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US indices traded mixed on Wednesday with the Beige Book indicating that the US economy is improving, while investors hoped for more disappointing news to dissipate talks of reducing the central bank’s bond-purchasing program. The NASDAQ rose by 0.02%, the S&P 500 fell by 0.13%, and the Dow Jones by 0.16%.
The US dollar rose versus its major counterparts with the release of encouraging U.S. economic data. Microsoft shares rose by 1.64% on Wednesday closing at $38.94, as Microsoft’s deal with Nokia was approved by the European Commission. Today, Prelim GDP is expected at 3.1% vs. 2.8%, and Unemployment Claims at 322K vs. 316K previously.
Gold increased by 1.47% yesterday closing at $1,242 an ounce after ADP Nonfarm Employment Change beat all analysts’ expectations. Crude Oil rose by 0.07% closing at $97.17 a barrel after Crude Oil inventories came out lower than expected at -5.6M vs. -0.5M forecast.
The Euro traded mixed versus the US dollar with a tendency to fall as investors prefer the safe haven of the U.S dollar, prior to the announcement of the European Central Bank’s decision over Interest Rates. Technically, and according to the 4-hour chart, strong resistance is located at 1.3620, which is also the 61.80% “Fibonacci Retracement” level. Holding below this resistance may lead the pair towards 1.3550 once again. The European Interest Rate decision is expected to remain at 0.25.
The Pound fell versus the US dollar due to a disappointing Services PMI result, and the expectation that the Official Bank Rate will remain the same. Technically, the pair is forming a “Descending Triangle” pattern and is expected to break out from this very soon. As long as the pair is trading below the upper side of the triangle and the RSI indicator holds below 50, the GBP/USD is expected to continue to fall towards 1.6320. Today, the Asset Purchase Facility is expected unchanged at 375B, and the Official Bank Rate, which is also expected to stay at 0.50%.