GBP/USD has dropped amid a bitter divide over Brexit in parliament. Political plotting, forward-looking PMIs, and the US NFP are eyed. Early October’s daily chart is painting a mixed picture. The FX Poll shows that experts are bearish on all time frames. After the Supreme Court shocked by canceling parliament’s suspension, the House of Commons … “Sterling may surge if Boris Johnson loses his job”
Month: September 2019
USD/JPY ready to fall with the global economy
USD/JPY has been looking for a new direction amid trade tensions and political uncertainty. A full buildup to the critical Non-Farm Payrolls promises an exciting start to the fourth quarter. Late September’s daily chart remains bullish for USD/JPY. The FX Poll is pointing to a short-term gain followed by significant falls afterward. This week in … “USD/JPY ready to fall with the global economy”
Three reasons for Gold’s shine – and where next
Doubts about a US-Sino trade deal are creeping in. Germany is getting closer to a recession according to new data. Monday’s four-hour chart shows that bulls are in full control. Gold is trading above $1,520 per oz, the highest since September 12. when the peak was $1,523. It has reached this critical resistance level – and … “Three reasons for Gold’s shine – and where next”
GBP/USD: The Bank of England remains a positive factor for the pound
The Bank of England kept its policy unchanged ana made minor tweaks to its statement. The focus returns to Brexit and especially EU-UK negotiations. The BOE’s attempt to stay in the shadows is positive for the pound. Are Bank of England decisions non-events? Not exactly. The Bank of England has left its interest rate unchanged … “GBP/USD: The Bank of England remains a positive factor for the pound”
Three reasons for a further surge in the dollar after the Fed
The “dot-plot” is pointing to no more cuts through 2020. Despite the cut, the accompanying statement remains balanced. The high number of dissents shows the Fed’s independence. The Federal Reserve has cut interest rates by 25 basis points as expected – follow all updates in the live coverage. Lower rates tend to weigh on the currency – but … “Three reasons for a further surge in the dollar after the Fed”
UK inflation figures may help the pound
Economists expect UK inflation to have slowed down in August. The weakness of the pound may trigger a second consecutive surprise. GBP/USD may enjoy a temporary rise, with focus returning to Brexit. The holy grail of central bankers is 2% inflation – and Mark Carney, Governor of the Bank of England, may leave his post … “UK inflation figures may help the pound”
EUR/USD: Fall Nearly But Not Quite Over; USD Long Rally Nearly But Not Quite Done – SocGen
EUR/USD hit the 2019 lows only to bounce back and surge in a knee-jerk reaction to the ECB’s decision. Where next? Here is their view, courtesy of eFXdata: Societe Generale Research discusses the EUR outlook in light’s of yesterday’s ECB policy meeting. “For now, Mario Draghi looks like an ageing boxer, fighting to the end. His … “EUR/USD: Fall Nearly But Not Quite Over; USD Long Rally Nearly But Not Quite Done – SocGen”
EUR/USD has room to fall as ECB QE may never end
The European Central Bank has announced a new bond-buying scheme and a rate cut. The open-ended nature of the scheme implies further falls for the common currency. EUR/USD has room to extend its falls, risking the 2019 lows. Super Mario supercharged EUR/USD – triggering a range of 120 and sending it plunging. Mario Draghi, president of the European … “EUR/USD has room to fall as ECB QE may never end”
BOC may send the Canadian dollar down despite upbeat data
The Bank of Canada is set to leave rates unchanged but express concern. The Canadian economy is doing well but uncertainty is growing. USD/CAD may rise in the most likely scenario. Snatching defeat from the jaws of victory – is one way to see the possible outcome of the upcoming decision by the Bank of … “BOC may send the Canadian dollar down despite upbeat data”
EUR/USD may resume falls despite upcoming US recession
US ISM Manufacturing PMI shows contraction that indicates growing chances of a recession. The US dollar dropped on growing chances for a Fed cut. EUR/USD gains may come to an end ahead of the ECB decision. The US manufacturing sector may be contracting – indicating a recession. ISM’ Purchasing Managers’ Index (PMI) for the manufacturing … “EUR/USD may resume falls despite upcoming US recession”