In the past two years, the developed countries have seen several elections. In 2016, all investors were talking of the U.S. election which came after the Brexit vote. This year, we saw an embarrassing election in the United Kingdom which Theresa May called to improve her powers during the Brexit negotiations. Instead of winning the […]
Sterling staged a modest recovery in 2017, on the back of a rate hike by the Bank of England and some noteworthy, albeit slow, progress in the Brexit talks. Even though monetary policy has been supporting the currency in recent months, it is an open question whether this will remain the case moving forward. Moreover, […]
EURJPY remains in a 3-month neutral phase but in the short-term the pair is bullish. On the 4-hour chart, the market is testing key resistance at 134 which is the top of the medium-term range. Near-term upside momentum has faded as can be seen by the RSI turning neutral. EURJPY remains firm but if it […]
For one year, the EUR/NZD pair has been moving higher with lower highs, and higher highs. Part of the reason for this has been the Euro, which has seen significant gains this year. The daily chart below shows the near-perfect channel the pair has had this year. The support and resistance points have been easy […]
Here are the latest developments in global markets: FOREX: The dollar was not much changed versus a basket of currencies as markets awaited the House of Representatives to cast a final vote in favor of tax reforms later today. The euro was roughly flat after receiving a lift from higher German bond yields. STOCKS: The […]
AUDUSD has been neutral since late October and has been capped by the 200-day moving average and supported at the key 0.7500 level. The medium-term downtrend from the 0.8124 peak on September 8 remains in progress and has not shown any signs of reversal. The crossover of the 50-day MA below the 200-day MA is a bearish […]
New Zealand’s third quarter GDP growth figures are due on Wednesday at 2145 GMT, with forecasts projecting a slowdown in the pace of expansion during the quarter. The kiwi will be in focus as slower growth has, among others, the capacity to postpone policy normalization plans by the Reserve Bank of New Zealand. Quarterly growth […]
WTI oil futures entered a neutral phase since late November following a rise from the 54 handle to 59. In the near term, prices gained upside momentum after testing and moving off the 57 level yesterday. The market remains well bid in the short-term as can been seen on the 4- hour chart. After yesterday’s […]
Here are the latest developments in global markets: FOREX: The dollar was steady versus the yen at 112.62 as investors were waiting for the final tax vote to begin today, while trading was in general thin ahead of the holiday season. The euro, on the other hand, posted moderate gains versus the greenback, edging up to an […]
Every day, traders, investors, and speculators exchange currencies worth more than $5.1 trillion. In the past ten years, the volumes of these transactions have increased, fueled by improved technologies and increased exposure especially in the developing countries. It was not always like that. In the past, forex trading was a reserve to large institutions like […]
USDZAR has a bearish bias in the near term as the flow is back to the downside following the break below the upward sloping channel that was standing since March 27. The price plunged more than 5% in the previous couple of days and printed a fresh nine-month low at 12.51. Today, the pair is making a timorous recovery but in […]
AUDJPY has shifted to a bullish bias in the short to medium-term timeframe after strong upside momentum in the prior weeks and recorded a one-month high at 86.10. The price rebounded on the 84.30 support barrier, which overlaps with the ascending trend line that is holding since September 27. However, since Monday’s trading session, the […]
Here are the latest developments in global markets: FOREX: The dollar was slightly lower versus a basket of currencies as trading conditions were getting thinner ahead of the holiday period and attention remained on the tax story in the US. The antipodeans kept edging higher versus the greenback though their gains were subdued on a […]
One way for traders to succeed is to focus on less-focused assets. Cocoa is one of them. Regularly, you will never find any news on Cocoa in major publications like Wall Street Journal, Bloomberg, and Financial Times. Cocoa is a commodity mostly supplied by West African countries of Ghana and Ivory Coast. Its global demand […]
USD is “treading water” ahead of the expected enactment of President Trump’s tax bill. The initial euphoria of lower corporation tax, that many believed would see a repatriation of USD back into the US has begun to come into doubt. With the bill likely to be passed into law before the end of the year, […]
GBPUSD maintains a neutral stance both in the short and medium term. The recent one-month uptrend that took the pair to 1.3550 in early December has reversed lower but prices managed to stay above the 50-day moving average. Downward pressure has eased and a strong support zone has formed around the key 1.3300 level and the […]
Whether or not the euro will continue its bull run into 2018 is likely to depend on a variety of political and economic factors. How will the upcoming election in Italy play out, and will markets begin to price in concerns regarding the stability of the euro area ahead of the event? Moreover, will the […]
The likely passage of tax reform legislation before the end of the year, as well as prospects for deregulation in the banking sector, have been pushing shares within the financial sector higher. However, after Republicans lost a Senate seat in Alabama last week, one should wonder whether the market is getting ahead of itself in […]
The US dollar plummeted in 2017, but that may not necessarily continue in 2018. The Fed seems set to undergo a hawkish shift in voting rights, while the Republicans are on the verge of implementing the highly-anticipated tax package. Although these factors could provide some support for the greenback overall, the currency’s fortunes may also […]
Germany will see the release of the IFO survey at 0900 GMT on Tuesday. The IFO business climate index surged to an all-time high of 117.5 in November from an upwardly revised 116.8 in the prior month. The euro is expected to remain neutral in such events as the bigger focus for investors is the ECB’s policy […]
BTCUSD climbed to another all-time high during the Asian trade on Monday and hit the 19,383.50 level. The strong up-move happened after a break out of a narrow range of 15,038 – 17,496, shifting the bias to bullish. It is worth mentioning that bitcoin opened with a gap to the upside during today’s trading session but later pared some of the gains, creating a correction to the downside. […]
Here are the latest developments in global markets: FOREX: The dollar was weaker versus a basket of major currencies during early European trading hours as investors played down the post-growth effects of the proposed tax cuts. The dollar index touched intra-day lows at 93.68 (-0.26%). Euro/dollar was on track to break above 1.1800, reversing most […]
The South African Rand has had an interesting year as shown below. The market movements has been associated with President Jacob Zuma who has faced multiple no confidence votes for the massive corruption in his government. The main corruption case related to his association with the wealthy Gupta family who were accused of State Capture; […]
Gold prices are firmer after rebounding off a 5-month low of 1236.49 last week but remain stuck in a range between 1250 and 1260 during the past few trading days. The flat RSI on the 4-hour chart is indicative of no clear direction in the market. Risk though is tilted to the upside as prices […]
Last week, the focus among investors was central banks and Washington. As expected, the Fed raised rates and forecasted three more in the coming year. In Europe, BoE, ECB, and SNB left rates untouched and forecasted no rate hikes in the coming year. In Washington, tax reform talks progressed in the conference. In the U.S., […]
On behalf of XM, we would like to express our warmest greetings and best wishes for the upcoming winter holidays, and sincerely wish all our clients a Happy Winter Holiday Season that they can share with their families and beloved ones. On the approaching end of the year 2017, we would also like to wish […]
Here are the latest developments in global markets: FOREX: The dollar was slightly down against a basket of currencies after posting gains on Friday following the announcement that House and Senate Republicans have found common ground on the front of tax legislation. The antipodeans were again gaining ground versus the greenback. STOCKS: The Nikkei 225 […]
USD strengthened on reports that the US Tax Bill is moving closer to being ratified. Many top Republicans are confident that Congress will pass the Tax Bill this week. Once the Senate ratifies the bill, which could happen as early Tuesday, President Trump could sign and bring the Bill into law by the end of […]
EURUSD is neutral in a broad range between 1.1600 and 1.1900 since late September. The pair has been pivoting the 50-day moving average which is horizontal and indicative of a lack of clear direction in the market. The RSI is neutral around 50. Near-term support appears to be holding at 1.1730 and limiting downside moves. […]
Central bank activity will continue next week with policy meetings of the Bank of Japan and Sweden’s Riksbank. It will be a relatively quieter one though for economic indicators, except in the United States, which will see several big data releases, including personal consumption expenditure figures, housing numbers and durable goods. But happenings in Capitol […]
