Week Ahead – US PCE inflation, BoC meeting and Aussie Q1 capex eyed amid rising risk aversion

Posted on May 24, 2019 at 9:58 am GMT

As trade tensions continue to simmer and there’s no end in sight to the Brexit turmoil, risk sentiment will probably remain the biggest driver for forex markets in the coming week. But there will still be several market-moving events for investors to keep a watch on. PCE inflation numbers from the United States, Canadian Q1 GDP estimates and a Bank of Canada meeting, as well as capital expenditure figures from Australia will be the main highlights. Aussie to stay on [..]

European Open Preview – Dollar retreats as rate-cut bets grow; yen soars

Posted on May 24, 2019 at 8:01 am GMT

Wall Street tumbles, yen soars on growth and trade concerns Dollar pulls back on mounting expectations for Fed easing Sterling catches its breath as May prepares to set departure date Risk sentiment takes a hit as soft PMIs revive growth worries Risk aversion dominated markets on Thursday, as alarming PMI data from major economies coupled with deepening US-China trade tensions amplified concerns around global growth. Preliminary Markit PMIs from both the US and Europe disappointed, highlighting that trade worries are [..]

European Open Preview – Sterling suffers as knives come out for Theresa May

Posted on May 23, 2019 at 8:11 am GMT

Sterling hammered on expectations PM May could resign soon German PMIs disappoint – euro may stay under pressure Risk aversion deepens as markets fear ‘new cold war’ Fed minutes reaffirm neutral stance, dollar advances No reprieve for sterling as May fights for political survival The British pound continues to be hammered by political uncertainty, with the leader of the House of Commons – Andrea Leadsom – resigning from the cabinet yesterday in protest to the government’s Brexit approach. The move [..]

Technical Analysis – USDJPY strictly capped by 20-day SMA and 23.6% Fibonacci

Posted on May 23, 2019 at 6:54 am GMT

USDJPY paused its buying interest from 109.00 earlier this week, touching the 23.6% Fibonacci retracement level of the upleg from 104.64 to 112.40, around 110.60. The price was capped by the 20-day moving average, which is acting as a strong resistance obstacle, while the technical indicators are moving lower. The RSI is pointing down in the negative area, while the stochastic oscillator created a bearish crossover within the %K and %D lines in the overbought zone, signaling more losses in [..]

European Open Preview – Pound unimpressed by Brexit plan; Fed minutes due

Posted on May 22, 2019 at 8:08 am GMT

Pound surrenders gains to trade lower after May unveils Brexit plan Fed minutes today may boost the dollar a little Stocks advance on Huawei relief, but risks still heightened Sterling not convinced by May’s ‘last Brexit push’ The British pound briefly spiked higher yesterday, before surrendering all its gains to trade even lower, after PM May laid out her modified Brexit deal. In an attempt to win over votes from opposition parties and pro-EU moderates, she proposed giving Parliament a [..]


Japanese exports to remain weak, inflation to inch higher in April – Forex News Preview

Posted on May 21, 2019 at 3:13 pm GMT

Following the unexpectedly strong Q1 GDP data out of Japan this week, the focus now turns to April trade numbers on Wednesday (Tuesday, 23:50 GMT) and inflation figures on Friday (Thursday, 23:30 GMT). Despite the impressive growth figures, worries remain about the outlook for Japan’s economy as the October sales tax hike nears and trade tensions escalate. Investors will therefore be watching carefully how the economy evolves over the next few months for signs the Bank of Japan would need [..]

European Open Preview – Dovish RBA sinks aussie; dollar shines

Posted on May 21, 2019 at 7:55 am GMT

Aussie gives up election gains as RBA rate cuts come in focus US calms nerves by temporarily easing sanctions on Huawei Dollar advances as other currencies lose shine Aussie reverses lower as RBA rate cut bets soar The election-related boost that the aussie received yesterday proved short-lived, with the currency giving back nearly all its gains early on Tuesday, following the release of minutes from the latest RBA meeting and some remarks by Governor Lowe. The minutes played up the [..]

European Open Preview – Pound recovers some losses; dollar reigns supreme

Posted on May 20, 2019 at 8:00 am GMT

Sterling crumbles as no-deal Brexit risk returns Aussie gets a lift from politics, but outlook still grim Dollar continues to reign supreme as other currencies lack appeal Pound dives as May’s grasp on power weakens Sterling took yet another hit on Friday, with Cable falling to its lowest level since January as the British political landscape darkened. Cross-party talks between Theresa May’s Conservatives and the opposition Labour party collapsed, dashing hopes for a bipartisan compromise to break the Brexit deadlock. [..]

Week ahead – European elections & PMIs, Fed minutes, and much more

Posted on May 17, 2019 at 12:40 pm GMT

While lacking in central bank meetings, the coming week is still a busy one. A poor showing by the UK Conservatives in the European Parliament elections could make it even more likely that Theresa May is replaced with someone that wants to deliver Brexit ‘no matter what’, keeping the pound on the back foot. Meanwhile, preliminary Eurozone PMIs are unlikely to change the euro’s fortunes, while the Fed minutes may strike a ‘neutral’ tone, leading to a slight unwinding of [..]

European Open Preview – Pound slumps as May expected to step down; dollar lifted by strong data and earnings

Posted on May 17, 2019 at 8:22 am GMT

Pound continues to slide as cross-party Brexit talks set to end and countdown begins to PM May’s exit Euro also on the backfoot as Italian political worries re-emerge US dollar climbs to 2-week high following strong corporate earnings and solid US data Pound extends losing streak as Brexit risks rise Sterling is on track to post its sixth straight day of losses and to end the week 1.6% lower as Prime Minister Theresa May’s days look numbered. It was confirmed [..]

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