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European Session – Euro strengthens as Macron rises in the polls; Yellen in focus

Posted on March 3, 2017 at 4:50 pm GMT

Today’s European session was a relatively quiet one in terms of economic data with market participants mostly focusing on what’s to come later in the day, namely Fed Chair Janet Yellen’s speech in Chicago. Services PMI data, including the composite one for the Eurozone did gather some attention though. The US non-manufacturing PMI for February came in at a healthy 57.6, surpassing expectations and January’s 56.5. The figure points to growth in the services sector for the eighty-fifth month in [..]

Investment Theme – Weaker yen having positive impact on inflation in Japan

Posted on March 3, 2017 at 4:45 pm GMT

Consumer prices in Japan are showing signs of picking up as a result of a weakening yen combined with the strength of the US dollar since Donald Trump’s US election victory, giving relief for the Bank of Japan in its fight against deflation. Core inflation has returned to Japan for the first time since 2015 according to data released today. Consumer prices excluding fresh food, rose 0.1% year-on-year in January after a 0.2% drop in December. Japan’s policymakers have been [..]

Technical Analysis – AUDUSD short-term bearish after hitting a one-month low

Posted on March 3, 2017 at 8:32 am GMT

AUDUSD continues its fall as it hit a one-month low in today’s trading. Yesterday it declined by 1.35%. As regards the short-term outlook, the RSI indicator is pointing to a bearish picture as it is currently below 50 at 41. On the upside, a range of prices around the 0.76 handle (between 0.7580 and 0.7620) have proved to be key ones in the recent past and should prices head higher this range could provide resistance. Note that this range includes [..]

Asian Session – Dollar fades strength ahead of Fed Chair Yellen’s speech; yen gains after Japan CPI

Posted on March 3, 2017 at 8:29 am GMT

The dollar faded its recent strength that was driven by increasing confidence that the Federal Reserve will raise rates this month. The yen strengthened after four days of losses, following data that showed a moderate rise in Japanese inflation. Japan’s core CPI number rose 0.1% year-on-year in January and was the first increase since December 2015. It was expected to remain flat after a 0.2% decline in December. The uptick in inflation would be a relief for the Bank of Japan, although [..]

European Session – Dollar at 7-week high on strengthening prospects of March rate hike

Posted on March 2, 2017 at 4:02 pm GMT

March Fed rate hike expectations continued to drive the dollar higher in today’s European session, while in terms of economic data, weekly jobless claims out of the US, Eurozone inflation and unemployment rate data and Canadian GDP figures were of most interest. The number of US jobless claimants fell to 223,000 last week from 242,000 the previous week. This points to a healthy jobs market and marks a near forty-four-year low, while it was below analysts’ forecasts of a 243,000 [..]

Technical Analysis – GBPUSD turns more bearish below 50-day moving average

Posted on March 2, 2017 at 2:24 pm GMT

GBPUSD has shifted from a neutral to a more bearish bias in the short term after a sharp break below the 50-day moving average (MA) on Wednesday. Since January 24, the 50-day MA was acting as a strong support level but failed to hold any longer and prices broke below it at the 1.2391 level to fall close to another support level at 1.2252. RSI is trending down and already in bearish territory below 50, which suggests that there is [..]

Technical Analysis – Germany 30 index extends bullish run; Hits 22-month high

Posted on March 2, 2017 at 2:22 pm GMT

The Germany 30 stock index shows no sign of ending its bullish run, which has been in place since early December, as the index hit a 22-month high on Wednesday. Momentum indicators are bullish with both the RSI and the stochastics suggesting there’s room for further gains in the near term. However, both are fast approaching overbought levels, which if crossed, would signal a possible a technical correction. This is also highlighted by the Bollinger bands where prices found resistance [..]

Asian Session – Dollar boosted by more hawkish Fed speak; Brainard lifts expectations of March rate hike

Posted on March 2, 2017 at 8:28 am GMT

Dollar strength dominated the markets as a more hawkish tone from the Fed raised the probability of a rate hike this month. FOMC member Lael Brainard, who is usually dovish, gave a hawkish speech yesterday and hinted at an early rate increase. Brainard’s bullish comments follow those of other Fed speakers who have also recently supported their view that it was appropriate to increase rates soon. Earlier this week, New York Fed President William Dudley, a known dove, said the [..]

Technical Analysis – USDJPY bullish at two-week high

Posted on March 2, 2017 at 8:12 am GMT

USDJPY continues its up movement in today’s trading and has extended yesterday’s two-week high. Should it finish the day higher, it will mark the fourth straight day of gains for the pair. The RSI indicator is edging higher and has risen above the 50 neutral level at 55. The stochastics are projecting a bullish near-term outlook as the %K line is in bullish territory and has recently crossed above the slow %D line. Note though that %K is at the [..]

Forex News – Fed March rate hike hopes overshadow Trump speech

Posted on March 1, 2017 at 3:58 pm GMT

US President Donald Trump’s first speech to Congress late on Tuesday in Washington DC left markets a little disappointed with respect to details on tax policy and infrastructure spending. Many expected it to be a speech in which the President would finally outline in detail his much-hyped economic plans but the only concrete economic policy mentioned was the $1 trillion infrastructure plan which would include both private and public funding, and would stress both ‘Buy American’ and ‘Hire American’. Trump [..]

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