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Today’s Economic Calendar
We follow today’s events in GMT:
At 12:30 PM:
The Canadian Employment Change Rate for May, and the Canadian Unemployment Rate for the same month.
Top News in Global Markets:
Yesterday’s highlights:
– The final reading of the change in employment from the European Statistical Center Eurostat was released, and the percentage was similar to expectations for the first quarter of the year.
– From the same source, the European GDP was released, and the results were less than expected for the first quarter of the year.
– From the US Department of Labor, applications for unemployment benefits were issued, and the result was higher than expectations for the previous week, which means an increase in the number of unemployed
– From the Energy Information Agency, a report on raw gas inventories was issued for the previous week, and stocks have declined, which means an increase in demand.
– Most US indices rose, with the Dow Jones Industrial Average rising by 168 points, and the Nasdaq Technology Index rising by 133 points.
And in the morning:
– China’s CPI came out similar to expectations, on a yearly basis for the month of May.
– From China’s National Statistical Bureau, the PPI result came in lower than expected, on a yearly basis for May.
– The performance of Asian indices advanced, and the Japanese Nikkei index rose to more than 554 points.
– Oil prices declined, as Brent crude reached $75.50 per barrel, and US crude reached $70.84 per barrel.
– The US dollar index declined yesterday, and is currently recording 103.39 against the basket of world currencies.
Today it is expected:
– Canadian unemployment rate and employment change for the month of May.
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Technical Analysis
Dollar Index – 4 Hours Timeframe
The dollar index regained its strength and rebounded from its lowest level this week near 103.27 yesterday, Thursday, awaiting inflation data next week.
Technically, the index is trading near the 38% Fibonacci correction area, and buyers are trying to close above the resistance of 103.40 points. We see that if it stays below this resistance and breaks the 38% area, the index will return to the downside, targeting 102.78, then 102.40 points.
Gold – 1 Hour Timeframe
The yellow metal rose yesterday, to recoup all its losses, to reach its highest level for this week around $1968.68, before rebounding slightly after the Chinese inflation data this morning.
Technically, gold is trading near the 61.8% Fibonacci correction area, which is the main resistance today, Friday. We expect a bearish corrective movement around $1958 and the 200-hour moving average, before returning and testing the $1968.68 resistance again.
US Dow Jones – 15 Min Timeframe
The Dow Jones Industrial Average rebounded from this week’s high around 33,875 points, to trade near 33,764.
Technically, the index is trading above the moving average 100 over the 15-minute period and around the 38% Fibonacci retracement area. We expect the corrective downward movement to continue if the current support is broken 33764, then we will target 33733 points, and if it is broken, the drop will continue to 33654 points.
US Crude Oil – 1 Hour Timeframe
Yesterday, oil prices fell back to below $71.00, due to tensions in the region, rising recession fears, and Chinese inflation data.
Technically, oil is trading below the 200-hour moving average and near the 50% Fibonacci retracement area, to stabilize the price below $71.00. We expect the consolidation move to continue and move slowly towards the support of $69.98.
Bitcoin – 1 Hour Timeframe
