Wrapping Up The Trading Day – May 1st
Arslan Butt • 2 min read
A new month and trading day along with three take profits in a row definitely leads to an amazing feeling. Hope you made good use out of our forex trading signals and analysis on the Nikkei, Gold and WTI Crude Oil. Out of these trading signals, the call on Gold was the most exciting. The Gold prices soared sharply to place a high of $1268.35 when our take profit was $1267. It was a close call.
Overall, the European markets were closed in observance of Labor day. But the United States released several economic figures. Let's discuss the major releases and their outcomes.
U.S Personal Consumption Expenditure
Today in the late European session, the U.S released the Personal Consumption Expenditure (PCE) index. The figures showed a drop of 0.2% for the month of March.
The word consumption is directly linked to inflation. For example, increased consumption leads to increased demand for products and services. The increased demand results in a rise in the prices. That's what inflation is and that's what the United States wants to achieve. The U.S. aim is to maintain a 2% inflation target.
U.S. ISM Manufacturing Index
The index came in lower than expected as it dipped to 54.8 in the month of April. The previous figure was high at 57.2. The economists had expected a decline of 56.5. Consequently, the dollar index was slightly down, pushing the Gold prices higher in the early New York sessions.
Canadian PMI Index
In addition to the U.S economic events, the Canadian PMI index rose to 55.9 for the month of April. This was higher than March's figure of 55.5. Despite the favorable economic figures, the Canadian dollar plunged over weak oil prices. And we know there is a strong positive correlation between crude oil and the Loonie.
Despite worse than expected economic releases by the United States, the greenback has remained firm. However, the Gold has fallen dramatically below $1260. The next target for the Gold seems to be $1249. Keep following us, as more trading signals are coming ahead.