Forex and Currency News

Archive for Forex and Currency News – Page 269

This week, most of the focus is on inflation expectations, as well as interest rate decisions in Europe and Canada

The US stock indices closed almost unchanged. The best performing index was the tech index Nasdaq, which increased by 0.3%, mainly due to the growth of FAANG companies (Facebook, Amazon, Apple, Netflix, Google). There is a lot of uncertainty among investors right now because everyone is waiting for inflation figures and no one is willing to take an additional risk before the statistics come out. But at the same time, meme-shares continue to pump one by one. Yesterday, Clover Health Investments (Ticker CLOV), which grew by 85%, was the growth leader. It became the most mentioned stock on the Reddit WallStreetBets forum.

European indices were mixed and closed the day with the mixed dynamics on Tuesday. The shares of telecom, tourism, and real estate companies became the leaders of the growth in Western Europe. Yesterday, Germany published a weak report on industrial production. The UK does not plan to lift the quarantine restrictions until the end of the month, this factor restrains the growth of the British currency.

Against the background of the signs of recovery in fuel demand in Europe and taking into account the fact that the prospect of resumption of Iranian oil supplies has weakened in the short term, all this plays in favor of the “black gold” price growth. Yesterday, WTI futures price reached $70.63 a barrel, renewing a two-year maximum again.

The situation with gold remains unchanged. While the US bond yields are at their lows, with inflation strengthening, the price of gold and silver will rise.

China has reported the inflation data. Rising commodity prices increased the factory inflation rate to its highest level since 2008 in May, which further aggravated already high concerns of investors about inflationary pressure. Chinese authorities announced that the producer price index is likely to continue rising in the second quarter, but then will start to decline. In Australia, the real estate sector is a hot topic. Rising prices and rapidly deteriorating housing affordability are putting serious pressure on the country’s main stock index.

Main market quotes:

S&P 500 (F) 4,227.26 +0.74 (+0.02%)

Dow Jones 34,599.82 -30.42 (-0.09%)

DAX 15,640.60 -36.55 (-0.23%)

FTSE 100 7,095.09 +17.87 (+0.25%)

USD Index 90.12 +0.17 (+0.19%)

Important events:

– China Consumer Price Index (m/m) at 04:30 (GMT+3);
– Canada BOC Rate Statement (m/m) at 17:30 (GMT+3);
– US Crude Oil Reserves (w/w) at 17:30 (GMT+3);
– US 10-y Bond Auction at 20:01 (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

09 Jun

Trade of the Week: Another wild move for EURUSD?

By Han Tan Market Analyst, ForexTime

Euro traders have had to contend with a mixed bag of economic data at the onset of the week.

First, there was the unexpected decline in Germany’s factory orders released Monday, which showed a 0.2% drop in April compared to the month prior. This was in stark contrast to the projected 0.5% month-on-month gain.
On Tuesday, Germany’s April industrial production also posted a surprise 1% month-on-month contraction, compared to the market estimates for 0.4% growth, due to lower domestic demand.
On the other hand, the ZEW survey of Germany’s current conditions in June is at its highest since July 2019.
Also, the broader Eurozone posted a Q1 GDP final print today that had been revised upwards from a 0.6% quarter-on-quarter contraction to 0.3%, while the year-on-year figure was changed from a 1.8% decline to 1.3%, thanks to some positive surprises out of Italy.

Although the headline GDP print suggests that the Q1 recession in the Eurozone was not as deep as expected, potentially setting the base for a stronger recovery this quarter, yet the April manufacturing data out of the region’s largest economy shows that such optimism could be on shaky ground.

These push and pull factors have kept EURUSD just shy of the 1.22 psychological mark for the time being.

Markets are awaiting the potentially bigger catalyst for EURUSD that’s lying in wait.

And it’s less likely to be the European Central Bank policy meeting on Thursday, but more so the release of the May US consumer price index.

The biggest theme in global financial markets at present is the debate surrounding the timeline for the Fed’s next move. Some segments of the markets argue that US consumer prices that run too hot too fast could trigger the world’s most influential central bank (the Fed) into paring back its support for financial markets sooner than expected. Meanwhile, the Fed is urging patience, saying that these inflationary pressures are likely to be transitory, which implies they’ll maintain their ultra-accommodative policy stance for longer.

And the euro is not immune from such shifting expectations in this ongoing debate.

Consider how EURUSD quickly recovered in the wake of another miss in the US nonfarm payrolls print. May’s headline figure came in at 559k, which is lower than the forecasted 675k, prompting markets to rapidly unwind their optimism over the anticipated blockbuster NFP print which failed to materialise.

And with the European Central Bank unlikely to adjust their policy settings at their 10 June meeting, this sets up the US CPI announcement to be the larger catalyst for the FX universe, and more so for the world’s most-traded currency pair. Of course, should the ECB provide surprise cues that policymakers are warming up to the idea of reining in their Pandemic Emergency Purchase Programme (PEPP), that is sure to jolt the shared currency as well.

For now, the focus remains on what happens stateside.

Markets are currently expecting a 4.7% year-on-year increase in May, with the month-on-month reading expected to come in at 0.4%. Core inflation is forecasted to grow 3.5% compared to May 2020, while a 0.5% rise is expected compared to April 2021.

Further signs of inflationary pressures could send US Treasury climbing, boosting the dollar along the way while prompting EURUSD to test the 1.21 Fibonacci support level once more. A lacklustre inflation print however may encourage more dollar softness, potentially allowing EURUSD to breach 1.22 again.

Alternatively, the less volatile conduit could be the Euro index which is an equally-weighted index comprising the following pairs:

Hence this index’s performance this week could be mitigated by how the euro fares against other G10 peers, as opposed to the full force of an inflation shocker being manifested in EURUSD.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

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

08 Jun

Murrey Math Lines 08.06.2021 (AUDUSD, NZDUSD)

Article By RoboForex.com

AUDUSD, “Australian Dollar vs US Dollar”

In the H4 chart, after breaking the 200-day Moving Average, AUDUSD is trading above it to indicate a possible ascending tendency. In this case, the price is expected to break 7/8 and then continue moving upwards to reach the resistance at 8/8. However, this scenario may be canceled if the price breaks 6/8 to the downside. After that, the instrument may continue falling towards the support at 5/8.

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.

NZDUSD, “New Zealand Dollar vs US Dollar”

In the H4 chart, NZDUSD is trading above the 200-day Moving Average to indicate an ascending tendency. In this case, the price is expected to test 5/8, break it, and then continue growing to reach the resistance at 7/8. However, this scenario may no longer be valid if the price breaks 4/8 to the downside. In this case, the instrument may reverse and fall towards the support at 2/8.

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 its growth to reach 7/8 from the H4 chart.

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

08 Jun

Ichimoku Cloud Analysis 08.06.2021 (EURUSD, AUDUSD, EURJPY)

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

EURUSD is trading at 1.2178; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s downside border at 1.2195 and then resume moving downwards to reach 1.2085. Another signal in favor of a further downtrend will be a rebound from the descending channel’s upside border. However, the bearish scenario may be canceled if the price breaks the cloud’s upside border and fixes above 1.2225. In this case, the pair may continue growing towards 1.2315.

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD is trading at 0.7746; the instrument is moving above Ichimoku Cloud, thus indicating an ascending tendency. The markets could indicate that the price may test the cloud’s upside border at 0.7735 and then resume moving upwards to reach 0.7855. Another signal in favor of a further uptrend will be a rebound from the support level. However, the bullish scenario may no longer be valid if the price breaks the cloud’s downside border and fixes below 0.7695. In this case, the pair may continue falling towards 0.7595. To confirm further growth, the asset must break the descending channel’s upside border and fix above 0.7780.

EURJPY, “Euro vs Japanese Yen”

EURJPY is trading at 133.30; the instrument is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test the cloud’s downside border at 133.55 and then resume moving downwards to reach 132.30. Another signal in favor of a further downtrend will be a rebound from the descending channel’s upside border. However, the bearish scenario may no longer be valid if the price breaks the cloud’s upside border and fixes above 134.05. In this case, the pair may continue growing towards 135.05.

Article By RoboForex.com

Financial News Forex and Currency News

08 Jun

The Analytical Overview of the Main Currency Pairs on 2021.06.08

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.2159
Prev Close: 1.2189
% chg. over the last day: +0.25%

The fundamental picture for the European currency is positive. The vaccination rate in Europe is high. The dollar index is weak, and the US government is not going to cut its stimulus programs. All these factors support the euro. Europe will report on GDP for the quarter today.

Trading recommendations

Support levels: 1.2180, 1.2134, 1.2112, 1.2074, 1.2026, 1.2002, 1.1957
Resistance levels: 1.2212, 1.2243, 1.2311

The price is trading near the moving average line, and the MACD indicator is in the positive area with no signs of reversal. The uptrend is likely to resume, but only if the price breaks out through the priority change level of 1.2112. Under such market conditions, traders are better to look for both sell trades from the nearest resistance levels and buy trades from support levels within the upward momentum.

Alternative scenario: if the price breaks out through the 1.2212 resistance level and fixes above, the general uptrend is likely to resume.

News feed for 2021.06.08:

– Germany ZEW Economic Sentiment (m/m) at 12:00 (GMT+3);
– Eurozone ZEW Economic Sentiment (m/m) at 12:00 (GMT+3);
– Eurozone Gross Domestic Product (q/q) at 12:00 (GMT+3);
– US Trade Balance (m/m) at 15:30 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.4149
Prev Close: 1.4179
% chg. over the last day: +0.21%

With the dollar’s weakness and the fact that the London Interbank Offered Rate (LIBOR) is at its lowest level, the British currency is strengthening.

Trading recommendations

Support levels: 1.4110, 1.4075, 1.3996, 1.3913,1.3835, 1.3801, 1.3756, 1.3690
Resistance levels: 1.4191, 1.4212, 1.4338

The price is trading near the moving average, and the MACD indicator has become inactive. The trend of the GBP/USD currency pair remains bullish, as the price is above the priority change level. Under such market conditions, traders are better to look for buy trades from the support levels with the targets on the opposite boundary of the wide corridor with the 1.4107-1.4212 range.

Alternative scenario: if the price breaks down through the 1.4075 support level and consolidates below, the bullish scenario is likely to be canceled.

There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 109.54
Prev Close: 109.25
% chg. over the last day: -0.26%

Japan has reported GDP for the quarter. The actual value of -1.0% was better than the expected -1.2%, but the dynamics show that the economic situation in Japan is still far from the pre-coronavirus level.

Trading recommendations

Support levels: 109.35, 109.13, 108.66, 108.44, 108.19, 107.77
Resistance levels: 109.83, 110.09 110.51, 110.73

At the moment, the mid-term trend is still bullish as the price is above the priority change level of 109.13. The price is trading near the moving average, and the MACD indicator has become inactive. Under such market conditions, traders are better to look for both buy trades from the nearest support levels and sell trades from resistance levels within the bearish momentum.

Alternative scenario: if the price falls below 109.13, the general downtrend is likely to resume.

News feed for 2021.06.08:

– Japan Gross Domestic Product (q/q) at 02:50 (GMT+3).

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.2071
Prev Close: 1.2081
% chg. over the last day: +0.08%

The USD/CAD currency pair formed a narrow flat in the middle of a wider corridor with the range OF 1.2032-1.2137. At the same time, the price is trading near the moving average, which makes it difficult to find good entry points on the H1 timeframe.

Trading recommendations

Support levels: 1.2069, 1.2032, 1.1944
Resistance levels: 1.2137, 1.2251, 1.2321, 1.2388, 1.2414, 1.2519

Technically, the trend remains bearish. But taking into account that the local downtrend line was broken by an impulsive move, the current momentum is strictly bullish. Under such market conditions, traders are better to look for both sell trades from the nearest resistance levels and buy trades from support levels, but only on intraday timeframes. But it should be noted that the price is still inside a wide corridor.

Alternative scenario: if the price breaks out through the 1.2137 resistance level and fixes above, a local corrective uptrend is likely to form.

News feed for 2021.06.08:

– Canada Trade Balance (m/m) at 15:30 (GMT+3).

by JustForex

Financial News Forex and Currency News

08 Jun

Markets awaiting next catalyst

By Han Tan Market Analyst, ForexTime

The week has started off fairly quietly in terms of price action as analysts and economists make sense of the monthly US jobs numbers while also focusing on this week’s main events. European bourses have opened up mixed amid very low ranges while Asian markets traded in the green and red, with Japan’s Q1 GDP being upwardly revised to -3.9% q/q from -5.1% q/q initially reported.

Dollar direction

The dollar has a small bid this morning trading just above 90 in the DXY but within this week’s range so far with no clear move lower after the nonfarm payrolls second monthly miss in a row. It seems the jobs report was not strong enough to price in a change to Fed rhetoric which many of the dollar bulls were expecting, and not weak enough for markets to turn lower.

Some market watchers are asking if we have hit the goldilocks scenario with the economy neither too hot nor too cold, but just about right. For the greenback, the fall in yields brings little support, though yesterday’s follow through selling has not been totally convincing.

Sterling uncertain

The UK is due to fully reopen on June 21 but there are now doubts about whether this will happen as speculation is growing that this date may be put back two weeks. Although major parts of the economy are up and running already, the psychological impact of a delayed move plus the possible uncertain date of the “new reopening” is giving GBP bulls cause for thought. The UK government is set to announce its decision next Monday, 14 June, so GBP may be choppy into this date.

Cable is stuck in its 1.41-1.42 range with the 1.42 test last week being strongly sold into. The more we trade sideways and compress within narrow bands, the stronger the resultant breakout will be when it comes. Resistance sits at the high from last Monday at around 1.4250 while a strong close below last week’s low at 1.4082 needed to encourage the sellers to come out in force.

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

08 Jun

Dollar soft in narrow ranges

By Lukman Otunuga Research Analyst, ForexTime

Selling in the greenback is picking up this afternoon but there has been no clear extension of Friday’s losses after the payrolls report so far. While economists continue to pick over the second disappointing headline employment numbers and other figures from the monthly release potentially paint a more complicated picture on labour market tightness, the Fed can remain in its “wait and see” modus operandi with eyes on Thursday’s CPI report.

In fact, there are no Fed speakers this week as the FOMC is in a blackout period ahead of its meeting next week. This doesn’t stop the US Treasury Secretary, and former chair of the Fed from telling us what she thinks of the US economy! Treasury Secretary Yellen said over the weekend that higher rates “would actually be a plus for the Fed’s point of view” as she pushes for more government spending to take rates back to “normal” after being “too low for a decade”. Interesting words from Yellen, some might even say she is stepping into ground she shouldn’t be treading on?

US stocks open in the red

It’s a subdued start to the week for equity markets after global indices lifted near to all-time highs last week. Tech stocks had led the market on Friday after the NFP numbers but its once again the meme stocks that are takin the headlines in the first US trading session of the week. AMC stocks are up over 22%, Gamestop is up 6.5% and Blackberry has risen close to 11% as retail frenzied priced moves become increasingly concerning to some. The share of companies experiencing upgrades is now roughly at all-time highs and with analyst optimism at extreme levels, some market watchers are now saying that the next earnings season may be a major reality check for many investors.

Gold regaining its footing

As the dollar slides, so gold bugs find their feet and advance higher. While June hasn’t got off to the best start after May proved to be the best month for gold this year, the precious metal bounced off the upward trendline from the April low on Friday. With the 200-day SMA just below her around $1842, there seems to be solid support for gold to at least push to last week’s high at $1916.

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

07 Jun

USDCAD Bearish Impulse To 1.182

By Orbex

The current USDCAD structure indicates that the market is forming wave Ⓩ.

This wave is a simple zigzag consisting of the bearish impulse (C). This impulse consists of five sub-waves and contains wave ⓥ.

Wave ⓥ has seen the first four parts end. Wave (iv) looks like a fully formed sideways correction. In this regard, we can assume that the decline in impulsive wave (v) has already begun.

If this hypothesis is correct, then in the near future we expect a decline to the support level of 1.182. At that level, the entire bearish impulse ⓥ will be at 161.8% of the third wave.

An alternative scenario indicates that the entire bearish trend has already been fully completed. In this case, bears no longer have a chance to push the price down. Therefore, bulls can easily begin to dominate the market and move in an upward direction.

Given that a new upward wave should start with an impulse, it can be assumed that it will start with a bullish impulse Ⓐ. Then, based on the structure of this impulse, we will be able to determine to what level the price can move.

However, the currency pair is likely to rise above 1.265. This will be above the level at which the previous fourth corrective wave ended.

By Orbex

Financial News Forex and Currency News

07 Jun

Intraday Market Analysis – Gold Finds Support

By Orbex

XAUUSD grinds short-term resistance

Gold is recouping recent losses as the US dollar dips on unconvincing jobs data.

The price has met strong buying interest at the key support at 1855, which lies near the 20-day moving average. The V-shaped recovery is likely to meet resistance below 1910. An overbought RSI could prompt short-term players to take profit.

Bullish sentiment remains unchallenged from the daily chart’s perspective despite short-term volatility. A bullish breakout could resume the rally towards 1950.

EURCAD bounces from demand zone

The Canadian dollar slipped after the unemployment rate rose to 8.2% in May.

The euro has so far been capped by the 30-day moving average on the daily chart.

From an intraday point of view, the pair has established a support base around 1.4640-1.4660, after a lengthy consolidation. The sellers’ struggle to reach lower could be a sign of exhaustion, which may attract early buyers in the hope of a reversal.

A rally above 1.4750 could challenge the major supply area at 1.4820.

SPX 500 rallies to previous peak

The S&P 500 rallied after mixed US nonfarm payrolls tempered reflation fears.

The short-lived correction saw solid bids at 4165, the base of a previous rally.

Bullish momentum above the immediate resistance of 4125 is an indication that the short side has rushed to cover their bets. 4245 is a critical resistance and its breach could propel the index to a new record high.

The RSI has ventured into the overbought area. A temporary pullback is likely to look for support above 4185.

By Orbex

Financial News Forex and Currency News

07 Jun

Forex Technical Analysis & Forecast 07.06.2021

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

After finishing the descending wave at 1.2132 along with the correction towards 1.2185, EURUSD is consolidating below the latter level. Possibly, the pair may continue this decline to reach 1.2704. Later, the market may correct to test 1.2155 from below and then resume trading downwards with the target at 1.2050.

GBPUSD, “Great Britain Pound vs US Dollar”

After completing the descending wave at 1.4108 along with the correction towards 1.4179, GBPUSD is expected to continue falling towards 1.4034. Later, the market may correct to test 1.4100 from below and then form a new descending structure with the target at 1.3960.

USDRUB, “US Dollar vs Russian Ruble”

USDRUB is still falling towards 72.72. After that, the instrument may start another correction to reach 73.28 and then resume trading downwards with the target at 72.00.

USDJPY, “US Dollar vs Japanese Yen”

After finishing the ascending wave at 110.30 along with the correction towards 109.44, USDJPY is expected to form one more ascending structure with the target at 110.55.

USDCHF, “US Dollar vs Swiss Franc”

After completing the correction at 0.8982, USDCHF is consolidating above this level. Possibly, the pair may resume growing to break 0.9036 and then continue trading upwards with the short-term target at 0.9090.

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD has finished the correction at 0.7735. Today, the pair may form a new descending structure towards 0.7627 and then start another correction to reach 0.7685. After that, the instrument may resume trading downwards with the target at 0.7600.

BRENT

Brent has completed the ascending wave at 72.08. Possibly, today the asset may correct to reach 70.20 and then form one more ascending structure with the short-term target at 75.55.

XAUUSD, “Gold vs US Dollar”

Gold has completed the correctional wave at 1893.30. Today, the metal may corm a new descending structure to break 1869.20 and then continue trading downwards to reach 1848.26. Later, the market may start another growth with the target at 1880.00.

S&P 500

The S&P index is moving upwards. Possibly, today the asset may break 4233.3 and then continue growing with the target at 4273.1. After that, the instrument may correct downwards to test 4168.3 from above and then form one more ascending structure to reach 4300.0.

Article By RoboForex.com

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