Tag: Trading News

GBP/USD Weekly Forecast: GBP/USD, EUR/GBP Reversal, Now What?
Forex News

GBP/USD Weekly Forecast: GBP/USD, EUR/GBP Reversal, Now What?

GBP/USDFUNDAMENTAL HIGHLIGHTS:GBP Sees Well Overdue Correction Positioning Clear Out Likely Entice Dip BuyersBOND MARKET TANTRUM: Equity markets finally listen to the noise that the bond market have been making, however, the Fed are still not listening. Quite the move on as the US 10yr hit the milestone of yielding 1.50%, moving above the S&P 500 dividend yield of 1.48%. Subsequently, this places a TINA (There Is No Alternative) headwind for the stock market, which has up until now, enjoyed the low rate environment. The tech sector endured most of the selling pressure with the Nasdaq falling over 3%, particularly after the worst 7yr auction in history, which kickstarted a bid in the greenback and sent EM FX heavily lower.STERLING EXPERIENCES RARE SELLINGAs I’m sure m...
NZD/USD Rate Rally Emerges Ahead of RBNZ Interest Rate Decision
Forex News

NZD/USD Rate Rally Emerges Ahead of RBNZ Interest Rate Decision

New Zealand Dollar Talking PointsNZD/USD clears the January high (0.7315) ahead of the Reserve Bank of New Zealand (RBNZ) meeting on February 24, and the interest rate decision may do little to curb the appreciation in the exchange rate as the central bank is expected to keep the official cash rate (OCR) at the record low of 0.25%.NZD/USD Rate Rally Emerges Ahead of RBNZ Interest Rate DecisionNZD/USD continues to carve a series of higher highs and lows as it extends the rebound off of the 50-Day SMA (0.7178), and the exchange rate may trade to fresh 2021 highs over the remainder of the month as the RBNZ appears to be on track to retain the current course for monetary policy.It seems as though the RBNZ will rely on its balance sheet to support the New Zealand economy after unveili...
Weekly Fundamental US Dollar Forecast: Mr. Powell Goes to Washington
Forex News

Weekly Fundamental US Dollar Forecast: Mr. Powell Goes to Washington

Fundamental Forecast for the US Dollar: NeutralThe main event of the week will be Fed Chair Jerome Powell heading to Capitol Hill for two days of testimony to deliver the semi-annual Monetary Policy Report. But traders shouldn’t sleep on the US economic calendar. The upcoming January durable goods orders and PCE/Core PCE price indexes may further enflame inflation fears, sparking more gains by US yields. The IG Client Sentiment Indexsuggests the US Dollar has a mixed bias heading into the last week of February.US Dollar Lower as Inflation Expectations, Yields RiseThe US Dollar (via the DXY Index) turned lower at the end of the week, kneecapping the nascent rally through the pandemic downtrend (March and November 2020 highs). US economic data has been outperforming, ...
EUR/USD Week Ahead Outlook Poor, EUR/GBP Tumbling
Forex News

EUR/USD Week Ahead Outlook Poor, EUR/GBP Tumbling

Fundamental Euro Forecast: BearishRising US Treasury bond yields on hopes of a strong rebound in the US economy after the slump caused by the Covid-19 pandemic, along with fears of rising inflation, will likely support the US Dollar in coming days and weaken EUR/USD accordingly. Meanwhile, the success of the UK vaccination program compared with the slow rollout of vaccines in the EU, as well as rising UK Gilt yields, could well lead to further losses in EUR/GBP even after the steep falls of recent weeks.Euro price weakness to persistThe continuing prospect of a substantial pandemic relief package in the US, along with the relative success of the country’s vaccination program, have combined to raise hopes that the US will lead the global economy out of the slump caused by t...
DailyFX Forex Trading Course Walkthrough: Part Five
Forex News

DailyFX Forex Trading Course Walkthrough: Part Five

Forex Trading Course Walkthrough Talking Points:This is the fifth of a ten-part series in which we walk through articles from DailyFX Education. The aim of this series is simplicity while covering some of the more important aspects of the FX market along with traders’ strategies and approaches. If you would like to access the full suite of educational articles offered by DailyFX education, you can get started at this link: DailyFX Forex for BeginnersWe learned about some of the major market players that have a tendency to impact prices, and today we are shifting that focus from the ‘who’ to the ‘what.’ In this lesson we look at some of the major market drivers that often bring volatility into FX markets.FX markets can be somewhat unique due to their 24-hour nature....
Bitcoin (BTC/USD) Price Outlook – Mastercard Preparing Crypto Payments, Will Twitter Follow Tesla?
Forex News

Bitcoin (BTC/USD) Price Outlook – Mastercard Preparing Crypto Payments, Will Twitter Follow Tesla?

Bitcoin (BTC/USD) Price, Analysis and Chart:Bitcoin stable around $45,000 and looking to press ahead. Mastercard and Twitter are the latest names looking at Bitcoin.Bitcoin (BTC/USD) is back in the press again after two of the world’s largest companies said that they are looking closely at the cryptocurrency as a means of payment. In a press release, Mastercard’s Raj Dhamodharan wrote that digital assets are becoming a more important part of the payments world.‘We are seeing this fact play out on the Mastercard network, with people using cards to buy crypto assets, especially during Bitcoin's recent surge in value. We are also seeing users increasingly take advantage of crypto cards to access these assets and convert them to traditional currencies for spending….We are prepa...
Dow Jones, Hang Seng, ASX 200 Outlook: Chinese New Year Bringing Lower Liquidity
Stock

Dow Jones, Hang Seng, ASX 200 Outlook: Chinese New Year Bringing Lower Liquidity

DOW JONES, HANG SENG, ASX 200, ASIA-PACIFIC MARKET OUTLOOK:Dow Jones index edged higher while the Nasdaq Composite retreated from record highs Weaker-than-expected US inflation data led the US Dollar lower, buoying commodity prices Asia-Pacific markets are heading into quieter trading sessions due to Chinese New Year HolidayInflation, US Dollar, Platinum, CNY Holiday, Asia-Pacific Stocks OutlookWall Street stocks hovered near record highs as Democrats moved closer to pass the US$ 1.9 trillion stimulus package without Republican support. Fed Chair Jerome Powell addressed the need for accommodative monetary policy in a speech last night, underscoring that the US job market is far from full recovery. His dovish stance and weaker inflation data led the US Dollar lower. The ...
Bullish AUD/USD Price Sequence Emerges on Break of Monthly Open Range
Forex News

Bullish AUD/USD Price Sequence Emerges on Break of Monthly Open Range

Australian Dollar Talking PointsAUD/USD trades to fresh monthly highs after breaking out of the opening range for February, with recent developments in the Relative Strength Index (RSI) indicating a further appreciation in the exchange rate as it clears the downward trend established earlier this year.Bullish AUD/USD Price Sequence Emerges on Break of Monthly Open RangeAUD/USD carves a bullish price sequence (higher highs and lows) following the failed attempt to test the monthly low (0.7564), and the pullback from the January high (0.7820) may turn out to be an exhaustion in the broader trend rather than a change in market behavior as the Reserve Bank of Australia (RBA) appears to be in no rush to switch gears.It seems as though the RBA is on a preset course as the central bank pl...
British Pound (GBP) Latest: GBP/USD Rising, Well Positioned to Climb Further
Forex News

British Pound (GBP) Latest: GBP/USD Rising, Well Positioned to Climb Further

GBP price, news and analysis:GBP/USD has nudged above the 1.38 level, gaining from ‘risk on’ sentiment that continues to weaken the US Dollar. Hopes for a global economic recovery and positive US corporate earnings are still outweighing suggestions that the risk rally has been overdone, and that should lift GBP/USD further towards the 1.40 level medium-term.GBP/USD strength to continue GBP/USD has nudged above the 1.38 level and its trend higher, prompted by a persistently weak US Dollar, looks to be propelling the pair towards the 1.40 level medium-term – though a correction could occur before that target is reached. GBP/USD Price Chart, One-Hour Timeframe (January 15 – February 10, 2021)Source: IG (You can click on it for a larger image)Positive US corporate earnings and hopes...
Gold Price Forecast: XAU/USD Pulls Back to Resistance After Break Down
Commodities

Gold Price Forecast: XAU/USD Pulls Back to Resistance After Break Down

Gold Forecast Talking Points:Last week I looked at a key support test asking if Gold prices could break down. That happened the day after, but already Gold prices are perking back up. At this stage Gold prices are testing resistance at prior support, keeping the door open for bearish scenarios. But there’s a counter-point on the other side of the matter, and that circulates right back to the USD. The analysis contained in article relies on price action and chart formations. To learn more about price action or chart patterns, check out our DailyFX Education section.Last week brought a quick rush of selling in to Gold prices that helped to set a fresh two-month-low. This was accompanied by a theme of USD-strength even as the risk-on move drove asset prices in many major ...