NZD/USD has been taken out of the ascending hourly channel to the downside and trades below the 50% Fibo retracements of the prior bear extensions between the 29th Sep highs and 7th Oct lows. The antipodes have been spooked by the weakness in the CNH despite the various Chinese officials jawboning their benchmark indexes higher.
In this series we scale-back and take a look at the broader technical picture to gain a bit more perspective on where we are in trend. The Canadian Dollar has been under considerable pressure for the past three weeks (USD/CAD higher more-than 2% month-to-date) with price now testing a critical resistance confluence ahead of the
Nasdaq leads the way The US major stock indices are opening with gains. However, the gains are lower than the pre-market levels. So it is a little softer. The Nasdaq is leading the market: S&P indexes up 5.2 points or 0.19% at 2773 NASDAQ is up 43.8 points or 0.59% at 7492 Dow is up
• Negative Brexit headlines continue to prompts some fresh selling around the British Pound. • DUP said to is said to support a proposal to make the EU’s Northern Irish backstop illegal. • Technical selling below the 1.3020-15 region further aggravates the selling pressure. The GBP/USD pair kept losing ground through the mid-European session
FTSE MIB surges as Italian bonds rally ForexLive So far, that’s translated into a move higher in the euro and a weaker yen but we’re yet to see any meaningful moves among other risk currencies i.e. aussie and kiwi. The mood here should continue to underpin the euro on the session but for the yen,
TALKING POINTS – CANADIAN DOLLAR, AUSSIE DOLLAR, ASX 200, STOCKS, YEN Canadian Dollar retracing higher after Friday’s CPI-inspired selloff ASX 200, Aussie Dollar down as Liberals lose parliamentary majority Japanese Yen at risk as stock index futures point to risk-on sentiment Major currencies started the trading week in a consolidative mood, with a bare-bones economic
Chinese state-run media outlets are launching a counter-attack against US State Secretary Mike Pompeo’s comments made during the state secretary’s visit to South America last week, as noted by Reuters. Key quotes “Pompeo was on a Latin America tour at the end of last week, meeting with the heads of state in Panama and Mexico.
The market is easing into the week If you’re just tuning into this week’s FX market you haven’t missed much. GBP is a tad soft but we’re almost at the point of splitting hairs. If anything, I would expect a bit of euro strength when Europe rolls in because of the stable outlook from Moody’s.
High level fundamentals proved substantive this past week between a possible Brexit path after the EU Summit and the slowest pace of growth for China in 9 years. Ahead, the scheduled updates are still material – such as US 3Q GDP as well as ECB and BOC rate decisions – but we should also keep
FUNDAMENTAL FORECAST FOR CNH: Bearish The Yuan may avoid the panic mood from Chinese equities amid top officials’ calming comments. The probability of PBOC further cutting RRR has increased and is not good news for the Yuan. New momentums such as a trading link will take time to develop before can bring real benefits. How
US DOLLAR FUNDAMENTAL FORECAST: BULLISH US Dollar erases prior week’s losses after hawkish FOMC meeting minutes Renewed risk aversion reveals USD behaving like a haven asset once again Lingering headwinds warn sentiment may sour further, US Q3 GDP on tap See our US Dollar forecast to learn what will drive prices through the end of
Saudi says he was killed after an altercation Trump once again downplayed the possibility of US retribution for the murder of journalist Jamal Khashoggi, saying he found Saudi Arabia’s explanation credible. Saudi officials finally admitted that Khashoggi was killed in the Saudi consulate in Turkey late on Friday, saying he died in some kind of fist
No digital currency coming soon Cash remains king and a digital currency isn’t coming any time soon from Japan’s central bank, according to deputy governor Masayoshi Amamiya Saturday. “This is an option that can’t be taken” he said regarding a digital currency. He said that cash remains widely used so a switch to digital currencies
Fundamental Forecast for <USOIL>: Bullish Fundamental Crude Oil Price Talking Points: The ONE Thing: Crude is looking at the second week of losses after four-year highs were traded at earlier this week and massive inventory gains in the US look to show demand may be waningalongside a miss in Chinese GDP data. Does two make
Forex news for North American trading on October 19, 2018: Markets: Gold up $1 to $1226 WTI crude up 63-cents to $69.28 S&P 500 down 1 point to 2767 US 10-year yields up 1.5 bps to 3.19% NZD leads, JPY lags Fundamentals were the main driver on Friday as US equity volatility calmed slightly. It
The S&P500 remains under pressure following the recent strong pullback down. The market rejected the 2,800.00 level and looks ready to test the current October low. The indicators remain weak and suggest further losses ahead. Support can be seen near 2,718.75 April 17 high and 2,710.00 October 11 low. S&P500 daily chart Spot rate:
Moody’s Ratings recently announced its decision to cut Italy’s rating to Baa3 while keeping the outlook stable. Key quotes (via Reuters) A key driver for downgrade of Italy’s ratings to Baa3 is a material weakening in Italy’s fiscal strength. Italy’s ratings downgrade also due to negative implications for medium-term growth of stalling of plans for
Italy downgraded There was fear of a two-notch downgraded, which would have put it below the junk threshold. Instead, it gets a stable outlook, which means the chance of another downgrade in the near-term is low. They say the reason for the downgrade is a material weakening in Italy’s financial strength. The market is still
AUD/USD is trading in a bear trend below the 200-period simple moving average. AUD/USD is currently rejecting the 0.7144 resistance and there seems little in the way for the market to test 0.7085 (September 11 low). The RSI and MACD are decelerating while the Stochastic indicator is pointing upward. A break below 0.7085 can potentially
Loonie on the losing end There was a major divergence this week in FX performance with the Australian and New Zealand dollars at the top of the chart and the Canadian dollar at the bottom. The loonie has been a frustrating trade as the USMCA agreement has failed to provide any kind of lift. The
Talking Points – Bloomberg News reported that the UK was dropping its demand over the Irish border in an attempt to smooth the path towards a ‘soft Brexit’ deal. – The British Pound rallied across the board on the news, but gains were tempered as a November summit has yet to be scheduled to finalize
Come to the Finance Magnates London Summit Let’s meet up in London. Register for free here. [embedded content] Attention London FX and crypto traders. I’m going to be in London on November 14 for the Finance Magnates London Summit. This is a huge FX industry event but there is also plenty for retail traders this year.
FX Strategists at UOB Group remain neutral on spot and expect it extend the rangebound theme in the near term. Key Quotes 24-hour view: “While we highlighted yesterday “a break of 113.05 seems highly unlikely”, the sharp and rapid drop from a high of 112.72 came as a surprise. The price action suggests that USD
Chinese equities supported by verbal intervention This was Eamonn’s comment on it on his wrap Ahead of Chinese stock markets opening we got a concerted effort from the PBOC and the banking regulator to talk up the market, how sound the fundamentals are, all the regulatory and policy changes being implemented to make China a
CRUDE OIL & GOLD TALKING POINTS: Crude oil prices decline with stocks to test 8-month trend support Gold prices stuck as Fed-linked risk aversion drives down yields Key stock index futures hint corrective sentiment recovery on tap Crude oil prices sank amid broad-based risk aversion, with the WTI contract tracking US stock index futures downward.
The USD/CNH pair is feeling the pull of gravity as Shanghai Composite is gaining altitude, possibly due to assurances from regulators. The currency pair is currently trading around the key rising trendline seen in the hourly chart and could suffer a deeper pullback to the 200-hour exponential moving average (EMA) of 6.9201 below the diagonal
China Q3 GDP data due today – preview Coming Up! Title text for next article Economic growth data for the third quarter (July to September) is due from China at 0200GMT Q3 GDP expected is +6.6% y/y prior was +6.7% For q/q, expected 1.6%, prior 1.8% Couple of bank previews: HSBC: We expect GDP growth
Gold rebounds from 3-day lows but fails to break above $1,230/oz. Yellow metal receives support from lower US yields amid risk aversion. Gold climbed from $1,218/oz and peaked at $1,230 during the US session but found resistance and pulled back. As of writing was trading around $1,225 away from the highs but still on positive
Talking Points: – EU and UK are open to extended Brexit transition and implementation period. – Officials from both parties expressed optimism and a desire to conclude Brexit. – Irish border issues still remain the key sticking point in Brexit discussions. Looking for longer-term forecasts on the British Pound and the Euro? Check out the
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