Data released by Statistics Canada on Friday reported that the nation’s unemployment rate in May dropped to a ten-month low of 6.9% after stabilizing at 7.1% in the two previous months. The labor market was further encouraged as the number of newly employed people advanced to 13,800 in May, beating economists’ expectation for a gain of 3,100.
A report from the University of Michigan pointed that consumer confidence among American consumers fell to 94.3 in June, falling from an almost one-year high of 94.7 in May. Meanwhile, inflation expectations for the next 12 months still remained unchanged at 2.4%, the lowest level since September 2010.
The dollar index, which measures the value of the greenback against its rivals, is charting a down-move in early trading today, ahead of the FOMC meeting on June 15. DXY slid to a reading of 94.46, 20 points lower than the previous close.
In China, the National Bureau of Statistics yesterday announced that industrial production rose at an annual rate of 6% in May – unchanged from the preceding month. In contrast, the fixed-asset investment figure missed the market’s expectation of a 10.5% increase as it grew just 9.6% for the first five months in 2016, compared with the same period a year earlier.
In the Asian trading session on Monday, oil prices extended their fall, weighed by the darkening economic prospects in Asia. West Texas Immediate crude oil plunged to $49.13/barrel, in comparison with the last settlement of $49.38.
The cautious sentiment is visible as the EURUSD is moving sideways in a shrinking range. The pair has retreated from the 23.6% Fibonacci support level at around 1.12298 after a steep fall on June 9. RSI has escaped from the oversold territory and soared to as high as 40.14, pointing to the possibility that the up-move may continue for the rest of the day.
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GBPJPY is now trading at around 150.773. The pair is in the oversold territory as seen in the RSI, which lies deeply below level 30. However, a reversal may be about to happen as the ADX lingers at around level 70 and DI- (red line) is beginning to turn its head downwards towards the DI+ (green line). The price is expected to enter a bullish market soon.
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USDCAD has fallen continuously from the area around 1.31443 with a big accompanying move in the parabolics sar band above. RSI is posing below level 50, suggesting the formation of a bear market. The price is hovering around the zone of Fibonacci 23.6%, and expected to continue the downtrend and test the support level at 1.26565, the lowest level in more than a month.
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Silver has been in a strong bullish trend with the support of the trend indicator below. The commodity is tiptoeing around the zone of the resistance at 17.3945 with RSI at the reading of 66, signaling the bear’s appearance soon. The price is anticipated to trade sideways during the European session and may then head to the zone of Fibonacci retracement 61.8%.
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WTI has been moving in a narrow range, around the current price of 49.22. RSI is hovering around level 34, signaling that the pair has just escaped the oversold area. The commodity is expected to test the resistance level at $50.40 per barrel before dropping back down. The trend indicator suggests short positions.
Buy Digital Call Option from 49.12 to 50.40 valid until 20:00 June 13, 2016
SP500 has been moving between the range of 2081.89 and 2119.97 under pressure from the red parabolics band. RSI is moving languidly around the level 37 and pointing upwards, suggesting a recovery and some bullishness ahead. ADX is at 38, along with DI+ (green line) heading up towards DI- (red line), indicating that the pair may go up further and retest the resistance at 2119.97.
Buy Digital Call Option from 2091.00 to 2119.97 valid until 20:00 June 13, 2016