GBPUSD

European Open Preview – FOMC minutes and BoC rate decision in the spotlight

Posted on January 9, 2019 at 8:59 am GMT

In the US, minutes from the latest FOMC meeting will be scrutinized for clues on whether a pause in rate hikes is indeed in order In Canada, the BoC will meet and attention may fall on whether policymakers are growing more cautious Overnight, China releases its updated inflation data FOMC minutes eyed for rate guidance amid recession fears The dollar advanced nearly across the board on Tuesday without any major US-specific catalyst, instead capitalizing on weakness in the euro, which [..]

Technical Analysis – GBPUSD challenges downtrend line; holds above SMAs in near term

Posted on January 8, 2019 at 7:21 am GMT

GBPUSD has been edging higher over the last three days, following the bounce off the 21-month low of 1.2390 that was reached on January 2. This week the pair continues to attract buying interest, with the price climbing slightly above the long-term descending trend line. The technical indicators are still positive in the short-term, with the MACD stretching further above its red trigger line and the RSI moving above the 50 level with weak momentum. Yet the latter could also [..]

Week Ahead – Factory data to remain in focus; BoC to start off 2019 central bank meetings

Posted on January 4, 2019 at 2:28 pm GMT

Industrial production out of Germany, the UK and France will dominate the economic calendar next week, keeping investors’ attention firmly on the growth outlook for 2019. The Bank of Canada will be the first of the major central banks to hold a policy meeting this year, while the highlight in the US will be the ISM non-manufacturing PMI and speeches from Fed policymakers. However, with market moves being mostly driven by jitters about the growth outlook at the moment, economic [..]

UK services PMI expected to nudge up but unlikely to lift battered pound – Forex News Preview

Posted on January 3, 2019 at 2:13 pm GMT

The Markit/CIPS services PMI for the UK will be watched on Friday at 09:30 GMT for evidence that the dominant sector of the British economy remained in expansionary mode amid the increasing strain of the Brexit uncertainty. However, without an end to the Brexit impasse at Westminster, sterling will struggle to find much upside momentum even if the data doesn’t disappoint. The past week has already seen the release of the manufacturing and construction PMIs for December, both of which [..]

European Open Preview – Yen spike triggers ‘flash crash’ as growth fears intensify

Posted on January 3, 2019 at 9:06 am GMT

Yen soars after Apple profit warning sends jitters across FX markets Aussie plunges to multi-year lows versus the dollar and yen Oil back down after sharp gains the previous day Volatility sweeps financial markets Currency markets had a volatile start to the new year as risk sentiment took another turn for the worse in the first two days of trading of 2019. The Japanese yen soared across the board as investors fled to safety on heightened concerns about the global [..]

European Open Preview – New year kicks off with low risk appetite

Posted on January 2, 2019 at 9:23 am GMT

Chinese factory activity contracts, feeding growth slowdown fears Yen rallies to seven-month highs, aussie drops to three-year lows Oil extends downtrend into 2019 Stocks have a rough start as Chinese data disappoint Stock markets in Asia started in the red in the first trading day of the year as lower than expected factory data out of the world’s second largest economy added further evidence of a potential slowdown in global growth. The Chinese Caixin manufacturing index crossed unexpectedly below 50 in December for the first [..]

Technical Analysis – GBPUSD marginally bullish in very short-term; remains below falling trend line

Posted on December 31, 2018 at 10:19 am GMT

GBPUSD has rebounded somewhat after falling to a 20-month low of 1.2475 on December 12 and momentum indicators are endorsing that the market sentiment might get better and create some gains in the daily timeframe, despite the latest sideways movement; the RSI indicator is sloping slightly up marginally above 50, while the MACD oscillator is increasing strength to the upside and towards the zero line. Should upside movement dominate in the near term, the market might touch the 40-day simple moving average (SMA) around [..]

Week ahead – US employment report to kick off the New Year

Posted on December 28, 2018 at 1:20 pm GMT

After a particularly turbulent week that lacked fresh catalysts but not wild price swings, traders will now turn their sights back to more familiar themes, such as economic data releases, and most notably the US jobs report for December. That doesn’t mean everything is back to normal though, as liquidity will likely remain thin, which implies that any piece of news could have a disproportionally large market impact. Further deterioration in China’s manufacturing PMI expected The week will commence with [..]

European Open Preview – Dollar sags but equities stage comeback

Posted on December 28, 2018 at 9:07 am GMT

US equities stage a major comeback late in the session, close higher Dollar edges lower as Fed rate-hike expectations are almost fully priced out Yen shines, loonie and aussie flirt with lows amid broader risk-off mood US stocks stage an impressive late comeback, but skepticism lingers It was another session characterized by sharp moves in both the currency and equity markets on Thursday amid thinner-than-usual liquidity, and with little in the way of fresh news to drive the price action. [..]

Technical Analysis – GBPUSD recovery halted above key 1.2693 barrier

Posted on December 27, 2018 at 7:51 am GMT

GBPUSD turned weaker after closing slightly above the 1.2693 key resistance on Monday, looking unable to build on its recent rebound from fresh yearly lows. In subsequent sessions, the pair may retain this consolidation phase given that the RSI remains close to its 50 neutral mark. The Ichimoku indicators also support this view as both the red Tenkan-sen and the blue Kijun-sen line seem to be flattening, though the negatively-sloped simple moving averages (MA) hint that an uptrend is not on the radar [..]

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