All Articles Tagged - GBPUSD

US Open Note – Bank of Canada takes center stage; dollar loses momentum

Posted on October 27, 2021 at 1:11 pm GMT

BoC rate decision coming up The Bank of Canada’s interest rate decision is the main event of the day. Policymakers are predicted to leave rates unchanged at 0.25%. Economic growth has fired up, inflation is hot, businesses are feeling optimistic, the housing market is booming, and oil prices continue to climb. Macroeconomic projections that will be updated may provide some hints. The CPI for September came in at 4.4% year on year, more than double the target of 2% and significantly higher than the intended range of 1-3%. Retail sales and employment data [..]

Daily Market Comment – Bank of Canada showtime, US spending deal in sight

Posted on October 27, 2021 at 9:03 am GMT

BoC rate decision today could spark fireworks in the loonie Yen awaits BoJ meeting, aussie in focus after inflation stats Earnings season fires up but all eyes on Capitol Hill BoC to validate market pricing? The main event today will be the Bank of Canada decision at 14:00 GMT, which will likely spark fireworks in the loonie as policymakers either validate market expectations for an aggressive rate hike cycle or tone them down. Money markets are pricing in almost four [..]

US Open Note – Stocks around highs, dollar flat, and gold’s resilience tested

Posted on October 26, 2021 at 2:04 pm GMT

Sentiment improves but focus remains on BOC, ECB, and US GDP figures The dollar seems to be flat ahead of Thursday’s GDP figures, scheduled for 12:30 GMT. Even if the GDP figures disappoint, the damage could be largely short-lived because on the horizon is an FOMC meeting on November 3, expected to signal the start of tapering and possibly depict a clear tapering timeline. Moreover, an imminent huge infrastructure bill is on the cards, which the US Congress is working [..]

Daily Market Comment – Euro slides, Wall Street conquers new heights

Posted on October 26, 2021 at 8:45 am GMT

US stock markets set new records as Tesla goes into overdrive Euro falters ahead of ECB meeting, sterling comes back online Iran talks keep a lid on oil prices, gold cruises higher Tesla goes ballistic Wall Street started the week in good spirits. The heavy lifting was done by Tesla, which rose 12.6% to become a trillion-dollar company after it received a large order, propelling the S&P 500 to new records. The news sent the stock into an unreal ‘gamma [..]

Technical Analysis – GBPUSD pulls back from 200-day SMA; maintains bearish pattern

Posted on October 26, 2021 at 6:39 am GMT

GBPUSD found a strong resistance at the 200-day simple moving average (SMA) currently at 1.3830, where the 50.0% Fibonacci retracement level of the down leg from 1.4248 to 1.3410 also happens to be. The price jumped slightly above the almost five-month-old descending channel but is retreating again in the very short-term. Technically, the RSI indicator is moving sideways in the positive region, suggesting a weakening positive bias. The stochastic oscillator is also sending discouraging signals as it is diving towards the 20 level, confirming the recent downward [..]

US Open Note – Calm day ahead of busy week; oil around $85

Posted on October 25, 2021 at 1:00 pm GMT

US futures near new highs; Facebook releases its earnings Today’s economic calendar is light, but the rest of the week promises to be very interesting, with central bank meetings in the Eurozone, Canada, and Japan, as well as earnings reports from the technology industry’s heavy hitters. Facebook will launch the earnings campaign immediately following Wall Street’s closing bell. It is somewhat bizarre to watch US futures trading marginally lower from their all-time highs, even as inflation predictions continue to rise. If the tech sector earnings approve, the [..]

Global stocks advance; gold accelerates ahead of Powell’s speech – US Open Note

Posted on October 22, 2021 at 1:21 pm GMT

Evergrande’s default delayed While everyone was convinced that the endgame for Evergrande was a certainty, China’s indebted property giant made a last-minute $84mln interest payment overnight, avoiding an official default ahead of its 30-day deadline expiring this weekend. The news brought some risk-on back into play on Friday, propping stock markets and underpinning commodity-dependent currencies such as the aussie and the kiwi, though whether the company can only delay an imminent default remains to be seen. For the time being, [..]

Week Ahead – ECB, BoC, and BoJ meetings in the spotlight

Posted on October 22, 2021 at 11:28 am GMT

It’s a huge week ahead, with three central bank meetings and a storm of data releases that will reveal how the major economies performed amid paralyzed supply chains. The Bank of Canada might signal that powerful rate hikes are coming, whereas the European Central Bank could push back against speculation of early tightening as Europe grapples with the energy shock. Similarly, investors may have gone too far with pricing in aggressive rate increases in the UK and Australia. BoC – [..]

Daily Market Comment – Muted jubilation as Evergrande makes debt payment

Posted on October 22, 2021 at 9:14 am GMT

Relief as Evergrande averts default but China’s property woes not over Stocks mostly up but gains are modest as tech weighs Dollar hovers in recent range, eyes Powell speech for direction Commodity dollars bounce back, flash PMIs support euro and pound Evergrande interest payment calms nerves, slightly Embattled property giant, Evergrande, has reportedly paid its overdue interest on dollar-denominated bonds amounting to $83.5 million following weeks of speculation about its finances. Markets were taken by surprise from the news as [..]

Technical Analysis – GBPUSD eases in ascending channel below 1.38

Posted on October 22, 2021 at 7:28 am GMT

GBPUSD has been developing within an upward sloping channel over the last month. Looking at the very short-term picture, the pair found strong resistance at the 20-period simple moving average (SMA) with the technical indicators confirming the corrective move. The MACD is moving beneath its trigger and zero lines with weak momentum, while the RSI is approaching the neutral threshold of 50. If the strong upside momentum was to lose steam and the pair reversed lower, support would initially come [..]

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