Crude Oil Dives into the Abyss on Global Economic Woes!
The price of Crude Oil dived in New York on worse-than-forecast U.S. economic data and due to a negative outlook for Europe. This increases the likelihood that the demand for fuel will decline. The contract is fairly stable at the moment after sliding 2.6% yesterday. The contract plummeted $2.68 on Thursday to $102.54, the lowest closing price since April 19. This is due to European Central Bank President Mario Draghi downgrading the prospects of a recovery in the Eurozone. What’s more, consumer confidence fell in the U.S., while service industries data climbed less than analysts forecasted.
The Dollar is trading mixed versus its main currency counterparts this morning. This is because traders are still deciding which way they foresee the Dollar to be in the coming hours. They are waiting for a series of economic data releases to be published from the U.S. economy. There will be employment data that will signal just how healthy the U.S. is at the moment.
The Euro has been a lot weaker this week vs. its main peers, as traders lose confidence in the European single currency. This is due to political and economic instability throughout the region. For example, the debt crisis continues to spread. Also, there are parliamentary election in Greece and the presidential elections in France on May 6.
There are a number of different trading opportunities that you can benefit from, as end-of-week trading takes hold. It depends which currencies and other assets you prefer to trade. The EUR/USD forex binary option is expected to fall today. However, the Gold binary option is forecasted to climb today. This is after declining on Thursday. Open positions in these binary options now if you want to make profit this Friday.
Today’s main events:
07:00 GBP Halifax HPI m/m – This will be the leading release from the U.K. this Friday. The House Price Index measures the change in the price of homes financed by HBOS (Halifax Bank of Scotland). It is a leading indicator of the health of the housing industry.
07:15 GMT CHF Retail Sales y/y – The release is a measurement of the total value of inflation-adjusted sales at the retail level, excluding automobiles and gas stations. This is a primary gauge of consumer spending, accounting for a majority of overall economic activity. A result of 1.2% or better will support the Swiss Franc during today’s trading session.
09:00 GMT EUR Retail Sales m/m – This is a primary gauge of consumer spending for the Eurozone. It measures the change in the total value of inflation-adjusted sales at the retail level. An improvement of 0.1% is expected, which could drive the Euro higher during today’s trading session.
12:30 GMT USD Non-Farm Employment Change – This is the change in the number of employed people during the previous month, excluding the farming industry. Job creation is an important indicator of consumer spending. The figure is expected to climb significantly to 173K. If the final result does indeed match the forecast, then the Dollar could climb significantly this Friday.
12:30 GMT USD Unemployment Rate – It measures the percentage of the total workforce that is unemployed and actively seeking employment during the previous month. The Jobless Rate is expected to stay the same at 8.2%.
14:00 GMT CAD Ivey PMI – The indicator is the level of a diffusion index based on surveyed purchasing managers. This is an important indicator of Canada’s economic health, because businesses react quickly to market conditions. The Canadian Dollar is likely to continue its downward trend against the U.S. Dollar in the coming hours.