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All Quiet In The Market

April 4, 2017 in /by

Dear Traders, It has been a quiet start on Monday with the euro being stuck to a 40-pips range and the cable not showing much effort to break below its recent uptrend channel. The British pound found some halt around the lower barrier of its latest upward trend-channel at 1.2465 but it was unable to […]

Euro Trends Downwards While Pound Remains Stable

March 31, 2017 in /by

Dear Traders, The euro depreciated against the U.S. dollar and fell below 1.07 while the British pound has shrugged off the U.K.’s process of leaving the European Union. One reason for the pound’s resilience is the fact that an expected slowdown of the U.K. economy has not yet materialized. Inflation seems to be accelerating, paving […]

GBP/USD: Upcoming Breakout?

March 30, 2017 in /by

Dear Traders, The U.K.’s formal triggering of Brexit has proved to be a non-event for traders. The market showed little reaction to the Article 50-trigger with the pound trading consolidated between 1.2480 and 1.2385. However, the GBP/USD remains a sell on rallies against the background of uncertain prospects for the U.K. economy and, in a […]

Pound Depreciates Ahead Of Brexit Trigger

March 29, 2017 in /by

Dear Traders, The biggest story on Tuesday was the trend reversal of the British pound. Sterling reversed shy of 1.26 and dropped sharply towards 1.2350. The sharp sell-off was due to the much-anticipated Brexit trigger which will happen today. The formal Brexit process starts around 13:30 local time when a letter personally signed by U.K. […]

Can Euro And Pound Hold Onto Their High Levels?

March 28, 2017 in /by

Dear Traders, The U.S. dollar fell to its lowest level since November as investors assessed the U.S. administration’s ability to push through promised tax cuts and infrastructure spending. That, in turn, raises doubts as to whether the Federal Reserve can raise interest rates as aggressively as had been priced in. Fed chair Janet Yellen will […]

Euro & Pound: Are We Finally Seeing The Long Overdue Correction?

March 24, 2017 in /by

Dear Traders, Trading has been quiet with the dollar-trade losing its attraction. Fed Chair Janet Yellen did not comment on monetary policy when she spoke at a conference in Washington yesterday and market participants are skeptical about whether President Trump’s pro-growth policies will pass through Congress when Republicans did not even agree on a health-care […]

Pound Consolidates – Focus Now On CPI Data

March 21, 2017 in /by

Dear Traders, Those who had been looking for sustained breakouts or extended gains on Monday had been disappointed by the market’s consolidation phase. The pound sterling traded sideways within a 100-pip trading range between 1.2435 and 1.2335. Given the fact that the pound was unable to hold above the 1.24-level, we expect upcoming bearish momentum […]

U.S. Dollar Weakens On Unchanged Fed Forecasts

March 16, 2017 in /by

Dear Traders, The market’s response to the FOMC announcement was as expected. The Federal Open Market Committee raised its benchmark interest rate to a range of 0.75-1.00 percent and continued to project two more hikes in 2017. In a nutshell, since the Fed’s rate hike path remained unchanged from December 2016 there was no new […]

Wild Wednesday: Anything Is Possible, Even A Disappointment Despite Fed Tightening

March 15, 2017 in /by

Dear Traders, It’s Fed-decision day and the waiting finally comes to an end. After several days of range-bound conditions and low volatility, traders now prepare for volatile swings and trend-setting movements. The probability of a Federal Reserve rate hike is completely priced in while the U.S. dollar shrugged off the bullish bias. The greenback’s reluctance […]

Dutch Election Cast Shadows Over EU-Future

March 14, 2017 in /by

Dear Traders, Financial markets got off to a relatively quiet start on Monday as investors remained risk-averse ahead of major risk events on Wednesday. The euro surged briefly to a high of 1.0714 before it started giving up some of its gains. Meanwhile, the outcome of the Dutch election threatens to cast more doubts over […]