobile sales and the primary gauge of consumer spending. And this was actually good for the S&P500 as it moved almost to the sell zone around 1987.7. The price opened at 1952.4, made a low to 1944.6 a high to 1982.7 and dropped just a bit for a close at 1980.5. Futures now indicate an opening lower from 1980.0. We have inflation data today and Housing Market Index. As spending gets lower it is normal to see a lower expectation value for inflation. CPI is expected to come at 0.0% from 0.1%, and Core CPI to stay the same at 0.1% from 0.1%. The Housing Index is expected to also stay the same at 61 points. But inflation comes up positive, this may be a boost to the Dollar and the bets for a hike this Thursday. 

EUR/USD Recap for 15.09.2015

published 5 years ago

 For the euro things went south too. The price opened at 1.13159, made a high of 1.13282 and then it dropped to 1.12583 for 57 pips and closed the day at 1.12687. The reason? ZEW! German ZEW Economic Sentiment. Came quite bad at 12.1 from forecast of 18.3 and in previous value of 25.0. ZEW Economics Sentiment came also in disappointing numbers at 3.33 from forecast of 42.1 and previous 47.6. After that, even the positive Employment Change and Trade Balance didn't stopped the euro downfall. The cause of the negative Sentiments is hold by the caution that the weakening economic development in Emerging Markets dampens the economic outlook for Germany's export-oriented economy. While economic growth in the second quarter was largely driven by external demand, it is becoming less likely that exports will stimulate growth in the near future. So it seems that the situation in the Emerging Markets will be a major changer in the string export-oriented economy's as Japan. Remember that Kuroda's tactic now is to wait-and-see if actually the offshore situation and in EMs get better before he takes preventive actions and changes in BOJ's policy. Which is a wise move, because a rush action may cause a very negative effect on their goal of helping their exports grow - which again is under the influence of EMs and the US of course. Dollar is overall still dominant and it will stay like this until Thursday. I actually think that if they set steady the rate at 0.25 unchanged the Dollar will explode higher actually, than, if they make a hike and the Dollar will go down hard. Time will tell. Thursday's events will tell. 

GBP/USD recap for 15.09.2015

published 5 years ago

 Boy, oh boy, we saw some choppy moves from the Pound on Tuesday as the price dropped 123 pips from its top from 1.54564 which is around as I mentioned a strong sell zone around 1.54761. We had ton of inflation data coming out from the Island and all were disappointing. CPI was flat at 0.0%, PPI input went negative from -2.3% forecast to -2.4% actual (as previous revised -1.2%), CORE CPI showed flat figures at 1.0% from forecast of 1.0% (1.2% for the previous period), HPI came in 5.2% from forecast of 6.2% and previous 5.7% and PPI output was also negative at -0.4% from forecast at -0.2% as previous at -0.1%. The price opened at 1.54245 and went up for about 30 pips. At first the negative inflation data actually boosted somewhat the risk appetite in the Sterling then all came crashing-in. In the end, the price closed at 1.53285. This was a strong push down and now the Average Earnings Index will play a role after its results whether or not, the price will continue its fall to 1.52565 or bounce up to 1.54761 again.