News

Technical Analysis – USDJPY points to November’s lows; bias neutral-to-bearish

Posted on December 16, 2020 at 7:21 am GMT

USDJPY lost the battle with the 104.00 level and the 20-day simple moving average (SMA) on Tuesday, with the price sliding back into the 103.00 area and closer to the eight-month low of 103.16 registered in November. Despite the pullback, the pair has not significantly violated the bottom of the 104.75 – 103.65 range area nor the 78.6% Fibonacci of the 101.17 – 111.70 upleg. Also, the RSI and the MACD, although within their bearish zones, keep fluctuating between familiar [..]

Eurozone flash PMIs may keep outlook blurry, but the euro may not care – Forex News Preview

Posted on December 15, 2020 at 4:07 pm GMT

Eurozone preliminary PMI readings for December will be the only highlight in the bloc’s calendar this week on Wednesday at 09:00 GMT, with forecasts pointing to a moderate improvement in business activities. While markets are thirsty for some good news, the euro may keep ignoring data releases and tighter Covid restrictions as a negative GDP print in the fourth quarter is inevitable. The last troubling chapter of Covid-19 story Although virus infections have slowed pace in many euro area countries [..]

Bank of England: Dovish message, but no action – Forex News Preview

Posted on December 15, 2020 at 3:45 pm GMT

It is a huge week for sterling. Besides the BoE decision at 12:00 GMT Thursday, there is also a ton of data to keep markets entertained while Brexit negotiators make a final attempt to reach a trade deal. The Bank is unlikely to act, though it may signal that more easing is on the cards next year if the negotiations fail. A dovish message could briefly hurt sterling, but the currency’s ultimate destination depends on the trade talks, where a [..]

Technical Analysis – WTI futures take a breather; upside risks remain solid

Posted on December 15, 2020 at 2:53 pm GMT

WTI oil futures improved mildly off the Ichimoku lines but are struggling to restart the upwards trajectory with a breakout of the small sideways move. The fairly horizontal Ichimoku lines reflect the stall in positive momentum, while the rising simple moving averages (SMAs) are suggesting steady advances in the pair. The short-term oscillators suggest conflicting signals in directional momentum. The MACD, in the positive region, is flirting with its fairly flat red signal line, while the RSI is pointing downwards [..]

Fed likely to skip QE boost, may adjust composition and forward guidance – Forex News Preview

Posted on December 15, 2020 at 2:37 pm GMT

The Federal Open Market Committee (FOMC) begins its two-day policy meeting on Tuesday, with a decision expected on Wednesday at 19:00 GMT. Federal Reserve Chair Jerome Powell will give his last post-meeting press briefing of the year 30 minutes later. After a tumultuous year that saw an unprecedented amount of central bank intervention globally, Powell may draw 2020 to a close with one final dose of stimulus to steer the bumpy US recovery through stormy waters. But with investors betting [..]

Technical Analysis – EURCHF looks neutral-to-bullish; indicators are flat

Posted on December 15, 2020 at 1:11 pm GMT

EURCHF seems to be range bound, something also reflected in the flattening technical indicators. The RSI is standing near the neutral threshold of 50, while the MACD is trying to jump above the zero line with weak momentum. The directionless Ichimoku lines and the steadied cloud further reflect this view, however, the 20- and 40-period simple moving averages (SMAs) are ready to post a bullish crossover in the short-term. In case of positive pressures, initial tough resistance could develop from [..]

Eyes on Australian employment report after flash PMIs; aussie hits 30-month high – Forex News Preview

Posted on December 15, 2020 at 1:05 pm GMT

Australia’s employment report for November is likely to be in the spotlight on Thursday at 0030 GMT after the flash PMIs figures on Tuesday, 22:00 GMT. In December’s Reserve Bank of Australia’s (RBA) policy meeting, the minutes showed its Board feared a protracted period of unemployment lay ahead and rectifying that would be a priority. Nevertheless, the aussie continues to move higher against the US dollar but may soon need a boost for stronger bullish movements. Unemployment predicted to remain unchanged; flash PMIs [..]

Technical Analysis – USDCAD’s bearish course stabilises around 32-month base

Posted on December 15, 2020 at 10:05 am GMT

USDCAD appears to have become moderately static after logging a near 32-month low of 1.2705 and forming a base around the 1.2700 handle. The flattening Ichimoku lines are backing this minor pause in the downside scenario, reflecting a condition of paused directional momentum. However, the pair’s predominant bearish tone continues to be aided by the downward sloping simple moving averages (SMAs). The short-term oscillators also display a conflicting picture in momentum. The MACD, in the negative region, is above its [..]

Daily Market Comment – Dollar steadies amid fresh virus restrictions; stimulus and Brexit talks linger

Posted on December 15, 2020 at 9:36 am GMT

Tighter virus restrictions dampen vaccine optimism; dollar halts slide, stocks struggle US stimulus talks gain momentum but still no agreement London lockdown knocks pound off its Brexit perch as ‘narrow path’ to deal eyed New virus curbs weigh on sentiment Optimism that an end to the global pandemic is within sight was unable to override the darkening clouds on the immediate horizon as Covid restrictions are on the up again. After Germany’s news that it is to enter a hard [..]

Technical Analysis – GBPUSD confused below the resistance line as Brexit talks continue

Posted on December 15, 2020 at 8:40 am GMT

GBPUSD attempted to recoup last week’s losses on Monday but the tough eight-month old resistance line managed to block the way once again and keep the price within the 1.3300 territory as Brexit negotiations continue. The momentum indicators are providing a mixture of signals as the RSI is trying to recover above its 50 neutral mark, the MACD is gradually losing strength below its red signal line, and the red Tenkan-sen line seems to be flattening around the blue Kijun-sen. [..]

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.

How can we help?

Live Chat Terms