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BoE policy meeting: laying the groundwork for November – Forex News Preview

Posted on September 16, 2020 at 10:34 am GMT

The Bank of England is one of three central banks to hold a meeting this week. Markets do not expect any shift in policy when the rate announcement is made on Thursday at 12:00 GMT though the Brexit headache has resurfaced after the summer break, reminding markets that COVID-19 is not the only downside risk to the economy. Hence, although the event may not be an exciting one, any hints that the Bank is planning or is willing to pull out its guns again before the year end may shake [..]

Daily Market Comment – Markets hold their breath ahead of Fed decision

Posted on September 16, 2020 at 8:34 am GMT

Spotlight falls on the Fed today: will it deliver new measures to boost inflation? Bank of Japan meets a few hours later, not much is expected Otherwise muted moves across markets as investors await FOMC direction Fed: Justifying the paradigm shift The main event today will be the FOMC decision at 18:00 GMT, which will be followed by the regular press conference by Chairman Powell half an hour later. The Fed is certain to use this meeting as a public [..]

Technical Analysis – USDJPY restrained, unable to break neutralizing shackles

Posted on September 16, 2020 at 8:15 am GMT

USDJPY continues to be robbed of directional momentum as the pair lingers, controlled by the 105.09 and 107.00 boundaries of a sideways pattern. The Ichimoku lines and the cloud propose minimal change in price action, while the drifting tone of the simple moving averages (SMAs) reflects little promise in assisting a new direction. Nonetheless, the short-term oscillators are slightly tilting towards an unfolding negative outcome. The MACD, in the negative region, has dipped below its red trigger line, while the [..]

Technical Analysis – NZDUSD keeps bullish bias intact; next resistance at 0.6787

Posted on September 16, 2020 at 6:51 am GMT

NZDUSD printed another higher low around the ascending trendline drawn from the March lows and its shorter-term simple moving averages (SMA), further strengthening its six-month old uptrend. The positive slope in the RSI and the Stochastics, and the soft rebound in the MACD, which is set to cross back above its red signal line, suggest that there is more bullish action in store. The 20- and 50-day SMAs back this view too as the lines continue to point upwards. Still, [..]

Aussie ticks up ahead of employment data – Forex News Preview

Posted on September 16, 2020 at 5:56 am GMT

Australia’s employment data for July will hit the markets at 01:30 GMT on Thursday, following on from the Reserve Bank of Australia’s (RBA) meeting minutes on Tuesday. The economy is going through a very difficult period and is experiencing the biggest contraction since 1930. Consequently, the RBA’s board has reaffirmed its pledge not to increase the cash rate until progress is made towards full employment. Nevertheless, the aussie continues to move higher against the US dollar but may soon need a boost for stronger bullish movements. Labour market conditions are [..]

Bank of Japan to turn sights on recovery progress as Suga takes over as PM – Forex News Preview

Posted on September 15, 2020 at 2:45 pm GMT

The Bank of Japan is expected to hold its fire when it concludes its two-day monetary policy meeting on Thursday, keeping its emergency stimulus measures intact. However, with growing evidence that the global economic recovery from the pandemic remains on a solid footing despite the sharp resurgence of the virus in many countries, including Japan, the BoJ is expected to add its own upbeat take on the economy. But, as far as the yen is concerned, it is politics that [..]

Fed meeting: Justifying the paradigm shift – Forex News Preview

Posted on September 15, 2020 at 2:06 pm GMT

The Fed will conclude its policy meeting at 18:00 GMT Wednesday, ahead of Chairman Powell’s regular press conference half an hour later. The central bank is certain to use this meeting to explain its new inflation-overshooting regime in more detail. What is less certain is whether it will also deliver new measures to lift inflation. Considering the strength of recent data, there’s little urgency to do so. Policymakers can afford to wait until after the US election, which may give [..]

Technical Analysis – WTI futures exit from short-term symmetrical triangle

Posted on September 15, 2020 at 8:57 am GMT

WTI crude oil futures have been in a tight symmetrical triangle over the last week, failing to decline further in the short-term. The price found strong resistance around the 20-period simple moving average (SMA) and the minor descending line. The RSI indicator is pointing slightly up in the negative territory, while the MACD is increasing above the trigger line, both suggesting an upside penetration of the pattern. Should the pair stretch north, the 40-period SMA at 37.74 could provide immediate [..]

Technical Analysis – GBPUSD exhibits mixed directional signals, injuring sell-off

Posted on September 15, 2020 at 8:13 am GMT

GBPUSD has pivoted at the 1.2762 level within the Ichimoku cloud and near the 200-day simple moving average (SMA), disrupting the correction from the 8½-month peak of 1.3481. Aiding downside pressure is the falling red Tenkan-sen line, which has crossed under its blue-Kijun-sen line. The MACD, below its red trigger line is sponsoring negative price action as it dips further below the zero mark. Nonetheless, the RSI’s rebound ahead of the 30 level suggests a pick-up in positive momentum. The [..]

Technical Analysis – EURJPY sets up a trend reversal pattern after peak at 127.00

Posted on September 15, 2020 at 7:29 am GMT

EURJPY is eying the formation of a potential bearish head and shoulder pattern, with a head at 127.06 and a neckline around 124.40, hinting that the rally may be losing steam and it’s time to reverse south. The slowdown in the 20-day simple moving average (SMA) and the negative cross between the red Tenkan-sen and the blue Kijun-sen lines for the first time since June is another warning that downside pressures may dominate in the short-term. Meanwhile, the RSI is struggling to gain [..]

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