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The U.S. dollar hit an 11-year high against the euro Wednesday after pushing through a key technical threshold, shrugging off a weaker-than-expected ADP jobs report and strong eurozone reports.
The euro EURUSD, -0.41% tumbled to $1.1073, its lowest level since late 2003.
The dollar USDJPY, +0.16% inched higher against the yen after a measure of February service-sector activity in the U.S. came in higher than analysts had expected. The dollar traded at ¥119.70, compared with ¥119.67 late Tuesday.
The pound GBPUSD, -0.22% traded at $1.5258, compared with $1.5362 Tuesday.
The ICE U.S. Dollar Index DXY, +0.31% a measure of the dollar’s strength against six of its largest trading partners’ currencies, was 0.62% higher at 95.9750.
TRADING TIPS :
GBP/USDeased 0.12% to 1.5342 from around 1.5358 ahead of the data,the services purchasing managers’ index ticked down to 56.7 from 57.2 in January. Economists had expected the index to rise to 57.5.On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.“Although the rate of expansion slowed in the vast services economy, growth has picked up in both manufacturing and construction,” Chris Williamson, chief economist at survey compilers Markit said.”The three PMI surveys collectively indicated a slight acceleration in economic growth for a second successive month in February as a result, consistent with GDP growth picking up to 0.6% in the first quarter.”
INTRADAY OUTLOOK
Support: 1.5294
Resistance: 1.5364
RECOMMENDATION:
1. Buy GBP/USD Above 1.5366-TG: 1.5386/1.5416 SL 1.5336
2. Sell GBP/USD Below 1.5292-TG: 1.5272/1.5242 SL 1.5322
INTRADAY OUTLOOK
Support: 1.1096
Resistance: 1.1165
RECOMMENDATION:
1. Buy EUR/USD Above 1.1167-TG: 1.1187/1.1217 SL 1.1137
2. Sell EUR/USD Below 1.1094-TG: 1.1064/1.1034 SL 1.1124
MARKET UPDATES :
The FBM KLCI index gained 4.29 points or 0.24% on Wednesday. The Finance Index increased 0.01% to 16103.45 points, the Properties Index up 0.01% to 1326.84 points and the Plantation Index rose 0.19% to 7988.44 points. The market traded within a range of 6.87 points between an intra-day high of 1826.05 and a low of 1819.18 during the session.
STOCK RECOMMENDATION :
BUY CSC STEEL AT 0.965 – 0.970 TARGET 1.020 1.100 SL 0.900
INTERNATIONAL COMMODITY NEWS :
Gold futures showed nervousness ahead of release of a batch of economic data such as ADP employment report, Fed’s Beige book and US ISM non-manufacturing index slated to come out later today. US gold slipped for the straight third session triggered by higher dollar values .The US dollar climbed to its highest level since September 2003 on Wednesday ahead of closely-watched jobs data and the European Central Bank meeting later in the week. COMEX Gold for the April delivery quotes at $1,203.80 an ounce, down $.60 and the Silver May delivery quotes at $16.278, down 1.8 cents an ounce.
TRADING STRATEGY :
BUY GOLD ABOVE 1205.5 TARGET 1210.50 1216.50 SL 1199.50
SELL GOLD BELOW 1199 TARGET 1194 1188 SL 1205
April platinum PLJ5, +0.40% shed $7.90, or 0.7%, to end at $1,181.70 an ounce.
June palladium PAM5, +0.09% lost $1, or 0.1%, to $830.65 an ounce.
May copper HGK5, +0.21% settled nearly flat at $2.6595 a pound.
