Category: Fundamental analysis of Forex market

The European Central Bank meeting on Thursday was basically a rehash of the Strategic Review:  No change in monetary policy, no change in PEPP, and a statement wording change to reflect a “symmetrical 2%” rather than “Close to, but below 2%” This week, central bank focus will be on the FOMC meeting on Wednesday.  Will …

Week Ahead: FOMC, Earnings, and Q2 GDP to move marketsRead More

United States: COVID Rise Jitters Financial Markets, while Housing Perks Up July’s NAHB Housing Market Index slipped one point to 80. Housing starts beat expectations and rose 6.3% during June, although building permits fell 5.1%. Existing home sales climbed 1.4%. The Leading Economic Index (LEI) advanced 0.7% in June. Initial jobless claims rose to 419K …

Weekly Economic & Financial Commentary: ECB’s Easing Measures Going Nowhere FastRead More

It has been a very quiet day for the euro. In North American trade, EUR/USD is trading at 1.1772, up 0.01% on the day. ECB changes forward guidance On Thursday, the ECB met for the first time since releasing its strategy review. The markets were buzzing ahead of the policy meeting, as ECB President Christine …

Euro Yawns After ECB MeetingRead More

ECB’s first meeting since the new strategy took effect was mostly about aligning the language from the June decision to the review outcome. The bond buying (APP and PEPP) guidance were unchanged. The main new element worth highlighting is the forward guidance on rates stating that inflation has to reach ‘two per cent well ahead …

ECB Research: Stepping Up on Inflation Ambitions, But Not on ToolsRead More

The British pound has posted considerable gains for a second consecutive day. Currently, GBP/USD is trading at 1.3767, up 0.37% on the day. It has been a volatile week for the pair, which declined by 1% early in the week but has recovered these losses. Markets eye UK Retail Sales, PMIs It may not qualify …

Sterling Extends RallyRead More

During Q2 of this year, Crude Oil (USOIL) had been on a tear moving from a low on March 24th of 57.28 to a high on July 6th at 76.95. Along the way, the black gold broke out of a symmetrical triangle in late April and hadn’t looked back! However, as an OPEC+ deal came …

Crude Oil Volatility Causing Large Moves In USD/CADRead More

Boris Johnson lifted the final coronavirus curbs on Monday after a four-week delay, but the rising Covid infections made investors see the glass half empty, pressing the pound to a five-month low. UK retail sales for June and July’s flash Markit/CIPS PMI figures could challenge the sell-off on Friday at 06:00 GMT and 08:30 GMT respectively as …

Could UK Retail Sales & Flash PMI Figures Stop the Pound Bears?Read More

Stock markets claw back losses as dip buyers return Dollar cruises higher with a little help from recovering yields But commodity currencies remain under pressure Dip buyers win again Wall Street staged a fierce comeback on Tuesday, without any particular catalyst behind this impressive recovery. Markets have been grappling with virus concerns lately, the fear …

Wall Street Bounces Back, Dollar Powers HigherRead More

Stock markets are back in the green on Tuesday but already we are seeing frailties in the rebound, with Europe having given back a chunk of its earlier gains. The run into the close may provide some comfort. These are nervy times for the markets, with surging Covid cases – particularly here in the UK …

An Unconvincing Rebound, Oil Stabilizes, Gold Supported at 1800Read More

The Japanese yen has settled down on Tuesday, after starting the week with strong gains. In the European session, USD/JPY is trading at 109.38, down 0.04% on the day. The yen remains relatively strong and dropped as low as 109.05 on Wednesday, its lowest level since May. Japan inflation ticks higher Japan’s inflation levels remain …

Yen Drifting, Japan CPI As ExpectedRead More