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Technical Analysis – USDJPY extends gains for a third straight day

Posted on March 9, 2017 at 8:54 am GMT

USDJPY recorded a three-week high during yesterday’s trading and it is currently up for the day. Should it close the day with gains, this would mark the third such day in a row. The RSI is currently bullish at 58. The MACD histogram is also in bullish territory but not far above zero. An additional shot-term positive signal is that the histogram is above the red signal line. The 117 handle proved a key level in the past and should [..]

Asian Session – Dollar continues its climb as odds of hike rise above 90%

Posted on March 9, 2017 at 8:25 am GMT

The dollar continued rising after yesterday’s strong ADP National Employment Report, which showed robust growth in private-sector payrolls. A rate hike during next week’s FOMC meeting is now considered near-certain as the odds of one materializing now exceed 90% based on CME Group’s 30-Day Fed Fund futures prices. It is now unlikely that tomorrow’s US employment report will be weak enough to sway the Fed away from a rate hike. The dollar index continued to advance and should it finish [..]

Forex News – China records its first trade deficit in 3 years on unexpectedly strong imports

Posted on March 8, 2017 at 4:11 pm GMT

The world’s second largest economy posted its first monthly trade deficit in three years in February as imports soared to almost double the analysts’ expectations from a year earlier. Exports fell, greatly contrasting forecasts that projected a double-digit growth. Delving into the actual numbers, imports increased by an impressive 38.1% year-on-year in February, with projections pointing to a 20% rise. Exports fell 1.3% despite expectations of a 12.3% increase. In dollar terms, the figures resulted in a trade deficit amounting [..]

European Session – Dollar surges on strong ADP jobs data; Pound steadies after UK budget

Posted on March 8, 2017 at 3:49 pm GMT

Expectations about the pace of Fed rate hikes once again dominated European trading on Wednesday after robust US data underlined the case for near-term monetary tightening. The US dollar surged well past 114 yen on the data, while the British pound was able to find some support from the UK government’s first full budget after Brexit. After a slow start to the day, the dollar reversed gear to become the strongest performing currency by late European session. The greenback was [..]

Technical Analysis – EURJPY loses steam below 50-day MA; Drops below cloud

Posted on March 8, 2017 at 1:09 pm GMT

EURJPY posted impressive gains of 2.5% in late February/early March, taking prices back within the Ichimoku cloud, having fallen below it for the first time since November. However, the pair found resistance at the 50-day moving average (MA) as the stochastics ran into overbought territory. The stochastics chart continues to point to a weakening momentum in the near term. The MACD meanwhile remains in bearish territory even after the recent gains, though there is some positive signal coming from the [..]

Asian Session – Yen rises after Japan GDP data; sterling weak ahead of UK Budget

Posted on March 8, 2017 at 8:51 am GMT

The yen was one of the better performing major currencies today due to a bit of risk aversion in the markets. The US dollar edged slightly lower as investors took on a more cautious stance ahead of Friday’s nonfarm payrolls data. Meanwhile, geopolitical tensions due to North Korean missile tests also brought on some risk aversion. Chinese trade balance data showed exports were weak and this was a bit disappointing. China reported a $9.15 billion trade deficit in February. This was [..]

Technical Analysis – EURGBP bullish after hitting a new eight-week high

Posted on March 8, 2017 at 8:16 am GMT

EURGBP is currently up from the day’s open. Should it close higher, it will mark the fourth straight day of advances for the pair which set a new eight-week high yesterday. Looking at the Ichimoku analysis, the Tenkan-sen line (red) has recently crossed above the Kijun-sen (blue). This is a positive alignment that’s generally perceived as a bullish near-term signal. The RSI indicator reinforces this signal as it is in bullish territory, well above the 50 neutral mark (at 62). [..]

Forex News – Oil range-bound as markets eye output cut deal extension

Posted on March 7, 2017 at 5:09 pm GMT

Crude oil prices are back in focus this week as CERAWeek – an annual international energy gathering – gets underway in Houston, Texas in the United States. Market participants will be looking for any signs of a possible commitment by OPEC and some non-OPEC countries to a possible extension of the output cut deal that was agreed last December and which expires at the end of June. Opinion remains split as to the success of that deal in alleviating the [..]

European Session – Dollar advances despite worsening trade gap

Posted on March 7, 2017 at 4:13 pm GMT

The dollar was broadly stronger today relative to major counterparts though, with the exception of pound / dollar, its gains were moderate and evenly spread. US and Canadian trade data, as well as Eurozone GDP numbers were on investors’ radar today. US trade data for January showed that the trade deficit rose to a near five-year high as increasing oil prices lifted the import bill for the US. This hints that net exports, a component in the calculation of GDP, would [..]

Forex News – RBA holds rates; reduced odds for rate cut due to rising household debt

Posted on March 7, 2017 at 3:45 pm GMT

Interest rates in Australia were left unchanged following a policy meeting by the Reserve Bank of Australia on Tuesday. This was the sixth consecutive meeting where the main cash rate was kept at a record low 1.50%, ever since the 25 basis-point cut in August last year. The Australian dollar rose against the US dollar soon after the RBA decision due to the upbeat tone of the statement and due to the market lowering its expectation for a rate cut [..]

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