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Technical Overview of GBP/USD and EUR/USD Currency Pair

GBP USD


GBP traded higher against USD and closed at 1.2322.

Modest flow, +0.1%, at top of a very tight 1.2320/28 range, EUR/GBP -0.1%.

Boris's top adviser Cummings; Brexit chaos 'A walk in the park'.

EU's Juncker says he and Barnier doing everything possible to get a deal.

Britain will be responsible if they exit EU with no Brexit deal.

Over a third of small UK companies fear no-deal Brexit hit, FSB.

Close below 1.2344, 38.2% of Sept bounce and 1.2351 21 DMA is bearish.

Momentum studies, 5 & 10 DMA's fall - next stop is 1.2271 50% Sept rise.

According to the Analysis, pair is expected to find support at 1.2307 and a fall through could take it to the next support level of 1.2289. The pair is expected to find its first resistance at 1.2367 and a rise through could take it to the next resistance level of 1.2385.

EUR USD

EUR traded lower against USD and closed at 1.0921.

CIBC Research discusses the USD outlook and the Fed rate call expectations. CIBC targets the USD index DXY at 98.9 by year-end and at 95.6 by Q2 of 20120.

"We share the view of many FOMC speakers that rate cuts will be a bit shallower than markets anticipate, with the rate cuts in July and September to be followed by one more 25 bp ease in December, and then a pause," CIBC notes.

"While US data has been a mixed bag, the economy has yet to have a quarter of growth below its non-inflationary potential. American consumers are in a healthy position based on an ample savings rate, low monthly financial obligations, and ongoing labor income growth. That underlying resilience, while not preventing a further slowing in growth, should be bullish for the dollar against overseas currencies in the very near-term, given the deeper risks to growth abroad (i.e. China and Europe), as well as uncertainty surrounding Brexit and trade, that will propel safe haven inflows in the greenback.

Over a longer time horizon, an easing in the appetite for such flows should see DXY give back some of its strength. For that, we’ll need some fiscal stimulus in Europe to reduce its dependence on negative yields, and an easing in US-China trade tensions. Any reduction in the attractiveness of US assets as a safe haven serves to weaken the greenback, given America’s persistent current account deficit," CIBC adds.

According to the Analysis, pair is expected to find support at 1.0911 and a fall through could take it to the next support level of 1.0898. The pair is expected to find its first resistance at 1.0955, and a rise through could take it to the next resistance level of 1.0968.

For More information about the release time of news visit here: https://xtreamforex.com
 


AUDZND today, as we see here, the price is still sideways, the best option for you is to sell it, so you can sell it now at 1.07499 with potential target up to 1.07115
 
Technical Overview of USD/JPY and USD/CNY Currency Pair

USD JPY


USD traded lower against JPY and closed at 107.92

USD/JPY is currently trading largely unchanged on the day at 107.93, having faced rejection at 108.00 in Asia. The psychological resistance proved a tough nut to crack despite the uptick in the futures on the S&P 500.

According to the Analysis, pair is expected to find support at 107.88 and a fall through could take it to the next support level of 107.85. The pair is expected to find its first resistance at 108.00 and a rise through could take it to the next resistance level of 108.03.

USD CNY

USD traded higher against CNY and closed at 7.1218.

According to the Analysis, pair is expected to find support at 7.1192 and a fall through could take it to the next support level of 7.1146. The pair is expected to find its first resistance at 7.1344, and a rise through could take it to the next resistance level of 1.1390.

Important Economic Events of the Day
  • JPY: Retail Sales m/m
  • CNY: China Manufacturing Purchasing Managers Index (PMI)
  • CNY: China Non-Manufacturing Purchasing Managers Index (PMI)
  • GBP: United Kingdom Gross Domestic Product (GDP) q/qUSD: Pending Home Sales m/m
For More information about the release time of news and its impact visit Economic Calendar Page!
 
Technical Overview of AUD/USD and USD/CAD Currency Pair

AUD USD


AUD traded lower against USD and closed at 0.6749.

The bid tone around the US dollar strengthened across the board, now pushing AUD/USD back into the red to hit four-week lows near 0.6740. The focus now shifts to the RBA rate decision while poor Australian housing data and US-China trade uncertainty continue to weigh.

According to the Analysis, pair is expected to find support at 0.6743 and a fall through could take it to the next support level of 0.6736. The pair is expected to find its first resistance at 0.6765 and a rise through could take it to the next resistance level of 0.6772.

USD CAD

USD traded higher against CAD and closed at 1.3239.

With its failure to cross 1.3263/65 resistance-confluence, USD/CAD drops back towards near-term horizontal support as it trades near 1.3240 during the Asian session on Tuesday. Three-week-old horizontal-line restricts immediate downside.

According to the Analysis, pair is expected to find support at 1.3228 and a fall through could take it to the next support level of 1.3220. The pair is expected to find its first resistance at 1.3256, and a rise through could take it to the next resistance level of 1.3264.

Important Economic Events of the Day
  • JPY: Bank of Japan (BoJ) Tankan Large Manufacturing Index
  • JPY: Bank of Japan (BoJ) Tankan Large Non-Manufacturing Index
  • AUD: Reserve Bank of Australia (RBA) Interest Rate Decision
  • AUD: Reserve Bank of Australia (RBA) Governor Lowe Speech
  • CAD: Canada Gross Domestic Product (GDP) m/m
  • USD: ISM United States Manufacturing Purchasing Managers Index (PMI)
For More information about the release time of news and its impact visit Economic Calendar Page!
 
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Technical Overview of EUR/USD and AUD/USD Currency Pair

EUR USD


EUR traded lower against USD and closed at 1.0964.
EUR/USD again aims for 1.0987 resistance - confluence while taking the bids to 1.0980 amid the initial trading session on Friday. 23.6% Fibonacci retracement, immediate support-line questions pair’s declines.

According to the Analysis, pair is expected to find support at 1.0949 and a fall through could take it to the next support level of 1.0935. The pair is expected to find its first resistance at 1.0993 and a rise through could take it to the next resistance level of 1.1007.

AUD USD

AUD traded higher against USD and closed at 0.6741.

AUD/USD is keeping gains despite the weaker-than-expected Aussie retail sales data. The pair may extend gains on dovish Federal Reserve expectations. RBA's Financial Stability Report cites housing market as key risk to the economy.

According to the Analysis, pair is expected to find support at 0.6713 and a fall through could take it to the next support level of 0.6701. The pair is expected to find its first resistance at 0.6753, and a rise through could take it to the next resistance level of 0.6765.

Important Economic Events of the Day
  • AUD: Australia Retail Sales m/m
  • USD: United States Nonfarm Payrolls
  • CAD: Ivey Canada Purchasing Managers Index (PMI)
  • USD: Federal Reserve System (Fed) Chair Powell Speech
For More information about the release time of news and its impact visit Economic Calendar Page!
 
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Technical Overview of GBP/USD and EUR/USD Currency Pair

GBP USD

GBP traded lower against USD and closed at 1.2217.

GBP/USD remains within its 1.1950-1.2600 September range, but the downside looks vulnerable unless there is a surprise Brexit breakthrough, or a rout in the USD.

Since becoming PM, Johnson has been accused of talking to his Brexiteer electorate, rather than negotiating with the EU. His repetition of key phrases such as the 'surrender bill', used to describe the law making a hard Brexit illegal on Oct 31, is a case in point - this strategy was successful in the 2016 Brexit referendum.

Johnson insists the UK will exit the EU without a deal on Oct 31, but he committed in court to respect the law.

The GBP/USD pair now seems to have entered a bearish consolidation phase and was seen oscillating in a narrow band just above one-month lows set in the previous session. The incoming Brexit headlines might continue to influence ahead of FOMC meeting minutes.

According to the Analysis, pair is expected to find support at 1.2199 and a fall through could take it to the next support level of 1.2174. The pair is expected to find its first resistance at 1.2281 and a rise through could take it to the next resistance level of 1.2306.

EUR USD

EUR traded higher against USD and closed at 1.0954.

EUR/USD is reporting moderate gains, having defended key MA support. Fed's Powell said the central bank's balance sheet will expand again. American Dollar may find bids if the Fed minutes highlight growing split among policymakers.

According to the Analysis, pair is expected to find support at 1.0945 and a fall through could take it to the next support level of 1.0932. The pair is expected to find its first resistance at 1.0987, and a rise through could take it to the next resistance level of 1.1000.

Important Economic Events of the Day
  • USD: Fed’s Chair Powell Speech
  • USD: FOMC Minutes
For More information about the release time of news and its impact visit Economic Calendar Page!
 
Trade War Rhetoric and Brexit Chatter to maintain the USD and GBP in Action

Trump talks of more tariffs as the G20 Summit come up to, with Brexit chatter ongoing to pin the Pound back on probabilities of the deal being thrown out.


Earlier in the Day:

Economic data discharged through the Asian session this morning was restricted to October trade figures out of New Zealand.


For the Kiwi Dollar, there was more bad news following some mainly disappointing 3rd quarter retail sales figures released on Monday, with the trade shortage widening in October, year-on-year, from NZ$5,330m to NZ$5,790m, which is the highest annual trade deficit since October 2007.

According to NZ Stats:

· Monthly introduces hit a record NZ$6.2bn in October, rising above September’s preceding record high NZ$5.9bn, the continued rise featured to higher prices for crude oil and a pullback in the Kiwi Dollar.

· Import values for October were NZ$758 (14%) higher than in October 2017, with the increase spread across a range of commodities, through petroleum and producers were the main contributor, up NZ$257m (68%).

· On the export front, total exports rose by NZ$303m (6.6%) in October to NZ$4.9bn compared with October 2017, with exports sitting at their highest level for any October month.

· The increase in exports was attributed to fruit exports (NZ$204m) and kiwifruit exports in particular (NZ$112m).

· The monthly trade insufficiency narrowed from NZ$1.596m to NZ$1.205m, which was inferior than a forecasted narrowing to an NZ$850m deficit.

At the time of writing, the Kiwi Dollar moved from $0.67734 to $0.67694 upon discharge of the figures before falling to $0.67761, marking a 0.13% loss for the session.

Elsewhere, the Japanese Yen stood at ¥113.43 against the U.S Dollar, a gain of 0.13% for the session, while the Aussie Dollar was down 0.03% to $0.7219, talk of Trump going at the forefront with the January 1st, 2019 tariffs a negative start to the day to weigh on risk appetite.

In the equity markets, the Hang Seng saw red early on, down 0.49%, while the rest of the majors held onto early gains, the Nikkei and CSI300 both up by 0.09%, while the ASX200 gained 0.36%, moderately reversing Monday’s slide, with the gains in the U.S and Europe providing little support ahead of the G20, as Trump lay’s down the fundamentals to trade talks with more tariff chatter at the start of the week.

The Day Ahead:
For the EUR, economic data is limited to jobseeker numbers out of France that are unlikely to have a material impact on the EUR through the day, with focus likely to remain on Italy and general outlook towards the economic outlook, which could cause the ECB to pause on its financial policy plans for next year should conditions go down further.

At the time of writing, the EUR was up 0.03% to $1.1331, with geo-political risk and chatter on Italy the key drivers through the day.

For the Pound, it’s another quiet day on the data front, leaving the markets to continue to focus on Theresa May and her progress on home soil to convince MPs to shift on their current stance on the deal to drive through the Brexit deal in the announced 11th December parliamentary vote, the current vote count going heavily against Theresa May’s widely criticised deal.

At the time of writing, the Pound was down 0.14% at $1.2809, with Brexit news the key driver through the day.

Across the Pond, economic data released through the day incorporates September housing sector figures and November’s consumer self-assurance numbers.

While focus will likely stay behind on the consumer confidence numbers, which comes in the wake of the mid-term elections and a choppy period in the U.S equity markets, in housing sector number we will also anticipate some Dollar sensitivity, weaker house price development likely to consider on the Dollar.

On the policy front, FOMC members Bostic and George are planned to verbalize late in the day that could also manipulate, any continued increase in dovish FOMC members positively not supportive of a bullish Dollar.

At the time of writing, the Dollar Spot Index was down 0.01% to 97.06, with today’s stats and any trade war chatter ahead of Friday and Saturday’s G20 Summit likely to be the key drivers through the day.

For the Loonie, another quiet day ahead, leaves the Loonie in the hands of market risk appetite and direction in crude oil prices in particular.

The Loonie was down 0.04% to C$1.3260 against the U.S Dollar at the time of writing.
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Technical Overview of AUD/USD and GBP/USD Currency Pair

AUD USD


AUD traded lower against USD and closed at 0.6752.

AUD/USD -0.25% as China reacts to US House taking hard line over Hong Kong
China says US House should stop interfering in HKG
Undermined by weak AXJ currencies as PBOC Yuan fix on high side of forecasts

The "retail sales control group", published by US Census Bureau, represents the total industry sales that are used to prepare the estimates of PCE for most goods.

According to the Analysis, pair is expected to find support at 0.6744 and a fall through could take it to the next support level of 0.6733. The pair is expected to find its first resistance at 0.6780 and a rise through could take it to the next resistance level of 0.6791.

GBP USD

GBP traded lower against USD and closed at 1.2786.

The Consumer Price Index released by the National Statistics is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchase power of GBP is dragged down by inflation. The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally, a high reading is seen as positive (or bullish) for the GBP, while a low reading is seen as negative (or Bearish).

According to the Analysis, pair is expected to find support at 1.2646 and a fall through could take it to the next support level of 1.2600. The pair is expected to find its first resistance at 1.2796, and a rise through could take it to the next resistance level of 1.2842.

Important Economic Events of the Day
  • GBP: Consumer Price Index (YoY) (Sep)
  • GBP: BoEs Governor Carney Speech
  • USD: Retail Sales Control Group (Sep)
  • CAD: BoCs Consumer Price Index Core (YoY) (Sep)
For More information about the release time of news and its impact visit Economic Calendar Page!
 
Technical Overview of EUR/USD, AUD/USD and USD/JPY Currency Pair

EUR USD

EUR traded lower against USD and closed at 1.1169.

EUR/USD's may have a hard time extending preceding three week's rally, courtesy of warning Brexit optimism. The common currency may face selling pressure if the European Union announces retaliatory tariffs on imports from the US.

According to the Analysis, pair is expected to find support at 1.1150 and a fall through could take it to the next support level of 1.1146. The pair is expected to find its first resistance at 1.1164 and a rise through could take it to the next resistance level of 1.1168.

AUD USD

AUD traded higher against USD and closed at 0.6855

• AUD/USD remains buoyant in Asia as hopes recede of an early RBA rate cut

• Bolstered by last week's upbeat AU jobs data, increasingly gloomy US data

• Australia home prices keep rising as auctions heat up in boost for economy

• Chance of Nov rate cut pared back to just 17% compared to 34% a week ago

According to the Analysis, pair is expected to find support at 0.6842 and a fall through could take it to the next support level of 0.6839. The pair is expected to find its first resistance at 0.6854, and a rise through could take it to the next resistance level of 0.6857.

USD JPY

USD traded higher against JPY and closed at 108.42

Although 200-day SMA becomes the key upside for USD/JPY, the quote refrains from further declines while taking rounds to 108.50 during early Monday. The pair is seesaws around four day low.

According to the Analysis, pair is expected to find support at 108.32 and a fall through could take it to the next support level of 108.27. The pair is expected to find its first resistance at 108.50, and a rise through could take it to the next resistance level of 108.55.

For more information: https://xtreamforex.com/
 
Technical Overview of USD/CAD and EUR/USD Currency Pair

USD CAD

USD traded lower against CAD and closed at 1.3048.

USD/CAD is trimming gains on reports calling a victory for Canada's PM Trudeau. The pair may come under pressure if Trudeau forms a minority government with NDP's support.

Canada Retail Sales m/m show changes in the value of goods sold in retail stores in the specified month compared to the previous month. The indicator is calculated based on statistics from several thousand retail stores, and the data is then extrapolated to the whole country.

The indicator evaluates the consumer activity and inflation. The indicator growth can have a positive effect on CAD quotes.

Canada Core Retail Sales m/m reflects the change in retail sales in the reported month compared to the previous one. The indicator is calculated based on statistics from retail stores of different types and sizes. The index calculation does not include sales of autos and spare parts.

Retails Sales are an indicator of consumer activity in Canada, and an important component of national GDP. The indicator growth can have a positive effect on CAD quotes.

According to the Analysis, pair is expected to find support at 1.3077 and a fall through could take it to the next support level of 1.3063. The pair is expected to find its first resistance at 1.3123 and a rise through could take it to the next resistance level of 1.3137.

EUR USD

EUR traded higher against USD and closed at 1.1148.
  • Positive risk extends in Asia, E-mini S&P +0.1% and AsiaxJP stocks +0.3%
  • Flat in a low key 1.1147/1.1156 range - fundamentals unchanged look to techs
  • Charts - daily momentum studies, 5, 10 & 21 MAs head higher - bullish setup
  • Sustained cloud break, 1st since July - 1.1104 horizontal cloud top supports
According to the Analysis, pair is expected to find support at 1.1142 and a fall through could take it to the next support level of 1.1132. The pair is expected to find its first resistance at 1.1172, and a rise through could take it to the next resistance level of 1.1182.

Important Economic Events of the Day
  • CAD: Retail Sales m/m
  • CAD: Core Retail Sales m/m
  • USD: Existing Home Sales
For More information about the release time of news and its impact visit Economic Calendar Page!
 
Technical Overview of EUR/USD and USD/JPY Currency Pair

EUR USD

EUR traded higher against USD and closed at 1.1021

Early bounce on US data gives some relief to longs

Pair heavy on safe haven flows but holds above 61.8 Fib of 1.0879-1.1180

Daily RSI diverges & bull hammer forms, daily techs warn shorts

Monthly RSI still falling, says downside momentum could resume

Global growth concerns, soured risk could sink EUR/USD

According to the Analysis, pair is expected to find support at 1.1010 and a fall through could take it to the next support level of 1.0972. The pair is expected to find its first resistance at 1.1132 and a rise through could take it to the next resistance level of 1.1170.

USD JPY

USD traded higher against JPY and closed at 108.39.
  • USD/JPY's breaks key props at 108.50 , close is key
  • IMM USD/JPY specs long largely above 108 are at risk on 107.89/99 break
  • Treasury yields sliding faster than JGBs, '20 Fed cuts pricing back in
  • USD/JPY's topping formation reinforced by AUD/JPY's reversal
  • Risk flows could change on a dime if trade deal gets completed, signed
According to the Analysis, pair is expected to find support at 108.57 and a fall through could take it to the next support level of 108.56. The pair is expected to find its first resistance at 108.59, and a rise through could take it to the next resistance level of 108.60.

Important Economic Events of the Week (11 Nov, 19 to 15 Nov, 19)
  • USD: Retail Sales m/m
  • GBP: Retail Sales m/m
  • NZD: Electronic Card Retail Sales m/m
For More information about the release time of news and its impact visit Economic Calendar Page!
 
Technical Overview of AUD/USD and GBP/USD Currency Pair

AUD USD

AUD traded higher against USD and closed at 0.6784

Flat in a quiet tight 0.6785/0.6795 range as options contain

0.6785-95 1.1BLN and 0.6900 500M strikes dominated in Asia

Risk bounce in Asia after a soft week, Nikkei +0.6%, AsiaxJP +0.3%

Charts - momentum studies, 5, 10 & 21 DMAs head south - bearish setup

Dip recently stalled at 0.6769, which remains pivotal and vulnerable

NY 0.6783 low and earlier 0.6795 high initial support and resistance

According to the Analysis, pair is expected to find support at 0.6786 and a fall through could take it to the next support level of 0.6785. The pair is expected to find its first resistance at 0.6788 and a rise through could take it to the next resistance level of 0.6789.

GBP USD

GBP traded higher against USD and closed at 1.2913.

Cable saw steady interest and trades +0.1% in a 1.2903/1.2921 range

Conservatives to raise property purchase tax for non-UK residents

A revenue raiser that will be popular with UK voters

FT's poll tracker, Conservatives hot favorites, +13pts from +11 over Labour

Charts - 5, 10 & 21 DMAs gently edge higher - modest topside bias

Six week 1.2770/1.3012 range looks set to extend unless the USD trends

According to the Analysis, pair is expected to find support at 1.2917 and a fall through could take it to the next support level of 1.2916. The pair is expected to find its first resistance at 1.2923, and a rise through could take it to the next resistance level of 1.2924.

Important Economic Events of the Week (18 Nov, 19 to 24 Nov, 19)
  • CAD: Core Retail Sales m/m
  • EUR: ECB President Lagarde Speech
  • EUR: GDP q/q
  • SGD: GDP q/q
  • USD: EIA Crude Oil Stocks Change
For More information about the release time of news and its impact visit Economic Calendar Page!
 
Technical Overview of AUD/USD and NZD/USD Currency Pair

AUD USD

AUD traded higher against USD and closed at 0.6777.

FED Chair Speech affects USD depending on the speech rhetoric. If the speech is seen as an intention to raise the rates at the next FOMC meeting, this has a positive impact on USD and vice versa.

The FED Chair's statements have the greatest impact on the market compared to other members of the FED Board of Governors.

Reserve Bank of Australia (RBA) Governor Speech may contain information about the expected change in the bank's interest rates or in the monetary policy.

The Aussie dollar, a G-7 proxy for China, is not impressed by reports of US-China trade talks gaining momentum. AUD/USD failed to take out key average hurdle despite renewed trade optimism. RBA's Debelle said slower wage growth is a new norm in Australia.

According to the Analysis, pair is expected to find support at 0.6769 and a fall through could take it to the next support level of 0.6761. The pair is expected to find its first resistance at 0.6793 and a rise through could take it to the next resistance level of 0.6801.

NZD USD

NZD traded higher against USD and closed at 0.6416.

Retail Sales m/m reflects a change in New Zealand's retail sales in the reported month compared to the previous one. The calculation is adjusted for inflation. The index is often referred to as the consumer spending indicator, which allows assessing inflation in New Zealand. The indicator growth can have a positive effect on NZD quotes.

Consumer Confidence Index displays the level of consumer confidence in the stability of the country's economy. It is based on the data from the monthly survey of more than 5000 households and is designed to evaluate the relative financial status, purchasing power and confidence of an average consumer. The survey consists of five questions, two of which are associated with the current economic conditions, while three deal with expectations. Since 60% of the survey has to do with expectations, the indicator is considered to be a leading market indicator. The indicator growth assumes an increase in consumer spending.

• NZD/USD is facing pullback risks after multiple failures at the 100-day MA hurdle.
• A close above the key average will likely invite stronger buying pressures.

According to the Analysis, pair is expected to find support at 0.6400 and a fall through could take it to the next support level of 0.6392. The pair is expected to find its first resistance at 0.6426, and a rise through could take it to the next resistance level of 0.6434.

For More information about the release time of news and its impact visit Economic Calendar Page!
 



EURNZD today, as we see here, the market is still sideways, so to best option is to buy EURNZD when it touch support area at 1.70937 with potential target up to 1.71392
 
Dollar close to 1-Month Lows as Trade War Fears increase

The U.S. dollar was trading close to one-month lows on Wednesday when U.S. President Donald Trump warned a trade deal with China won't return till when the 2020 presidential election and vulnerable to step up his trade war with alternative nations.

The U.S. dollar index against a basket of six major currencies was at 97.6 by 03:47 AM ET (08:47 GMT), shortly from the lows of 97.55 reached on Nov. 18.

Trump's statement Tuesday that he had "no deadline" for an agreement with China hurt sentiment as world trade frictions have already hit the economic process, with several economies troubled to search out their footing.

Trump's comments on trade earlier within the week had already spooked investors.

On Monday, he said he would hit Brazil and Argentina with trade tariffs for "massive devaluation of their currencies".

The president then vulnerable duties of up to 100% on French merchandise, from champagne to purses, attributable to a digital services tax that Washington says harms U.S. school firms.

U.S. Commerce Secretary Wilbur Ross on Tuesday said that whereas staff-level talks are continued with Chinese officers, no high-level conferences are regular.

If there's no deal or substantial progress in talks before Dec. 15, tariffs on remaining Chinese imports, as well as cell phones, laptop computers, and toys, can become, Ross said.

"Expectations for a U.S.-China trade deal are weakening, and dollar/yen has broken its support levels, that the bias is tipped to the draw back," said Takuya Kanda, chief of analysis at Gaitame.com analysis Institute in Edo.

"More tariffs would push dollar/yen lower still."

Market analysts said the dollar might solely weaken well if U.S. economic knowledge showed a pointy declaration and expectations of rate cuts grew sharply. money market futures are informinged to a rate cut of 1 quarter purpose by next July.

The dollar stood at 108.48 versus the yen, its lowest since November. 21, whereas the dollar was at 0.9856 against nation monetary unit, grade not seen since November. 4.

Both the japanese and Swiss currencies tend to be sought-after by investors as safe-haven assets throughout times of heightened political tensions or market uncertainty.

The monetary unit was very little modified close to one-and-a-half week highs against the dollar at one.1085.

The biggest beneficiary of the slide within the dollar was British pound, that climbed 0.5% to a contemporary six-month high of 1.3059.

Sterling has been boosted by U.K. opinion polls showing that Prime Minister Boris Johnson’s conservative party is probably going to win Dec. 12 elections paving the way for Great Britain to depart the European Union in January. 31.
 
Dollar firm as 'headline ping-pong' revives trade optimism

The greenback and export-oriented currencies found support on Thursday as upbeat trade comments from U.S. President Donald Trump cheered the market, whereas New Zealand's softer-than-expected banking reforms pushed the kiwi to a four-month high.

The flight to safety seen on Wed reversed when Trump said trade talks with China were going "very well," daily when floating the thought that a deal might need to attend till after the 2020 presidential election.

Bloomberg additionally according that the 2 sides are moving nearer to an agreement, citing people familiar with the talks.

That took the shine off the safe-haven yen and Swiss franc, which nursed losses on Thursday.

"Another day, another reversal of what happened the previous day," aforesaid National Australia Bank's head FX contriver, Ray Attrill.

"I thought the markets had stopped enjoying headline ping- stink on trade, however apparently not."

Despite the swing, prevailing caution regarding high-level comments on trade unbroken market moves modestly. The U.S. dollar command nightlong gains against the safe-haven Japanese yen and Swiss franc to sit down at 108.79 yen and 0.9877 francs . it absolutely was steady on the euro at $1.1082 (EUR=).

Against a basket of currencies (DXY) the dollar held at 97.588.

The British pound crossed the $1.31 mark for the primary time since might nightlong as expectations that Prime Minister Boris Johnson would win a majority at next week's election firmed.

Sterling last listed at $1.3108. The dollar slipped 0.2% to $0.6838 when softer-than-expected retail sales information.

The standout was the kiwi, that rose 0.4% to $0.6555, its highest since August, and has placed on over a cent on as business sentiment there has rebounded and expectations for financial loosening have fallen.

The Federal Reserve Bank of recent Zealand upraised bank capital necessities, however not the maximum amount as some investors had feared, and with a protracted interval, reducing expectations that fiscal easing may be required to offset the hike's alteration effects.

Against the Australian, the kiwi has gained over three-dimensional during a month to face at a four-month high of NZ$1.0457 per A$1 (AUDNZD=).

The long, seven-year phase-in and modest scale of hiked bank capital rules were seen as having a softer impact on loaning and growth than expected, reducing the chance of deeper financial easing.

The country's biggest investor, Australia, and New Seeland Banking cluster, cut its expectations for cuts to the country's Official money Rate (OCR) next year from 2 reductions to 1 when the capital necessities were declared.

"A softening within the proposals, combined with an additional positive domestic outlook...mean we tend to are ever-changing our OCR decision to just one additional 25bp OCR cut, in might next year, taking the OCR to zero.75%," ANZ analysts said in an emailed note.

The dollar hit a one-month high of $1.3203 per buck when the country's financial institution command interest rates steady and said there have been signs the world economy was stabilizing.
 
Technical Overview of GBP/USD and USD/JPY Currency Pair

GBP USD

GBP traded higher against USD and closed at 1.3155.
  • Flat in a 1.3153/1.3161 range, but decent interest once Asia fully opened
  • EUR/GBP saw modest volumes with a very tight 0.8438/0.8341 range
  • Conservative election victory expectations attracted fresh demand this week
  • Initial significant resistance at 1.3168/90, 50% 2018/19 fall and May high
  • 1.3168 capped in NY, but is under pressure - strong resistance into 1.3200
  • Close above 1.3200 would be a strong positive into the election next week
  • Sustained 1.3200 break would open the door to the 1.3380 2019 high in March
  • Close below the prior 1.3000 range high needed to undermine topside bias
According to the Analysis, pair is expected to find support at 1.3120 and a fall through could take it to the next support level of 1.3105. The pair is expected to find its first resistance at 1.3166 and a rise through could take it to the next resistance level of 1.3181.

USD JPY

USD traded lower against JPY and closed at 108.75.

USD/JPY's CTA positioning and notes that it's mainly close to neutral and sidelined around current levels.
"CTAs having held back on going long in the USD/JPY market (buying USD and selling yen) during the recent risk-on phase, they have managed to avoid simultaneous stock selling and yen buying.

CTAs' USD/JPY positions are close to neutral at present, and they are not currently moving either to buy or to sell.

"With the latent risk of yen appreciation being suppressed, if fundamentals-oriented investors begin tentatively dip-buying below 23,000, this downward move by the Nikkei 225 could be brought to a close relatively soon.

According to the Analysis, pair is expected to find support at 108.66 and a fall through could take it to the next support level of 108.58. The pair is expected to find its first resistance at 108.92, and a rise through could take it to the next resistance level of 109.00.

Important Economic Events of the day
  • JPY: Household Spending y/y
  • USD: Nonfarm Payrolls
  • USD: Baker Hughes US Oil Rig Count
  • CAD: Employment Change
For More information about the release time of news and its impact visit Economic Calendar Page!
 

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