The Institute for Supply Management said its services index declined to 52.8 last month from 57.3 in March, missing analysts’ expectations. The ISM report was the day’s second disappointment for economic data. The first was a 179,000 increase in private-sector payrolls estimated by Automated Data Processing Inc. Economists were expecting a gain closer to 200,000.
Gold futures lost $25.10, or 1.6%, to end at $1,515.30 an ounce following a Wall Street Journal report that Soros Fund Management LLC has trimmed its gold and silver holdings. Silver futures tumbled $3.20, or 7.5%, to $39.39 an ounce. Benchmark crude for June delivery declined $1.81 to end at $109.24 a barrel. The decline came on top of a loss 1.6%, after an Energy Information Administration report showed crude-oil inventories rose 3.4 million barrels for the week ended April 29, double the 1.7 million barrels expected by analysts.
Today’s Important Economic Announcements (GMT)
7:45 AM NZD RBNZ Gov Bollard Speaks
8:30 AM GBP Services PMI
11:00 AM GBP Asset Purchase Facility & Official Bank Rate
11:45 AM EUR Minimum Bid Rate
12:30 PM CAD Building Permits m/m
12:30 PM EUR ECB Press Conference
12:30 PM USD Unemployment Claims
1:30 PM USD Fed Chairman Bernanke Speaks
2:00 PM CAD Ivey PMI
2:30 PM Natural Gas Natural Gas Storage
4:45 PM EUR ECB President Trichet Speaks
S&P 500
Even on the most traded index in the world, it is also possible to identify the potential for decreases this after the S&P 500 failed to break through the important resistance level of 1,365. As a result, the index is still causing great concern regarding a change of direction and the start of a downwards movement. The potential for a downward move is restricted by the support level of 1,265. This level could be used as a target for the realization of a short, speculative position. As mentioned in the fundamental analysis, the bears are currently overpowering bulls on Wall Street. Look for this downtrend to continue today and perhaps into the weekend.
Stop Loss: 1,356
Take Profit: 1,337
GBP/USD
The British pound tracked euro’s intra-day movement closely. Despite cable’s brief breach of previous session’s low of 1.6464 after meeting renewed selling at 1.6494 in Australian trading session, buying interest at 1.6453 limited downside and intra-day firmness in euro lifted price to as high as 1.6575 in New York session before falling sharply back to 1.6480. GBPUSD rebounded from 1.6451, suggesting that a cycle bottom is being formed on 4-hour. Further rise would likely be seen in a couple of days, and target is at 1.6745 previous high. We expect the uptrend to resume either today or tomorrow at the latest. However, a breakdown below 1.6431 support could bring price back to 1.6250 zone.
Stop Loss: 1.6453
Take Profit: 1.6692
Natural Gas
Natural gas futures were down for a third day on Wednesday, hitting a three-day low as forecasts showed moderating weather in the southern and eastern U.S. states next week, dampening demand for the fuel. Natural gas traded at $4.641 during U.S. morning trade, dropping 0.4%. It earlier fell by as much as 1.05% to $4.611, the lowest price since April 29. The Commodity Weather Group said that warmer air will probably be absent across most of the U.S. through May 10. A variable spring pattern is preventing heat from locking in anywhere over the next two weeks. Instead, most areas see occasional quick hits of heat. Clearly last week’s weather report is far from accurate, which means prices are likely to continue heading south in the coming days.
Stop Loss: 4.713
Take Profit: 4.404
Published by www.SolidityBrokers.com
