Global macro overview for 26/02/2018
February 26, 2018 2:22 pmVideo
Latest News
- The Fed and global instability: a double blow to American markets April 18, 2024
- Forecast for EUR/USD on April 18, 2024 April 18, 2024
- Forecast for GBP/USD on April 18, 2024 April 18, 2024
- Forecast for AUD/USD on April 18, 2024 April 18, 2024
- Outlook for GBP/USD on April 18. Pound was not impressed by the inflation data April 18, 2024
- Outlook for EUR/USD on April 18. Euro has fallen into a new flat April 18, 2024
- GBP/USD. Correction or trend reversal? April 18, 2024
- The FOMC will not lower rates in 2024 April 18, 2024
- Powell made a bold point, and Bailey did not report anything important April 18, 2024
- Will the euro take a risk? April 18, 2024
- Trading Signals for GOLD (XAU/USD) for April 17-19, 2024: sell below $2,400 (21 SMA – double top) April 17, 2024
- Technical Analysis – GBPCAD hits a wall but bulls not ready to give up April 17, 2024
- Trading Signals for Ethereum (ETH/USD) for April 17-19, 2024: sell below $3,125 (21 SMA – 2/8 Murray) April 17, 2024
- Analysis for the EUR/USD pair on April 17th. Jerome Powell didn’t help the dollar much April 17, 2024
- Analysis for GBP/USD pair on April 17th. British inflation overtakes American inflation April 17, 2024
- USD/JPY: Simple Trading tips for novice traders on April 17th (US session) April 17, 2024
- GBP/USD: Simple trading tips for novice traders on April 17th (US session) April 17, 2024
- EUR/USD: Simple trading tips for novice traders on April 17th (US session) April 17, 2024
- GBP/USD: trading plan for the US session on April 17th (analysis of morning deals) April 17, 2024
- Technical Analysis – EURUSD takes a breather after sharp tumble April 17, 2024
Calm Monday trading as markets awaits Powell hearing
The rebound on the Asian stock markets following the optimistic end of the last week on Wall Street brings stable trading in currency markets with a mild weakening of the US Dollar and the strengthening of the emerging markets. Gold is trying to rally, Crude Oil remains stable.
The most important event of this week is the hearing of Fed Chairman J. Powell before the Financial Services Committee of the House of Representatives ( scheduled for Tuesday at 03.00 pm GMT) and some important data from the largest economies. This will be Powell second public appearance after taking over the Fed presidency after J. Yellen.
The Fed’s rate hike at the March 21 meeting is practically a foregone conclusion, but the market has not yet fully discounted it. Meanwhile, in economist discussions, there are even possible 4 hikes of 25 basis points in the whole of 2018. From the point of view of the US Dollar, higher interest rates have so far no positive impact on its value. The shape of yield curves and differences in interest rates on the long-term US and German government bonds are more important in this respect. In recent days the advantage in this aspect is again getting the American currency. A series of weaker readings from the Eurozone economy indicating some inhibition of the recovery dynamics at the beginning of the year moves the players’ attention to profits from simpler, “certain” investments, for which it is certainly the generation of differences in interest rates (carry trades).
Let’s now take a look at the EUR/USD technical picture in the H4 time frame. The economists expect that at least until the next Fed meeting the US Dollar will be making up for losses to the EUR (minimum target: 1.21) and other currencies. So far at the H4 time frame, the market has bounced from the golden trend line support and currently is heading towards the nearest technical resistance at the level of 1.2366.The momentum is pointing to the upside but still remains under its fifty level, so the rally might be only a temporary corrective bounce.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: