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European session – Pound plummets as BoE in no hurry to raise rates; Dollar extends Fed losses

Posted on February 2, 2017 at 4:33 pm GMT

Market participants’ attention shifted for the most part to the UK today as the Bank of England meeting on monetary policy and subsequent press conference by BoE Governor Mark Carney took place. The BoE’s Monetary Policy Committee unanimously decided to maintain its key rate at the record low of 0.25%. No changes were made to its bond-buying program either, while the Bank was more upbeat in both the prospects of the job market and its growth forecasts, upwardly revising its [..]

Forex News – Sterling hit by Bank of England promise to keep low interest rates

Posted on February 2, 2017 at 4:06 pm GMT

The Bank of England released today its first interest rate decision as well as economic forecasts of the year, followed by a press conference by Governor Mark Carney. Sterling fell sharply from a pre-announcement seven-week high against the dollar. The BoE held its key rate at a record-low 0.25 percent as expected and by a unanimous vote by the Monetary Policy Committee (MPC). It also left its bond-purchase programs unchanged, by agreeing to halt purchases of government bonds at £435 billion and a [..]

Forex News – Aussie hits 12-week high on record trade surplus

Posted on February 2, 2017 at 12:09 pm GMT

The Australian dollar shot higher on Thursday after Australia’s trade surplus hit a record in December. Data released earlier today showed Australia recorded a trade surplus of A$3.51 in December, topping estimates of A$2.20 billon. It compares with an upwardly revised figure of A$2.04 billion in November when Australia posted its first surplus since March 2014. The surplus was driven by a 5.3% jump in exports during the month, while imports rose by a more modest 0.7% rate. The data [..]

Technical Analysis – EURJPY looking bearish in the short-term as price enters the cloud

Posted on February 2, 2017 at 10:52 am GMT

EURJPY has been posting some losses during today’s trading so far. The pair has been trading within the relatively narrow range of 120.53 and 124.08 since early December. Looking at the Ichimoku analysis, the negative short-term signal recorded when the Tenkan-sen line (red) crossed below the Kijun-sen (blue) on January 11 is still in place; note though that the two lines are currently converging. Negative short-term signals are also coming from the stochastics as the %K line is in bearish [..]

Asian session – US dollar on back foot following Fed statement; aussie helped by trade numbers

Posted on February 2, 2017 at 8:46 am GMT

The US dollar was under some pressure during Thursday’s Asian session as the Fed statement from the previous day underwhelmed the market. The dollar index sunk to a 2 ½ -month low following the Fed statement, which showed little urgency on behalf of the rate-setting committee to raise rates. The Fed’s decision to hold rates was unanimous and a no-change verdict was widely expected by market participants. The Fed was upbeat on US economic prospects regarding both growth and inflation. [..]

Technical Analysis – USDJPY neutral, risk of more downside below 112.00

Posted on February 2, 2017 at 8:08 am GMT

USDJPY remains neutral in the near term and has been trading in a range between 112.00 and 115.50 since mid-January. The immediate bias is to the downside and the pair is currently testing the 38.2% Fibonacci retracement level of the rise from 102.54 to 118.65 (November 3 to December 15 uptrend). This 38.2% Fibonacci level at 112.50 has been tested several times in the past two weeks and appears to be a strong support level. Below this, another important support [..]

Forex News – Fed holds rates; Avoids signalling March hike but more confident on inflation

Posted on February 1, 2017 at 8:49 pm GMT

The Federal Reserve’s Open Market Committee (FOMC) kept interest rates unchanged on Wednesday at the first policy meeting of the year and the first since Donald Trump took office as US President. The decision was widely expected given that the Committee had only raised rates in December by 25bps to a target range of 0.50-0.75%. The language of today’s FOMC statement was largely similar to recent meetings’ but there were a few notable changes, in particular, with regards to inflation. [..]

European session – Strong manufacturing data out of the US, Eurozone and the UK

Posted on February 1, 2017 at 3:55 pm GMT

Today saw the release of the final manufacturing purchasing managers index (PMI) data for the month of January for the US, UK, and the Eurozone. The figures were well above the 50 mark separating expansion from contraction in the sector for all economies involved. First out was the Eurozone manufacturing PMI. The figure came in at 55.20, slightly higher than the expected 55.10 and December’s 54.90. January’s manufacturing PMI number was the highest in almost six years indicating that factories [..]

Forex News – Sterling jumps above $1.26 on Manufacturing PMI, Brexit debate in UK Parliament in focus

Posted on February 1, 2017 at 2:21 pm GMT

Sterling found some support after UK’s Markit/CIPS Manufacturing PMI matched expectations in January, coming in at 55.9 versus December’s 56.1. The headline number may have been slightly below December’s 2 ½ year high but the index has remained well above the key mark of 50.0 for six straight months, which indicates healthy expansion in the sector. Today’s data indicate solid growth in the UK in January but factories saw input costs rise. Since the Brexit vote in June of last [..]

Technical Analysis – AUDUSD near-term bullish with the price above both moving averages

Posted on February 1, 2017 at 12:50 pm GMT

AUDUSD has been rising for the second day in a row with the price eyeing last week’s near 2½-month high. Looking at the Ichimoku analysis, a positive alignment hinting to a bullish near-term bias has been in place since January 12 when the Tenkan-sen line (red) crossed above the Kijun-sen line (blue). Adding to this are the positively sloped Tenkan-sen and the RSI which is currently in bullish territory at 65. On the upside, the January 24 high of 0.7608 [..]

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