The New Zealand dollar retreated today after yesterday’s surge caused by the central bank’s monetary policy announcement. But by now, the currency has trimmed its losses and trades not that far from the opening level. The market sentiment put pressure on the currency as traders continued to be worried about the spreading Wuhan coronavirus. The Reserve Bank of New Zealand left its benchmark interest rate unchanged at 1% yesterday. While such … “Kiwi Pulls Back After Surging on RBNZ Decision, Trims Losses Later”
Month: February 2020
Bulls Failing to Conquer 73.93 on AUD/JPY
The Australian dollar versus the Japanese yen currency pair gives signs that the appreciation may be over. Is it so or the traders may be in for a surprise? Long-term perspective The ascending trend that started after the confirmation of the 71.09 level as support extended until the peak of 76.54 and ended after the confirmation as a resistance of the 76.02 level sent the price plumbing towards 73.93. The strong fall from the resistance of 76.02 pierced the 73.93 support … “Bulls Failing to Conquer 73.93 on AUD/JPY”
Pound Rallies Despite Brexit Headlines, Falls on Powellâs Testimony
The Sterling pound today rallied higher against the US dollar extending a 3-day winning streak by riding on yesterday’s momentum created by the positive UK GDP figures. The GBP/USD currency pair later fell during the American session as the Fed Chair Jerome Powell testified before the Senate housing committee where he reiterated his hawkish stance. The GBP/USD currency pair today traded in a 40-pip range marked by a low of 1.2951 and a high of 1.2991 … “Pound Rallies Despite Brexit Headlines, Falls on Powellâs Testimony”
Chinese Yuan Mixed As Economic Stimulus Capped by Fiscal Woes
The Chinese yuan is mixed midweek as traders are waiting to see how the federal government reacts to the economic fallout from the Wuhan coronavirus, which was recently named Covid-19 by the World Health Organization (WHO). The central bank has responded and Beijing has unleashed several stimulus measures, but disappointing 2019 fiscal numbers might limit what the federal government can do. This week, President Xi Jinping approved … “Chinese Yuan Mixed As Economic Stimulus Capped by Fiscal Woes”
Four carry trade currency pairs in 2020
Volatility in forex markets remains depressed amid ample liquidity. The carry trade provides opportunities for those with patience. CAD/CHF, USD/CHF, EUR/CAD, and even EUR/USD serve as potential positions. No trend, no trade? Not so fast, as markets with low volatility still provide opportunities. Volatility in foreign exchange markets has been falling, with EUR/USD – arguably the most popular … “Four carry trade currency pairs in 2020”
EUR/USD: Elevated N-Term Risks Of Further EUR Weakness – MUFG
EUR/USD is hovering around 1.09 and waiting for the next hammer to fall. Where next? Here is their view, courtesy of eFXdata: MUFG Research discusses EUR/USD outlook and adopts a tactical bearish bias in the near-term. “The data from the euro-zone today have certainly shifted out short-term view for the euro given the scale of weakness … “EUR/USD: Elevated N-Term Risks Of Further EUR Weakness – MUFG”
Possible H&S on GBP/CAD with Neckline at 1.7160
The Great Britain pound versus the Canadian dollar currency pair seems to have a head and shoulders chart pattern coming in its way. Long-term perspective After starting the ascending movement from the support area of 1.5936, the price extended all the way to the resistance level of 1.7811. From 1.7811, a strong fall took place, one that was tempered by 1.6986, from where another appreciation commenced and confirmed 1.7499 as resistance. The retracement from … “Possible H&S on GBP/CAD with Neckline at 1.7160”
US Dollar Slips on Jerome Powell Testimony, Labor Conditions
The US dollar is trading modestly lower on Tuesday as Federal Reserve Chair Jerome Powell testified in front of lawmakers. The greenback is also heading lower on mixed economic data that showed a tightening labor market but growing business optimism. Despite the greenback taking a breather, the buck is still enjoying a strong start to 2020. During his semi-annual appearance in front of the House Financial Services Committee, Powell stated some … “US Dollar Slips on Jerome Powell Testimony, Labor Conditions”
Euro Recovers From Fresh 2020 Lows on ECB Chief Lagardeâs Testimony
The euro today traded sideways against the US dollar before falling to its daily lows in the mid-European session driven by the prevailing risk-off market sentiment. The EUR/USD currency pair recovered and rallied higher in the early American session following the release of the ECB Governor Christine Lagarde‘s testimony. The EUR/USD currency pair today fell … “Euro Recovers From Fresh 2020 Lows on ECB Chief Lagardeâs Testimony”
Dollar may rise and fall now that Trump’s approval rating hits multi-year highs
President Trump’s approval rating is near the levels seen just after his inauguration. The Senate acquittal, messy Democratic Party primaries, and a strong economy are behind the rise. The US dollar has room to rise for a limited time, with Trump potentially sending it lower. Making the dollar great again? Paraphrasing President Donald Trump’s 2016 election … “Dollar may rise and fall now that Trump’s approval rating hits multi-year highs”