News

Turkish lira: Another crisis unfolds – Special Report

Posted on August 6, 2020 at 3:00 pm GMT

The Turkish lira fell to a new record low this week, despite the nation’s central bank burning through its FX reserves in recent months to keep it from crashing. Inflation is still in the double digits, the current account deficit is exploding, and policymakers are pumping the economy with cheap credit again – which is a classic recipe for currency depreciation. Unless interest rates are raised or capital controls are introduced, more pain is likely in store for the battered [..]

Technical Analysis – EURUSD trend signals turn greener

Posted on August 6, 2020 at 2:27 pm GMT

EURUSD is stubbornly pushing for a close above the 1.1900 level this week, having surpassed it already, though marginally. In the weekly timeframe, hopes for more improvement have strengthened after the price breached a 12-year old resistance trendline, while the first bullish cross between the 20- and 50-weekly simple moving averages (SMA) in three years is further boosting the sentiment. Should the pair claim the 61.8% Fibonacci retracement of the 1.2554-1.0636 downtrend at 1.1820, closing above the 1.1900 level too, the door would open for the 1.2130 restrictive [..]

Technical Analysis – EURJPY maintains a positive trajectory despite pullback

Posted on August 6, 2020 at 2:12 pm GMT

EURJPY continues to dictate an improving picture as the price triumphs above the Ichimoku cloud and the simple moving averages (SMAs). The advancing Ichimoku lines and positively charged SMAs endorse the prevailing uptrend regardless of the latest weakening in the pair. The short-term oscillators mirror the recent deterioration in positive momentum. The MACD, in the positive region, has dipped below its red trigger line, while the RSI deflected off the 70 level and nears the neutral threshold. Moreover, the stochastics [..]

Technical Analysis – Silver repeats July’s bullish dynamics

Posted on August 6, 2020 at 12:26 pm GMT

Sliver is repeating July’s dynamics as it stubbornly pushes for fresh highs this week. The price found new buyers and hit a fresh five-year top at 28.29 on Thursday after crossing above the 38.2% retracement level of the 2011-2020 downtrend. The metal is already up 14.5% so far this month. Although the market is trading in overbought terittory in all timeframes, the momentum indicators have yet to show signs of weakness, keeping the risk tilted to the upside. Specifically, in [..]

Daily Market Comment – Bank of England lifts sterling; dollar battered but still standing

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

Sterling jumps after BoE seems reluctant towards negative rates, upgrades forecasts Stocks climb, dollar resumes downfall as markets keep betting Congress will deliver Dollar testing a crucial support area again – tomorrow’s NFP may be pivotal Otherwise, the spotlight remains on whether Congress will reach a deal soon BoE strikes a more cheerful tone, pound listens The Bank of England (BoE) unanimously voted to keep its policy unchanged today and struck a fairly optimistic tone. Even though it acknowledged the [..]

Technical Analysis – AUDUSD takes a breather; maintains healthy positive picture

Posted on August 6, 2020 at 8:15 am GMT

AUDUSD is experiencing a steady appreciation and appears to be barely affected by a recent stumble in the price. This is reflected in the rising Ichimoku lines, which indicate that the pair’s positive momentum is intact. Furthermore, the Ichimoku cloud, the 50- and 100-day simple moving averages (SMAs), and the nearing bullish crossover of the 200-day SMA by the 100-day one may keep confidence in the ascent for a while longer. Glancing at the oscillators, positive momentum looks paused in [..]

Technical Analysis – WTI oil futures likely awaiting a volatile session

Posted on August 6, 2020 at 7:29 am GMT

WTI oil futures for September delivery stabilized near the 200-day simple moving average (SMA) and around the 61.8% Fibonacci retracement of the 65.61-6.62 downleg after unlocking a five-month high of 43.49. Oil has been printing higher highs and higher lows since the plunge to a record low of 6.62, though the uptrend lost shine from June onwards, raising some worries about its sustainability. Meanwhile, Bollinger bands have narrowed significantly, foreshadowing a more volatile session, with momentum indicators currently suggesting that this [..]

Technical Analysis – USDCHF retains negative tone; positive momentum shows promise

Posted on August 6, 2020 at 5:10 am GMT

USDCHF continues to uphold a negative bearing below the declining simple moving averages (SMAs) and the Ichimoku cloud, in spite of its recent bounce near a 5½-year low of 0.9055. That said, looking at the short-term oscillators they reflect improvements in positive momentum. However, this could prove short lived as the predominant negative SMAs hold their course. The MACD, in the negative area, has slowed below its red trigger line, while the RSI ricocheted off the 30 level. Moreover, the [..]

Is the pound’s rally premature enthusiasm? – Special Report

Posted on August 5, 2020 at 4:29 pm GMT

The British pound registered sizeable gains in July, soaring by 6.4% against the US dollar as the world was facing its first spike in infection cases since re-opening plans took effect across the globe. Its sudden impressive performance made markets wonder whether they should adopt a sell-the-rally approach or a buy-the-dip mentality in the year ahead. This report suggests that the currency could gain fresh ground in the short-term, though Brexit jitters could challenge the market in the fourth quarter. [..]

Technical Analysis – GBPJPY takes a breather; positive picture intact

Posted on August 5, 2020 at 2:14 pm GMT

GBPJPY looks to have consolidated somewhat after plotting a near two-month high of 139.19, although it has managed to maintain a positive tone. This view is also endorsed by the rising simple moving averages (SMAs) and the positive bearing of the Ichimoku lines. The short-term oscillators further suggest that positive momentum is strengthening and promote additional improvements in price. The MACD, in the positive region, although below its red signal line is looking to reclaim it, while the RSI is [..]

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