News

Yen’s path versus dollar defies recovery trend, may cause headache for policymakers – Special Report

Posted on November 20, 2020 at 1:41 pm GMT

The Japanese yen has been on a steady downtrend against most of its major peers since March when it exploded higher during the virus-induced financial turmoil. Although only the euro and the Australian dollar have managed to erase their year-to-date losses, the gap for the remaining currencies isn’t too great. The pound is down about 3.5% and the Canadian dollar still needs to recoup around 4.5%. So the US dollar’s decline of a similar amount to the loonie’s doesn’t come [..]

Technical Analysis – Tesla’s stock shoots to new record high after joining S&P 500

Posted on November 20, 2020 at 1:03 pm GMT

Tesla’s stock overshot above a symmetrical triangle in the four-hour chart and unlocked a fresh record high of 508.26 after its entrance to the S&P 500 community, but failed to close above September’s top of 501.50 on Thursday. The Stochastics is seeking a turning point above their 80 overbought mark as the RSI seems to be slowing pace while remaining comfortably above its own 70 overbought level. In other indicators, the red Tenkan-sen is also reflecting some uncertainty about the positive momentum in the price as [..]

Week Ahead – Vaccine euphoria vs lockdown reality

Posted on November 20, 2020 at 12:58 pm GMT

There is not much on the agenda next week, but that doesn’t mean things will be quiet as the battle between longer-term vaccine hopes and the present lockdown reality continues to rage. The highlight on the economic calendar will be the latest PMIs, especially from the Eurozone, which will reveal how much damage the latest lockdowns have inflicted. In America, the latest Fed minutes might be viewed as outdated, so it will be all about infection numbers as more states [..]

Technical Analysis – US 30 index range bound; skewed positive above 29,195

Posted on November 20, 2020 at 10:49 am GMT

US 30 stock index (Cash) is facing the capping 50-period simple moving average (SMA) at 29,502, after improving a bit off the lower Bollinger band at 29,195. The index, ever since it logged a fresh all-time-high of 30,091 on November 9, has been trading in a ranging market between 28,838 and 30,091. That said, the flattening 50-period SMA and the conflicting signals in momentum within the short-term oscillators, promote a developing horizontal picture. The MACD is in the negative zone [..]

Technical Analysis – NZDUSD rallies towards previous high of 0.6945

Posted on November 20, 2020 at 9:54 am GMT

NZDUSD is trading not too far from the 0.6945 resistance level and momentum indicators suggest there is still some optimism for the pair to advance again. The near-term bias is looking bullish as the RSI is edging north in the bullish area, while the MACD is trying to extend its movement above its trigger line. Price action at the moment is above the Ichimoku cloud so the risks are to the upside. Should the pair make another run higher, it’s likely to [..]

Daily Market Comment – Stimulus fears after Mnuchin cuts off Fed emergency lifeline

Posted on November 20, 2020 at 9:46 am GMT

Treasury Secretary asks Fed to return unused emergency funds, US futures slip But some relief as Senate Republicans agree to restart talks on new virus relief bill Fresh setback for Brexit talks after Barnier has to self-isolate as time running out Fed and White House clash over emergency programs The Federal Reserve’s powers for fighting the pandemic were severely curtailed on Thursday after Treasury Secretary Steven Mnuchin took the unusual step of not extending funding for many of the central [..]

Technical Analysis – GBPJPY puts breaks on decline after trendline rejection

Posted on November 20, 2020 at 9:00 am GMT

GBPJPY drifted higher and above all its daily simple moving averages (SMA) on the back of encouraging vaccine news and Brexit hopes last week, though the support-turned-resistance ascending trendline was there once again to block the way above 140.00. The area around the blue Kijun-sen line managed to stabilize the downfall from the trendline around 137.33 and the price is currently trying to return above the 50% Fibonacci of the 142.69 – 133.00 downleg. In momentum indicators, the Stochastics favour [..]

Technical Analysis – GBPUSD bounces off 1.3200; bullish in short-term

Posted on November 20, 2020 at 8:03 am GMT

GBPUSD has gained little on Thursday and it managed to hold above the 20- and 40-period simple moving average (SMA), with the technical indicators feeding prospects for possible positive short-term trading; the RSI holds above 50, while the MACD continues to strengthen in bullish territory above its trigger line. A move higher could take the pair until the double top at 1.3310, a challenging point over the last week. Higher resistance could next be found around the 1.3475 barrier, [..]

Technical Analysis – USDCAD comes to a standstill as momentum fades

Posted on November 20, 2020 at 7:06 am GMT

USDCAD’s dictating bearish picture seems to be taking a breather after a bounce off a newly formed 10-month low of 1.2927. The slowing bearish pace of the 50- and 100-day simple moving averages (SMAs) and the flattening out in the 50-day SMA are assisting the stalled, negatively-skewed structure. The short-term oscillators currently display conflicting signals in directional momentum. The MACD, in the negative region, is above its red trigger line, while the stochastic oscillator maintains a negative bearing. That said, [..]

Eurozone consumer confidence set for another dip in November – Forex News Preview

Posted on November 19, 2020 at 3:39 pm GMT

The Eurozone will release a flash estimate of its consumer confidence index for the month of November on Friday at 15:00 GMT, likely revealing an extension of October’s decline. The data, however, will not be a big surprise to the euro, but will add more evidence to the existing narrative that the fresh partial lockdown will inevitably pull the bloc back into negative growth in the fourth quarter. Consumer confidence to slip to a six-month low Getting the virus under control needs [..]

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