News

Loonie waits for Bank of Canada to talk up recovery prospects – Forex News Preview

Posted on September 8, 2020 at 3:09 pm GMT

Following a roughly as expected jobs report, the Canadian dollar will be next waiting for the Bank of Canada’s rate announcement and the short explanation delivered along on Wednesday at 14:00 GMT. However, the event itself may not be exciting as no major adjustments are expected to take place. Perhaps, a speech and a video press conference held by the BoC chief on Thursday at the Canadian Chamber of Commerce could grab greater attention on Friday at 16:30 GMT, triggering [..]

Technical Analysis – USDTRY at new record highs; remains strongly positive

Posted on September 8, 2020 at 2:38 pm GMT

USDTRY surged to a fresh record high today, hitting the 7.4390 barrier after surpassing the strong 7.4067 barrier. The price has been in an ascending movement since December 2018; however, the technical indicators are suggesting an overbought market. The RSI is touching the 70 level, while the MACD is losing momentum below its trigger line. Should the pair manage to strengthen its positive momentum, the next resistance could come around the 161.8% Fibonacci extension level of the down leg from 7.6619 to [..]

Strong euro, Fed’s inflation shift may compel ECB to take dovish line – Forex News Preview

Posted on September 8, 2020 at 2:02 pm GMT

The European Central Bank will conclude its two-day policy meeting on Thursday, with the announcement due at 11:45 GMT, to be followed by President Lagarde’s press conference at 12:30 GMT. Up until recently, the September meeting was seen as nothing more than an update by the Bank on its pandemic response. But the euro’s flirtation with $1.20 and the Federal Reserve’s adoption of a looser inflation target, not to mention signs that the Eurozone recovery may be stalling, have likely [..]

Ghost of Brexit returns to haunt sterling – Special Report

Posted on September 8, 2020 at 2:00 pm GMT

The British pound came under fire this week, after the UK threatened to undermine the divorce deal it has already signed with the EU and walk away from the trade negotiations altogether if no agreement is reached by mid-October. While this ultimatum is probably just a hardball negotiating tactic, it still sets the stage for a painful correction in sterling over the coming weeks as political uncertainty intensifies. Ultimately though, a last-minute deal is the most likely outcome. Power play [..]

Technical Analysis – USDCAD tests medium-term descending trend line

Posted on September 8, 2020 at 12:02 pm GMT

USDCAD has successfully manoeuvred over the Ichimoku cloud and above the 100-period simple moving average (SMA), which was last breached on July 20. The pair is currently piercing the medium-term restrictive line, drawn from March 19. The rising red Tenkan-sen line has overlapped with the blue Kijun-sen line, increasing positive momentum and assisting the pair in tackling the trend line. Additionally, the short-term oscillators also demonstrate bullish momentum. The MACD, in the positive section, is growing above its red trigger [..]

Technical Analysis – WTI futures plunge to new 2-month low

Posted on September 8, 2020 at 9:13 am GMT

Since its deep fall towards a two-month low of 38.15 earlier today, WTI crude oil futures have been trading within a descending movement after the pullback from 43.77. The technical picture supports a bearish structure in the short-term timeframe. Looking at momentum indicators, the RSI is holding in the oversold zone with weak momentum, while the stochastic oscillator posted a bearish crossover within its %K and %D lines and is moving lower towards the 20 line. In the wake [..]

Daily Market Comment – Pound hammered as no-deal Brexit fears return

Posted on September 8, 2020 at 8:49 am GMT

Brexit comes back to haunt the pound as Johnson raises the stakes Euro sticks to tight range ahead of Thursday’s ECB decision Stocks regain positive footing but dollar up as Trump talks China decoupling Pound slumps after Johnson threatens no deal Only five weeks left to reach a deal and Britain and the European Union are too busy posturing than negotiating, with Boris Johnson’s latest rhetoric once again raising the prospect of a no-deal Brexit. As the talks to agree [..]

Technical Analysis – EURJPY withdraws from fresh high; bullish bias seems undamaged

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

EURJPY receded from its latest 18-month peak of 127.06, pausing to some extent its climb from 119.30. The preserved positive demeanour of the Ichimoku lines and the bullish tone of the simple moving averages (SMAs) defend the current positive picture. Looking at the short-term oscillators, they reflect the recent pullback in price but positive momentum appears to refuse to give in. The MACD, although below its red signal line, remains some distance in the positive region, while the faded RSI [..]

Technical Analysis – GBPUSD rejected from 8½-month high; next level 1.30

Posted on September 8, 2020 at 6:49 am GMT

GBPUSD has reversed back down again after finding resistance at the eight-and-a-half-month high of 1.3487 achieved last week. The momentum indicators are pointing to a neutral to negative bias in the short term with the RSI holding near the 50 level and the MACD oscillator falling below the trigger line in the positive zone. Moreover, the price declined below the 20-day simple moving average (SMA) and is heading towards the five-month ascending trend line. Further losses should see the 40-day [..]

Technical Analysis – USDJPY lifeless, confined in a horizontal structure

Posted on September 7, 2020 at 3:52 pm GMT

USDJPY remains ruled by a sideways market, maintaining the price between the boundaries of 105.09 and 107.04. The Ichimoku cloud and lines still reflect weak directional momentum, while the gliding and converged simple moving averages (SMAs) appear powerless in assisting the price out of this range. The short-term oscillators further display the non-existent directional momentum. The MACD, slightly above zero, is floating just below its red trigger line, while the RSI is pointing upwards near its 50 threshold. The stochastic [..]

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.