GBPUSD has gained nearly 900 pips from the December low due to strong economic data in the UK, Brexit optimism and weakness in the U.S Dollar. The UK economy ended last year with stronger-than-expected growth. Last week’s GDP data showed the UK economy grew 0.5% in the final quarter of 2017; ahead of analyst forecasts […]
There was a general increase in volatility last week across the board due to Davos and a busy economic calendar. On Friday, BOJ’s Kuroda made comments in Davos concerning the Japanese economy, saying the contrast between recovery and inflation stands out more than anywhere else and the economy is expanding moderately and will continue. It’s […]
Monday 29th January at 13.30 GMT – US Core PCE, which is the monthly measurement of core spending level. December estimates are for 0.2% MoM and 1.5% YoY. US Personal Spending is also released at the same time. The December figure estimate is 0.5% MoM. Monday 29th January at 23.30 GMT – Japan Unemployment Rate. […]
The decline in the Dollar has been widespread and USDMXN is no exception. The decline gathered momentum on the 12th of January, sweeping trend lines aside and confirming the loss of the supporting trend line the following day at the 19.10200 level. The supporting moving averages were overcome, and after a brief attempt to rally […]
The Loonie continued to strengthen against a weak greenback on Thursday, pulling back from an earlier four-month high, after comments by U.S. President Donald Trump helped boost the U.S. Dollar. The remarks by the U.S. President helped the pair to rebound over 100-pips from an intraday low near the 1.2280 region, erasing a move lower […]
Markets have had a volatile session this week thanks to various US officials and yesterday was no exception, with President Trump speaking in Davos. He made comments about the TPP, saying he would do a deal if it was ‘substantially’ better. On NAFTA he said he may terminate or may not and that they were […]
The ECB rate decision which is due at 12.40pm GMT and the Press Conference which is scheduled for 13.30pm GMT are probably the most anticipated market event for this trading week. No rate change is expected at this time, but the majority of the market participants will closely watch and listen for any changes in […]
The price of gold rose on Wednesday, hitting its highest level since August 2016. The move was triggered by the U.S. dollar plunging to three-year lows, after comments by U.S. Treasury secretary Steven Mnuchin in Davos that he welcomed a weaker currency. If the dollar continues to stay weak and inflation trends upwards then gold […]
Yesterday, Senior US Officials took the lead from their President and made clear the US position on Trade. Commerce Secretary Wilbur Ross took aim at China, saying the Chinese 2025 technology plan is a ‘direct threat’ to US technological dominance. The Chinese plan aims to support and develop sectors of their economy such as artificial […]
The GBPUSD pair has been trending higher since January 2017 after reaching a major low in October 2016 of 1.19116. This week, the price broke above the 200-Week MA at 1.40545, keeping the bullish trend on track. The price is firmly back trading in the pre-Brexit range and it is in this range we have […]
South Africa’s currency traded below 12.0 per U.S. Dollar for the first time since May 2015. The strength in the Rand was sparked by an improving domestic political environment and boosted by the greenback’s retreat. Cyril Ramaphosa was elected as head of the ruling African National Congress (ANC) in December and is likely to take […]
Today we will have PMI data coming in from various economies around the world. Japan has already reported, with Europe next up, followed by the US in the afternoon. Japanese PMI data is close to a four-year high, showing good economic health in the manufacturing sector and the wider economy. Purchasing Managers Index measures the […]
The German Index has gapped higher this morning, creating new all-time highs for the first time in 2018. The rally stalled at the 13600 resistance level and paused there for much of the early morning session. It then moved lower to test support around the previous high. This still leaves a gap on the chart […]
The Australian Dollar was pressured by sellers overnight and during early trading in London on Tuesday, as markets responded to a sharp fall in iron ore prices. Prices of iron ore, Australia’s largest export, are a perpetual source of risk for the currency. The U.S. imposed tariffs on imported washing machines and solar panels sparked […]
The Bank of Japan Interest Rate Decision was as expected and left unchanged at -0.1%. The Japanese 10-Year JGB yield target is around zero percent. JGB purchase remains at current pace to ensure holdings increase to around ¥80 Trillion a year. The BOJ raised its expectations on inflation in the quarterly report and extended the […]
The week begins with markets reacting to the U.S. Government shutdown after the U.S. Senate failed to approve the House bill on funding. This resulted in the Dollar remaining near three-year lows. Looking forward, the first monetary policy meetings of 2018 for the major central banks are scheduled this week. USDJPY The Bank of Japan […]
The GBPJPY currency pair has been gaining ground steadily since its low in autumn 2016. It has now reached a resistance level from late February of that year when a selloff in the market paused and a steep downtrend put in a minor low at 154.700. On the current Daily chart, this level corresponds with […]
Monday, there aren’t any tier 1 economic data releases scheduled. The main point of interest could be the Eurogroup meeting (the informal name of a meeting of Eurozone finance ministers, EU Commissioner and ECB president). This meeting is scheduled for 10.00am GMT and normally happens before a broader meeting of ECOFIN (ministers of finance of […]
The U.S. government shutdown over the weekend as the Senate failed to pass a bill to keep the funds flowing late on Friday. The Democrats are making an issue of protections for young undocumented immigrants. President Trump has responded saying he will not negotiate on the issue until democrats vote to end the shutdown and […]
The GBPNZD pair has formed a rising channel in the 1-Hour timeframe, the bottom of which is supported by the chart’s 3 main moving averages, the 50, 100 and 200-Hour MAs. The area is centred just below the 1.90000 support level and round number, with a weak two-touch trend line close by. The next level […]
Our last report on the Crypto selloff was two days ago but two days is a long time in the Crypto market. Following the hefty sell-off that lasted for two days, despite negative news flow, cryptocurrencies made a sharp recovery on Thursday. News headlines from South Korea have continued, ranging from insider-trading accusations to admissions […]
The Economic calendar for today is very light, with main events in focus for the European trading session concentrating around German PPI and UK Retail Sales data. Asian equity markets were positive, pointing to a sixth week of gains. The U.S. Dollar Index declined overnight, trading very close to the psychologically important 90.00 level, which […]
European stock markets are looking for direction after bullish sentiment in the U.S equity markets and upbeat economic data from China. U.S markets got a boost from the recent tax changes and news of Apple paying about $38bn in tax on cash held outside the U.S and that the company plans to build a new […]
This morning, ahead of the European markets open at 07.00am GMT, we saw the release of a range of data from China. Chinese Retail Sales came in at 9.4% v an expected 10.1%, from a previous 10.2%. Industrial Production came in at 6.2% v an expected 6.0%, from a previous 6.1%, and probably the most […]
EURGBP has transitioned from trading in a channel higher, to trading in a sideways range. Resistance in the area around 0.89240 has been confirmed, leading to a selloff down below the moving average cluster in the 4-Hour chart. The 0.88595 support area has been breached today and for now, the 0.88477 level is holding. A […]
The GBPUSD pair has rallied strongly to trade above 1.38 especially against a weak US dollar. This has been encouraged by positive Brexit news, with Dutch and Spanish officials making it known last week that they would like a soft Brexit. Yesterday, European Council president Donald Tusk said, in his usual poetic manner, that Europeans’ […]
The BOC is expected to deliver an Interest rate hike of 25bps today as it seeks to catch up with an economy that is flying high. BOC’s Governor Poloz will deliver his decision and Press Conference, where he will outline the factors involved in making the decision. Chief among them will be the broad underlying […]
The Euro had gotten to a high of 1.22960 against the USD yesterday, before retracing to test support at 1.22000 this morning. The rally higher over the last few days took place despite the fact that trend line support was lost on the 8th of January. The pair spent the next three trading sessions below […]
This morning all cryptocurrencies are sliding amid a major selloff. Most have fallen more than 10 percent, with the price of Bitcoin trading below $12,000. Earlier, it was reported that deputy governor of the Chinese central bank, PBOC, said in an internal meeting that China should ban centralized trading of virtual currencies as well as […]
USDJPY found support ahead of 110.000 yesterday, with a low of 110.330. The area is a key psychological support for the pair finding buyers to reverse the recent bout of selling. A drop below the 110.000 level has prompted intervention from authorities in the past, as the countries’ Equities Indices come under pressure from the […]
