Daily Market Comment – Dollar resumes slide; stocks struggle but tech bucks the trend

Posted on July 31, 2020 at 8:55 am GMT

Dollar slumps again as US economy crashes, heads for fiscal cliff Euro, pound and aussie catapult higher but yen’s jump raises eyebrows European and Asian shares skid but big tech earnings lift Nasdaq Dollar on track for worst month in decade The US dollar is headed for its worst monthly performance in nearly 10 years as economic and political woes in America increasingly undermine the world’s reserve currency just as the outlook elsewhere brightens somewhat. The US economy collapsed by [..]

Daily Market Comment – Fed soothes stimulus anxiety; dollar pares losses

Posted on July 30, 2020 at 8:52 am GMT

Fed tight lipped on new forward guidance but reaffirms pledge on easy policy Stocks buoyed but cautious ahead of tech earnings, US GDP and jobs data Dollar falls on Powell remarks, then bounces back; gold slips Fed maintains course, ups pressure on Congress The Federal Reserve left monetary policy unchanged on Wednesday but warned of a “slowing in the pace of the recovery”. Having already implemented a full range of tools in its fight against the coronavirus, the Fed’s decision [..]

Technical Analysis – AUDUSD slips near 15-month high; strongly bullish in medium term

Posted on July 30, 2020 at 7:46 am GMT

AUDUSD is edging slightly lower after reaching a 15-month high of 0.7185 but is still holding a strong upside tendency since March 19. The stochastic oscillator is pointing down, ready to post a bearish cross within its %K and %D lines in the overbought zone, suggesting some losses in the short-term. However, the MACD oscillator is strengthening its upside structure above its trigger and zero lines. In case the pair extends the pullback, immediate support could come from the 0.7030 – 0.7067 area, which encapsulates the 20-day simple moving [..]

Daily Market Comment – Tough stimulus talks weigh on markets; dovish Fed might help

Posted on July 29, 2020 at 8:32 am GMT

Dollar finds support from stalled stimulus talks amid splits in Congress Stocks struggle on poor earnings, stimulus delay; gold pauses rally Fed might bring some cheer if it reinforces dovish message Fiscal cliff worries mount as talks drag on Fears that the United States could be headed for a fiscal cliff undermined investor sentiment on Wednesday as Congress was no closer to reaching a deal on a new virus relief bill. An agreement before the month-end deadline is looking increasingly [..]


Australian CPI and China PMIs could add optimism for more gains in aussie – Forex News Preview

Posted on July 27, 2020 at 3:05 pm GMT

As markets deal with the real threat of surging coronavirus cases, the risk-sensitive Australian dollar will be looking at several indicators coming out this week and the following Monday out of Australia and China. The Australian inflation report is due on Wednesday at 0430 GMT, while China’s NBS and Caixin/Markit manufacturing PMIs are coming out on Friday (0430 GMT) and next Monday (0145 GMT), both of which come into the spotlight for traders. In the previous quarter, the annual inflation rate in Australia reached the Reserve Bank of Australia’s (RBA) target, for the first [..]

Daily Market Comment – Gold reaches for the sky, euro soars too as dollar sags

Posted on July 27, 2020 at 8:51 am GMT

Uncertainty about US outlook pushes dollar to 22-month low, lifting gold and euro Precious metal hits all-time high as Sino-US tensions boost haven demand Stocks steadier after selloff; earnings and FOMC meeting in focus US virus cases could be slowing but dollar still rattled The US dollar plumbed fresh lows on Monday, slumping to the lowest in nearly two years against a basket of currencies, as investors shunned the world’s number one reserve currency in favour of the traditional safety [..]

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 [..]

Daily Market Comment – Concerns the US recovery is stalling ripple through markets

Posted on July 24, 2020 at 8:33 am GMT

Investors push the ‘risk off’ button amid faltering US recovery and monopoly probes into big tech Stocks pull back alongside commodity currencies, yen and gold climb But dollar can’t catch a break – strong euro and Fed expectations in play? Overall, this seems like a correction, not a trend reversal Risk aversion makes a rare comeback Global markets finally took note of the many risks around them on Thursday, amidst clearer signs that the US recovery is stalling, seething US-China [..]

Daily Market Comment – Euro takes no prisoners, dollar falls apart

Posted on July 23, 2020 at 8:23 am GMT

Dollar slide accelerates despite escalating US-China tussle, euro takes flight Markets generally in a cheerful mood, helped by signs Congress is moving closer to a compromise Gold trades like a rocket amid tanking dollar, geopolitical unrest, and stimulus hopes Euro unchained The currency market continues to be dominated by the resurgent euro, which has been liberated from its fiscal shackles after EU leaders took a step closer towards risk sharing this week. Since FX is a zero-sum game in the [..]

Technical Analysis – AUDUSD breaks above pre-virus levels and into overbought zone

Posted on July 23, 2020 at 7:18 am GMT

AUDUSD has successfully completed a V-shaped recovery from 17-year lows, unclocking a 15-month high of 0.7181 on Wednesday that is above its pre-crisis levels. The recent improvement has also violated the long-term downtrend that started from the 2018 peak of 0.8135, with the golden cross within the 50- and 200-day simple moving averages (SMAs) adding credence to the advance. The RSI and the Stochastics, however, have already entered the overbought territory, flagging that the bears might be around the corner. But the indicators have yet to hit a [..]

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