Forex and Currency News :: Page 111

Archive for Forex and Currency News – Page 111

01 Sep

How does the US Dollar typically fare in September?

By ForexTime

Over the past 5 years, September has been the benchmark Dollar index’s second-best month of the year!

Since 2017, this month has seen an average monthly gain of 0.9% for DXY, second only to February’s 0.99% average climb.

Here’s how the greenback has fared historically against its major peers over the past five Septembers (2017-2021):

USDJPY: The Japanese Yen is typically the worst-performing DXY constituent for the month.
JPY sees its largest monthly drop against the US dollar for the year in September, at a whopping average of 1.43%!
That’s far higher than second-placed June’s 0.86% monthly decline
EURUSD: Euro typically weakens against the US dollar this month by 1.06% on average.
The shared currency’s woes in recent years are in stark contrast to the longer-term context, with the world’s most-traded currency pair enjoying an average September gain of 0.60% over the past 30 years.
GBPUSD: The Pound has had mixed fortunes, with a negligible drop of just -0.03% on average.
The Septembers of 2017-2019 registering monthly gains that offset the monthly declines over the past two straight Septembers.

Note that EUR and JPY are the two largest constituents of the benchmark Dollar index, making up a combined 71.2% of the DXY.

Here are the weightings of the currencies that make up the benchmark DXY:

Euro (EUR) = 57.6%
Japanese Yen (JPY) = 13.6%
British Pound (GBP) = 11.9%
Canadian Dollar (CAD) = 9.1%
Swedish Krona (SEK) = 4.2%
Swiss Franc (CHF) = 3.6%

Hence, the seasonal declines for EUR and JPY are enough to offset Sterling’s relatively resolute performance in recent Septembers, pushing the DXY up higher.

Now onto a forward-looking note, this month is set to be no different from the 5-year trend.

The US dollar is expected to register further gains in September 2022, even as DXY now trades around its highest levels in 20 years.

And here’s what markets are forecasting may happen for the US dollar versus its major peers by the end of this month:

EURUSD: 59% chance of hitting 0.985
USDJPY: 70% chance of reaching 141.0
GBPUSD: 87% chance of touching 1.15

For brevity’s sake, we shall keep the fundamental outlooks for these respective major currencies for future articles (do keep checking our Daily Market Analysis page for the key events and reasons that move FX markets).

Suffice to say that, as we enter this new month, it’s rather evident from a fundamental perspective that the US dollar is at least set to remain well-supported in the lead up to Q4, at the expense of the rest of the FX world.

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Financial News Forex and Currency News

01 Sep

Japanese Candlesticks Analysis 01.09.2022 (USDCAD, AUDUSD, USDCHF)

Article By RoboForex.com

USDCAD, “US Dollar vs Canadian Dollar”

As we can see in the H4 chart, after forming another Hanging Man reversal pattern close to the resistance level, USDCAD may reverse in the form of a new correctional impulse. In this case, the downside correctional target may be at 1.3100. Later, the market may rebound from this level and resume growing. However, an alternative scenario implies that the asset may continue growing to reach 1.3245 without any pullbacks down to the support area.

AUDUSD, “Australian Dollar vs US Dollar”

As we can see in the H4 chart, AUDUSD has formed a Hammer reversal pattern near the support area. At the moment, the asset is reversing in the form of a new rising impulse. In this case, the upside target may be the resistance level at 0.6880. After testing the level, the price may break it and continue the ascending tendency. At the same time, the opposite scenario implies that the price may correct to reach 0.6770 and continue the uptrend only after the pullback down to support area.

USDCHF, “US Dollar vs Swiss Franc”

As we can see in the H4 chart, after testing the resistance area, the pair has formed a Harami reversal pattern. At the moment, USDCHF may reverse in the form of a new correctional impulse. In this case, the downside correctional target may be the support level at 0.9750. After testing this level, the price may rebound from it and resume trading upwards. Still, there might be an alternative scenario, in which the asset may grow to reach 0.9860 and continue the ascending tendency without any pullbacks.

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Financial News Forex and Currency News

01 Sep

Forex Technical Analysis & Forecast for September 2022

By RoboForex.com

EURUSD, “Euro vs US Dollar”

As we can see in the daily chart, after completing the descending wave at 1.1200, forming a new consolidation range around this level, and breaking it downwards to reach the short-term target at 0.9955, EURUSD has returned to test 1.0080 from below. Possibly, the pair may continue trading within the downtrend to reach 0.9900, or even extend this structure down to 0.9700.

GBPUSD, “Great Britain Pound vs US Dollar”

On the daily chart, after finishing the descending wave at 1.1930 and failing to rebound from it, GBPUSD continues trading downwards with the short-term target at 1.1580. Later, the market may correct up to 1.1900 and then start a new decline to reach 1.1500.

USDJPY, “US Dollar vs Japanese Yen”

On the daily chart, after completing the ascending wave at 136.48 and forming a new consolidation range there, USDJPY has broken it to the upside; right now, it is still growing with the short-term target at 141.13. Later, the market may correct down to 136.48 and then start another growth to reach 142.52.

BRENT

As we can see in the daily chart, after failing to fix above 99.00 and forming a new consolidation range, Brent has broken it to the downside and may continue falling towards 91.60. Later, the market may resume trading upwards with the target at 105.20, or even extend this structure up to 120.50.

XAUUSD, “Gold vs US Dollar”

On the daily chart, after completing the descending wave 1725.00 and forming a new consolidation range there, Gold has broken it to the downside and may continue trading downwards to reach 1680.00. Later, the market may form one more ascending wave to return to 1725.00 and then start a new decline with the target at 1650.00. After that, the instrument may resume growing towards 1766.00.

S&P 500

On the daily chart, after finishing the descending wave at 3975.0 and forming a new consolidation range above this level, the S&P index has broken it to the downside. Possibly, the asset may grow to test 3975.0 from below and then resume falling towards 3888.0, or even extend this structure to reach the short-term target at 3700.0.

Article By RoboForex.com

Forex and Currency News Opinions

01 Sep

The Analytical Overview of the Main Currency Pairs on 2022.09.01

By JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.0014
Prev Close: 1.0052
% chg. over the last day: +0.38%

Eurozone inflation reached 9.1% y/y (forecast -9.0%, previous -8.9%). Consumer prices continue to rise due to a surge in energy prices. Unlike the US, Europe is still unable to cope with this problem. As a result, ECB politicians started talking about a possible increase of the ECB rate by 0.75% on September 8. On the other hand, it is worth mentioning that the US Fed is approaching the end of its tightening cycle while the ECB is just entering its tightening cycle. Analysts think that the rate differential between the euro and the dollar will start to narrow, leading to the strengthening of the euro and a decline in the value of the US dollar in the next 12 months.

Trading recommendations

Support levels: 1.0008, 0.9951
Resistance levels: 1.0072, 1.0112, 1.0146, 1.0230, 1.0286, 1.0365

From the technical point of view, the trend on the EUR/USD currency pair on the hourly time frame is bearish. But the euro has been getting stronger during the last three trading sessions. The MACD indicator is in the positive zone, but there are signs of divergence. Under such market conditions, it is better to look for buy trades on the intraday time frames from the support level of 1.0008, but with a confirmation. Sell trades can be considered from resistance levels of 1.0072 or 1.0112, but only after the additional confirmation.

Alternative scenario: if the price breaks out of the 1.0146 resistance level and fixes above, the uptrend will likely resume.

News feed for 2022.09.01:

– German Retail Sales (m/m) at 09:00 (GMT+3);
– Spanish Manufacturing PMI (m/m) at 10:15 (GMT+3);
– Italian Manufacturing PMI (m/m) at 10:45 (GMT+3);
– French Manufacturing PMI (m/m) at 10:50 (GMT+3);
– German Manufacturing PMI (m/m) at 10:55 (GMT+3);
– Eurozone Manufacturing PMI (m/m) at 11:00 (GMT+3);
– Eurozone Unemployment Rate (m/m) at 12:00 (GMT+3);
– US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
– US ISM Manufacturing PMI (m/m) at 17:00 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.1647
Prev Close: 1.1622
% chg. over the last day: -0.21 %

The British Retail Consortium BRC, launched in 2005, states that store price inflation accelerated to 5.1% in August from 4.4% in July, a new record for the Index. The increase in food prices reached 9.3%. According to NielsenIQ, which provides data for the BRC, this level of food inflation could continue for at least another six months. Britons are preparing for a recession and consumers are doing everything they can to save money. With rising inflationary pressures, businesses will undoubtedly start to tightly control costs and profit margins where possible, so a wave of layoffs and rising unemployment may also join the energy crisis.

Trading recommendations

Support levels: 1.1561
Resistance levels: 1.1670, 1.1817, 1.1838, 1.1901, 1.1994, 1.2035, 1.2167

From the technical point of view, the trend on the GBP/USD currency pair on the hourly time frame is bearish. The British pound continues to lose ground. The price is trading below the moving levels, and the MACD indicator is in the negative zone, but there are the first signs of divergence. At the moment, it is better to look for sell trades on the intraday time frames, the nearest resistance level is 1.1670. Buy trades can be considered from the support level of 1.1561, but only after an additional confirmation in the form of a reverse initiative.

Alternative scenario: if the price breaks out through the 1.1838 resistance level and fixes above, the uptrend will likely resume

News feed for 2022.09.01:

– UK Manufacturing PMI (m/m) at 11:30 (GMT+3).

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 138.78
Prev Close: 138.95
% chg. over the last day: +0.12 %

Japan will step up supervision of bank risk controls as rising interest rates overseas create losses in their foreign bonds, reflecting concerns about the impact of US monetary policy tightening on the country’s financial system. Cumulative estimated losses on the leading banking groups’ foreign bonds totaled 2.656 trillion yen (19.12 billion) at the end of June, up more than 50% from the end of March. The Bank of Japan has not joined the global interest-rate hike cycle because Japan’s inflation is still moderate,and its economy is fragile. This stimulative policy has a negative effect on the national exchange rate.

Trading recommendations

Support levels: 137.67, 136.85, 135.89, 135.35, 134.23, 133.47, 132.27
Resistance levels: 139.40

From the technical point of view, the medium-term trend on the currency pair USD/JPY is bullish. The price is trading above the moving average lines again, and the pressure of buyers remains. The MACD indicator remains positive, but there are signs of divergence, which means that a technical correction will take place soon. Under such market conditions buy trades can be sought from the support level of 137.67, but with additional confirmation. For sell deals, traders can consider the resistance level of 139.40, but only with additional confirmation, as fundamentally, USD/JPY quotes are inclined to grow.

Alternative scenario: If the price fixes below 136.85, the downtrend will likely resume.

News feed for 2022.09.01:

– Japan Manufacturing PMI (m/m) at 03:30 (GMT+3).

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.3091
Prev Close: 1.3132
% chg. over the last day: +0.31 %

Canada’s real GDP rose by 0.1% last month. Manufacturing, wholesale utilities, and retail trade saw a slight decline in production. But it was offset by mining, oil and gas, agriculture, forestry, and hunting growth. At the moment, the Canadian dollar, as a commodity currency, is losing ground due to falling oil prices.

Trading recommendations

Support levels: 1.3103, 1.3026, 1.2992, 1.2958, 1.2940, 1.2900, 1.2858, 1.2809, 1.2761
Resistance levels: 1.3220

From the point of view of technical analysis, the trend on the USD/CAD currency pair is bullish. The price is now trading above the moving averages. The MACD indicator is in the positive zone, but there are signs of divergence. Under such market conditions, buy trades should be considered on the lower time frames from the support levels of 1.3103 or 1.3026, but only with confirmation. For sell deals, it is better to consider the resistance level of 1.3220, but only after additional confirmation, as the level has already been tested.

Alternative scenario: if the price breaks down and consolidates below the 1.2992 support level, the downtrend will likely resume.

News feed for 2022.09.01:

– Canada Building Permits (m/m) at 15:30 (GMT+3);
– Canada Manufacturing PMI (m/m) at 16:45 (GMT+3).

By JustForex

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

Financial News Forex and Currency News

31 Aug

Murrey Math Lines 31.08.2022 (USDJPY, USDCAD)

Article By RoboForex.com

USDJPY, “US Dollar vs. Japanese Yen”

As we can see in the H4 chart, USDJPY is trading inside the “overbought area”. In this case, the price is expected to test 8/8, break it, and then continue falling and reach 7/8. However, this scenario may no longer be valid if the price breaks the resistance at +1/8 to the upside. After that, the instrument may reverse and grow towards +2/8.

In the M15 chart, the pair may break the downside line of the VoltyChannel indicator and, as a result, continue its decline.

USDCAD, “US Dollar vs Canadian Dollar”

In the H4 chart, USDCAD is trading above the 200-day Moving Average, thus indicating an ascending tendency. In this case, the price is expected to break 7/8 and continue growing towards the resistance at 8/8. On the other hand, this scenario may no longer be valid if the pair breaks the support at 6/8 to the downside. After that, the instrument may reverse and fall to reach 4/8.

As we can see in the M15 chart, the pair has broken the upside line of the VoltyChannel indicator and, as a result, may continue trading upwards to reach 8/8 from the H4 chart.

Article By RoboForex.com

Financial News Forex and Currency News

31 Aug

Mid-Week Technical Outlook: USD

By ForexTime

– This could be another big week for king dollar as all attention falls on Friday’s nonfarm payroll report.

After receiving fresh inspiration from Fed hawks last week, the greenback could charge higher if the pending US jobs data ticks all the boxes for more aggressive rate hikes. Alternatively, bulls may be humbled if the data fails to meet expectations. Whatever the outcome on Friday, it may be wise to brace for explosive levels of volatility, especially in the FX space.

With market players tense and on the fence ahead of this major event, the dollar remains in a range – waiting for a potent fundamental spark to make its next big move. With this catalyst likely to be the NFP, this could provide a great opportunity to identify trading opportunities for September.

Our focus today will be major currency pairs with our tool of choice none other than technical analysis.

DXY hovers around 109.00

The path of least resistance for the dollar points north but a fresh catalyst may be needed for bulls to switch into a higher gear. A solid breakout and daily close above 109.14 could encourage an incline towards 110.00. If bulls run out of steam, a decline back towards 108.25 and 107.30 could be on the cards.

Equally-weighted USD remains bullish

Just like the DXY, the equally weighted USD index remains bullish on the daily charts. There have been consistently higher highs and higher lows while the MACD trades to the upside. The upside momentum could take prices towards 1.2184 and potentially higher. A move back below 1.1950 may open the doors back towards the 50-day Simple Moving Average at 1.1860.

EURUSD to retest 0.9900?

After breaking below parity, the EURUSD has remained shaky and vulnerable to losses. Bears clearly remain in a position of power with their eyes locked on 0.9900. A strong breakdown below this point may indicate a selloff towards 0.9800 and lower.

GBPUSD ventures towards 1.1600

An appreciating dollar continues to drag the GBPUSD lower. A strong break below 1.1600 may result in a decline towards 1.1500. If 1.1600 proves to be reliable support, prices could retest 1.17600.

AUDUSD breakdown on the horizon

A solid breakdown below 0.06850 could encourage a selloff towards 0.6700. If prices manage to keep above 0.6850, a rebound towards 0.7000 may be a possibility.

USDJPY ready to breakout?

The USDJPY remains bullish on the daily charts as there have been consistently higher highs and higher lows. Prices are trading above the 50, 100, and 200-day Simple Moving Average while the MACD trades above zero. A strong breakout above 139.380 could inspire an incline towards 140.00. A move back below 135.00 may trigger a selloff towards the 100-day Simple Moving Average and 131.34, respectively.

Article by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Forex and Currency News Opinions

31 Aug

The Analytical Overview of the Main Currency Pairs on 2022.08.31

By JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 0.9998
Prev Close: 1.0015
% chg. over the last day: +0.17%

Germany’s inflation climbed to an annual rate of 7.9% in August, returning to its all-time high of May, its highest level in almost 50 years. There are increasing signs from ECB officials that the Central Bank must aggressively hike rates at its next meeting. At the same time, there is a growing possibility that the US Federal Reserve will also raise rates by 0.75% at its next meeting. Traders raised their rates for the third consecutive 75 basis point increase in September to 76.5% from 70% following the release of US jobs data which showed that the US labor market remains strong.

Trading recommendations

Support levels: 0.9951
Resistance levels: 1.0032, 1.0112, 1.0146, 1.0230, 1.0286, 1.0365

From the technical point of view, the trend on the EUR/USD currency pair on the hourly time frame is bearish. The price is trading between the moving averages, which makes it difficult to find good entry points. The MACD indicator is in the positive zone, but buyer pressure is weak. Under such market conditions, buy trades are best sought on intraday time frames from the support level of 0.9951, but with confirmation. Sell trades can be considered from resistance levels of 1.0032, but only after the additional confirmation.

Alternative scenario: if the price breaks out of the 1.0146 resistance level and fixes above, the uptrend will likely resume.

News feed for 2022.08.31:

– French Consumer Price Index (m/m) at 09:45 (GMT+3);
– French GDP (q/q) at 09:45 (GMT+3);
– German Unemployment Rate (m/m) at 10:55 (GMT+3);
– Italian Consumer Price Index (m/m) at 12:00 (GMT+3);
– Eurozone Consumer Price Index (m/m) at 12:00 (GMT+3);
– US FOMC Member Mester Speaks at 15:00 (GMT+3);
– US ADP Non-Farm Employment Change (m/m) at 15:15 (GMT+3);
– US Chicago PMI (m/m) at 16:45 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.1704
Prev Close: 1.1653
% chg. over the last day: -0.44%

The CBI’s business optimism balance, which measures the difference between the share of optimistic and pessimistic firms, has fallen to its lowest level since May 2020 for both consumer and business services. The energy crisis and rising inflation are hurting households and every business sector. At this point, all economic and fundamental factors point to weakness in the British economy, which is negatively affecting the national exchange rate.

Trading recommendations

Support levels: 1.1659, 1.1561
Resistance levels: 1.1715, 1.1814, 1.1838, 1.1901, 1.1994, 1.2035, 1.2167

From the technical point of view, the trend on the GBP/USD currency pair on the hourly time frame is bearish. The British pound continues to lose ground. The price is trading below the moving levels, and the MACD indicator is in the negative zone, but there are the first signs of divergence. At the moment, it is better to look for sell trades from the resistance level of 1.1814, but only after the additional confirmation. Buy trades can be considered on intraday time frames from the support level of 1.1659 or 1.1561 if the price drops lower.

Alternative scenario: if the price breaks out through the 1.1901 resistance level and fixes above, the uptrend will likely resume.

There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 138.74
Prev Close: 138.79
% chg. over the last day: +0.04%

The Japanese yen is under pressure from a soft monetary policy from Japan’s Central Bank. And as the US Fed continues to raise interest rates aggressively. The rate differential is widening, so the USD/JPY is inclined to rise fundamentally. Official data released Wednesday showed that industrial production in Japan increased by 1.0% in July from the previous month. Retail sales rose for the fifth straight month, raising hopes that the world’s third-largest economy will benefit from the strength in consumer spending this quarter.

Trading recommendations

Support levels: 138.53, 137.67, 136.85, 135.89, 135.35, 134.23, 133.47, 132.27
Resistance levels: 139.40

From the technical point of view, the medium-term trend on the currency pair USD/JPY is bullish. The price is trading above the moving average lines again, and the buyers’ pressure is increasing. The MACD indicator remains positive, with no signs of reversal. Under such market conditions, buy trades can be sought from the support level of 138.53 or 137.67, but with additional confirmation. For sell deals, it is possible to consider a resistance level of 139.40, but only with additional confirmation, as fundamentally, USD/JPY quotes are inclined to grow.

Alternative scenario: If the price fixes below 136.85, the downtrend will likely resume.

News feed for 2022.08.31:

– Japan Industrial Production (m/m) at 02:50 (GMT+3);
– Japan Retail Sales (m/m) at 02:50 (GMT+3).

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.3004
Prev Close: 1.3089
% chg. over the last day: +0.65%

The Canadian dollar is a commodity currency, so it depends not only on the monetary policy of the Canadian Central Bank but also on the oil price. Oil decreased by $6 yesterday amid rumors that Iran and the US have reached an agreement on the nuclear deal, allowing Iran to export oil to the world markets again. The drop in oil had a negative effect on the Canadian currency.

Trading recommendations

Support levels: 1.3026, 1.2992, 1.2958, 1.2940, 1.2900, 1.2858, 1.2809, 1.2761
Resistance levels: 1.3105

From the point of view of technical analysis, the trend on the USD/CAD currency pair is bullish. The price is now trading near the moving averages. The MACD indicator is in the positive zone, but there are signs of divergence. Under such market conditions, buy trades should be considered on the lower time frames from the support level of 1.3027 or 1.2992, but only with confirmation. For sell deals, it is best to consider the resistance level of 1.3105, but only with short targets.

Alternative scenario: if the price breaks down and consolidates below the 1.2900 support level, the downtrend will likely resume.

News feed for 2022.08.31:

– Canada GDP (q/q) at 15:30 (GMT+3);
– US Crude Oil Reserves (w/w) at 17:30 (GMT+3).

By JustForex

Financial News Forex and Currency News

30 Aug

Forex Technical Analysis & Forecast 30.08.2022

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

After rebounding from 0.9914 and completing a new ascending structure at 1.0000, EURUSD is consolidating below the latter level. Possibly, the pair may expand the range up to 1.0030 and then resume moving downwards the target at 0.9830.

GBPUSD, “Great Britain Pound vs US Dollar”

Having rebounded from 1.1648 and finished a new ascending wave at 1.1744, GBPUSD is consolidating below the latter level. After that, the instrument may break the range to the downside and resume falling with the target at 1.1600, or even extend this structure down to 1.1550.

USDJPY, “US Dollar vs Japanese Yen”

After completing the ascending wave at 138.95, USDJPY is expected to correct down to 137.60 and may later form one more ascending structure with the target at 139.37.

USDCHF, “US Dollar vs Swiss Franc”

USDCHF is consolidating around 0.9664. Possibly, today the pair may break the range to the upside and resume growing towards 0.9755. After that, the instrument may start a new correction down to 0.9666.

AUDUSD, “Australian Dollar vs US Dollar”

Having rebounded from 0.6840 and completed the correction at 0.6920, AUDUSD is consolidating below the latter level. Today, the pair may break the range to the downside and resume falling with the short-term target at 0.6800.

BRENT

After finishing the ascending wave at 103.23 and forming a new consolidation range around this level, Brent has broken it upwards and may soon reach 106.08. Later, the market may correct down to 103.23 and then start a new growth with the target at 109.00.

XAUUSD, “Gold vs US Dollar”

Having rebounded from 1720.30 and completed the correctional structure at 1745.40, Gold is consolidating below the latter level. Later, the market may break the range to the downside and resume trading downwards with the target at 1716.77, or even extend this structure down to 1707.77.

S&P 500

After rebounding from 4004.0 and finishing the correctional structure at 4063.5, the S&P index is expected to resume falling towards 3929.0. Later, the market may start another correction with the target at 4100.0.

Article By RoboForex.com

Financial News Forex and Currency News

30 Aug

It’s even scary how weak the Pound is. Overview for 30.08.2022

Article By RoboForex.com

GBPUSD remains under pressure; the asset is trading at its 30-month lows.

On Tuesday morning, the Pound Sterling is looking as weak against the USD as before. The current quote for the instrument is 1.1715.

It appears that the British economy can’t handle one problem before another starts knocking on the door. This continuous stress makes the Pound one of the most “damaged” currencies in the last several months.

Now the United Kingdom is looking for ways to solve the energy price surge crisis. The government is working on new options to support households with energy subsidies. However, the major load will remain on consumers.

It is entirely possible that this autumn the United Kingdom will face large-scale public protests and strikes. The energy price surge pushes inflation higher, while employers don’t have any opportunities to raise salaries at the same pace.

Later in the afternoon, the United Kingdom is scheduled to report on Mortgage Approvals, which might drop a little bit in July. Another report to be published is Net Lending to Individuals for July. It is also expected to decline due to the rate hike. For the Pound, it’s moderately negative news.

Article By RoboForex.com

Financial News Forex and Currency News

30 Aug

The Analytical Overview of the Main Currency Pairs on 2022.08.30

By JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 0.9964
Prev Close: 0.9998
% chg. over the last day: +0.34%

The euro moved closer to parity against the dollar on Monday as representatives of the European Central Bank started talking about a tentative rate hike. Opinions are split, with some bankers calling for a 50 basis point hike and others seeking a 75 bps increase. According to Refinitiv, the probability of a 75 basis point hike on September 8 jumped to 67%. The inflation report will also be released this week, giving more hints. A rise in inflation figures in the Eurozone would give confidence to the euro, as a 0.75% hike scenario would be more likely.

Trading recommendations

Support levels: 0.9951
Resistance levels: 1.0032, 1.0112, 1.0146, 1.0230, 1.0286, 1.0365

From the technical point of view, the trend on the EUR/USD currency pair on the hourly time frame is bearish. The price is trading between the moving averages again, which makes it difficult to find good entry points. The MACD indicator has become positive. Under such market conditions, buy trades are best sought on intraday time frames from the support level of 0.9951, but with confirmation. Sell trades can be considered from resistance levels of 1.0032, but only after the additional confirmation.

Alternative scenario: if the price breaks out of the 1.0146 resistance level and fixes above, the uptrend will likely resume.

News feed for 2022.08.30:

– Spanish Consumer Price Index (m/m) at 10:00 (GMT+3);
– German Consumer Price Index (m/m) at 15:00 (GMT+3);
– US CB Consumer Confidence (m/m) at 17:00 (GMT+3);
– US JOLTs Job Openings (m/m) at 17:00 (GMT+3);
– US FOMC Member Williams Speaks at 18:00 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.1722
Prev Close: 1.1705
% chg. over the last day: -0.14%

Goldman Sachs Group, Inc. expects the UK economy to slip into recession later this year, with the risk of a deep recession amid a surge in energy prices. The UK Gross Domestic Product (GDP) is expected to fall about 1% by mid-2023. The annual output is likely to fall by 0.6% next year. It is expected that the Bank of England may not want to tighten monetary policy sharply in the medium term, as a sharp growth cycle could exacerbate the impending recession. Against this backdrop, the sterling will lack the catalysts necessary for a sustained and prolonged recovery against the dollar.

Trading recommendations

Support levels: 1.1659
Resistance levels: 1.1715, 1.1814, 1.1838, 1.1901, 1.1994, 1.2035, 1.2167

From the technical point of view, the trend on the GBP/USD currency pair on the hourly time frame is bearish. The British pound continues to lose ground. The price is trading below the moving levels, and the MACD indicator is in the negative zone, but there are the first signs of divergence. At the moment, it is better to look for sell trades from the resistance level of 1.1715 or 1.1814, but only after the additional confirmation. Buy trades can be considered on intraday time frames from the support level of 1.1659, but only with confirmation and short targets.

Alternative scenario: if the price breaks out through the 1.1901 resistance level and fixes above, the uptrend will likely resume.

There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 137.63
Prev Close: 138.70
% chg. over the last day: +0.78%

The Japanese yen depreciated after Federal Reserve Chairman Jerome Powell announced a hawkish stance by the central bank’s board. The Bank of Japan (BOJ) has pledged to maintain a soft monetary policy and is actively suppressing the Japanese Government Bond yield curve (JGB). Keeping rates low leads to further weakening of the yen.

Trading recommendations

Support levels: 138.58, 137.49, 136.85, 135.89, 135.35, 134.23, 133.47, 132.27
Resistance levels: 139.40

From the technical point of view, the medium-term trend on the currency pair USD/JPY is bullish. The price is trading above the moving average lines again, and the buyers’ pressure is increasing. The MACD indicator is positive. Under such market conditions, buy trades can be sought from the support level of 137.49, but with additional confirmation. For sell deals, it is possible to consider a resistance level of 139.40, but only with additional confirmation, as fundamentally, the USD/JPY quotes are inclined to grow.

Alternative scenario: If the price fixes below 136.85, the downtrend will likely resume.

There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.3031
Prev Close: 1.3011
% chg. over the last day: -0.15%

Crude oil prices jumped about 4% on Monday as expectations of OPEC+ cartel production cuts increase with each day. Apparently, OPEC+ countries are getting greedy and trying to push oil prices back to this year’s highs. The Canadian dollar is a commodity currency, so rising oil prices are strengthening the Canadian dollar. In the near future, the USD/CAD rate dynamics will be determined only by changes in oil prices since the interest rates of the Bank of Canada and the US Federal Reserve are at the same level.

Trading recommendations

Support levels: 1.2958, 1.2940, 1.2900, 1.2858, 1.2809, 1.2761
Resistance levels: 1.3043, 1.3090, 1.3105

From the point of view of technical analysis, the trend on the USD/CAD currency pair is bullish. The price is now trading near the moving averages and near the support areas. Under such market conditions, buy trades should be considered on the lower time frames from the support level of 1.2958 or 1.2940, but only with confirmation. For sell deals, it is best to consider the resistance level of 1.3043, but only with short targets.

Alternative scenario: if the price breaks down and consolidates below the 1.2900 support level, the downtrend will likely resume.

There is no news feed for today.

By JustForex

Financial News Forex and Currency News

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