Archive for month: November, 2020
Global Equities Rally, U.S. Dollar Weakens
Dear traders,
Global equities were on course for the best month on record amid a usually quiet Thanksgiving holiday week.
The U.S. dollar held its decline while speculation that Coronavirus vaccines and a possibly peaceful presidential transition are steps toward normalization in the economy drove U.S. shares higher and the Dow Jones to a record high.
Elsewhere, the euro benefited from the dollar’s weakness and rose back above 1.19 this morning. Also, the DAX was spurred by the market’s rally and touched an early September-high at 13383.
The only currency pair that treated water Tuesday was the GBP/USD remaining within an 80-pips trading range.
Today we have some key events coming up:
USD: Minutes of the most recent Federal Open Market Committee meeting are due in the evening (19:00 UTC)
USD: U.S. jobless claims, GDP and personal spending data (13:30 & 15:00 UTC)
GBP: U.K. expected today to deliver the government’s spending plans for next year.
We wish you good trades!
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Copyright © All Rights Reserved 2020 MaiMarFX.
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U.S. Dollar Strengthens on Better-Than Expected PMI Data
Dear traders,
The best performer Monday was the British pound that rallied as signs the U.K. and European Union are close to agreeing a trade deal. The latest progress in the development of a coronavirus vaccine bolstered the currency’s upward move.
Bulls in the GBP/USD profited while sterling rose to the highest level since early September. Looking ahead, the potential for progress in Brexit talks, growing optimism for a vaccine and fresh fiscal stimulus should keep the cable supported.
We bear in mind, that a Brexit deal is largely priced in to the pound, which is why a breakdown in talks would see a much larger move lower.
The euro experienced a sharp reversal after the U.S. dollar gained traction on better than expected flash PMI data. The monthly PMI report crushed market forecast as it came in at a five-year high.
From a technical perspective, not much has changed in the EUR/USD. Above 1.1920 gains may be extended towards 1.1960 whereas below 1.1790 the euro may slip towards 1.1690.
The U.S. dollar could experience bullish tailwinds in short-term time frames as robust U.S. economic data could downplay the urgency of another fiscal stimulus package or additional accommodation from the Federal Reserve.
We wish you good trades!
Any and all liability of the author is excluded.
Copyright © All Rights Reserved 2020 MaiMarFX.
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No Big Market Moves
Dear traders,
The British pound rose to a high of 1.3273 Tuesday as the U.K. and European Union edge closer to agreement on longstanding sticking points. A possible breakthrough could be announced as soon as Monday while there is still potential for the negotiations to collapse.
GBP/USD: The cable will now need to overcome the 1.33-1.3310 hurdle and if that bullish breakout happens, we will turn our focus to a higher target at 1.3480. On the downside, the 1.32-level will now play an important role and if the pound falls below 1.3190 we may see a dip toward 1.31.
No Big Market Moves
With the election uncertainty behind us, the market’s focus turned to Covid and the vaccines but we remember that wide distribution of a shot is still months away, which is why big market movements are currently missing. We may get some news on the stimulus front in the next weeks that could breathe new life into the market. We will wait and see.
EUR/USD: We still see a current resistance at 1.1940-50. If the euro, however, falls back below 1.1840 in short-term time frames it may extend losses toward 1.18 and 1.1750.
DAX: Traders should pay attention to breakouts either above 13280 or below 13000 that could generate further bullish or bearish momentum.
We wish you good trades!
Any and all liability of the author is excluded.
Copyright © All Rights Reserved 2020 MaiMarFX.
Follow us on social media:
We are Maite & Marios Krausse, both born in Germany and trade full time in the Foreign Exchange Market (Forex) as independent traders.
Our teamwork began in 1998, when we got to know and love each other. 20 years later after having built our careers, our son was born, making us a happy family. Continue reading...
