U.S. equities are set to make gains after news that a trade war between the world’s two largest economies is on hold. The Treasury secretary, Steven Mnuchin, reported on Sunday that negotiations with China have progressed saying, “We’re putting the trade war on hold, right now, and we have agreed to put the tariffs on […]
US Treasuary Secretary Steve Mnuchin gave an interview on NAFTA over the weekend where he said that President Trump is “more determined to have a good deal than he’s worried about any deadline”. He spoke about the US acceptance of the deadline slipping into 2019 once the right deal for the US is achieved. USDCAD […]
Bitcoin has fallen below $8,000. The major altcoins followed the “benchmark” cryptocurrency, losing between 5% and 10% of their value. Throughout the year, each time market participants have expected growth, the trend has reversed into a decline. Bitcoin in particular, after having experienced growth for 3 weeks and attempted to move above $10,000, is now […]
Mexican Peso The Mexican Peso (MXN) has continued to weaken on uncertainty surrounding the North American Free Trade Agreement (NAFTA), where there is still no deal in sight. Even if the government announces an agreement on NAFTA, any recovery may be short-lived, as attention will turn to the country’s election where the favoured candidate, Manuel […]
The US 30 Index approached 25000.00 this week but has stepped back from that level to support at the 50-period MA. The index looks to be forming a continuation pattern but more data is needed to confirm this. The breakout from the red line was contested by bears a week earlier around 24400.00 and this […]
Overnight US Trade Representative Lighthizer issued a statement saying that the U.S., Mexico and Canada are “nowhere close to a deal”. This was counter to the statement by Canadian PM Trudeau yesterday who said “We’re very close” when asked about progress. The US had set a deadline for NAFTA to be agreed on by yesterday, […]
The Canadian Dollar (CAD) is expected to see increased volatility, as markets await resolution on the North American Free Trade Agreement (NAFTA) negotiations and the release of key economic data on Friday. Today is the deadline set by House Speaker Paul Ryan for a notice of intent to sign a deal that could be passed […]
The GBPJPY pair has rallied to the resistance trend line at 149.710, only to rebound lower and test Tuesday’s high at 149.182. The rally was the result of reports that the British Government is to maintain the Customs Union with the EU past 2021. While this is positive news, it does lead to questions about […]
British Media has reported that the UK is to inform the EU that they are willing to stay in the EU Customs Union beyond 2021. The Government agreed on a new “backstop” earlier this week to avoid a hard border on the island of Ireland. This came after rejecting earlier EU proposals ahead of the […]
The EURUSD pair has dipped below 1.1800 for the first time since December. The move comes after the release of Eurozone final CPI figures, which were in line with estimates. The final CPI was reported at +1.2% on a yearly basis. Adding to the bearish bias is monetary policy divergence between the FED and the […]
The GBPUSD pair pulled back from resistance at 1.36000 this week and remains in a sideways consolidation pattern between 1.36500 and 1.34500, a 200-point range. USD strength yesterday pushed price to new lows at 1.34510, and this remains the level to break if that strength returns. For now, price is back above previous support at […]
Japanese GDP fell to -0.2% from 0.0% expected for the quarterly Q1 figure and -0.6% from 0.0% expected for the yearly figure. This drop was forecasted, with an expectation for a recovery to higher numbers going forward into Q2. USDJPY didn’t react much and is still trading in the same range around 110.275, after breaking […]
Cryptocurrencies have had a positive start to the week, after last week’s correction when the market cap dropped to $367 bln. The sell-off was provoked by BTC moves from Mt. Gox cold wallets and investigations into the largest crypto exchanges in South Korea. Currently, the total market cap sits at around the $400bln mark, with […]
The New Zealand Dollar (NZD) has been one of weakest currencies over the last month and is nearing the 0.69 level against the US Dollar. Last week, the Reserve Bank of New Zealand (RBNZ) kept its official cash rate at a record low of 1.75% and indicated that interest rates would stay at record low […]
The EURJPY pair is retracing higher following its rejection of the 133.479 level in late April and its sell-off to 129.218. The breakout higher came on the 11th of May, with the move above the blue trend line, but traders who bought the retest of 130.000 that morning have also done very well. The price […]
China was one of the top stories overnight, as Moody’s released their analysis on the China/US trade war. They believe that China is unable to meet the US request to reduce its trade surplus “by $200B by 2020 without causing significant disruptions to its economy”. They also believe that this measure would be incompatible with […]
The major US equity indices all rose more than 2% last week, driven by buybacks and improving earnings growth. A pullback in US treasury yields and the Dollar Index also contributed to gains last week, as higher treasury yields can reduce investment in stocks with a stronger currency, making exports more costly. A continuation of […]
The EURUSD pair found its short-term bottom at 1.18170 last week and has this morning rallied into previous trend line support at 1.19835. The price has used the 50-period MA to prop up today’s advance and this is now the first point of support at 1.19544. There is also support to be found at 1.19161, […]
Following on from the US withdrawal from the Iran Deal, UK PM May reaffirmed her commitment to ensuring the deal is upheld. She spoke via phone with the Iranian President yesterday, in advance of a meeting of the UK, France, Germany and Iran in Brussels tomorrow. Over the weekend, US National Security Advisor John Bolton […]
Precious metals are seeing a rally after disappointing Consumer Price Index (CPI) data from the U.S. CPI rose by 0.2% in April versus an expectation of 0.3%, with an annual rate of 2.5%. As a result, the U.S. Dollar fell against a basket of currencies, as the smaller than expected increase in CPI reduced concerns […]
The USDCAD pair is currently trading around the 1.27600 level, just off the lows of the week and above the 1.27243 support zone. Price initially broke higher after consolidating around 1.28500 but the resistance at 1.30000 was too strong and sellers pushed price under 1.28000 and the moving averages. Resistance has accumulated at the low […]
After further increases in stock markets yesterday, the market is pausing and consolidating ahead of European trading. Asian equity markets are in the green, trading up around 1% but Chinese markets are lagging due to trade tensions with the US. Dovish comments from BOE Governor Carney and soft US CPI data yesterday led to a […]
As expected, the Bank of England (BoE) decided to keep interest rates on hold at 0.5%. The BoE’s Monetary Policy Committee (MPC) voted 7-2 to leave policy unchanged. In the Inflation Report, the BoE now sees inflation lower in the near to medium-term. The MPC members want to wait and see how economic data unfolds […]
The RBNZ left rates on hold adding to the woes in the NZDUSD pair. The price fell to fresh lows for the year at 0.69018, pushing under the red supporting trend line on the chart. A retest of this trend line as resistance is now likely at 0.69360. The next level of support traders are […]
The Reserve Bank of New Zealand left rates on hold at 1.75% earlier with a shift to a more dovish position, adding that the direction of the next rate move is very finely balanced. The Bank lowered its inflation forecast and lengthened its inflation target timeframe. It expects CPI at 1.6% by June 2019, revised […]
Oil prices jumped on Wednesday after President Donald Trump said the US would reinstate economic sanctions on Iran. Iran became a major oil exporter in 2016 after international sanctions against it were lifted as part of the nuclear deal. Iran in the third largest exporter of crude within the Organization of the Petroleum Exporting Countries […]
The GBPUSD pair has managed to hold above its support at 1.34824 over the last few trading sessions and has formed a trading range up to 1.35926. The sequence of lower highs is still intact and for a reversal of the down trend started in mid-April at 1.43760 to take place, the price needs to […]
Spot Oil prices are higher overnight after the US withdrew from the Iran Deal yesterday. US WTI bottomed at $67.56 yesterday and is now currently trading at $70.53. US President Trump has long said that the deal was “no good” and part of his election campaign was to end US participation in the agreement. The […]
The USDJPY pair has fallen back from its high at 110.030 and is now using its 50-period moving average as resistance on the 4-hour chart. It has set up a falling trend line as resistance at 109.130 that, if broken, could send price back to retest the high. There is light resistance at 109.772 and […]
U.S. equity indices started the week on a positive note, supported by energy stocks which benefited from the rise in crude oil prices. U.S. WTI crude oil pushed above $70, as markets await President Trump’s decision on a possible U.S. withdrawal from a deal giving Iran relief from sanctions in return for stopping its nuclear […]
