Thursday, August 6

Tag: Forex News

Post-Brexit Trade Talks Latest – EU and UK Upping the Ante on Trade Negotiations
Forex News

Post-Brexit Trade Talks Latest – EU and UK Upping the Ante on Trade Negotiations

EU/UK Trade Talks News and Analysis: High levels trade talks on Monday. No extension to the transition period. A new series of EU/UK future relation negotiations. EU and UK Trade Talks May Get a Re-Boot in the Coming Weeks UK PM Boris Johnson and EU Commission President Ursula von der Leyen will speak via video link on Monday afternoon, June 15, in the latest attempt to get EU/UK trade talks back on track. The talks have made no real progress so far and with the UK refusing to extend talks further, this high level meeting, along with a new set of discussions just announced, may well break the current deadlock. And a breakthrough is needed as the EU Commission has just formally accepted that the UK’s refusal to extend the trade talks is final. After speaking with UK cabinet member M...
Indian Rupee, Nifty 50 May Fall. Virus Cases Grow, Consumption Falters
Forex News

Indian Rupee, Nifty 50 May Fall. Virus Cases Grow, Consumption Falters

Indian Rupee, USD/INR, Nifty 50, US Dollar, India, Coronavirus - Talking Points Indian Rupee and Nifty 50 could be at risk to losses ahead Emerging market capital flows eyed, local auto sales slump USD/INR may test key resistance as Nifty faces trend line The Indian Rupee could be at risk to selling pressure as well as the local benchmark stock index, the Nifty 50. Over the past 24 hours, risk aversion engulfed financial markets as the S&P 500 dropped almost 6 percent. That was the deepest selloff in almost 3 months. Further risk aversion may reignite capital outflows from emerging markets, sending the Nifty 50 lower. This may also boost the haven-linked US Dollar. Recent jitters from investors may have been due to worrying commentary from Federal Reserve Chair Jerome Powell. A...
Central Bank Watch: RBA, RBNZ, & BOC Interest Rate Expectations
Forex News

Central Bank Watch: RBA, RBNZ, & BOC Interest Rate Expectations

Central Bank Watch Overview: As the global economy inches towards recovery, the Australian, Canadian, and New Zealand Dollars have seen significant gains as traders bet on a more robust growth environment in the coming months. It’s still likely that the BOC, RBA, and RBNZ keep rates at these levels, augmented by extraordinary policy otherwise (e.g. quantitative easing (QE)), through 2020 and beyond, especially now that the Federal Reserve has signaled its willingness to keep rates low through 2022. Retail trader positioningsuggests that the commodity currencies may still have gains ahead of them yet. G10 Currencies’ Central Banks Embrace ZIRP, NIRP, & QE There are early signs that the world’s developed economies are moving closer towards re-opening following The Great Lockdown...
Emerging Markets at Risk? Capital Flows Eyed After Fed, Powell
Forex News

Emerging Markets at Risk? Capital Flows Eyed After Fed, Powell

Emerging Markets, Capital Flows, EEM - Talking Points Emerging market capital outflows have been noticeably cooling Risks do remain, as highlighted by the Federal Reserve recently MSCI Emerging Markets Index stalling above key 61.8% Fib? Recent optimism in global financial markets has meant that the aggressive pace in capital flowing out of emerging markets has been cooling. Earlier this year, the introduction of lockdown measures across the world as the coronavirus spread sank stocks. At one point, cumulative capital outflows from developing economies surpassed levels seen during the global financial crisis by twice. On the chart below, the MSCI Emerging Market Index (EEM) can be seen closely following a proxy of developing capital flows. If sentiment remains on the current upward...
US Dollar Price Outlook: USD Dip on FOMC, EUR/USD Near Key Resistance
Forex News

US Dollar Price Outlook: USD Dip on FOMC, EUR/USD Near Key Resistance

US Dollar, USD, EURUSD, EUR/USD Price Analysis: This afternoon brought an FOMC meeting along with the first set of projections from the FOMC since the bank’s December rate decision. The Fed is looking at low rates for the foreseeable future, with the net impact thus far showing as lower treasury yields along with a quick shot of weakness into the USD and strength in stocks. US Dollar Dips on FOMC as Stocks Set Fresh Highs This was a well-awaited FOMC rate decision as it’s been about six months since we’ve received forward-looking projections from the bank. The last dot plot matrix was released from the Federal Reserve in December of last year. Of course, quite a bit has taken place since then which is part of what precluded the Fed from releasing projections at their March meeting; w...
US Dollar vs Mexican Peso: USD/MXN Gears Up for Next Move as FOMC Meeting Looms
Forex News

US Dollar vs Mexican Peso: USD/MXN Gears Up for Next Move as FOMC Meeting Looms

US Dollar vs. Mexican Peso (USD/MXN) Price, Analysis and Chart: USD/MXN will be steered by the latest FOMC update. Short-term support may come under pressure again. Recommended by Nick Cawley Find Out the #1 Mistake Traders Make Get My Guide USD/MXN Remains Supported For Now The multi-week USD/MXN sell-off has stalled in the last few days with a series of lower lows and lower highs under pressure. The sell-off has been predicated by US dollar weakness and slight return to favor of EM currencies as an asset class, while the Mexican Peso continues to benefit from a positive interest rate differential against the US dollar. Today’s FOMC meeting and chair Jerome Powell’s post-release commentary are expected to be the driver of the next move in USD/MXN, especially if...
USD/CAD Rate Forecast: RSI on Cusp of Offering Textbook Buy Signal
Forex News

USD/CAD Rate Forecast: RSI on Cusp of Offering Textbook Buy Signal

Canadian Dollar Talking Points USD/CAD fills the price gap from Marchas the exchange rate trades to a fresh monthly low (1.3357) following Canada’s Employment report, but the Relative Strength Index (RSI) may offer a textbook buy signal as the oscillator appears to be bouncing back from oversold territory. USD/CAD Rate Forecast: RSI on Cusp of Offering Textbook Buy Signal USD/CAD has pushed below the 200-Day SMA (1.3465) for the first time since February as the update to Canada’s Employment report showed an unexpected 289.6K rise in May, while the jobless rate climbed to 13.7% from 13.0% amid projections for a 15.0% print. The positive development may encourage the Bank of Canada (BoC) to alter the forward guidance at the next meeting on July 15 as the central bank updates the Monetary Po...
EUR/USD Weakness Continues as The US Dollar Catches a Pre-FOMC Bid
Forex News

EUR/USD Weakness Continues as The US Dollar Catches a Pre-FOMC Bid

Eurozone GDP and EUR/USD Price, News and Analysis: Euro-Zone Q1 GDP contracts by 3.6%. EUR/USD starting a series of lower highs. Recommended by Nick Cawley Q2 Euro Forecast Get My Guide Euro-Zone Q1 GDP Beats Expectations, German Exports Crater Euro-Zone Q1 GDP came in slightly better-than-expected earlier today at -3.6% q/q compared to earlier forecasts of -3.8%. According to Eurostat,among Member States for which data are available for the first quarter of 2020, Ireland (+1.2%), Bulgaria and Romania (both +0.3%) as well as Sweden (+0.1%) still recorded postitive growth compared with the previous quarter, while GDP fell in all other EU Member states, with the highest declines in France and Italy (both -5.3%) as well as Spain and Slovakia (both -5.2%). Earlier ...
Copper Surges Into Overbought As Silver Erases Yearly Losses
Forex News

Copper Surges Into Overbought As Silver Erases Yearly Losses

Copper, Silver, Commodities, US Dollar Talking Points: Copper eyeing February high as it registers overbought readings for the first time since February 2018 Rising Wedge pattern containing Silver prices threatens the rally from the yearly low A combination of US Dollar weakness and market optimism has seen Silver and Copper prices rally back to pre-crisis levels. With the historic amount of fiscal and monetary stimulus unleashed in response to the COVID-19 pandemic, the dollar has sunk to 3-month lows and this run may continue as the Federal Reserve expands its Main Street Lending Program ahead of the June 11th interest rate decision and Chair Jerome Powell's press conference. Continued support from the central bank and Chairman Jerome Powell’s commitment to do “everything we can as...
Gold Price Outlook: Gold Snaps Back, Starts Week with Support Bounce
Forex News

Gold Price Outlook: Gold Snaps Back, Starts Week with Support Bounce

Gold Price Analysis Gold prices are starting the week with strength after interacting with a key support zone last week. Last week saw Gold prices lose as much as -4.4% from the high to the low. Gold prices remain in overbought territory via RSI on the monthly chart, but are bulls willing to wait or is that theme of strength nearing a return? Gold Prices Fall into Key Support Through NFP We’re not even through half of the year yet and it’s already been one for the record books, in a variety of ways. After an unprecedented level of market volatility in March and into April, Gold prices have shown a general tendency to range over the past month as markets gear up for whatever is next. While the initial carnage was very visible in global equities, that aggressive turn-around which hel...