Week Ahead – Fed meets as virus storm worsens; US and Eurozone set for historic GDP collapse

Posted on July 24, 2020 at 12:26 pm GMT

As US politicians squabble over the next fiscal stimulus bill and the country’s virus death toll ticks up again, markets may lean on the Federal Reserve next week for a quick fix. The Federal Open Market Committee (FOMC) meeting will undoubtedly be the most eagerly awaited event of the week. But second quarter GDP prints out of the United States and the euro area will not be far behind as the full extent of the economic shock from COVID-19 is [..]


Technical Analysis – USDCNH plunges to new 4-month low

Posted on July 7, 2020 at 2:22 pm GMT

USDCNH plummeted to a fresh four-month low of 6.9947 earlier today after the strong bearish rally on Monday. The market is in the process to cover some of the losses, approaching the 50.0% Fibonacci retracement level of the up leg from 6.8433 to 7.1944 at 7.0201 again. The momentum indicators are contradicting each other as the RSI is rebounding on the oversold region, while the MACD is declining beneath its trigger line in the near term. Also, the 20- and [..]


Daily Market Comment – Hong Kong tensions sink yuan but stocks yet to flinch

Posted on May 28, 2020 at 8:57 am GMT

Hong Kong’s special status with US under threat after Pompeo warning Yuan and Hong Kong shares under pressure but optimism prevails elsewhere Euro surges after European Commission proposes €750 billion rescue fund US and China heading for another clash Hong Kong looks set to lose the special status it enjoys with the United States on a range of areas, including trade, after US Secretary of State Mike Pompeo said the Trump administration no longer considers it to be autonomous from [..]


Chinese exports probably plunged in February on virus shutdowns – Forex News Preview

Posted on March 6, 2020 at 2:10 pm GMT

China will report trade numbers for February on Saturday – the first since authorities imposed lockdowns on many cities – and so the data will be seen as an important barometer to how badly business activity was impacted by the outbreak of the coronavirus. Any indication that the factory shutdowns had a far more devastating effect on the economy than is currently being predicted is likely to spark more panic selling of risk assets when markets open on Monday. January [..]


Technical Analysis – USDCNH tumbles towards 6-week low with strong momentum

Posted on March 4, 2020 at 1:19 pm GMT

USDCNH is plunging for the ninth consecutive day after the pullback on the 7.0561 resistance, breaching the 23.6% Fibonacci retracement level of 6.9624 of the down leg from 7.1944 to 6.8433 today.  The price is also registering a six-week low of 6.9159 within the Ichimoku cloud. Technical indicators are moving south with the RSI approaching its 30 oversold mark and the MACD dropping below its zero level, while the red Tenkan-sen is preparing to cross below the blue Kijun-sen line. If the market closes successfully below the 23.6% Fibonacci of 7.0561 the spotlight could turn to the one-year low of 6.8433. Below that [..]


Daily Market Comment – Contagion fears intensify; stocks tumble, gold surges, dollar rebounds

Posted on February 24, 2020 at 9:38 am GMT

Jump in number of infections outside China sends panic across financial markets Stocks take a large hit; gold scales fresh 7-year high amid flight to safety Dollar’s gains more restrained as Fed rate cut bets rise after weak US data Concerns mount about virus impact after spike in global cases The number of confirmed coronavirus cases outside of China continued to multiply over the weekend, sending shivers across financial markets as investors were forced to reassess their view that the [..]


Technical Analysis – USDCNH’s attempt fails to remain above 7.0000; SMAs act as supports

Posted on February 12, 2020 at 1:19 pm GMT

USDCNH is retreating below the five-month descending trend line after pulling back from the 7.0126 resistance level in the preceding week. Earlier today, the pair touched the 40-day simple moving average (SMA) and erased its intraday losses so far. Technical indicators are moving sideways with the RSI holding near the neutral threshold of 50 and the MACD falling below its trigger line slightly above the zero level. If the 40- and 20-day SMAs prove easy to get through, the highlight [..]


Technical Analysis – USDCNH challenges falling trend line above 7.0000

Posted on February 3, 2020 at 1:50 pm GMT

USDCNH seems to be stronger over the last three trading days, challenging the five-month descending trendline and the upper band of the Ichimoku cloud, near the 7.0126 resistance level. The technical indicators are feeding prospects for a possible positive short-term move above the falling trendline, as the RSI holds well above 50 and is pointing up, while the MACD continues to strengthen in the bullish territory and above its red trigger line.  Also, in Ichimoku indicators, the red Tenkan-sen line keeps rising above the blue Kijun-sen line. If 7.0126 proves easy [..]


Technical Analysis – USDCNH appreciates despite looming medium-term downtrend

Posted on January 27, 2020 at 2:51 pm GMT

The Renminbi’s recent push up from 6.8440 has returned the pair to levels seen at the end of last year. Buyers are attempting to breach an important region from 6.9790 to 6.9865 on the daily timeframe, where a bearish crossover of the 200-day simple moving average (SMA) by the 50-day one currently resides. The short-term oscillators suggest positive momentum is strengthening, backing the improving picture in the price action. The MACD is strengthening above its red trigger line in the [..]


Daily Market Comment – US earnings and data, China GDP propel stocks to fresh highs; dollar nears 8-month high vs yen

Posted on January 17, 2020 at 9:24 am GMT

China reports slowest annual growth in 29 years but signs of rebound at year-end Stocks climb to new records amid ongoing trade optimism and positive earnings String of upbeat data out of the US also boosts risk appetite China’s growth slows in 2019 but recovery could be underway Economic growth in the world’s second largest economy reached the slowest in 29 years according to GDP numbers out of China this morning. GDP expanded by 6.1% for the full year in [..]

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