Tue, May 18, 2021 @ 23:42 GMT
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EURCHF Bearish Pressures Fumble ahead of 1.0900 Defences

EURCHF has faded from the near 20-month peak of 1.1151 below the Ichimoku cloud but negative momentum seems to be dwindling around the 100-day simple moving average (SMA) at 1.0943. The 100- and 200-day SMAs are shielding price improvements, while the 50-day SMA is reflecting a price preference to...

Pound Gains Bullish Traction ahead of Data Releases

British Chancellor Rishi Sunak expressed in an exclusive interview last week that post-Brexit Britain can look forward to a flourishing future as hopes and opportunities are rising again after a harsh start to the year. Following a robust employment report, April’s CPI inflation figures on Wednesday (06:00 GMT) and...

Bumper Jobs Data Boosts GBP/USD to 1.42

The UK labour market appears to have turned a corner. The latest jobs data painted an improved picture. Unemployment unexpectedly declined to 4.8% in the three months to March, down from 4.9% in February and also its third straight monthly decline – an encouraging sign particularly given the UK...

GBP Climbs on Strong Job Data, CPI Next

The British pound touched a 3-month high earlier on Tuesday, when GBP/USD reached a high of 1.4220. In North American trade, the pair is trading at 1.4200, up 0.49% on the day. UK unemployment rate falls The pound received a lift from positive UK employment numbers, which were released earlier in the...

Dollar Index Falls to the Lowest in Nearly Three Months on Fading Fed Rate Hike Hopes / Weak US Data

The dollar holds in red against the basket of major currencies for the fourth straight day, pressured by fading hopes of Fed changing monetary policy soon and accelerated lower on Tuesday after poor US housing data further soured the sentiment. Fresh bears probe again through psychological 90.00 support and look...

US: Housing Starts Pull Back in April, Giving Back Part of Gain Recorded in Month Prior

U.S. housing starts fell by 9.5% to 1.57 million units (annualized) in April from a downwardly-revised 1.73 million units in the month prior. The outturn came in below market expectations, which called for a decline to 1.71 million units. Looking past the month-to-month volatility, starts have trended near...

Sunset Market Commentary

Markets Similar market dynamics are at play as yesterday in absence of key eco/event news. US housing starts unexpectedly fell by 9.5% m/m, but they did surge nearly 20% in March. Building permits (+0.3% m/m) printed near consensus. The data had no impact. European stocks managed a firm start but...

FOMC Minutes: Avoiding the “T” Word

The minutes of the Federal Reserve’s April 27-28 policy meeting are due on Wednesday (18:00 GMT) but investors are not holding their breath for any taper signals. The Fed has not moved an inch with its policy stance this year even as the consumer price index has skyrocketed to...

US open: Reopening Optimism and a Dovish Fed Lift Futures

Stocks point higher as optimism surrounding the economic reopening overshadows rising covid cases in Asia and as the Fed continues to reiterate its dovish intentions. USD dives to 3 month low. US futures Dow futures +0.15% at 34382 S&P futures +0.2% at 4171 Nasdaq futures +0.5% at 13386 In Europe FTSE...

Oil Rises, Gold Rally Continues

Oil rises on re-opening optimism Re-opening optimism is boosting oil prices, which now trade at around two-year highs. Western economies such as the US and the UK are easing lockdown restrictions, driving fuel demand and overshadowing lingering demand concerns in parts of Asia as Covid cases rise. The oil market has...

A Dovish Fed And Improving UK Jobs Market Lift European Stocks

European bourses have powered higher out of the starting blocks on Tuesday, boosted by the Fed’s promise of low rates for longer and upbeat UK jobs data. Inflation concerns dominated the markets last week, but they’re starting to ebb after softer-than-expected US consumer spending and further reassurance from the Fed....

Aussie Climbs, Consumer Confidence Next

The Australian dollar has recorded considerable gains on Tuesday. In the European session, AUD/USD is trading at 0.7800, up 0.53% on the day. After sharp losses last week, the Aussie has clawed higher and is back in 78-territory. The US dollar received a lift last week, after a surprising surge...

EUR/AUD 4H Chart: Bulls Could Prevail

The common European currency surged by 1.51% against the Australian Dollar during last week's trading sessions. The currency pair breached the 50– and 200– period SMAs last week. All things being equal, the exchange rate could continue to edge higher during the following trading sessions. The potential target for the...

EUR/CAD 4H Chart: Could Edge Higher

The single European currency declined by 1.16% against the Canadian Dollar during last week's trading sessions. The 50– period simple moving average pressured the currency pair lower last week. The exchange rate bounced off a support level at 1.4597 during Friday's trading session. Most likely, the EUR/CAD pair could continue...

AUD/USD Breakout Occurs

The Australian Dollar has surged by 62 pips or 0.80% against the US Dollar since yesterday's trading session. A breakout occurred through the upper boundary of a descending channel pattern on Monday. Given that a breakout had occurred, buyers are likely to pressure the exchange rate higher during Tuesday's trading...

GOLD Reaches Above 1,870.00

The yellow metal's price has reached above the 1,870.00 level. Note that the surge occurred faster than expected, as the rate even broke the narrow channel up pattern, which had guided the price up since May 13. In the near term future, the metal was expected to consolidate by trading...

USD/JPY Breaks Pattern

On Tuesday morning, the USD/JPY currency exchange rate plummeted, as the rate passed the support of the 109.00 level. Moreover, the pair broke the channel down pattern, which guided the pair down since May 13. In regards to the future, the rate had no technical support. Namely, the USD/JPY could...

GBP/USD Reaches Above 1.4200

On Tuesday, the GBP/USD passed the resistance zone near 1.4160, the weekly R1 simple pivot point at 1.4181 and the 1.4200 mark. In the near term future, the currency exchange rate was expected to reach fort the 1.4250 level and the weekly R2 simple pivot point at 1.4258. In general,...

EUR/USD Breaks Resistance

On Tuesday morning, the EUR/USD currency exchange rate broke the resistance of the 1.2175/1.2180 zone. It was followed up by an immediate passing of the resistance of the weekly R1 simple pivot point at 1.2201 and the 1.2200 mark. In the near term future, the pair was expected to surge,...

USD Remains On The Defensive

Notes/Observations UK labor data improved despite the recent lockdown; driven by the extension of the government's furlough scheme. USD at multi-month lows against numerous pairs; weakness attributed to the US inflation outlook and the Fed's dovish reaction of believing its transitory. Asia: Japan Q1 Preliminary GDP Q/Q: -1.3% v -1.2%e;...

An Unfolding Battle For The Dollar

The markets are now seeing renewed pressure on the US currency and an increase in demand for risky assets due to soft comments from the Fed. Richard Clarida reminded us that the FOMC would warn us before considering winding down its asset purchase programme for the central bank balance...

USD Loses Further Ground On Low Rates Expectations

The USD tended to retreat further against a basket of its peers yesterday, as the market sentiment seems to have been influenced by the expectations of the Fed keeping its interest rates at low levels for a long period. Fed’s policymakers seem to maintain their dovish view and Dallas...

Aussie Remains Firm With Unemployment Expected To Be Steady In April

The aussie has been trading sideways over the last three months with the employment report for April, due out on Thursday at 00:30 GMT, likely to attract some attention. The recession in Australia is over as the economic indicators have turned positive; however, the recovery still has a long...

The Analytical Overview Of The Main Currency Pairs

The EUR/USD currency pair Technical indicators of the currency pair: Prev Open: 1.2143 Prev Close: 1.2151 % chg. over the last day: +0.07% On Monday, the EUR/USD currency pair continued to rise. Yesterday, the US Treasury bond auction was held by the Treasury Department. Increased liquidity in the financial system is playing in favor...

EUR/USD Bullish Break Faces Tough 78.6-88.6% Fibonacci Resistance

EUR/USD remains bullish after bouncing at the 21 ema support zone. But price action will soon reach the critical Fibonacci resistance zone and the previous top. Will price action reverse or break? Let’s review the most important Fibonacci, chart, and Elliott Wave patterns on the EUR/USD today. The...

Stocks Bounce Back As Optimism Returns, Dollar Sags

Stocks bounce back as recovery hopes supersede virus and inflation jitters Dollar slumps on easing Fed taper worries but inflation bets lift gold Euro and pound surge as Europe reopens, loonie hits highest in 6 years Markets buoyed as optimism takes over Fears about rising virus cases in Asia receded...

The Dollar Index Continues To Fall Amid Expectations The US Rates Will Stay Low For Longer

On Monday, major stock indices around the world declined slightly. There is a strong correlation of the world indices from the dynamics of the US indices now. The Fed will hold the FOMC Meeting on Wednesday, which will shed light on monetary policy prospects going forward, so investors are...

BTCUSD Sell The Rally

Bitcoin is attempting to recover higher after sellers failed to breach the $42,000 support level during the Asian trading session. The BTCUSD pair could recover back towards key trendline resistance, around the $48,500 area if gains above the $46,000 level take place. It is important to note that the...

XAUUSD Above Resistance

The price of gold is trading at a four-month high, as safe-haven demand and growing fears about rising COVID-19 cases in Asia are boosting the yellow-metal. Gold is trading above critical trendline resistance and is now free from a large falling price channel, around the $1,865 level. Continued gains...

Oil And Gold Head Higher

Oil grinds higher Oil prices ground higher overnight as black gold continued to benefit from recovery sentiment in the US/Europe/China axis. Brent crude rose 1.05% to USD69.45 a barrel, advancing to USD69.60 a barrel in Asia. WTI rose 1.25% to USD66.30 a barrel, adding another 15 cents toUSD66.45 a barrel...