News

Daily Market Comment – Powell jolts dollar; yen spikes on Abe resignation

Posted on August 28, 2020 at 8:52 am GMT

Powell sets out Fed’s new approach to inflation and employment Dollar swings wildly as yields plunge and then rally on Fed policy shift Japan’s Abe quits unexpectedly; Tokyo stocks tumble, yen jumps Fed’s new plan stokes inflation expectations As expected, Fed Chair Jerome Powell unveiled on Thursday a big shakeup of how the Federal Reserve conducts monetary policy. The Fed adjusted its objectives for both inflation and employment, moving to a more flexible regime of targeting an average inflation rate [..]

Technical Analysis – GBPJPY hits a snag trying to resume positive trajectory

Posted on August 28, 2020 at 7:39 am GMT

GBPJPY is gaining ground, currently striving to close above 140.82 to clearly resume the climb. The steady incline is also sponsored by the progressing Ichimoku lines and the advancing 50- and 100-day simple moving averages (SMAs). Additionally, an approaching bullish crossover of the 200-day SMA by the 50-day one may fortify the positive outlook. The short-term oscillators further support an improving picture. The MACD, some distance in the positive area, is above its red signal line, while the RSI is [..]

Technical Analysis – USDCAD unlocks fresh 7-month low below 1.3100

Posted on August 28, 2020 at 7:10 am GMT

USDCAD has been posting more losses as it completed a fresh seven-month low of 1.3085 earlier today, remaining in a descending channel over the last five months. The momentum indicators are currently encouraging the sell-off as the MACD oscillator is developing beneath its trigger and zero lines, while the RSI is trying to meet the oversold territory. Both the Ichimocku indicators, the red Tenkan-sen and the blue Kijun-sen lines, and the 20- and 40-day simple moving averages (SMAs) are heading south [..]

Technical Analysis – Copper futures’ uptrend intact; positive backing present

Posted on August 27, 2020 at 2:47 pm GMT

Copper futures maintain a steady bullish bearing after a bounce on the 50-day simple moving average (SMA), which sent the commodity to a 25-Month peak of 3.040. The rising red Tenkan-sen line is promoting additional advances, while the bullish crossover of the 200-day SMA by the 100-day one may further boost the predominant positive picture. The short-term oscillators also endorse an improving outcome. The MACD and the stochastic oscillator suggest positive momentum is increasing despite the pause displayed in the [..]

Canada’s GDP to slump at a record rate, but loonie has other concerns – Forex News Preview

Posted on August 27, 2020 at 1:24 pm GMT

Canada is reporting GDP figures for the second quarter on Friday at 12:30 GMT and while the country is expected to reveal its worst contraction ever, the loonie may shrug off the data and lean on the dollar for direction. Movements in oil prices could be another market mover for the Canadian currency. Worst contraction ever In the first quarter of the year, the Canadian economy shrank by 8.2% q/q annualized thanks to domestic and global Covid-19 isolation measures, but [..]

Technical Analysis – EURJPY edges sideways as progress remains capped

Posted on August 27, 2020 at 1:02 pm GMT

EURJPY appears to be maintaining a horizontal-to-downside trajectory trapped near the 20- and 40-period simple moving average (SMA) as well as the 100-period SMA. A paused state of directional momentum is reflected in the Ichimoku lines, while the price rests around the lower surface of the Ichimoku cloud. The negative signals in the short-term oscillators further reflect the stall in the price. The RSI has barely inched below the 50 leve and the stochastic %K line is ticking down after it [..]

Technical Analysis – USDCHF fades further; negative formation prevails

Posted on August 27, 2020 at 12:39 pm GMT

USDCHF is currently restricted by a very short-term diagonal line, which is maintaining the price’s bearish tone within a confirmed broader negative pattern. Further aiding the moulded negative picture is the bearish bearing of the Ichimoku lines and the simple moving averages (SMAs). That said, the short-term oscillators are emitting conflicting signals in directional momentum. The MACD, in the negative region, is strengthening above its red signal line, while the RSI is improving in bearish territory. Nonetheless, the negative demeanour [..]

Technical Analysis – WTI futures struggle after conquering 200-day SMA

Posted on August 27, 2020 at 9:00 am GMT

WTI oil futures are striving to overcome a critical resistance at 43.69, after having nudged over the 200-day simple moving average (SMA). Positive momentum has been gradually shrinking for approximately two-months, mirrored in the flattening out of the Ichimoku lines. Yet, the price continues to steadily crawl higher, maintaining a positive tone above the SMAs and the Ichimoku cloud. The short-term oscillators further reflect the anaemic positive momentum. The MACD, slightly in the positive region, continues to drag below its [..]

Daily Market Comment – Dollar treads water as all eyes on Powell

Posted on August 27, 2020 at 8:37 am GMT

Markets steady as Powell’s highly anticipated Jackson Hole speech awaited Dollar braces for major dovish tilt by the Fed Aussie and kiwi lead the gainers; loonie seeks further oil boost How dovish can the Fed get? Fed chief Jerome Powell will take centre stage when he updates investors on the Fed’s policy framework review at the annual Jackson Hole conference of central bankers, which has gone virtual this year due to the ongoing pandemic. Powell will deliver his hotly anticipated [..]

Technical Analysis – EURUSD is capped by SMAs and fails to improve positive picture

Posted on August 27, 2020 at 8:31 am GMT

EURUSD attempted to break the upper border of the neutral zone it has been ranging within the last week, but its efforts proved unsuccessful as the 40-period simple moving average (SMA) defended the bears once again around 1.1850. The short-term oscillators are suggesting mixed signals as the RSI is hitting the 50 level, though, the MACD is gaining ground and is approaching the zero level. Hence, the short-run risk is looking neutral-to-positive now and another retest of the 1.1850 – [..]

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