On Wednesday, the Bank of Canada (BOC) left its benchmark interest rate steady at 1.25%, adopting a wait and see policy. The BOC said it did not know when they would hike rates to counter inflation. Today, Canadian CPI and Retail Sales data are released and may prove significant in determining the direction for the […]
The recovery of the stock market and the overall demand for risk are having a bumpy ride. Yesterday, the stocks of U.S. companies were put under pressure by weak quarterly reports. The poor performance of tech stocks has dragged down the whole market, however, weak reports from traditional goods manufacturers, Procter & Gamble and Phillip […]
The UK100 Index is surging higher, as a risk-on tone dominated markets earlier this week. The upward pressure has been maintained in this index due to weakness in the GBP, exasperated by BOE Governor Carney yesterday and sluggish economic data. The market has climbed above resistance at 7340.00, signalling a need to reach the 7390/7400 […]
Bank of England Governor, Mark Carney, was interviewed by the BBC yesterday, where he made the comment that he didn’t want to get too focused on the precise timing of the next hike and that it’s more about the general path. He went on to say that the market should prepare for a few interest […]
The main focus today is on oil prices, which, since late 2014, have continued to rise to new heights. Saudi Arabia announced their desire to see the prices reach $80-100 per barrel on Wednesday, causing oil to jump $2 (3%) to $73.40. Saudi Arabia’s comments were seen as an intent to continue limiting oil production, […]
The Australian Dollar (AUD) is leading commodity currencies higher, after shrugging off soft employment data. The Australian jobs report saw a weak headline figure and a drop in full-time employment, with a downward revision of last month’s number. 4.9k jobs were added in March, well below expectations of 20.3k. The Aussie (AUDUSD) initially dropped on […]
The commodities block has been rising, with oil and metals leading the way. Gold has tested its down trend line resistance again at 1354.00, with a close above this level targeting resistance around 1365.30. The creation of higher lows strongly reinforces this move but caution must be taken that the market doesn’t enter a sideways […]
A vote in the UK’s House of Lords last night defeated the Government’s plan to leave the customs union with the EU. The House voted down the proposal 348 to 225. While this does not prevent the UK leaving, it does show some of the opposition that is building up against aspects of the withdrawal. […]
U.S. West Texas Intermediate (WTI) crude oil rose to trade over $67 after the weekly report by the American Petroleum Institute (API) on Tuesday showed that inventories fell by 1 million barrels. Crude oil prices have been boosted recently due to the high risk of potential supply disruptions resulting from the conflict in the Middle […]
The GBPCAD pair is holding just under 1.80000 after testing the level yesterday. The high at 1.80922 from the 9th of April takes on an important significance, as a move above this level would create a higher high and confirm a resumption of the move higher. The current retracement reached a low of 1.78080 last […]
Global markets synchronised their appetite for risk after the US stock market broke out earlier in the week, with the German Index and UK 100 following suit. This followed on from positive news on the geopolitical arena, as Syrian tensions eased and trade talks made progress. Corporate earnings are showing good results. The US 500 […]
Telegram founder Pavel Durov has refused to hand over encryption keys to Russian authorities, showing his willingness to sacrifice the app’s Russian users to maintain the integrity of the project as a whole. This move will likely lead to further growth for the app’s user base and an increase in value for the platform’s coin, […]
The British Pound eased from post-Brexit highs this morning, after the release of wage data from the Office for National Statistics (ONS). Average earnings growth for the three months to the end of February was reported at 2.8%, less than the expectations for 3%. In further good news for the U.K economy, the ONS also […]
The German index has moved higher to test the falling red trend line at 12500.00 but failed to stay above the level, after running into strong resistance at 12550.00. The bullish channel that price has been trading within has held, and the index is now moving higher again towards 12500.00. A sustained break above 12550.00 […]
There have been fresh airstrikes on Syria overnight, with an attack on targets and airfields near the Israeli border. The US has said that it isn’t conducting any military activity in the area. Syrian air defences have engaged and intercepted missiles. This has led to very little reaction in markets so far, as details surrounding […]
U.S stock markets look set to move higher after shrugging off geopolitical concerns and with earnings season kicking into gear. There is some relief that a direct confrontation between the U.S. and Russia over Syria seems to have been avoided after Russian President Vladimir Putin just warned that further Western attacks in Syria would bring […]
USDCAD is once again testing the 1.26226 level today. This level provides traders with a very interesting decision. Will price break out higher from here or respect the level and fall back lower again? A break higher is supported by the creation of higher lows since the middle of last week, and the 50-period MA […]
The US, UK and France took military action against Syrian Government forces over the weekend. Three targets were hit in combined missile and airstrikes, after the US had been in contact with Russia during the week, to give pre-warning and limit collateral damage. The strikes took place after market close on Friday night/Saturday morning, giving […]
Yesterday, the price of Bitcoin jumped more than $1,000, from $6,900 to $8,000, in a single hour. This is the biggest market movement over the last few weeks. On Friday, BTC has continued to rise, showing an increase of 18% in the last 24 hours. The leading altcoins have also jumped 13-15%. There haven’t been […]
The total market capitalisation of cryptocurrencies surged back above $300bn, as broad-based buying saw digital currencies recover from lows. On Thursday morning, Bitcoin jumped by more than $1000 to trade over the $8000 handle. Ethereum also made a significant upside move to trade above $500. The recovery could be attributed to a number of factors. […]
The UK 100 Index has positioned itself in a holding pattern over the last three days, after breaking above the resistance level of 7224.50 on Tuesday, with this level now becoming firm support. Further support comes from the 50 DMA at 7201.00, with a move under here handing control back to bears, who may try […]
The AUD is the strongest currency today, as Chinese Imports (YoY) (Mar) came in at 14.4%, much stronger than the expected 10.0%, from a prior reading of 6.3%. This boosted the AUD, which was already higher due to positive risk sentiment, with AUDUSD up 0.28% to 0.77736 overnight. This pair was down at a low […]
The New Zealand Dollar (NZD) broke higher on Tuesday, as China seemed to calm down trade war rhetoric with the U.S. It could be argued that President Trump is now pre-occupied with geopolitical issues involving Russia and Syria. Chinese President Xi Jinping delivered a speech at the Boao Forum for Asia earlier this week and […]
The US 500 Index has been in a sideways pattern for the last few weeks, as exemplified by the 4-Hour chart, where the 50-period MA at 2638.40 and the 100-period MA at 2651.00 contain price action. The area of potential importance on the 4-Hour chart is the appearance of an inverted head and shoulders pattern. […]
The main economic event today will be the publication of the ECB Monetary Policy Meeting Accounts, which will give an insight into the thinking of the ECB on economic conditions that influence their decisions. The reaction to the data events over the past couple of months will be of particular interest. Syria dominated headlines overnight, […]
The British Pound came down off the highs this morning after the latest economic data releases. UK’s Manufacturing Production contracted at a monthly 0.2% in February against an expectation of an expansion of 0.2%. Industrial Production expanded 0.1% versus an expectation of 0.4%. Additionally, the UK’s trade balance report was released, showing that the deficit […]
The EURCAD pair has fallen back under the red supporting trend line, leading to a down move to the 1.55500 support area. The low reached 1.55458 but there is support close by at 1.55325. Price action is now back to the 1.56000 level. Resistance comes in the form of the 50 DMA at 1.56860, with […]
As we await the FOMC minutes this evening, which will give an indication of the Fed’s thinking on the path of hikes going forward, UK Industrial Production is expected to decline from 1.3% to 0.4% (MoM) today, which puts it back in line with the January reading. The Trade tensions between the US and China […]
Low interest from investors continues to put pressure on the crypto market. According to CoinMarketCap, Bitcoin has lost 5.5% in the last 24 hours and is currently trading near $6,700. The “benchmark” cryptocurrency has been keeping within the $6,500 – $7,100 range. The news that George Soros, the Rothschilds and other financial moguls have an […]
The much-anticipated speech delivered by Chinese President Xi Jinping at the Boao Forum for Asia earlier today sent the Australian Dollar sharply higher. Mr Xi made no direct reference to the trade dispute with President Donald Trump and said China’s markets will be opened further, with improved conditions for foreign companies. He also talked about […]
