Biden – MaiMarFX

More USD Gains Ahead?

January 11, 2021/in General News & Updates /by MaimarFX

Welcome everyone to a new trading week!

This week started with some corrective movements in the market as investors evaluate stretched valuations while becoming more cautious on global shares at recent high levels. The U.S. dollar rose against its major peers and higher yields could buoy the demand for the greenback.

Friday’s nonfarm payrolls report disappointed, showing the economy shed 140,000 jobs in December instead of adding 71,000 as expected but it was the unexpectedly spike in wage growth to a seven-month high of 5.1 percent on-year which has helped the dollar gaining some ground in the aftermath of the report.

Traders anticipate that incoming fiscal stimulus will underpin employment, which is why the market could shift away from dovish extremes on Federal Reserve policy expectations.

President-elect Biden pledged to lay out plans for another fiscal stimulus boost on Thursday.

While the longer-term outlook for the dollar remains bearish, we could see more USD gains in the near-term.

EUR/USD

The pair bounced of the 1.2350-barrier and could now be heading towards a designated support zone around 1.2080-60, from where buyers could swoop in. A break below 1.2050, however, would shift the focus toward a crucial support at 1.20. On the upside, we will keep an eye on a break above 1.2275 which could prompt bulls for a test of 1.24.

GBP/USD

The cable formatted a recent downtrend channel with a lower support zone seen between 1.3460 and 1.34. Bulls may attempt to push the pound higher when hitting the 1.3450-mark but if the pair drops below 1.34, we may see further losses towards 1.3330. A current resistance is, however, seen at 1.36.

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

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U.S. Election Day: What Traders Should Pay Attention To

November 3, 2020/in Advice & Tips, Analysis, General News & Updates /by MaimarFX

This content is for EUR/USD, GBP/USD, DAX and EUR/USD, GBP/USD, DAX members only.
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This Week To Set The Tone Until Year-End

November 2, 2020/in General News & Updates /by MaimarFX

Dear traders,

We welcome you to a crucial trading week that has a potential to set the tone for financial markets for the rest of the year.

The main event will be tomorrow’s U.S. election, with Democratic nominee Joe Biden leading President Donald Trump in polls. However, the senate may matter more for the markets than the President since a so-called “blue wave” (Democratic sweep) scenario is believed to be priced in and if Biden wins the presidency but his party does not gain enough seats in the Senate than we will have the worst scenario for the market.

In short, a divided government will be poison for the markets while a shift in control in the Senate (blue wave congress) could quickly pass a large stimulus plan, which is considered market friendly. But we bear in mind, that despite a Biden lead, Trump has a narrow but viable path to an election win, even though the surprise 2016 election result is less likely this time.

Given the fact that the coronavirus pandemic is driving record numbers of people to vote by mail and counting all votes could take days, or weeks we may need to wait longer than usual to learn who won the presidential race this year.

Whatever the outcome, we will prepare for swings on either side to get the best out of the market’s reaction.

While the U.S. election is front and center in the coming days, we also have the Bank of England and Federal Reserve meeting (Thursday) as well as the U.S. labor market report (Friday) on this week’s calendar.

The Bank of England is widely expected to add to its own bond-buying program as new coronavirus lockdowns put pressure on policy makers to act. The new lockdown in U.K. could also bolster talk of negative interest rates, which could weigh on the pound.

The Federal Reserve, which also meets this Thursday, has signaled that it’ll do what’s needed to keep borrowing costs contained.

This week will most likely be accompanied by a sharp rise in volatility, which is why traders should prepare for larger and sharper market movements.

We wish everyone good trades and hopefully a good profit!