US Open Preview – Dollar reacts little on fresh trade threats; Canadian CPI & retail sales pending

Posted on July 20, 2018 at 11:34 am GMT

Here are the latest developments in global markets: FOREX: The US dollar was trading lower against the Japanese yen on Friday, though by not much, at 112.40 (-0.07%) remaining below the 1-year high of 113.15 reached on Thursday as investors kept in mind Trump’s criticism made on Thursday about higher US interest rates and a stronger dollar. Renewed US trade warnings against China today did little to move the pair (see below). The dollar index against a basket of currencies moved down by 0.05% after the bounce off the 1-year [..]


Week Ahead – US GDP growth expected to surge in Q2; ECB meets – can it bring relief to sliding euro?

Posted on July 20, 2018 at 10:09 am GMT

The preliminary estimate of US GDP growth for the second quarter and the latest monetary policy meeting by the European Central Bank will be the most keenly awaited events of the next seven days. While there should be plenty of headlines from these two risk events, the remainder of the week is looking unusually quiet, with only Australian inflation, Eurozone flash CPIs and US durable goods standing out as notable releases. Australian inflation to rise within RBA’s target band Recent [..]


US Open Preview – Sterling plunges to fresh 10-month lows after UK retail sales disappoint

Posted on July 19, 2018 at 11:36 am GMT

Here are the latest developments in global markets:  FOREX: Sterling tumbled by 0.69% against the greenback on Thursday, hitting a fresh 10-month low of 1.2970 in the wake of worse-than-expected retail sales figures out of the UK. Month-on-month retail sales dropped 0.5% in June from 1.4% in May, missing market expectations of a 0.2% gain. On a yearly basis, the index increased 2.9% versus 3.7% expected and May’s mark of 4.1%. Yet, the report revealed that quarter-on-quarter retail sales growth was [..]


European Open Preview – US dollar off highs on profit-taking; UK retail sales to be watched for rate clues

Posted on July 19, 2018 at 8:06 am GMT

Here are the latest developments in global markets: FOREX: The US dollar was off the previous day’s multi-month highs versus its major counterparts on profit-taking, although it was holding firm on the back of optimism from the Federal Reserve Chair Jerome Powell about the prospects of the US economy. The dollar looked set to retest these highs as it was receiving support from what was becoming the main scenario of two more rate hikes in the remainder of 2018. On the [..]


US Open Preview – Pound touches 10-month low after UK inflation misses forecasts; dollar unlocks fresh highs

Posted on July 18, 2018 at 11:51 am GMT

Here are the latest developments in global markets: FOREX: The US dollar extended its bullish rally against the Japanese yen towards a fresh 6-month high of 113.13, adding 0.08% to its performance on Wednesday. Markets reacted positively after the Fed Chair, Jerome Powell, gave a bullish assessment of the US economy, reducing their exposure to safer assets such as the yen. Also, the US dollar index gained 0.33% and surpassed the 95.00 handle. Sterling plummeted to 10-month lows (-0.61%) today, pausing at 1.3000 after the UK’s [..]


European Open Preview – Dollar broadly stronger on Powell’s optimistic remarks; UK inflation eyed

Posted on July 18, 2018 at 7:56 am GMT

Here are the latest developments in global markets: FOREX: The dollar continued gaining versus a basket of currencies on Wednesday after rising by a bit less than 0.5% the previous day. Upbeat comments on the US economy by Fed Chief Jerome Powell acted as the catalyst for the greenback’s advance, as well as fueling risk sentiment. In light of the risk-on mood, the yen retreated, with dollar/yen reaching a fresh six-month high of 113.07 earlier on the day. STOCKS: The [..]


Technical Analysis – AUDUSD retreats below 20-day SMA; bearish bias in short and medium term

Posted on July 18, 2018 at 6:35 am GMT

AUDUSD has eased sharply to the downside this week and the 0.7475 resistance level acted as a strong obstacle for the bulls in the preceding weekly session. Moreover, the pair dipped below the 20-day simple moving average (SMA) early in European session today, signaling further downside pressures. The short-term technical indicators in the daily timeframe are bearish and point to more weakness in the market. The RSI indicator is sloping downwards and stands below the threshold of 50, while the MACD oscillator is strengthening again its [..]


Aussie turns its sights to Australia’s jobs data, as trade tensions take a break – Forex News Preview

Posted on July 17, 2018 at 2:12 pm GMT

Australian employment data for June will hit the markets on Thursday, at 0130 GMT. The forecast is for another solid jobs report, which would confirm the RBA’s view that the labor market continues to tighten and could help the aussie rebound somewhat. Besides economic data, the other major consideration for the battered Australian currency will be how global trade tensions evolve. Australia’s labor market had been on a tear throughout 2017, posting robust and consistent gains, though the pace of [..]


US Open Preview – Dollar firmer versus yen ahead of Powell’s testimony

Posted on July 17, 2018 at 11:38 am GMT

Here are the latest developments in global markets: FOREX: The US dollar was trading higher at 112.48 against the Japanese yen (+0.20%) ahead of the Federal Reserve Chairman Jerome Powell’s semi-annual testimony on the economy and monetary policy. Overall, the dollar index was weaker against a basket of six major currencies (-0.03%) and is set to post the third consecutive negative day. Pound/dollar touched a session high of 1.3267 after the Office for National Statistics revised April’s average earnings index (including bonuses) from [..]


European Open Preview – Dollar pulls back ahead of Powell’s testimony; UK jobs data in focus

Posted on July 17, 2018 at 7:42 am GMT

Here are the latest developments in global markets: FOREX: The US dollar index is lower by 0.14% on Tuesday, ahead of a testimony by Fed Chairman Jerome Powell before the US Senate at 1400 GMT. Elsewhere, kiwi/dollar is up by 0.77%, following encouraging core inflation data out of New Zealand overnight. STOCKS: US markets closed mixed on Monday. While the Dow Jones managed to advance by 0.18%, the S&P 500 and the Nasdaq Composite edged lower by 0.10% and 0.26% respectively. Something similar appears [..]