Category: Market Trends

The Great Britain Pound (GBP) gains strength against the US Dollar (USD), increasing the price of GBPUSD to more than 1.2500 ahead of Britain’s industrial production report which is scheduled for release on Friday. The technical bias has turned bullish after the emergence of bullish pin bar a couple of days ago. GBP/USD Technical Analysis As of this writing, the pair is being traded near 1.2513. A hurdle may be noted around 1.2675 (the trendline resistance area) ahead of 1.2700-1.2706 (the high of last major upside move & psychological number) and…

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Opec’s announcement in November of last year came as a surprise to many market participants as it was the first production cut in eight years. Nonetheless, the announcement produced the intended effect with oil prices gaining significant ground immediately. The ICE Brent Crude April contract has gained almost 18 percent since the supply constraints were announced in November. (Fig 1) Figure 1. ICE April 2017 Contract up almost 18 percent from 46.97USD/ barrel to 55.32USD/barrel from OPEC announcement in Nov 2016 to Jan 2017 Over the same period the Nymex…

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The Euro (EUR) extended upside movement against the US Dollar (USD) last week, rallying the price of EUR/USD to more than 1.0700 and leaving another bullish candle on the weekly chart. The technical bias remains bearish in short to medium term because of a lower low in the recent downside wave. 3rd February Economic Calendar Not to mention, the Nonfarm Payroll report in economic calendar is scheduled for release on the upcoming Friday, the 3rd of February. Technical Outlook As of this writing, the pair is being traded near 1.0789. A…

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In the first week of the year, the attention of the market has been focused on the bullish trend of the euro-US dollar currency pair. EUR / USD continued to rise beyond 1,06 but failed to ride the wave and went back in the last session on Friday, closing near the opening level of Monday (1,04). Everything revolved around the data of the Non Farm Payroll and labor market of United States, expecting a possible moment of weakness for US dollar. However, Friday’s publication has curbed the minds and the…

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For the United Kingdom, 2016 was a year that will go down in the history books. Defined by the surprising outcome of the European Union referendum, it witnessed a downturn that would see sterling slump by roughly 19 per cent in the three months following the result. Hitting a 31-year low of $1.2123 on October 11, the pound has since recouped some of it losses, reaching its highest level in months – of $1.2775 – by the year end. Despite this, it remains 12 and 15 per cent lower against…

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The OIL asset is poised for growth! Against the backdrop of the upcoming meeting of OPEC leaders, “black gold” has become one of the most popular goods on the commodity market. Rumors that oil-producing countries have in fact decided to negotiate are making OIL quotes grow. If they can come to a decision on reducing production volumes, the supply of oil in the global market will begin to actively decline. An additional factor supporting this is the news about disconnecting the power supply to one of the oil fields in…

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The British pound was able to resist the US dollar due to the reduction of unemployment from 4.9% to 4.8%. The average earning index added 2.3%, but the claimant count change increased by 9.8K vs. the forecast of 1.9K. Today can be called the key to understanding the Fed sentiment. If the October CPI is higher than expected, the rate is likely to be increased in December. The following forecasts: the core CPI + 0.2% (2.2% y/y – no change), the CPI + 0.4% (1.6% y/y vs. 1.5% y /…

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You would think that after the results of the US election, the financial market would calm down. Certainly not! Market players will always find a reason to accelerate asset prices to the maximum. Your task is to catch the right moment to conclude profitable transactions. To learn how to figure out when that is, read our news. Germany: The ZEW Economic Sentiment Index in Germany (for October) This index defines the mood of institutional investors. If it is above zero, it indicates optimism; if it is below – pessimism. The…

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Unfortunately, economic problems of England keep increasing. Despite the fact that they decided to leave the Eurozone, economic situation in the country is getting worse and worse – the refinance rate was cut recently and Consumer Price Index remain on a very low level ..and most likely market participants should not expect it to increase, cause retail sales data (which has a massive impact on CPI) is rapidly decreasing: What is more, there were some rumours that there might be yet another referendum in Scotland about leaving the United Kingdom.…

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Economies of Eurozone and Australia are under the pressure. The ECB leaders can’t solve their biggest issue – boost of CPI and debt crisis. Apart from that, there is a massive concern regarding the “Brexit” and EU-UK asset sharing, as EU leaders no longer want their assets to be traded on London exchange. On the other hand, there are problems in the economy of Australia due to slowdown of Asian economy and unstable commodity prices which is one of the key aspect of Australian economy. If the leaders of European…

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The latest US data remains on a very good level with a positive dynamics – both CPI and year-over-year GDP are increasing faster than the expectations but they still remain lower compared to the target values Due to the latest US labor market data (NonFarm data is over 150,000 for the several months in a row and that is a positive sing) market participants believe that there will be at least one refinance rate hike and the value of US Dollar will be significantly increased. The latest CPI data: If…

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Last Friday US labor market data was published and it was insignificantly lower than the forecast. Level of unemployment increased by 0.1% from 4.9% to 5.0% while the NonFarm result was 156,000 against forecasted 175,000. Despite the fact that the level of unemployment remains significantly lower that 6% (optimal value) it keeps increasing (in June the level of unemployment was 4.7%) and market participants start to worry about the future of US labor market. Now traders emphasize the FOMC Meeting Minutes report as most likely some information and vision regarding…

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