News

Daily Market Comment – Stocks slide again on second wave fears; Pound skids ahead of Brexit talks

Posted on June 15, 2020 at 8:42 am GMT

A resurgence of coronavirus cases sends stocks into a tailspin again Aussie takes a beating, yen and franc up, but gold unable to capitalize Pound extends losses as Johnson tries to kickstart stalled Brexit talks End of the risk rally? The unstoppable risk rally that’s pushed global stocks close to erasing their virus-led losses is in danger of faltering as fears of a second wave of infections intensify. Several states in America have seen a large increase in the number [..]

Technical Analysis – Gold may not expect higher highs in the near-term

Posted on June 15, 2020 at 8:01 am GMT

Gold remained trapped within a two-month old sideways move after refusing to drop into the Ichimoku cloud last week. Yet, the fact that the yellow metal is unable to print higher highs above the 1,765 peak favors the bearish side of trading, something also endorsed by the RSI and the MACD which keep trending downwards. Should the price retreat below 1,718 and the 20-day simple moving average (SMA), the bears may push harder to exit the neutral zone below the [..]

Technical Analysis – EURUSD sharply corrects; maintains positive signals

Posted on June 15, 2020 at 7:51 am GMT

EURUSD has retreated sharply under the 1.1269 level – that being the 23.6% Fibonacci retracement of the up leg from 1.0774 to 1.1421 – and the key swing low of 1.1240. Sellers are attempting to extend the pullback, something also displayed in the short-term oscillators. Although deep in the positive region, the MACD has eased below its red signal line, while the RSI is falling in bullish territory. Moreover, the stochastic lines are negatively charged with the %K line reaching [..]

Technical Analysis – AUDUSD dives below 0.6800, posting 2-week low

Posted on June 15, 2020 at 7:49 am GMT

AUDUSD is slipping to a new two-week low around 0.6775, penetrating the 38.2% Fibonacci retracement level of the up leg from 0.6375 to 0.7065 at 0.6800 and the lower surface of the Ichimoku cloud. According to the momentum indicators, the RSI is moving sideways in the negative zone, while the stochastic dropped in the oversold zone, confirming the recent negative structure. Additionally, the 20- and 40-period simple moving averages (SMAs) completed a bearish crossover in the 4-hour chart. A stronger [..]

Gold rally: Worth to hold your breath – Special Report

Posted on June 12, 2020 at 1:45 pm GMT

During market stress periods, safe-haven gold tends to generate strong returns, outperforming other alternative means of investment and hence moving rapidly in traders’ favor as a store of wealth. This year thanks to the Covid-19 pandemic, the precious metal printed new multi-year highs capitalizing more than 12% year-to-date, while compared to the same period last year it managed to earn a whopping 29% annual increase. Markets are now wondering whether gold could look more ‘golden’ in the post-lockdown period, and [..]

Technical Analysis – Tesla’s stock claims 1,000 first time ever; rally could soften in short-term

Posted on June 12, 2020 at 1:33 pm GMT

Tesla’s stock recorded its best day of the year on Thursday as it managed to close slightly above 1,000 for the first time ever, re-activating its long-term uptrend above February’s all time high that preceded the virus-led crash. Expectations are now for the stock to give up some ground as the rally looks to be overstretched according to the RSI which is slipping below its 70 overbought mark. Yet, buying confidence may not fade unless the price breaks below the [..]

Week Ahead – BoE and Brexit could create perfect storm for pound; BoJ and SNB meet too

Posted on June 12, 2020 at 12:49 pm GMT

An upcoming summit of EU leaders could decide the fate of the European recovery fund and the direction of Brexit talks, setting up possible stumbling blocks for the euro’s and pound’s rebounds. The pound will also be keeping an eye on the Bank of England’s policy meeting, with more QE looking likely. The Bank of Japan’s and Swiss National Bank’s respective meetings are not expected to be as exciting. But as some of the recent optimism starts to fade, it [..]

Technical Analysis – NZDUSD’s positive picture tackles negative tensions

Posted on June 12, 2020 at 12:35 pm GMT

NZDUSD is currently restricted by the 50-period simple moving average (SMA) residing at the level of the inside swing low of 0.6468. The pair is dealing with selling pressures, which appear to be strengthening, something also reflected in the Ichimoku lines as well as the RSI and the MACD indicators. Despite a pause in negative momentum in the MACD, it has distanced itself below its red trigger line and the zero mark, whilst the RSI has returned lower ahead of [..]

Technical Analysis – GBPUSD tries to overcome 1.2640 roof; still bullish

Posted on June 12, 2020 at 10:50 am GMT

GBPUSD is trading around the vicinity of 1.2640, that being the 23.6% Fibonacci retracement of the upward wave from 1.2075 to 1.2815 and where the red Tenkan-sen line currently lies. The price is eating a portion of its last sessions’ losses but the RSI and the MACD are consolidating in the negative areas avoiding giving any signals in the short term. Still, the market seems to be well supported by the Ichimoku cloud and the 38.2% Fibonacci of 1.2532. If [..]

Daily Market Comment – Markets plummet as second wave fears grip investors

Posted on June 12, 2020 at 8:56 am GMT

Worries of a second infection wave kill the euphoria in markets S&P 500 loses almost 6%, dollar and yen shine again, commodity currencies crumble But risk sentiment back on the mend Friday, with most moves retracing a little Just a mild correction or start of something bigger? Daily virus numbers might decide that Risk aversion returns with a vengeance Just when it seems that all the bears have capitulated and that stock markets can’t bleed anymore, risk sentiment falls apart [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.