GBP/USD never fully recovered from the devastating flash crash but the team at Goldman Sachs sees further room to the downside: Here is their view, courtesy of eFXnews: Since we reiterated our 3-month target of 1.20 for GBP/$, Cable has fallen sharply to within striking distance of our forecast*. Given how much Sterling has now fallen, … “GBP: Sterling Is ‘Not Yet Cheap’; It’s Still 10%”
Category: Opinions
AUD/USD: Trading the Australian Employment Change
Australian Employment Change, which is released monthly, provides a snapshot of the health of the Australian labor market. A reading which is higher than the market forecast is bullish for the Australian dollar. Update:Australia loses 9.8K jobs – AUD/USD erases gains Here are the details and 5 possible outcomes for AUD/USD. Published on Thursday at … “AUD/USD: Trading the Australian Employment Change”
EUR: How to Trade A ‘Quite Dovish’ Draghi This Week?
The ECB convenes once again, and this time we could get some hints about action in December. Will the ECB expand or taper QE? Here is the preview from Bank of America Merrill Lynch: Here is their view, courtesy of eFXnews: Our base case is that the ECB will confirm that tapering “has not been … “EUR: How to Trade A ‘Quite Dovish’ Draghi This Week?”
GBP/USD: Trading the British Claimant Count Change
The UK Claimant Count Change measures the change in the number of people claiming unemployment benefits. Along with the Unemployment Rate indicator, which is released at the same time, it provides a snapshot of the UK employment situation and could affect the direction of GDP/USD. Update: UK jobless claims rise only 0.7K Here are the details and 5 … “GBP/USD: Trading the British Claimant Count Change”
Bank of England braces for a surge in inflation
The sterling’s over 3.5% plunge a week ago, sending the exchange rate of sterling to 1.2179 a dollar on the back of the British PM announcing a Brexit timeline has rekindled focus on monetary policy in the United Kingdom. After the initial knee-jerk reaction to the June 23 referendum results, the sterling enjoyed a momentary … “Bank of England braces for a surge in inflation”
Adjusting GBP Lower And For Longer: New Targets – Morgan
The pound continued suffering after the big flash crash and there may be more in store. And for longer. Here is the view from Morgan Stanley: Here is their view, courtesy of eFXnews: Bottom Line: We are changing our forecasts to expect more GBPUSD weakness in coming quarters and little recovery next year. The higher probability of … “Adjusting GBP Lower And For Longer: New Targets – Morgan”
Something Really Strange Is Happening In Markets With Implications
Correlations we got used to are changing, and this is significant. What does it mean to for the dominant dollar? Here is the view from Deutsche Bank: Here is their view, courtesy of eFXnews: Something strange is happening in markets. While the dollar and the oil price have historically moved in opposite directions the correlation has suddenly … “Something Really Strange Is Happening In Markets With Implications”
GBP: Calibrating The Current GBP Decline; What’s Next? –
The pound remains under pressure after the big flash crash. The team at Bank of America Merrill Lunch analyzes the next moves for the pounded pound: Here is their view, courtesy of eFXnews: The initial sell-off in GBP/USD following the EU Referendum was immediate and resembled the price action in 1992 when the pound was ejected … “GBP: Calibrating The Current GBP Decline; What’s Next? –”
September payrolls: Neither here nor there
Summary: US economy posts 72 consecutive months of positive jobs However, jobs slow for the third consecutive month July/August payrolls revised lower by 7k Fed’s Mester: 75k – 120k needed to keep unemployment stable (3-month average of +190k) Participation rate rises from 62.8% to 62.9% Wages up 2.60% from a year ago Following a steady … “September payrolls: Neither here nor there”
EUR/USD: Watching The Daily Triangle For Breakout Signals –
EUR/USD was shaken by the pound flash crash but remained in range. The team at JP Morgan analyzes the numbers: Here is their view, courtesy of eFXnews: EUR/USD failure to stabilize above a projected E-wave target at 1.1347 (int. 61.8 %) seven weeks ago leaves EUR/USD at great risk of having completed a 1 ½ year old … “EUR/USD: Watching The Daily Triangle For Breakout Signals –”