Sunset Market Commentary
Markets
January PMI’s confirmed the gut feeling of an economic setback caused by fresh and extended lockdown measures to fight Covid-19 (mutants). The EMU composite PMI declined from 49.1 to 47.5, broadly in line with consensus. The underlying divide between strength in the export-oriented manufacturing sector (54.7 from 55.2) and...
Dollar Rebounds Broadly as Risk Appetite Recedes
Dollar rebounds broadly today following receding risk appetite. Investors are apparently paring their gains in stocks. Swiss Franc and Euro are the next strongest, followed by Yen. On the other hand, Australian Dollar and Sterling are the worst performing. In particular, the Pound was weighed down by sharp deterioration...
A Tough End to the Week
Stock markets are ending the week on a negative note after a period of consolidation so far this month.
It’s been a strange start to the year following a bumper two months, with vaccine optimism keeping sentiment upbeat despite the growing near-term Covid risks. The political distraction in the US...
GBP/USD Continues To Trade Within Falling Wedge Pattern
Yesterday, the GBP/USD exchange rate bounced off the upper boundary of the rising wedge pattern.
From a theoretical point of view, it is likely that the currency pair could re-test the lower pattern line located in the 1.3400/1.3600 area in the short run. If the given pattern holds, a reversal...
GBP/USD Bearish Reversal Chart Patterns After Hitting 1.3750
GBP/USD made a new higher high that hit the 1.3750 target as expected in my EU-GU video. But the uptrend seems to be struggling due to the reversal chart patterns.
On the 4 hour chart, price action did manage to break above the quadruple top. But the quick decline after...
GBP/USD Outlook: Sterling Is At A Crossroads As Weak Data Hurt Bulls
Cable pulled back from new high in early European trading on Friday, pressured by weaker than expected UK data which showed weak recovery in retail sales in December after November’s plunge on lockdowns and downbeat PMI’s, as services sector was hit much more than expected and activity in manufacturing...
Stocks Retreat, Dollar Edges Up As Virus Concerns Creep In Again
Equity rally loses steam after strong weekly gains amid renewed virus jitters
Talk of Biden tax increases also undermines risk appetite, lifting the dollar
Poor data pull down pound and aussie but euro fares better after ECB stays put
Virus outbreaks, recession fears cap risk rally
The stimulus-led stock market...
GBPUSD Takes A Tumble
The British pound has tumbled back under the 1.3700 support level against the US dollar after the UK posted weaker Retail Sales data and the government threatened to close its borders. Technical analysis highlights that the 1.3660 level is the key intraday pivot point to watch out for when...
GBPJPY Rests Near 4½-Month High, Remains In Bullish Channel
GBPJPY has been moving higher within an upward sloping channel over the last four months, remaining above the 20- and 40-day simple moving averages (SMAs).
The price reached a four-and-a-half-month peak around 142.40, however, the technical indicators are mixed. The MACD is moving horizontally in the positive territory, while the...
GBP/USD On Track To Settle Above 1.3700
The British pound sterling continues to keep a bullish hold. After failing to break out above 1.3700 level, prices managed to do so on Thursday.
With intraday gains pushing the GBPUSD somewhat higher, we expect the 1.3700 level to hold for the moment.
This will potentially open the way for the...
Daily Technical Analysis
EUR/USD
Current level - 1.2171
At the beginning of the week, the single European currency reached the local low at the support level of 1.2062, after which the bulls gained momentum and the rally resumed. At the time of writing, the rise in the price of the euro against the U.S....
Crude Oil Price Points Lower Ahead Of EIA Inventories
The New Zealand dollar declined in early trading even after relatively strong inflation numbers from the country. According to the statistics bureau, consumer prices rose by 0.5% in the fourth quarter. This was better than the expected increase of 0.1%. The prices increased by 1.4% on an annualised basis....
Euro Rebounds Against While Stock Traders Take Profit
The forex markets are reversing some of this week moves today, as stock investors are also taking some profits ahead of the weekend. Euro is the better performing so far, followed by Swiss Franc, Dollar and Yen. Meanwhile, Sterling and commodity currencies are the weaker ones. As for the...
Market Morning Briefing: Euro Is Headed Towards 1.22
STOCKS
Dow, DAX and Nikkei remain stable at higher levels. While a sideways consolidation looks like a possibility, it will have to be seen if they can see an extended rise before a correction comes into play. Shanghai is hovering around its crucial resistance level of 3600 which has to...
SARB Leaves Rates Unchanged Amid New Variant Of Coronavirus: USD/ZAR, GBP/ZAR
Little is discussed regarding the effect of the coronavirus (and its variant) on the South African economy. Earlier today, the South African Reserve Bank (SARB) left rates unchanged at 3.5%, a record low. The central bank had cut interest rates by 300 bps over the last year, however the...
Sunset Market Commentary
Markets
The ECB left key policy parameters unchanged. The deposit rate remains at a negative -0.5%. APP runs at a €20bn pace/month. Net bond buying under PEPP will continue until March 2022 while maturing securities will be rolled-over at least until end 2023. The ECB has repeatedly said they could...
The Analytical Overview Of The Main Currency Pairs
The EUR/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.2126
Prev Close: 1.2105
% chg. over the last day: -0.17%
EUR/USD was the weakest pair at the end of Wednesday. The day closed in the red despite the negative dynamics of the dollar index. This indicates significant pressure from the bears...
GBP/USD Tests Rising Wedge Pattern
During today's morning, the GBP/USD exchange rate has been testing the upper line of the rising wedge pattern.
From a theoretical point of view, it is likely that the currency pair could bounce off and trade downwards within the predetermined pattern. Note that the pair could gain support from the...
Stocks, Pound Extend Gains And EUR/USD Steady As ECB Eyed
The EUR/USD was steady while the GBP/USD hit a new multi-year high on Thursday morning, as the US dollar fell further with more global indices hitting new record highs with investors remaining hopeful that lockdowns will end hopefully in the not-too-distant future with many developed countries rolling out COVID...
GBPUSD Breaking Out
The British pound has moved back above the 1.3700 level against the US dollar as traders turn increasingly bullish towards the pair. Continued gains above the 1.3700 level are likely to see the GBPUSD pair start moving into a much higher trading range. The main upside targets for the...
Daily Technical Analysis
EUR/USD
Current level - 1.2124
The negative decline after the unsuccessful attempt at violating the resistance zone at 1.2141 was limited around the zone at 1.2097. During the early hours of today’s trading, the bulls took control and a new test of the aforementioned zone at 1.2141 could be expected. А...
GBP/USD Outlook: Cable Probes Through 1.3700 Zone For The Fourth Time
Cable is probing through 1.37 barrier for the fourth time in early Thursday's trading, after spike to new multi-month high at 1.3717 on Wednesday.
Better than expected UK inflation data continue influence pound, along with rising optimism about speedy coronavirus vaccine rollout and weaker dollar.
Monday's hammer candle after bears got...
Keep A Very Close Eye At Sterling
Markets
The British pound unexpectedly took center stage yesterday. EUR/GBP declined sharply at the very start of the European open, temporarily breaking below key support at the 0.886 area. UK December inflation topped expectations but failed to explain the move from a timing-perspective. Moreover, with inflation still well below the...
GBP/USD Briefly Rises Above 1.3700 But Fails To Hold
The British pound sterling continued its bullish rally with prices briefly rising above the 1.3700 handle once again.
However, the intraday gains were quickly scaled back as prices pulled back later in the day. As a result, the GBPUSD is currently trading within the sideways range of 1.3700 and 1.3611.
The...
GBPUSD 1.3700 Failure
The British pound has suffered a heavy rejection from the 1.3700 resistance level against the US dollar as buying interest around the highs of the year started to dry up. Technically, the GBPUSD pair continues to set bullish higher highs on the weekly time frame. Traders that are bullish...
Market Morning Briefing: Pound Has Been Steadily Rising Towards 1.37
STOCKS
Equities are regaining momentum as the sentiment is getting a boost as Biden has sworn in as the new US President. Dow, Sensex and Nifty are looking bullish. Dow can test 31500. Nifty can move up to 14800-15000 while the Sensex can target 50300-51000. DAX and Nikkei can consolidate...
Pound Sterling Gains As UK Accelerated Vaccine Programme
Pound sterling continues to gain against other major currencies as the risk of a hard Brexit is now off-table. Last week, the currency also got a boost after Bank of England ruled out negative interest rate anytime soon. The Brexit issue has dominated the past few years. However, Pound...
British Pound At Key Levels After Higher Inflation And Higher Daily Coronavirus Deaths: GBP/USD, GBP/JPY, GBP/NZD, EUR/GBP
Inflation data released earlier was stronger than expected, as the headline inflation rate was 0.3% vs 0.2% expected (MoM). In addition, the core inflation rate moved to 0.3% vs 0.1% expected (MoM). The result was a move higher in the GBP/USD into strong resistance near 1.3700. However, price pulled...
Pound Hits 32-Month High
The British pound has posted slight gains in the Tuesday session. Currently, GBP/USD is trading at 1.3619, up 0.25% on the day.
Pound breaks 1.37 level
The British pound has posted modest gains this week, but the currency did reach a milestone of sorts earlier on Wednesday. The pound briefly broke...
UK PMIs to Highlight Lockdown Pain but Johnson’s Vaccination Drive Buoys Pound
Having only just come out of lockdown number two, much of the United Kingdom finds itself shut down again as the recently discovered new variant of Covid-19 is spreading even faster than previously known strains. This new highly contagious version of the virus left the government no choice but...