The Canadian dollar gained some ground with the recovery in oil prices. Where can it go? Here is their view, courtesy of eFXdata: Danske Research discusses the oil prices outlook and projects further recovery ahead which should be CAD positive, keeping USD/CAD under pressure in Q1. “The price on Brent crude rose above USD60/bbl yesterday. Oil … “CAD: Oil Prices Set For Further Recovery Towards An Average Of USD65/bbl in Q1 – Danske”
Category: Opinions
USD/JPY finds new reasons to fall
USD/JPY fell again, this time due to the dollar’s weakness US retail sales and politics will take center-stage. The technical picture is bearish for the pair. This was the week: Fed goes dovish After Powell offered patience and opened the door to changing the balance sheet policy, Fed officials took further steps to the dovish … “USD/JPY finds new reasons to fall”
GBP/USD looks attractive as prospects of an Article 50 delay rise
The UK government and parliament are “boxed in” with 78 days until Brexit. There are growing chances of delaying Article 50. GBP/USD could benefit from kicking the can down the road. The UK government lost two procedural votes related to the all-important Brexit vote on January 15th. It is hard to see how OM Theresa … “GBP/USD looks attractive as prospects of an Article 50 delay rise”
Brexit vote -5 scenarios and GBP/USD reactions after May loses
The UK government delayed the vote that was scheduled for December due to prospects of a defeat. PM Theresa May toured Europe in an attempt to secure concessions about the Irish backstop issue, but her counterparts were only willing to provide clarifications but no changes to the legal text. She was hoping that the ticking … “Brexit vote -5 scenarios and GBP/USD reactions after May loses”
CAD: Has Some Wood To Chop Into BoC Targeting USD/CAD At 1.32 – TD
The Canadian dollar traded in a choppy manner amid significant volatility in oil prices. The focus now shifts to the rate decision by the Bank of Canada. What will the BOC do? Here is their view, courtesy of eFXdata: TD Research discusses USD/CAD outlook into tomorrow’s BoC policy meeting and likes more downside through the … “CAD: Has Some Wood To Chop Into BoC Targeting USD/CAD At 1.32 – TD”
Germany at risk of recession and this weighs on EUR/USD
Germany suffered yet another month of drops in its industrial output. The ECB may be forced to cut its forecasts and delay its rate hike. EUR/USD could come under pressure regardless of a dovish twist by the Fed. German Industrial Production dropped by a whopping 1.9% in November, far worse than an increase of 0.3% … “Germany at risk of recession and this weighs on EUR/USD”
USD: Stretched USD Set For A Weak Path Coming Months; Where To Target? – MUFG
The US Dollar is now attempting to recover from the blow it received from Jerome Powell’s dovish speech. What can we expect down the road? Here is their view, courtesy of eFXdata: MUFG Research discusses the USD outlook and maintains a structural bearish bias through the year. MUFG current DXY-related currency forecasts imply a 6.3% dollar depreciation … “USD: Stretched USD Set For A Weak Path Coming Months; Where To Target? – MUFG”
Bitcoin: 3 reasons why it is set to rally
BTC/USD trades in a narrowing wedge at the wake of the new year. There are three reasons why the grandaddy for cryptocurrencies should rise. The charts show BTC/USD is trading in a narrowing wedge with rising momentum. The experts poll shows a sideways move in the short-term. Bitcoin kicked off the year by getting comfortable … “Bitcoin: 3 reasons why it is set to rally”
NFP is good for the dollar, but there’s one exception
December’s jobs report smashed expectations on all measures. The US Dollar is on the rise, but stocks can send it lower against the yen. The Fed’s balancing act becomes more complicated. The US gained no less than 312K jobs in December, far above 177K or a slightly higher number as the ADP private sector report … “NFP is good for the dollar, but there’s one exception”
USD/JPY recovery looks temporary
USD/JPY dropped sharply and suffered a “flash crash.” Inflation and services data stand out in the first full week of 2019. The pair looks oversold, but that does not mean it will rise This was the week: Flash crash as fears grow Worries about the state of the Chinese economy, the world’s second-largest, weighed on … “USD/JPY recovery looks temporary”