Register

If this is your first visit, please click the Sign Up now button to begin the process of creating your account so you can begin posting on our forums! The Sign Up process will only take up about a minute of two of your time.

Follow us on Facebook Follow us on Twitter Linked In Watch us on YouTube Blogger
Your Banner Here
You cannot rate threads
0
 
Thankx Thankx:  0
Recommend Recommend:  0
Page 3 of 93 FirstFirst 123451353 ... LastLast
Results 21 to 30 of 928
  1. #21

    Forex Major Currencies Outlook (March 8, 2013)

    USD: Bullish

    The U.S. dollar lost ground to the euro and the pound during yesterday’s trading as both European currencies staged relief rallies when their respective central banks decided to make no changes to current monetary policies. However, all that could reverse today with the U.S. non-farm payrolls report on tap. The report could print a 162,000 increase in hiring for the month of February and this should keep the unemployment rate steady at 7.9%. A stronger than expected figure could provide support for the U.S. dollar since the Fed is closely monitoring progress in the labor market in considering when to taper off their asset purchases. A weaker than expected reading, on the other hand, might result in a dollar selloff as this would suggest that the U.S. economy will have trouble staying afloat once the job cuts from the sequestration kick in.

    EUR: Bullish

    The ECB decided to keep interest rates unchanged and their ongoing easing programs at their current levels as Governor Mario Draghi highlighted the progress in the euro zone. He did point out some downside risks to growth, along with the political uncertainty in Italy, but mentioned that the central bank isn’t committed to rate changes at the moment. This relatively upbeat statement was enough to push EUR/USD above the 1.3000 handle and back to the 1.3100 area, which is acting as resistance for now. There are no other economic events scheduled in the euro zone today as euro pairs could continue to trade on the positive sentiment resulting from yesterday’s ECB decision.

    GBP: Bearish

    Many were surprised to hear that the Bank of England didn’t make any additional asset purchases during their latest interest rate decision as BOE Governor Mervyn King previously voted to implement further stimulus. The BOE’s interest rate was also kept steady at 0.5%. This was enough to push GBP/USD back above the 1.5000 major psychological level to a high of 1.5080, but the pair was unable to sustain its rally. This reveals that market participants still believe that the lack of easing this time just increases the odds of further easing next time.

    Commodity Currencies (AUD, NZD, CAD): Neutral



    The Australian dollar and New Zealand dollar moved sideways during yesterday’s trading sessions as there were no major reports from Australia and New Zealand. Canada printed mixed economic reports as building permits came in below expectations while their trade balance showed a smaller than expected deficit. There are no major reports due from these commodity-dependent economies today as AUD/USD, USD/CAD, and NZD/USD could take their cues from the U.S. NFP release.

    JPY: Bearish

    USD/JPY just made a strong break above the 94.00 handle and seems to be making a beeline for the 95.00 mark, which could act as resistance. However, the U.S. NFP is set for release today and a stronger than expected figure could push the dollar up against the yen. Improved risk sentiment, particularly for the European currencies, is also weighing on the lower-yielding Japanese yen for now.

    CHF: Bullish

    The Swiss foreign currency reserves report released yesterday revealed that the SNB has already spent ten times as much as it did last year on keeping their franc peg. The total amount of foreign currency reserves now amounts to nearly 75% of their GDP, prompting market participants to think that the central bank might no longer be able to afford to keep the franc’s value down later on. This triggered a franc rally as sellers closed off their short Swissy positions.

    By Kate Curtis from [Only registered and activated users can see links. ]

  2. #22

    Forex Major Currencies Outlook (March 11, 2013)

    USD: Bullish

    The U.S. dollar enjoyed a nice strong rally after the NFP figure came in higher than expected. The U.S. economy was able to add 236K jobs in February, higher than the estimated 162K increase. Although the previous month’s reading was revised down from 157K to 119K, the jobless rate was still able to drop from 7.9% to 7.7% in February. Since the Fed is closely monitoring improvements in the jobs market as part of their consideration in tapering off asset purchases, demand for the U.S. dollar jumped right after the upbeat figures were posted. There aren’t a lot of reports due from the U.S. at the first half of this week, which suggests potential consolidation for the next few days with a slight bullish bias towards the U.S. dollar because of its safe-haven status and relatively stronger economic standing.

    EUR: Neutral

    There are no major reports due from the euro zone this week as EUR/USD continues to test the 1.3000 major psychological support level. Only the German trade balance and French industrial production reports are on tap for today and these aren’t likely to trigger a strong break or bounce from the 1.0300 area. Keep an eye out for any political updates from Italy as these could result in surprise moves for the euro anytime within the week.

    GBP: Bearish

    The combination of weak U.K. economic outlook and strong U.S. economic data triggered a convincing break below 1.5000 for GBP/USD. The pair gapped down over the weekend and could continue to move lower for the rest of the week. However, a retest of the 1.5000 handle could be in the cards if profit-taking takes place as the U.K. isn’t set to print any major reports for today.

    AUD: Bullish

    Despite the Aussie selloff that took place after the U.S. NFP release, AUD/USD remains well above the 1.0200 major psychological support level. After all, Australia has also been enjoying strong economic reports recently while the RBA asserted that their recent easing efforts are appropriate and are just starting to take effect. No reports are due from Australia during the first few days of this week as AUD/USD could keep testing the 1.0200 area, but employment data due on Thursday could trigger either a bounce or a break depending on the actual results.

    NZD: Bearish

    NZD/USD seems to be forming a new range between the .8200 and .8300 major psychological levels as traders await the RBNZ rate decision later on this week. RBNZ head Graeme Wheeler seemed to hint at a rate cut during his one of his recent speeches, which suggests that traders could start pricing in negative expectations for the actual event as early as today.

    CAD: Bullish

    The Canadian dollar was the only major currency able to avoid a bloodbath from the upbeat U.S. NFP data as the Canadian economy also posted strong jobs growth during the period. Canada showed a 50.7K increase in hiring, higher than the estimated 7.8K growth and huge improvement from the previous month’s 21.9K drop in hiring. This was enough to keep their jobless rate steady at 7.0% instead of rising to 7.1%. No economic data is set for release from Canada this week but the recent labor figures could keep the Loonie afloat.

    JPY: Neutral

    USD/JPY broke above the 94.00 major psychological resistance and reached the 96.50 area during the NFP release on Friday yet the Japanese yen still managed to gain against its other counterparts. This suggests that traders are still risk averse, to the benefit of the lower-yielding yen. Data from Japan has been mixed so far as core machinery orders came in weak while M2 money supply beat expectations. BOJ monetary policy meeting minutes and Japan’s tertiary industry activity index are due today and these could result in clearer yen price action.

    By Kate Curtis from [Only registered and activated users can see links. ]

  3. #23

    Forex Major Currencies Outlook (March 12, 2013)

    USD: Neutral

    There are no major reports due from the U.S. or other major economies today so dollar pairs could simply move sideways for the rest of the day. Keep in mind though that there are ongoing tensions between North and South Korea again, which could boost risk appetite and the U.S. dollar. However, the Federal budget balance release during the U.S. session could revive concerns about sequestration, which could keep dollar rallies at bay.

    EUR: Neutral

    The lack of reports from the euro zone could keep EUR/USD stuck inside its range for the time being as it currently found support near 1.3000 and resistance close to 1.3100. Last week, the ECB kept rates on hold but Draghi affirmed that the euro zone would rebound later on in the year and this could keep EUR/USD above 1.3000.

    GBP: Bullish

    The pound has been selling off aggressively so there might be some profit-taking at the start of this week as there are no top-tier data due from the UK. The manufacturing production and trade balance, which are just medium-tier reports, could have a bit of impact on pound movement. Manufacturing production is projected to stay flat in January while the trade deficit is expected to shrink slightly from 8.9 billion GBP to 8.8 billion GBP.

    JPY: Bearish

    USD/JPY has been on a tear lately as the pair recently broke past the 96.50 level. This suggests that yen bears have enough firepower left to eventually push the pair even higher. Tensions in the Korean peninsula could be negative for Asian currencies as the region is being put at peril. Earlier this week, Japan’s tertiary industry activity index missed expectations and posted a 1.1% decline.

    Commodity Currencies (AUD, CAD, NZD): Neutral

    Commodity currencies are moving sideways for the past few days as there are no major reports so far. AUD/USD is stuck between 1.0200 and 1.0300 while NZD/USD is cruising below the .8300 mark. USD/CAD has also taken a break from its rallies and is currently moving between 1.0225 and 1.0300. The top-tier reports aren’t due until Thursday when the RBNZ will make its monetary policy statement and Australia will print its employment report but be wary of traders that are pricing in expectations as early as today.

    By Kate Curtis from [Only registered and activated users can see links. ]

  4. #24

    Forex Major Currencies Outlook (March 13, 2013)

    USD: Bullish

    The U.S. is set to release its retail sales report for February at 1:30 pm GMT today. The headline figure could show a 0.5% increase while the core version of the report could also show a 0.5% uptick as well. Take note that the U.S. NFP for February came in much stronger than expected as the economy added 236K jobs during the month, effectively bringing the jobless rate down from 7.9% to 7.7%. Jobs growth tends to result in stronger consumer spending, which hints at a potential upside surprise for the U.S. retail sales figures. Positive U.S. data has been boosting the Greenback these days as markets are trading on fundamentals.

    EUR: Neutral

    EUR/USD has been holding its ground above the 1.3000 major psychological level as it continues to move mostly sideways for the week. Perhaps the lack of economic events and political updates from the euro zone is to blame for the pair’s range-bound behavior, which could continue unless we see a significant shift in market sentiment.

    GBP: Bearish

    Although there are no major reports from the U.K. today, yesterday’s weak manufacturing production release could be enough to trigger another round of pound selling. The report chalked up a surprisingly huge 1.5% decline for January, its steepest decline in months, instead of staying flat during the period. This increases the odds that the country will suffer another economic contraction this quarter, putting the U.K. back in a technical recession.

    Commodity Currencies (AUD, CAD, NZD): Bullish

    AUD/USD just broke above the 1.0300 major psychological level yesterday as traders started pricing in positive expectations for the Australian employment report due tomorrow. Meanwhile, NZD/USD is still stuck in a range as traders await the actual RBNZ interest rate decision. Rumor has it that RBNZ head Graeme Wheeler is mulling a rate cut just to keep the Kiwi’s gains in check but other analysts expect no changes in monetary policy at all. If that’s the case, NZD/USD could rally back up to the .8300 major psychological resistance and even make a break above that.

    JPY: Neutral

    The yen has been staying afloat so far this week as traders are still uneasy about buying up higher-risk currencies. Data from Japan has been mixed though as manufacturing showed an improvement while the services sector posted a downturn. No major reports are due from Japan today as the yen could be extra sensitive to risk sentiment as usual.

    By Kate Curtis from [Only registered and activated users can see links. ]

  5. #25

    Forex Major Currencies Outlook (March 14, 2013)

    USD: Bullish

    The U.S. dollar once again found support from stronger than expected economic data during yesterday’s trading. The retail sales figure for February came in at 1.1%, better than the estimated 0.5% uptick, while the core version posted a 1.0% increase for the month. For today, the U.S. will print its PPI and initial jobless claims, both of which could once more boost the U.S. dollar if the actual data comes in strong.

    EUR: Neutral

    There aren’t a lot of catalysts from the euro zone these days as EUR/USD continues to trade carefully below the 1.3000 area. For now, euro pairs are acting sensitive to their counter currencies’ events. In particular, EUR/USD sold off when strong U.S. retail sales boosted the dollar while EUR/JPY edged higher on uncertainty in Japan.

    GBP: Bearish

    GBP/USD seems to have found resistance close to 1.5000 during yesterday’s trading as strong U.S. retail sales prevented the pair from heading any higher. There are no major reports from the U.K. today but the downbeat outlook for the U.K. and expectations of further BOE easing could continue to weigh the pound down.

    AUD: Bullish

    The Australian economy just printed a very strong jobs report for February as the economy added 71.5K jobs during the quarter and kept the jobless rate steady at 5.4% instead of rising to 5.5%. This suggests that the jobs sector is making a strong rebound and doesn’t need further stimulus from the RBA. On top of that, the previous month’s figure enjoyed an upward revision from 10.4K to 13.1K

    NZD: Bearish

    The Kiwi sold off aggressively after the RBNZ delivered its monetary policy statement during today’s Tokyo session. The central bank did keep rates on hold at 2.50% as expected but Wheeler noted the downturn in domestic economic activity. He blamed the worsening drought conditions and the strength of the New Zealand dollar for this slowdown, citing that the Kiwi is overvalued by 10-15%.

    By Kate Curtis from [Only registered and activated users can see links. ]

  6. #26

    Forex Major Currencies Outlook (March 15, 2013)

    USD: Neutral

    The U.S. dollar lost a lot of ground to its major currency counterparts during yesterday’s trading as we saw a short squeeze, particularly for GBP/USD and EUR/USD. It seems that the selloffs are no longer able to carry on and most traders simply decided to book profits at the pairs’ previous lows. Data from the U.S. has been mostly strong as the PPI and core PPI came in line with expectations while the initial jobless claims report printed a better than expected figure. Watch out for today’s set of data (CPI, core CPI, Empire State manufacturing index, and University of Michigan consumer sentiment figure) during the New York session as these could confirm whether the U.S. dollar is still trading on fundamentals or has shifted to risk sentiment.

    EUR: Bearish

    The euro may have outpaced the U.S. dollar by a huge lead during yesterday’s trading as most traders decided to close out their short euro positions at the pair’s recent lows. However, there’ s a chance that the recent EUR/USD rally might not have enough energy to stay above the 1.3000 major psychological level for long as fundamentals in the euro zone are still very weak. Take note though that EU officials are having their economic summit today until the end of the week, which might be an event risk for euro pairs.

    GBP: Bearish

    The sterling was also able to outrun the U.S. dollar during yesterday’s trading as GBP/USD successfully broke above the 1.5000 major psychological level and later on the 1.5100 major psychological level. Some say that this was simply a result of a short squeeze for the pair as traders locked in their profits on their short pound positions. After all, fundamentals in the U.K. are still shaky and the BOE is still inclined to implement further easing. If the rally shows signs of fading, watch out for potential reversals around the major and minor psychological levels, possibly during the U.S. session.

    AUD: Neutral

    It looks like the recently released strong jobs figures from Australia were a fluke as their statisticians reported an error in the report. However, the Australian dollar still managed to rally strongly against the U.S. dollar, mostly because of the recent short squeeze. No major reports are due from Australia for the rest of the day as the pair’s rally could retreat upon reaching the 1.0400 major psychological level, depending on how U.S. economic releases turn out.

    NZD: Neutral

    Despite the downbeat RBNZ rate statement wherein Wheeler talked about the overvalued Kiwi, the New Zealand dollar was able to pocket huge gains against the U.S. dollar as it rallied back above .8200 during yesterday’s U.S. session. If the effect of the short squeeze lasts until the end of the week, the Kiwi could keep rallying to its previous highs. On the other hand, if the rally fizzles, NZD/USD could be on its way to test the .8200 support once more.

    JPY: Bullish

    Japanese Prime Minister Shinzo Abe seems to be having a tough time garnering enough support for Iwata, who he wants to appoint as deputy governor of the BOJ. Iwata is a known dove, just like the newly appointed BOJ head Kuroda, and putting him in position would mean more aggressive policies to ward off deflation and weaken the yen. Unless Abe is able to get enough votes for Iwata’s nomination though, the yen could continue to gain steadily.

    By Kate Curtis from [Only registered and activated users can see links. ]

  7. #27

    Forex Major Currencies Outlook (March 18, 2013)

    USD: Bearish

    Several weekend gaps were made after the short squeeze took place last week as most major currency pairs opened right where they were prior to the profit-taking on Thursday and Friday. This presents an opportunity for weekend gaps to get filled as there are no top-tier economic reports from any of the major economies today. Take note though that the FOMC interest rate decision is coming up midweek and traders could also start pricing in expectations for the event.

    EUR: Bullish

    The euro underwent a strong rally on Friday as traders continued to book their profits from their recent short trades. However, EUR/USD started the week back below the 1.3000 major psychological level, revealing that the sentiment for the region is still dovish. Nonetheless, with an empty euro zone economic schedule for the day, traders could close the weekend gap and allow the pair to pullback to the 1.3000-1.3050 levels.

    GBP: Neutral

    After making a strong rally towards the end of the week, GBP/USD is now treading carefully above the 1.5100 major psychological support. There are a bunch of top-tier reports due from the U.K. this week, namely the MPC meeting minutes and claimant count change, along with the CPI and retail sales data. Pound pairs could be in for sideways trading prior to the release of these reports.

    AUD: Bullish

    There are no reports due from Australia today but traders could start pricing in their expectations for an upbeat RBA monetary policy meeting minutes release tomorrow. Recall that the central bank decided to keep rates unchanged during their recent monetary policy decision as RBA Governor Stevens reiterated that the previous easing efforts are just starting to kick in. After that, Australia started printing strong economic figures, which could mean that the RBA might be more hawkish about the country’s economic prospects this time.

    NZD: Neutral

    Although last week’s RBNZ monetary policy announcement revealed that Governor Wheeler thought that the Kiwi strength was undermining economic growth, NZD/USD managed to rally from the short squeeze that took place before the end of the week. This week, the downbeat assessment for the New Zealand economy could be highlighted by the GDP release later on this week. Until then, NZD/USD could trade carefully for the next few days.

    CAD: Netural

    USD/CAD price action is still much choppier compared to most major currency pairs as fundamentals in Canada haven’t been very clear. This week, the Canadian retail sales release should provide more insight on how the economy is performing as consumer spending takes up a huge chunk of overall economic growth.

    JPY: Bearish

    BOJ Deputy Governor nominee Iwata was finally able to secure enough votes to take his position in the central bank. This means that the doves Kuroda and Iwata are heading the BOJ and that we could expect aggressive easing measures down the line as Japan tries to fight deflation and keep the yen’s value down. Traders just booked their short yen profits recently though, which suggests USD/JPY could pull back to the 94.00 area of interest though before resuming its rally.

    By Kate Curtis from [Only registered and activated users can see links. ]

  8. #28

    Forex Major Currencies Outlook (March 19, 2013)

    USD: Bullish

    Weekend gaps on most dollar pairs seem to have been filled at the moment, except for the large one on EUR/USD. Risk is off in the markets at the moment as equities have been sliding and higher-yielding assets are selling off, suggesting a potential safe-haven dollar rally. There are no major reports due from the U.S. today as only building permits and housing starts data are due during the U.S. session. Building permits could climb from 0.90 million to 0.93 million while housing starts are projected to rise from 0.89 million to 0.92 million in February.

    EUR: Bearish

    The recent bailout in Cyprus is wreaking havoc in the financial markets as traders started to get jitters about a comeback of the euro zone debt crisis. Although Cyprus is just a small country in the region, contagion is still possible to other banks in the area. As for economic releases, the German ZEW economic expectations and overall euro zone ZEW economic expectations data are due during the London session today. The German ZEW could dip from 48.2 to 47.9 for the current month while the euro zone figure is expected to climb from 42.4 to 43.7. Weaker than expected results could trigger a sharper euro selloff.

    GBP: Bearish

    The pound was able to take advantage of the short squeeze that took place late last week but GBP/USD and GBP/JPY are currently consolidating as traders await the release of the U.K. CPI and the BOE inflation report. Consumer prices are projected to be up by 2.8% on an annual basis, higher than the previous reading of 2.7% but still within the central bank’s target. In case the actual figure moves out of the government’s target, the BOE will have to submit an Inflation Letter to the Chancellor explaining why it happened and what the central bank plans to do.
    CHF: Neutral
    There are no reports due from Switzerland today but the Swiss franc is being closely watched by European traders seeking a safer currency. The gap on USD/CHF hasn’t been filled yet, which suggests a potential selloff for the pair at least back to the .9400 major psychological support level.

    JPY: Neutral

    USD/JPY found support at the 94.00 previous resistance level and appears ready to test its recent highs around 96.75. There are no major reports due from Japan today or tomorrow as Japanese banks will be off on a holiday. EUR/JPY’s weekend gap still hasn’t been filled as the pair hasn’t reached the 124.50 minor psychological resistance yet.

    Commodity Currencies (AUD, CAD, NZD): Neutral

    Canadian wholesale sales and manufacturing sales are scheduled for release during the New York session and these reports could provide enough volatility for USD/CAD. Both reports are expected to print rebounds for January, as manufacturing sales could increase by 0.7% while wholesale sales might rise by 0.4%, suggesting a recovery in consumer spending later on. As for the Australian dollar, the RBA just released the minutes of their latest monetary policy meeting and noted that the economy has shown positive signs lately. No economic reports are due from New Zealand.

    By Kate Curtis from [Only registered and activated users can see links. ]

  9. #29

    Forex Major Currencies Outlook (March 20, 2013)

    USD: Neutral

    Most dollar pairs could be in for a lot of tight consolidation during today’s trading sessions as traders sit on their hands prior to the FOMC monetary policy statement. Their most recent rate decision included a mention of potential tapering off of monetary policy stimulus in order to keep inflationary pressures in check yet Federal Reserve head Ben Bernanke was quick to dismiss expectations of an early withdrawal of bond purchases. Today’s FOMC rate decision could set the record straight on what policymakers think should be done about the U.S. economy and if we hear of more concrete plans to tighten monetary policy sooner than later, the U.S. dollar could resume its rally. Otherwise, remarks on persistent weaknesses in the economy could trigger a selloff.

    EUR: Bearish

    Lawmakers over at Cyprus rejected the recently announced bailout proposal for the country as this involves an unusual one-time tax on deposits in Cypriot banks. This prompted fears of a bank run as some depositors rushed to withdraw their bank holdings to avoid getting slapped with high tax rates. However, the Cypriot parliament voted against this bailout and seems to be considering asking for extra funding from Russia instead. Unless Cyprus is able to get guarantees of enough liquidity to shore up its troubled banks, it could edge closer to a default which would be very negative for the euro.

    GBP: Bearish

    Pound pairs are trading very carefully these days as yesterday’s inflation releases failed to spark any volatility in GBP/USD. The pair is still stuck around the 1.5100 to 1.5175 area, awaiting for more clues from the U.K. economy. The BOE is scheduled to release the minutes of their latest monetary policy meeting today and this report should shed light on why the central bank still decided to make no changes to its asset purchase program. The minutes would reveal exactly how many policymakers voted for further easing and a higher number this time would reveal that the central bank is becoming increasingly dovish.

    JPY: Neutral

    Japanese banks are on holiday today, which suggests quiet trading for yen pairs. Markets could be more focused on central bank rhetoric from the U.S. which is awaiting the FOMC statement and the U.K. which will soon release the BOE’s monetary policy meeting minutes. This suggests that USD/JPY and GBP/JPY might be more volatile today compared to other yen pairs.

    CHF: Neutral

    The Swiss ZEW economic expectations report, which improved from -6.9 to 10.0, in the previous month is set for release today. Another improvement could boost the franc against the U.S. dollar and the euro while a negative reading could trigger a sharp selloff. Franc rallies have been subdued lately as the SNB remains committed to keep the franc’s value down so selling the franc might yield a larger profit potential.

    Commodity Currencies (AUD, NZD, CAD): Bearish

    The Australian dollar, New Zealand dollar, and Canadian dollar have all been sliding lower against the lower-yielding U.S. dollar for the past few days as risk aversion is hurting the higher-yielding and riskier assets. The ongoing bailout concerns in Cyprus is mostly to blame for the lack of risk appetite even in equity markets as commodity currencies are very sensitive to market sentiment. New Zealand is set to print its Q4 2012 GDP figure today and a 0.9% expansion is eyed versus the previous 0.2% uptick in growth. A stronger than expected figure could boost the New Zealand dollar while a weak one could result in a selloff.

    By Kate Curtis from [Only registered and activated users can see links. ]

  10. #30

    Forex Major Currencies Outlook (March 21, 2013)

    USD: Neutral

    Dollar pairs are stuck in consolidation so far as EUR/USD keeps testing the 1.2950 minor psychological resistance while GBP/USD is still moving sideways around the 1.5100 area. The recent FOMC statement seemed to be a non-event as the Fed kept rates on hold and asset purchases unchanged as expected while Fed head Bernanke didn’t announce anything out of the ordinary. He did reiterate that the central bank would continue to watch employment and inflation very closely in order to determine whether the U.S. economy could survive without monetary policy easing or not. The Fed also lowered their growth forecasts for the year but also predicted slightly lower unemployment later on. For today, jobless claims, existing home sales, and the Philly Fed index are set for release and these reports could spark some volatility among dollar pairs.

    EUR: Bullish

    EUR/USD has been stuck below the 1.2950 minor psychological resistance lately as the weekend gap still hasn’t been filled. EUR/JPY, on the other hand, is making another test of the 124.00-124.50 area as the pair bounced off its previous lows yesterday. Today’s euro zone PMIs could be big movers for the euro pairs as these reports tend to post nearly the same results. Both German manufacturing and services PMIs are expecting to show improvements for February while staying above the 50.0 mark indicating expansion. French manufacturing and services PMIs are projected to stay below 50.0, but the contraction is expected to slow down in February.

    GBP: Neutral

    The recently released BOE meeting minutes did spark a bit of volatility during yesterday’s trading but failed to push GBP/USD in a clear direction. The pair remains stuck just above the 1.5100 mark and it appears that the U.K. retail sales report might be the major catalyst for today. Retail sales are projected to rebound by 0.5% in February after slumping by 0.6% during the previous month. Stronger than expected data could eventually push GBP/USD to break to the upside.

    JPY: Bearish

    The yen sold off against most of its counterparts during yesterday’s trading and might be in for another round today. BOJ Governor Kuroda is scheduled to give his first speech as central bank today and he could outline their plans regarding monetary policy. Remember that Kuroda is a fan of aggressive monetary policy easing, especially since Japan needs to ward off deflation and keep the yen low. Watch out for additional volatility among yen pairs during Kuroda’s speech around 10:00 am GMT.

    CAD: Bullish

    USD/CAD has been consolidating inside a symmetrical triangle on the 1-hour chart as traders await the release of Canadian retail sales today. The report could show that headline consumer spending rebounded by 0.4% this January after slipping by 0.9% in December while core retail sales could recover by 0.6% after dropping by 2.1% in December. Strong figures could push USD/CAD to break to the downside while weak data could trigger an upside breakout.

    AUD: Bullish

    There are no major reports due from Australia today as Aussie pairs could simply react to the recent Chinese PMI release or any changes in risk sentiment. The HSBC flash manufacturing PMI in China came in stronger than expected at 51.7 versus 51.2 and the previous 50.4 reading, reflecting stronger expansion in their manufacturing sector. Since China is Australia’s largest importer, improved manufacturing activity could translate to higher demand for Australia’s commodities.

    By Kate Curtis from Trader's Way

User Tag List

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
All times are GMT +3. The time now is 08:11 PM.
Powered by vBulletin® Version 4.2.3
Copyright © 2017 vBulletin Solutions, Inc. All rights reserved.
DragonByte SEO, Advanced @User Tagging, Advanced Post Thanks / Like, Thread Ratings - vBulletin Mods & Addons Copyright © 2017 DragonByte Technologies Ltd.
All that information inside Forum does not necessarily reflect the opinion of the Forum Management, but expresses the opinion of the writer.
Advertising positioning by Digital Point