GBPUSD

European Open Preview – US raises tariffs, but traders still think it’s posturing

Posted on May 10, 2019 at 8:02 am GMT

Markets barely react after US raises tariffs, may be too complacent US inflation data coming up, may weigh on the dollar a little UK GDP and Canadian jobs figures also due Trump hikes tariffs, but complacent markets still see it as posturing As threatened, the US raised its tariffs on $200bn of Chinese goods to 25% overnight, from 10% previously. Beijing immediately responded it will be forced to retaliate, without providing any specifics. Yet, markets took the news in their [..]

European Open Preview – Nervous markets await tariff decision

Posted on May 9, 2019 at 8:31 am GMT

Markets remain in risk-off mode ahead of tariff decision tonight Risks seem tilted towards escalation, but it’s a close call Dollar eyes remarks by Fed Chair Powell and PPI data Yen extends gains as nervous markets await tariff decision Market sentiment remains fragile on Thursday as the prospect of further escalation in the US-China trade conflict continues to dampen the appeal of riskier assets, leading investors to seek shelter in safe havens. Indeed, the Japanese yen outperformed all its major [..]

UK GDP growth to get extra boost in Q1 despite Brexit chaos – Forex News Preview

Posted on May 8, 2019 at 2:48 pm GMT

Despite the ongoing Brexit drama, Friday is expected to be a good day for the British economy as flash GDP growth for the first quarter of the year, industrial output and trade balance figures are all awaited to show improvement at 0830 GMT. The move in sterling, however, is still heavily dependent on the progress of the UK-EU negotiations and even if the data surprise to the upside, sterling could only gain temporarily unless the sides resolve their differences; a scenario [..]

European Open Preview – Risk aversion accelerates; RBNZ cuts

Posted on May 8, 2019 at 8:25 am GMT

Stocks plunge, haven assets shine as markets focus on trade risks RBNZ eases its policy, but kiwi bounces back Pound tumbles amid lack of progress in cross-party Brexit talks Risk aversion accelerates as trade worries prevail Trade concerns dominated price action on Tuesday, with global stock markets accelerating their losses while haven assets like the Japanese yen extended their gains, as traders continued to reduce their risk exposure ahead of crucial events later this week. Strikingly, there was no fresh [..]

European Open Preview – Stocks don’t ‘buy’ Trump’s threats; RBA holds fire

Posted on May 7, 2019 at 8:20 am GMT

US stocks stage comeback as markets doubt Trump’s tariff threats Aussie soars after RBA remains on hold RBNZ decides next – may also disappoint those looking for a cut Stocks bounce back as traders doubt Trump will escalate All eyes remain on the US-China trade conflict. Risk sentiment recovered yesterday as the session progressed, with US stock markets recouping most of their early losses to close only modestly lower. It seems investors didn’t really ‘buy’ Trump’s tariff threats, perhaps concluding [..]

Technical Analysis – GBPUSD bulls back in play after reaching 6-week low

Posted on May 7, 2019 at 6:42 am GMT

GBPUSD has found strong support at the six-week low of 1.2865 on April 25, shifting the short-term negative bias to bullish. Also, cable penetrated the descending trend line to the upside and it jumped above the 23.6% Fibonacci retracement level of the upleg from 1.2390 to 1.3380 around 1.3150 but it pared some of those gains in the next session. Currently, the pair is standing above the moving averages, while the RSI indicator is sloping up in the positive area, [..]

European Open Preview – Trump threatens new tariffs, markets retreat

Posted on May 6, 2019 at 8:24 am GMT

Stocks fall, yen soars as Trump hints at new tariffs Dollar retreats after jobs data, but trade concerns provide support Sterling rebounds amid hopes for Brexit progress Trump warns of new tariffs on China, dents risk appetite Risk aversion is the name of the game on Monday, with investors diverting funds away from riskier assets like stocks and towards safe havens such as the Japanese yen, amid fears that the US-China trade conflict is ready to re-escalate. President Trump said [..]

Week Ahead – Aussie and kiwi braced for dovish RBA and RBNZ meetings; UK Q1 GDP also eyed

Posted on May 3, 2019 at 12:32 pm GMT

Central bank policy meetings in Australia and New Zealand will be the main focus next week with investors anticipating a further dovish tilt. Out of all the central banks that have turned dovish this year, the Reserve Bank of New Zealand is the most likely to cut rates and analysts are predicting a move as early as next week. In terms of economic indicators, UK growth figures for the first quarter will be the most important release followed by US [..]

European Open Preview – Dollar rally eases, looks to US jobs report for further impetus

Posted on May 3, 2019 at 8:07 am GMT

US dollar extends gains ahead of today’s nonfarm payrolls report Aussie hits 4-month low as odds rise of RBA rate cut next week Oil prices slump on oversupply concerns as US output continues to surge Dollar stands tall ahead of NFP report There was little to hold back the US dollar on Friday as recent solid US data and a not-so-dovish Fed have lessened the odds of a rate cut before the year-end. Investors sharply adjusted their rate cut bets [..]

European Open Preview – Dollar whipsaws after Fed; Pound holds firm ahead of BoE

Posted on May 2, 2019 at 8:05 am GMT

US dollar swings sharply after Powell tones down Fed’s dovish statement Hawkish Powell puts dent on equities rally Pound holds near highs ahead of Bank of England meeting as hopes rise May will agree to a customs union Rate cut bets ease after Powell’s press conference The Federal Reserve kept interest rates on hold yesterday as expected and the dollar initially fell on the announcement as the FOMC statement highlighted the recent decline in inflation. However, the greenback quickly reversed [..]

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