Daily Market Comment – BoE clips pound’s wings, equities brace for turbulence

Posted on September 18, 2020 at 10:41 am GMT

Sterling capsizes after BoE opens door to negative rates Fed disappointment torments equities, but dollar doesn’t get the memo Market turmoil might continue today amid major option expiries Crude oil stages heroic comeback on supply hopes Bank of England does another policy U-turn The BoE injected another dose of volatility into British assets yesterday after it announced that it is studying the implementation of negative interest rates, just six weeks after it downplayed this policy as ineffective. It seems that [..]


Technical Analysis – EURGBP could provide the bulls a second chance

Posted on September 17, 2020 at 11:32 am GMT

EURGBP pulled back below the 0.9290 resistance for the second time this year but the bulls may have a second chance to retake control as the pair is exposed to a key supportive area. The 50% Fibonacci retracement of the 0.9497-0.8670 downleg is currently in action at 0.9080, blocking any additional negative correction. If it proves fragile, the descending trendline with the help of the 38.2% Fibonacci of 0.8980 could still keep the bulls on the surface if they manage to put [..]


Technical Analysis – EURGBP under negative strain; retraces to 38.2% Fibonacci

Posted on September 16, 2020 at 12:52 pm GMT

EURGBP dived towards the 0.9130 barrier, that being the 38.2% Fibonacci retracement of the up leg from 0.8865 to 0.9291, seeking to extend a deeper withdrawal from the recent 5½-month peak of 0.9291. The falling red Tenkan-sen line is fuelling the descent and could boost it with a bearish overlap of the blue Kijun-sen line. Additional negative backing is reflected in the short-term oscillators. The MACD, in the positive region, is decreasing below its red signal line, while the RSI [..]


Daily Market Comment – Markets hold their breath ahead of Fed decision

Posted on September 16, 2020 at 8:34 am GMT

Spotlight falls on the Fed today: will it deliver new measures to boost inflation? Bank of Japan meets a few hours later, not much is expected Otherwise muted moves across markets as investors await FOMC direction Fed: Justifying the paradigm shift The main event today will be the FOMC decision at 18:00 GMT, which will be followed by the regular press conference by Chairman Powell half an hour later. The Fed is certain to use this meeting as a public [..]


Technical Analysis – EURGBP skyrockets above MAs; bullish signals mature

Posted on September 9, 2020 at 1:00 pm GMT

EURGBP is struggling to climb above the 0.9118 barrier, as it attempts to prolong its one-week rally past a one-and-a-half-month high of 0.9130. The bullish Ichimoku lines are nurturing the ascent, which could also receive a boost from the approaching bullish crossover of the 100-period simple moving average (SMA) by the rising 40-period one. The short-term oscillators are also displaying strengthening positive momentum. The MACD, in the positive region, is increasing above its red signal line, while the RSI continues [..]


Ghost of Brexit returns to haunt sterling – Special Report

Posted on September 8, 2020 at 2:00 pm GMT

The British pound came under fire this week, after the UK threatened to undermine the divorce deal it has already signed with the EU and walk away from the trade negotiations altogether if no agreement is reached by mid-October. While this ultimatum is probably just a hardball negotiating tactic, it still sets the stage for a painful correction in sterling over the coming weeks as political uncertainty intensifies. Ultimately though, a last-minute deal is the most likely outcome. Power play [..]


Technical Analysis – EURGBP claims new 3-month low as bears keep control

Posted on September 2, 2020 at 7:23 am GMT

EURGBP started the new month on the negative side, extending its weakness below a broken dashed ascending trendline to an almost three-month low of 0.8887 on Tuesday. The next key support is expected to occur slightly lower around the 23.6% Fibonacci retracement of the 0.9497-0.8670 downleg at 0.8864, with technical indicators reflecting that bearish forces have not faded yet. The 20-day simple moving average (SMA) has crossed below the 50-day SMA, while the Stochastics are still looking for a turning [..]


Technical Analysis – EURGBP tumbles below SMAs; indicators are negative

Posted on August 26, 2020 at 1:17 pm GMT

EURGBP has been in a declining movement over the last sessions, remaining well below the Ichimoku cloud and the short-term simple moving averages (SMAs). Furthermore, the RSI is heading south in the bearish territory, while the stochastic is moving lower in the oversold zone. If prices continue to head lower, support should come from the 0.8943 support, taken from the latest lows, before touching the 0.8865 barrier, registered on June 5. However, should an upside reversal take form, immediate resistance [..]


Daily Market Comment – Wall Street eclipses all-time high, dollar gets a black eye

Posted on August 19, 2020 at 9:18 am GMT

S&P 500 closes at a new record, powered by slowing US cases and stimulus signals Dollar gets hammered, hits fresh two-year lows  Sterling capitalizes most on the dollar’s troubles Today: FOMC minutes and Canadian inflation numbers Mission accomplished: Wall Street at new records There’s no stopping the US equity freight train. The S&P 500 erased all its losses since the pandemic rocked global markets to capture new records, pulling off its quickest ever return to new highs after entering a [..]


Euro rally stalls: just a pause or is a major correction in sight? – Special Report

Posted on August 18, 2020 at 10:54 am GMT

After getting whipsawed and then clobbered at the height of the virus fallout in March, the euro is fast becoming one of the strongest performing currencies of 2020. Europe’s better handling of the coronavirus outbreak – at least when compared to America – and a big rescue package that is substantially made up of grants, have helped turn the euro’s fortunes around. But as the incredible rally pauses for breath, are investors having second thoughts about the Eurozone outlook amid [..]

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