Trump’s tariffs on steel and aluminum put the phrase “trade wars” back into vogue. What are trade wars? How do they move currencies? What can we expect going forward? Here are some answers to trade wars. What are trade wars? The term trade war refers to countries imposing tariffs or other trade limitations such as … “What are trade wars and how do they affect currencies”
Category: Opinions
A lot of thin air between USD/CAD and the next support line — Confluence Detector
The Technical Confluences Indicator shows that the USD/CAD broke under a dense cluster of technical support levels around C$1.2915 on its way down. This level is the confluence of the SMA50-15m, the SMA-10-4h, the SMA5-1h, the SMA10-1h, the SMA200-15m, the Bolinger Band 1h Middle-Stdv, the SMA100-15m and more lines. This dense cluster now turns into strong resistance. The pair fell … “A lot of thin air between USD/CAD and the next support line — Confluence Detector”
Dollar dives on reluctant dot-plot upgrade
The Federal Reserve raised rates as expected but left the interest rate forecast for 2018 at three hikes. The Fed did upgrade the forecast for 2019, 2020, and the long-term, but the moves are limited. The US Dollar does not like this cautious approach and drops across the board. The FOMC decided to raise the interest rate … “Dollar dives on reluctant dot-plot upgrade”
EUR/USD: No Change In S/T Story (A Tired Rally) Or L/T Story (Heading To 1.30) – SocGen
The euro lost some ground the dollar in limited range trading. However, this tired rally may make way for gains down the road. Here is their view, courtesy of eFXnews: Societe Generale Cross Asset Strategy Research discusses EUR/USD outlook and maintains its bullish medium-term bias over the coming months. “EUR/USD tested 1.2450 and then fell just below … “EUR/USD: No Change In S/T Story (A Tired Rally) Or L/T Story (Heading To 1.30) – SocGen”
EUR/USD: Strategic Bulls Need To Be ‘Prudent & Patient’ To Navigate More Choppiness Ahead – SocGen
EUR/USD is leaning to the downside as the greenback gains strength. What’s next? Here is their view, courtesy of eFXnews: Societe Generale Cross Asset Strategy Research discusses EUR/USD outlook and maintains its bullish medium-term bias over the coming months, advising strategic EUR bulls need to be patient in order to navigate more choppy price action ahead. “EUR/USD … “EUR/USD: Strategic Bulls Need To Be ‘Prudent & Patient’ To Navigate More Choppiness Ahead – SocGen”
Is the Oil Rally on the Rise?
Aside from cryptocurrencies being the main subject of the markets recently, commodities are reaching new heights with crude oil on the rise with solid growth. For the first time since 2014, Brent oil reached $71 per barrel, as well as WTI crude futures rising to $66.35 per barrel, the highest price mark since December 2016. Both … “Is the Oil Rally on the Rise?”
EUR/USD: Expect A Knee-Jerk Reaction From Next Week’s ECB Meeting – Danske
The European Central Bank is expected to leave the rates unchanged but may tweak its statement. What is on the cards? Here is a preview from Danske. Here is their view, courtesy of eFXnews: Danske Research discusses its expectations for next week’s ECB meeting and the likely EUR/USD reaction around the meeting. “The increasingly more complicated … “EUR/USD: Expect A Knee-Jerk Reaction From Next Week’s ECB Meeting – Danske”
EUR/USD: Further Correction Likely N-Term As European Investors Left ‘Over-Hedged’ – Barclays
The euro is rising amid a better market mood but remains in a wait-and-see mode. Can it continue higher? Here is their view, courtesy of eFXnews: Barclays Capital Research discusses EUR/USD this week and thinks that further risk reduction should continue to weigh on the pair. “Investors seem most heavily positioned in growth-sensitive currencies, including the … “EUR/USD: Further Correction Likely N-Term As European Investors Left ‘Over-Hedged’ – Barclays”
USD/CAD: Canada’s January Jobs Report A ‘Mysterious Mix Of Good And Bad’ – CIBC
Canada lost 88K jobs and saw the unemployment rate rise to 5.9%. But it is not only bad news. Here is the view from CIBC: Here is their view, courtesy of eFXnews: CIBC Research discusses the reaction to today’s Canada’s jobs report for the month of January. “Market participants are getting schooled in the ways … “USD/CAD: Canada’s January Jobs Report A ‘Mysterious Mix Of Good And Bad’ – CIBC”
AUD/USD, NZD/USD: The Sinking Antipodes; What’s The Trade? – TD
The sell-offs in financial markets are beginning to bite the risk currencies. Both the Australian and the New Zealand dollars are under growing pressure. What is the trade? Here is their view, courtesy of eFXnews: TD Research discusses AUD and NZD outlook and notes that a mix of negative risk sentiment, reticent central banks, and softer … “AUD/USD, NZD/USD: The Sinking Antipodes; What’s The Trade? – TD”