GBPUSD

Technical Analysis – GBPUSD slips to meet 200-day average; could soon resume upside

Posted on February 5, 2019 at 7:46 am GMT

GBPUSD closed in the red after six consecutive weekly increases which led the pair above the 200-day moving average (MA) for the first time since May and towards three-month highs. The pair started lower this week as well, with the falling RSI signalling that the downside may continue, although as long as the indicator holds above 50, chances for upside movements are still present. Stochastics are entering the oversold area (below 20), a sign that bullish pressures may not take long to reappear. A reversal [..]

European Open Preview – Dollar steady despite healthy US data; RBA in focus

Posted on February 4, 2019 at 9:08 am GMT

Dollar unable to rally even after US payrolls smash expectations Risk sentiment mostly in positive territory today amid trade optimism Aussie on the back foot ahead of RBA decision Dollar unimpressed by strong US data, as Fed casts shadow Nonfarm payrolls smashed expectations in January, clocking in at a robust 304k, much higher than the anticipated 165k – though last month’s print was revised down significantly, mitigating some of the good news. Wage growth held steady at 3.2% in annual [..]

Week Ahead – BoE and RBA next to set rates; will they turn dovish too?

Posted on February 1, 2019 at 2:29 pm GMT

The Bank of England and the Reserve Bank of Australia will be next in the central bank world to set monetary policy amid rising risks and uncertainty about the outlook. It will be relatively quiet on the data front as Chinese markets will be shut for the whole week for the Lunar New Year celebrations, while the US economic calendar will be void of top tier releases. RBA to hold rates; may lower growth forecasts The Australian dollar will take [..]

European Open Preview – Dollar looks to payrolls; euro halted in its tracks

Posted on February 1, 2019 at 8:46 am GMT

The US employment report takes center stage today; dollar may be at risk Euro turns lower as Italy enters recession, Weidmann strikes dovish tone US stocks advance amid “progress” in trade talks Dollar rebounds, turns its sights to US employment data The dollar shaked off some of its post-FOMC weakness against a basket of six major currencies, mainly because the euro retreated (see below). There was little in terms of US catalysts, but that changes today, as the all-important jobs [..]

European Open Preview – Dollar suffers losses as Fed abandons hiking plans

Posted on January 31, 2019 at 8:53 am GMT

Fed removes guidance for more hikes; dollar crumbles, stocks soar Trade talks conclude today – any signs of progress crucial for markets Eurozone releases GDP data, risks seem skewed to the downside Dollar drops, stocks roar as Fed folds on further rate hikes While the Fed kept rates unchanged as expected yesterday, the meeting wasn’t short of surprises. Policymakers adopted an even more cautious tone, dropping the reference that further gradual rate hikes will be needed, instead reiterating the mantra [..]

European Open Preview – Brexit stays in limbo; Fed decision eyed

Posted on January 30, 2019 at 9:00 am GMT

Fed decides; Powell’s remarks on the balance sheet may be crucial Pound slides as Brexit uncertainty seems set to remain elevated US-China trade talks commence; plethora of earnings and data also due FOMC meeting – emphasis on Powell’s balance sheet remarks The main event today will be the Fed policy decision at 1900 GMT, which will be followed by a press conference from Chairman Powell – as will every meeting from now on. No change in policy is expected, and [..]

European Open Preview – Companies sound warning on China; Brexit saga rumbles on

Posted on January 29, 2019 at 8:52 am GMT

Risk appetite stays fragile as key companies sound the alarm on Chinese growth In the UK, it may be a deciding day for Brexit as lawmakers vote on various plans Earnings season continues in full throttle today, little on economic calendar Corporate warnings on China rattle stocks, drag oil lower US equity markets closed in the red, after industrial bellwether Caterpillar (-9.1%) reported disappointing earnings and chipmaker Nvidia (-13.8%) slashed its revenue forecasts, both companies pointing the finger to weakening [..]

Technical Analysis – GBPUSD retreats after finding obstacle at 3½-month top

Posted on January 29, 2019 at 7:35 am GMT

GBPUSD had been in a flying mode on Friday, reaching a fresh three-and-a-half month high around 1.3217, before slipping lower again on Monday towards the immediate support of the 38.2% Fibonacci retracement level of the downleg from 1.4375 to 1.2390, near 1.3145. Despite the latest setback, the pair holds above that area, signaling more gains. The RSI turned lower after entering overbought territory above 70. At the moment, it continues to flatten around 70 in support of a positive short-term [..]

European Open Preview – Dollar takes a hit on speculation for dovish Fed

Posted on January 28, 2019 at 9:04 am GMT

Reports the Fed may halt its balance sheet unwind hurt dollar, boost stocks Sterling marches higher ahead of decisive week for Brexit ECB President Draghi & BoE Governor Carney speak today Dollar slumps, equities advance on Fed reports & trade optimism It was a lively session for both currency and equity markets on Friday. The dollar slumped while stock indices climbed, amid renewed speculation that the Fed may turn even more dovish and the US-China talks could bear fruit soon. [..]

Week Ahead – Dollar to seek direction from trade talks, FOMC and NFP; Eurozone GDP and Aussie inflation also eyed

Posted on January 25, 2019 at 12:09 pm GMT

The next seven days will be an important one for the US dollar as high-level US-Sino trade talks, the policy meeting by the Federal Reserve as well as key data releases will likely determine the currency’s next turn. The Australian dollar will also be in focus as inflation and other closely-watched indicators will be on the agenda, while in the Eurozone, flash GDP estimates could exert more negative pressure on the beleaguered euro. Aussie vulnerable from Australian inflation and Chinese [..]

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