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...
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...
Dollar Selloff Intensifies, European Majors Winning
Dollar's selloff intensifies today as risk-on sentiment is slowly coming back to the markets. Yen is following as the next weakest. European majors are currently the main winners. Commodity currencies are somewhat lagging behind. In other markets, European indexes are trading slightly higher while US futures also point to...
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...
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...
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,...
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...
US Dollar Dips As Inflation Concerns Ease
The US dollar beats a modest retreat
The pace of the US dollar reversal after last week’s mid-week inflation scare slowed overnight, with the greenback finishing modestly lower. The dollar index fell 0.12% to 90.20 and has eased another 0.10% to 90.10 this morning, as Asian markets race to discount...
USD/CAD Pressured By 50- Hour SMA
The US Dollar has declined by 114 pips or 0.94% against the Canadian Dollar since Monday's trading session. The currency pair breached the support level at 1.2068 on Monday.
All things being equal, the USD/CAD exchange rate is likely to continue to edge lower during the following trading session. Bearish...
GBPUSD Elevates Toward Multi-Year High, Bullish Tone Grows
GBPUSD has acquired buoyancy after recently returning above the Ichimoku cloud and is now clearly eyeing the 34-month peak of 1.4236. The bullish simple moving averages (SMAs) are safeguarding the broader uptrend, while the Ichimoku lines are indicating that positive momentum is picking up.
The short-term oscillators appear skewed to...
Daily Tecnical Analysis
EUR/USD
Current level - 1.2156
An appreciation of the euro against the U.S. dollar towards 1.2270 can be expected if the resistance at 1.2172 is breached. However, at the time of writing this analysis, the volatility remains low. Due to this, it is possible for the currency pair to enter a...
Two Trades To Watch: GBP/USD, Dax
GBP/USD looks to 1.42 post jobs data
GBP/USD is gaining for a second consecutive session and trades around a three month high.
UK unemployment unexpectedly declined to 4.8% in 3 months to March, down from 4.9%. The claimant count also unexpectedly declined by 15.1k, expectations had been for a 25k rise.
Re-opening...
European Open: Japan’s GDP Contracts For The First Quarter In Three
Whist there had been a growing expectation that Japan's economy would shrink in Q1, the number came in much worse than expected.
Asian Indices:
Australia's ASX 200 index rose by 41.7 points (0.59%) and currently trades at 7,065.30
Japan's Nikkei 225 index has risen by 628.23 points (2.26%) and currently...
GBP/USD Outlook: Cable Rises To Three-Month High On Recovery Optimism, Solid UK Jobs Data
Cable maintains firm tone and extends rally from bear-trap on 1.4049 Fibo support into third straight day.
Fresh bullish acceleration in early Tuesday was boosted by weaker dollar and better than expected UK labor data, as easing, lockdown boosts hopes for faster economic recovery and improves the sentiment.
Sterling rose to...
The Dollar Is Coming Under Further Pressure
Markets
Trading for the week took a slow, hesitant start, calming after last week’s hefty inflation-driven gyrations. Equities weren’t able to build on Friday’s rebound. Investors still pondered the meaning of recent sharp rise in inflation (expectations). Should it be considered a sign of a protracted rebound or will side-effects...
AUDUSD 0.7700 Key
The Australian dollar currency is attempting to recover higher against the US dollar, following last week's drop below the 0.7700 support area. A bearish head and shoulders pattern with a 200 point downside projection will be activated if bears break under the 0.7700 level. If AUDUSD bulls move the...
NZDUSD Wedge Watch
The New Zealand dollar is preparing for its next major move against the US dollar currency, as the pair trades at the bottom of a broadening ascending wedge pattern. A drop below the typically bearish price pattern could see the NZDUSD pair dropping towards the 0.7100 support level. If...
Gold Surges To A 3-Month High As Inflation Risks Remain
Gold prices rose to a three-month high as investors focused on the rising number of coronavirus cases and inflation risks. Last week, data by the American statistics agency revealed that overall consumer inflation rose by 4.2% in April while the producer price index (PPI) rose by 6.2% in April....
Sterling Jumps on Reopening Optimism and Job Data, Risk Appetite Returning
Dollar and Yen are both under pressure again today, as broad based risk sentiments improved. In particular, the volatile Nikkei managed to close up more than 2%. New Zealand Dollar is leading other commodity currencies higher too. But Canadian Dollar and Sterling are the strongest ones for the week...