News & Research

US ADP Non-Farm Employment Change: U.S. private sector added 153,000 jobs in December, below market forecast. Economists expected the ADP National Employment Report would show a gain of 171,000 jobs. Private payroll gains in the month before showed a downwardly revised addition of 215,000 jobs from an initially reported 216,000 increase. A gain of 165K private sector jobs is expected for January. US ISM Manufacturing PMI: The ISM manufacturing index edged up 1.5 points in December, hitting the best score in two years. Analysts expected the index to reach 53.7. New orders climbed to 60.2 up 7.2 points which is the sharpest jump of the entire cycle. Production increased 4.3 points to 60.3, employment edged up eight-tenths to 53.1, and export orders reached 56.0 which is a 2-1/2 year high. This was a strong start to 2017. A score of 55 points is likely for January. US Crude Oil Inventories: U.S. crude oil inventories increased by 2.93 million barrels in the January 20 week to 488.3 million, rising by 5.3 percent from the same period last year. Inventories of motor gasoline rose 6.8 million barrels to 253.2, while distillates rose marginally by 0.1 million barrels to 169.1 million. Imports averaged 7.8 million bpd in the week, down 568,000 barrels per day from the prior week. Total products supplied over the last four weeks averaged 19.0 million barrels per day, down 300,000 per day from the previous week’s 4-week average and down 2.6% from the same time last year. US FOMC Rate Statement: The Federal Reserve decided to raise its benchmark interest rate in December as widely anticipated. Federal funds rate was increased by 25 basis points, to a range of 0.50 to 0.75%. This was the second rate hike in a decade. The Fed plans to gradually lift the monetary policy support and enable the economy room to advance without it. President-elect Donald Trump pledged to cut taxes for corporations and individuals and to invest about $550 billion in infrastructure. Economists expect these steps will spur economic growth and inflation while supporting company earnings.

Important events on related currencies:

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• EURUSD

The pair is traded above a strong support level around 1.0770 so we believe that as long as the pair is traded above it, it is highly recommended to go long targeting the level of 1.0800 during the day. On the other hand, breaching the level of 1.0770 during the day opens the door for the pair for further downward movement.

Resistance levels:	Support levels:	Recommended:
▪ 1.0800 ▪-- ▪ --