German Investor Confidence Plummets On Coronavirus Concerns

Germany’s economic sentiment logged a steep fall in February as investors increasingly grew concerned about the impact of the coronavirus outbreak in China, results of a closely watched survey showed on Tuesday. The investor confidence indicator slumped to 8.7 from 26.7 in January, survey results from the ZEW – Leibniz Centre for European Economic Research revealed. The latest score was the weakest since November, when it was -2.1. The reading was much worse than the 21.5 economists had expected. The current conditions index of the survey fell to -15.7 from -9.5 in January. Economists had forecast a score of -10.3. “The feared negative effects of the Coronavirus epidemic in China on world trade have been causing a considerable decline of the ZEW Indicator of Economic Sentiment for Germany,” ZEW President Achim Wambach said. Expectations regarding the development of the export-intensive sectors of the economy have dropped particularly sharply, he noted. Further, the German economy has remained weak at the end of 2019 and at the start of this year. “Both the downward revision of the assessment of the economic situation and the downturn in expectations show clearly that economic development is rather fragile at the moment,” Wambach added. The…

UK Employment Climbs To New Record, Jobless Rate Unchanged

UK employment increased further in the three months to December to set a fresh record, while joblessness remained unchanged, indicating the resilience of the labor market amid the uncertainty surrounding Brexit and the general election. The number of employed rose 180,000 from the previous three months, figures from the Office for National Statistics showed on Tuesday, which exceeded the 145,000 growth economists had forecast. Job growth was mainly driven by quarterly increases for full-time workers by 203,000, which was the largest increase since March to May 2014, and for women by 150,000, which was the biggest gain since February to April 2014. The number of women working full-time increased by 150,000, marking the largest rise since November 2012 to January 2013. The employment rate rose by 0.4 percentage points to a record high of 76.5 percent. The number of unemployed fell by 16,000 people quarterly to 1.29 million, while the jobless rate was unchanged at 3.8 percent as expected. The rate was the joint lowest since early 1975. The economic inactivity rate fell by 0.3 percentage points to a record low of 20.5 percent in the three months to December. Meanwhile, vacancies grew by 7,000 to 810,000 for the November…

New York Manufacturing Index Climbs Much More Than Expected In February

Growth in New York manufacturing activity saw a notable acceleration in the month of February, according to a report released by the Federal Reserve Bank of New York on Tuesday. The New York Fed said its general business conditions index climbed to 12.9 in February from 4.8 in January, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to inch up to 5.0. The bigger than expected increase by the headline index came as the new orders index shot up 16 points to 22.1 and the shipments index climbed to 18.9. The material has been provided by InstaForex Company – www.instaforex.com…

February 18, 2020 : EUR/USD Intraday technical analysis and trade recommendations.

On December 30, a bearish ABC reversal pattern was initiated around 1.1235 (Previous Key-zone) just before another bearish movement could take place towards 1.1100 (In the meanwhile, the EURUSD pair was losing much of its bearish momentum).One more bullish pullback was executed towards 1.1175 where the depicted key-zone as well as the recently-broken uptrend were located. That’s why, quick bearish decline was executed towards 1.1100 then 1.1035 which failed to provide enough bullish SUPPORT for the EURUSD pair.Further bearish decline took place towards 1.1000 where the pair looked quite oversold around the lower limit of the depicted bearish channel where significant bullish rejection was able to push the pair back towards the nearest SUPPLY levels around 1.1080-1.1100 (confluence of supply levels (including the upper limit of the channel).Since then, the pair has been down-trending within the depicted bearish channel until last week when bearish decline went further below 1.0950 and 1.0910 (Fibonacci Expansion levels 78.6% and 100%) establishing a new low around 1.0790.Currently, the EUR/USD pair looks quite oversold after such a long bearish decline and if bullish recovery is expressed above 1.0845-1.0860, further bullish advancement would be expected towards 1.0910 then 1.0950.Intraday traders are advised to look for signs of…

Hong Kong Jobless Rate Highest In Over 3 Years

Hong Kong’s jobless rate rose marginally during the November to January period to its highest level in over three years, the Census and Statistics Department said on Tuesday. The jobless rate rose to 3.4 percent during the November to January period from 3.3 percent during the October to December period. The latest unemployment rate was the highest in more than three years. However, the number of unemployed persons decreased to 122,300 during the three months ended in January from 124,000 in the previous three months. The number of employed persons declined by around 14,600 persons to 3.803 billion during the November to January period. “The labor market slackened further as economic conditions stayed weak,” the Secretary for Labor and Welfare Law Chi-kwong said. The year-on-year decline in total employment widened noticeably further to 1.8 percent, the largest since the third quarter of 2003, the official noted. This sharp fall in employment combined with a modest increase in unemployment rate suggested that some people may have chosen to leave the labor force when losing their jobs, Law added. “The labor market will be subject to even more pressure in the near term, as the threat of the novel…

Gold Prices Rise After Apple Warning

Gold prices edged higher on Tuesday to hover near a two-week high as fears grew over the coronavirus’s impact on the global economy and businesses. Spot gold rose 0.4 percent to $1,587.58 per ounce, while U.S. gold futures were up 0.3 percent at $1,590.55. Investor sentiment remains fragile after Apple Inc became the latest company to warn of trouble from the coronavirus outbreak, saying it would not meet its guidance for March-quarter revenue because of slower iPhone production. The death toll from China’s coronavirus epidemic climbed to 1,868 as 98 more people died. Health officials in China published the first details on nearly 45,000 cases of coronavirus infection, saying more than 80 percent cases have been mild and new ones seem to be falling since early this month. Separately, the World Health Organization (WHO) said that – with a mortality rate of around 2 percent — COVID-19 was “less deadly” than other coronaviruses such as Severe Acute Respiratory Syndrome (SARS) or Middle East Respiratory Syndrome (MERS). However, global experts warn it is too early to say the outbreak is being contained. The material has been provided by InstaForex Company – www.instaforex.com…

Analysis and forecast for AUD/USD on February 18, 2020

Greetings dear colleagues!
Today’s review of the “Australian” will begin with the published minutes of the last meeting of the Reserve Bank of Australia (RBA). It follows from the minutes that RBA executives discussed options where monetary policy easing is possible or necessary. This is the current trend. Following the Federal Reserve System (FRS), the rest of the world’s largest and most influential central banks do not even think about raising the main interest rates. It is still good if rates remain at the same levels and all the world’s leading central banks have a tendency towards easing monetary policy.
The minutes also noted that monetary policy easing at a faster pace will help achieve the inflation and employment goals.
Of course, the RBA could not ignore the topic of coronavirus, which, according to bank members, poses risks to the Chinese and Australian economies. In this light, let me remind you that China is Australia’s largest trading partner.
In principle, there is nothing revolutionary new in the RBA minutes published today. The Australian regulator is still leaning towards easing monetary policy, however, it is in no hurry to take real steps in the form of lowering the main interest rate.
It is no wonder that with…

February 18, 2020 : GBP/USD Intraday technical analysis and trade recommendations.

On December 13, the GBPUSD pair looked overpriced around the price levels of 1.3500 while exceeding the upper limit of the newly-established bullish channel.On the period between December 18th – 23rd, bearish breakout below the depicted channel followed by temporary bearish closure below 1.3000 were demonstrated on the H4 chart.However, immediate bullish recovery (around 1.2900) brought the pair back above 1.3000.Bullish breakout above 1.3000 allowed the mentioned Intraday bullish pullback to pursue towards 1.3250 (the backside of the broken channel) where bearish rejection and a new wide-ranged movement channel were established between (1.3200-1.2980).Recently, new descending highs were demonstrated around 1.3200 and 1.3070.Intraday technical outlook is supposed to remain bearish as long as the pair maintains its movement below 1.3070 (recently-established descending High).Recent Bearish breakdown below 1.2980 enhanced further bearish decline towards 1.2890 (the lower limit of the movement channe) where signs of bullish rejection have been manifested Since February 10.The current bullish breakout above 1.3000 may enable further bullish advancement towards 1.3070 and probably 1.3165-1.3200 only if the price level around 1.3070 gets breached to the upside soon enough.Otherwise, any bearish decline below 1.2980 will probably lead the GBPUSD pair towards the next demand-level (the lower limit of the channel @…

German Investor Confidence Falls Sharply On Coronavirus Concerns: ZEW

Germany’s economic sentiment logged a steep fall in February as investors increasingly grew concerned about the impact of the coronavirus outbreak in China, results of a closely watched survey showed on Tuesday. The investor confidence indicator slumped to 8.7 from 26.7 in January, survey results from the ZEW – Leibniz Centre for European Economic Research revealed. The latest score was the weakest since November, when it was -2.1. The February reading was much worse than the 21.5 economists had expected. The current conditions index of the survey fell to -15.7 from -9.5 in January. Economists had forecast a score of -10.3. “Both the downward revision of the assessment of the economic situation and the downturn in expectations show clearly that economic development is rather fragile at the moment,” ZEW President Achim Wambach said. The investor confidence index for Eurozone dropped sharply to 10.4 from 25.6 in January. Economists had forecast a reading of 30 for the month. The material has been provided by InstaForex Company – www.instaforex.com…