USDJPY

Technical Analysis – USDJPY faces aggressive selling interest; hovers near 5-month low

Posted on March 5, 2020 at 7:19 am GMT

USDJPY is looking strongly bearish in the short-term after plummeting below its moving averages in the preceding week and penetrating the ascending trend line. Prices hit a five-month low of 106.84 on Wednesday and the technical indicators are all pointing to further negative momentum in the near term. The stochastics are heading downwards, and the %K line crossed below the %D line in the oversold zone, suggesting plenty of scope for additional southward moves on price. The RSI is hovering [..]

Daily Market Comment – Fed fires blanks as emergency rate cut fails to calm markets

Posted on March 4, 2020 at 9:21 am GMT

Fed surprises with emergency 50-bps cut but markets continue to fear the worst US stocks stage turnaround after Joe Biden wins big on Super Tuesday Dollar slumps, yen and gold surge after Fed’s shock rate cut; is BoC next? Fed fails in attempt to soothe market panic The US Federal Reserve shocked markets by slashing its benchmark interest rate by 50 basis points in an emergency meeting on Tuesday as policymakers intervened to calm jittery traders. The decision came just [..]

Daily Market Comment – RBA cuts rates, G7 response awaited as virus panic grows

Posted on March 3, 2020 at 9:34 am GMT

RBA cuts rates, others expected to follow as virus cases show no sign of slowing G7 statement eyed as markets pin hopes on stimulus to combat outbreak Stocks bounce back on stimulus talk but doubts on commitment caps gains Yen and gold edge up, dollar mixed ahead of Super Tuesday RBA first to cut, others to follow? The Reserve Bank of Australia became the first major central bank to cut interest rates on Tuesday in response to the worsening outbreak [..]

ISM PMIs could upset dollar if virus impact confirmed – Forex News Preview

Posted on February 28, 2020 at 2:29 pm GMT

The deterioration in the US preliminary IHS Markit PMI survey in February was partially attributed to the coronavirus outbreak and markets are now turning their attention to the more important ISM PMI indices for release on Tuesday (manufacturing) and Thursday (non-manufacturing) at 15:00 GMT to confirm potential disruptions in US business activities. Should the numbers ratify concerns, especially those for the services sector, the sliding dollar may push for more losses. ISM services PMI may not show contraction after all The deadly Covid-19 disease is spreading fast [..]

Week Ahead – RBA and BoC meet: no virus stimulus yet; US jobs report also in focus

Posted on February 28, 2020 at 1:54 pm GMT

Central banks in Australia and Canada will hold policy meetings next week – the first since the outbreak of the coronavirus escalated into a global crisis. But with policymakers having limited firepower, they will probably maintain a wait-and-see approach until a clearer picture starts emerging about the impact of the virus, whose spread has multiplied several-fold in the past week. Investors will also be waiting anxiously for the latest nonfarm payrolls report out of the United States as they push [..]

Daily Market Comment – Euro and yen smile as Wall Street bloodbath accelerates

Posted on February 28, 2020 at 10:04 am GMT

Global stocks fall apart amid growing fears of a virus-induced recession Yen and euro shine amid the mayhem, dollar and commodity currencies get hammered More de-risking possible today, Chinese PMIs and virus news over the weekend are a huge risk Pandemic fears throw global markets into havoc The worsening outlook for the world economy continues to torment financial markets. The major US stock indices fell by a staggering ~4.5% on Thursday, as investors increasingly price in the worst-case scenario where [..]

Daily Market Comment – Dollar retreats, stocks in freefall as virus engulfs markets

Posted on February 27, 2020 at 10:14 am GMT

Virus concerns intensify, pushing dollar lower amid mounting expectations for Fed rate cuts Stocks crater, and risk aversion may linger ahead of Chinese PMIs Euro the big winner, capitalizing on dollar’s retreat and defensive inflows Global carnage deepens as virus spreads Worries about the coronavirus continue to plague markets, as every passing day makes it clearer that this crisis won’t blow over soon, and the disruptions initially on supply chains and then on demand could be the ‘black swan’ that [..]

US core PCE Index may not help the dollar recoup losses – Forex News Preview

Posted on February 26, 2020 at 1:29 pm GMT

The Fed’s favorite inflation measure, the core Personal Consumption Expenditure (PCE) index will be out on Friday at 13:30 GMT accompanied with personal consumption and income data. The release which regards the month of January is expected to show a slightly stronger inflation for the second consecutive month, but the news will not affect much markets’ increasing expectations of a rate cut, probably giving little support to the dollar that started the week in the negative territory. Fed may not [..]

Daily Market Comment – Stocks crumble alongside dollar as virus wreaks havoc

Posted on February 26, 2020 at 12:44 pm GMT

US stock markets in meltdown as virus concerns deepen News flow might worsen from here, so risk aversion could linger King dollar dethroned by resurgent yen and a euro that looks more like a safe haven Aussie/dollar collapses to new 11-year low after soft data Safe havens shine, equities plunge as risk aversion reigns The reprieve in global markets didn’t last long, with virus worries returning with a vengeance yesterday to haunt riskier assets and boost defensive trades. US stocks [..]

Technical Analysis – USDJPY needs to hold above 20-day SMA to avoid extra losses

Posted on February 26, 2020 at 8:27 am GMT

USDJPY erased all the impressive gains that led to a 10-month high of 112.21 last week, closing negative for the third consecutive day on Tuesday and marginally above the 110.00 level. The 20-day simple moving average (SMA), which is also the middle Bollinger band, contained the bearish move and the pair is currently pushing efforts to keep its uptrend off the 104.44 bottom valid. Technically, the short-term trading could be neutral if the RSI and the MACD remain near their [..]

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