Forex Market Review (Asian Session) – Dollar flat following losses on Fed perceived dovishness; thin trading on Thanksgiving holiday

Posted on November 23, 2017 at 8:29 am GMT

As the Asian session was nearing completion, the dollar was little changed on the day relative to major rival currencies after yesterday posting sizable losses following the release of the minutes of the Federal Reserve’s October 31-November 1 meeting which showed differing views within the FOMC, casting doubts about the timing of delivery of future rate hikes. Trading activity is relatively thinner today as Japan is closed for Labor Thanksgiving Day and US markets will also be closed for the [..]


Technical Analysis – USDJPY enters bearish phase after break below 200-day moving average

Posted on November 23, 2017 at 7:04 am GMT

USDJPY has been bearish since October 16 and has now reversed around half of the rally that took place from 107.31 to 114.73. The market is testing two-month lows at the 50% Fibonacci (111.04) of the September 8 to November 6 upleg. A move above 112.00 would help ease downside pressure but a rise above 113.00 (23.6% Fibonacci) would invalidate the current bearish bias. The market is expected to be supported at current levels as it trades in a critical zone between [..]


Forex Market Review (European Session) – Pound falls after Hammond downgrades economic outlook; euro rebounds as eurozone consumer confidence surprises to the upside

Posted on November 22, 2017 at 4:35 pm GMT

The British Budget for 2018 was the main focus during today’s European trading session, while a strip of economic releases out of the US also attracted some attention. The pound posted short-lived losses after British official budget forecasters downgraded the country’s economic outlook, while the dollar dipped into losses after strong flash readings on eurozone confidence activated euro bulls. The British Finance Minister, Philip Hammond, delivered the UK’s budget statement for 2018 in the Parliament on Wednesday, announcing that official GDP forecasts were lowered for the [..]


Fed minutes unlikely to move markets, bias in either direction -hawkish or dovish- not to be ruled out though – Forex News Preview

Posted on November 22, 2017 at 3:09 pm GMT

The Federal Reserve minutes of the October 31-November 1 meeting are due at 1900 GMT with investors being on the lookout for any signals on the outlook of monetary policy. Communication by Fed officials has broadly supported the view for an additional rate hike – the third such move this year – to be delivered by the US central bank as it completes its last monetary policy meeting for 2017 on December 13. Consequently, futures markets have almost completely priced [..]


Forex Market Review (Asian Session) – Dollar on the backfoot as Treasury yield gap flattens; oil heads to two-year high

Posted on November 22, 2017 at 8:48 am GMT

The dollar was on the backfoot in Asia on Wednesday as the US yield curve flattened to its lowest spread in a decade, while dovish comments from the Fed chief late on Tuesday dragged the currency even lower ahead of the Fed meeting minutes. Energy markets also posted significant moves during the session, with oil prices heading towards two-year high levels. The difference between the 2-year and 10-year US Treasury yields touched the lowest since November 2007 on Tuesday, spreading fears of a possible economic downturn. This [..]


Forex Market Review (European Session) – Aussie bounces after RBA Lowe says next rate move is up; Turkish lira hits record low

Posted on November 21, 2017 at 4:25 pm GMT

The aussie overperformed its peers during the European session, posting a strong rebound after the RBA governor ruled out the possibility of expanding stimulus monetary policy. On the other hand, the Turkish lira hit a record low against the greenback after the Turkish president threatened to take control of the Central Bank of the Republic of Turkey (CBRT). Speaking at a dinner event in Sydney, the RBA governor underlined that “there is not a strong case for a near-term adjustment [..]


Forex Market Review (Asian Session) – Euro weakness on political risks supports dollar; aussie down after RBA minutes

Posted on November 21, 2017 at 8:36 am GMT

Trading conditions were thin on Tuesday as economic releases were few, while the US was in a holiday mode ahead of the Thanksgiving Day on Thursday. Japan is also celebrating its Labour Thanksgiving Day on Thursday. The dollar remained steady at one-week high levels during the session as political noise in Germany continued to weigh on the euro. The aussie touched a five-month low after the RBA meeting minutes signalled concerns on subdued wage growth. The euro recouped some of its losses made yesterday in Asia, [..]


Forex Market Review (European Session) – Euro fails to rebound after Draghi’s dovish words; pound gains on Brexit hopes

Posted on November 20, 2017 at 4:22 pm GMT

Political noise in Germany continued to draw markets’ attention during the European trading hours as the economic calendar was lacking major releases and any progress on the US tax reforms was expected only after the Thanksgiving holidays. The euro was on track to erase losses made in the previous session but dovish remarks by the ECB President pressured the currency.  The dollar was in the green during the session while the pound drifter higher as hopes on Brexit negotiations moving [..]


Dollar set for lacklustre week as focus remains on Senate tax vote – Forex News Preview

Posted on November 20, 2017 at 3:51 pm GMT

There’s expected to be few drivers for the US dollar this week, with investors likely to shrug off data releases and the FOMC minutes ahead of the Thanksgiving holiday, with the focus firmly on the tax plan, which is facing a crucial vote in the Senate. The US Census Bureau will publish its monthly advance report on manufacturers’ shipments, inventories and orders on Wednesday – a closely watched gauge of industrial activity that is seen as a good indication of [..]


Forex Market Review (Asian Session) – Euro drifts lower as German elections loom; dollar recovers despite tax risks

Posted on November 20, 2017 at 8:57 am GMT

The euro was the worst performer among its major peers on Monday after German negotiations to form a coalition government broke down during the weekend. Consequently, the dollar index jumped on the news, but the yen might attract investors’ attention this week as the future of the US tax overhaul is still unclear. The German Chancellor, Angela Merkel, failed to meet the second deadline to form a three-way coalition government during the weekend after the liberal FDP party announced on late Sunday that it would pull [..]

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