The euro and the green bucks are sitting tightly on range. Keeping closely to the opening level of 1.2649, it has an intraday high of 1.2661 and a low of 1.2644.
Last Thursday, EUR/USD was quiet and remained unchanged until the end of the day despite the good numbers of EZ PMI that promised a slight movement in the business activity of Q4. The printed doji on a daily chart hinted a growing feeling of insecurity among traders in EUR. The future appears dreary like a European macroeconomic calendar with pretty slow trading activity dominated by position adjustment and technical factors. Stresses on European banks are testing the publishedSunday sentiment weighing on investors.
Gauging from the technical point of view, 1.2630/20 is seen as the nearest support with a spotted approach of a minor demand thereto. There will be a limitation of 1.2670 on the upside.
Central pivot point today is found at 1.2646, with a support below at: (1) 1.2612, (2) 1.2572 and (3) 1.2508, having an above resistance at: (1) 1.2677, (2) 1.2709 and (3) 1.2740. With bearish Hourly Moving Averages, with the bearish 200SMA at 1.2728 and the daily bearish 20EMA at 1.2738; however, hourly RSI is bullish at 50.
The view on budding Asian currencies recovered during the last two weeks with extended positions in the Indian rupee close to a five-month peak. This developed in the midst of concerns that the US Fed will postpone interest rate increases longer.
Upbeat bets on the Indian currency increased considerably since June as capital inflows were prompted by prospects that the new government can come up with additional economic reforms.
Long views in China’s Yuan increased as it reached a seven-month high after data disclosed that the second-largest economy in the world did not slacken as expected during the third quarter.
Outlook on the South Korean Won, Philippine Peso, Singapore Dollar, and Thai Baht became upbeat for the first time in almost eight weeks.
Brief positions on the Indonesian currency declined. This was the lowest since the latter part of August when opinions on the currency were neutral. The rupiah climbed to a near high of four weeks when President Joko Widodo assumed office.
Confidence on regional currencies came after the US Central Bank’s policy meeting minutes for September showed the Fed was not rushing the increase of interest rates.
Growing interest rates in the United States more often than not diminish the pull of higher yields in the Asian region.
The Nasdaq Composite Index was letting go 36.63 points, or 0.8%, to 4382.85 while 500 S&P 500 downed by14.17 pts. or about 0.7%, going to 1927.11., and the Composite Index of Nasdaq giving up about 36.63 pts, going 0.8%, toward 4382.85. Marketers stated that not one factor propelled the selloff and observed that activity of the market seemed quieter than in previous days.
Against this, the investors remain careful following several weeks of wild swings in stocks. Director of N.Y. Equity Trading at Conifer Securities, Rick Fier stated that last week, everyone seemed affected then it went back. It does sound normal that a big thrust encourages some kind of selling. On Tuesday, S&P 500 leaped 2% serving as its biggest percentage gain in over a year. Meanwhile, the 2.4% NASDAQ Composite’s rally was its top one-day advance since the month of January 2013.
Crude oil prices continued to drop and reached 27-month lows. This will possibly push gasoline prices below $3 for every gallon.
Yardstick West Texas Intermediate oil for delivery this December decreased 2.4 percent to $80.49 per barrel. This was the lowest level since June of 2012. The plunge came following the revelation of the United States Energy Information Administration that supplies of crude were up to the highest levels since three months ago. The unanticipated increases of stock supply came when demand for after-summer travel also declined.
Wholesale gasoline futures for delivery in the middle part of November plummeted three percent to $2.15 per gallon which is a key indicator for another decrease of retail fuel prices. Price of regular unleaded gasoline is $3.08 per gallon. This is down from $3.34 in September.
Bear market reduction of oil prices is over $25 per barrel from the peak in June. It could propel the national average cost below $3 within next week, according to an analyst for the Oil Price Information Service.
The economy of Russia reeled from the slump of crude oil prices.
The plunge also affected shares of energy-producing stocks as well as the broad markets. Dow Jones industrial cut down a three-day upward movement and finished 153 points to 16,461. Low prices translated to billions in savings for gas consumers.