Posts

High Volatility Led To Unsteady Currency Movements

/in /by

Dear Traders,

The Bank of England surprised investors with a hawkish twist yesterday and warned that rate hikes may be faster and larger than originally anticipated. This hawkish tone caught the market by surprise and led to high volatility and a short squeeze in GBP/USD. While sterling bulls were able to benefit from the rapid surge to a high of 1.4067, the upward move turned out to be only short-lived and traders had to be quick to take the profit.

To sum it up, the BoE lifted its forecasts for economic growth and said interest rates may need to rise at a steeper pace than previously thought. BoE policymakers now see three rate hikes over the course of three years while the market is now pricing in a 70 percent chance of a rate increase in May, up from nearly 50 percent yesterday.

While the BoE’s hawkishness should pave the way for further gains in the pound, it were high volatility and ongoing Brexit uncertainty that prevented the currency from rising further against the U.S. dollar.

We were able to book a good profit yesterday by trading our daily long signal.

The euro ended the day unchanged against the greenback after it dropped to a low of 1.2212. For euro bears, however, the downward move has proved insufficient to provide a sustained profit. Prices in the EUR/USD narrowed, suggesting that we may see some upcoming breakout of that tight range. If the euro climbs above 1.2265 we may get another test and potential break of 1.2295. A higher target could then be at 1.2330. If the euro, however, falls below 1.2240 it could further decline towards 1.22. A lower target could then be at 1.2150.

There are no major economic reports scheduled for release today. U.K. Manufacturing Production is the only second-tier report scheduled for release at 9:30 UTC.

Have a nice weekend.

Daily Forex Signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2018 Maimar-FX.

www.maimar.co

 

BoE Super Thursday To Provide Trading Opportunity For Sterling Traders

/in /by

Dear Traders,

It’s Super Thursday at the Bank of England, which means we get a rate decision along with the Quarterly Inflation Report and comments from BoE Governor Mark Carney. Today’s meeting is the most important event this week and sterling traders prepare for volatile swings around the monetary policy announcement. The big question among market participants is how hawkish the BoE might be towards the end of this year. The market is fully pricing in a rate increase at the BoE’s Super Thursday in November while market participants see a 50/50 chance of an earlier rate hike in May. If evidence points to a rate rise in May, the pound will rally and may find its way back to 1.42. However, if the tone in today’s statement is not as hawkish as traders are hoping, the pound will fall.

The focus will also be on the inflation report and if economic growth and inflation forecasts are revised higher, GBP/USD could recover some of its recent losses.

There is also the possibility of a muted response following today’s statement. Brexit risks continue to cause uncertainty about the outlook and if those risks have not changed substantially, the market’s reaction to the statement could be muted.

We will know more today at 12:00 UTC.

GBP/USD: The cable found some support around 1.3850 and if this barrier is breached to the downside we expect further losses towards 1.3750. For bullish momentum to accelerate, it would however need a sustained break above 1.40.

EUR/USD: The euro broke out of its recent sideways trend channel and fell towards 1.2240. The break below 1.23 came despite Angela Merkel’s deal with the SPD to form a great coalition in Germany. Technically speaking, the chances are now in favor of further downside potential driving the pair towards 1.2220 and 1.2170. If the euro rises back above 1.2350, bulls may take over control.

Daily Forex Signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2018 Maimar-FX.

www.maimar.co

 

 

 

Profitable Trading Day For Sterling Bulls

/in /by

Dear Traders,

The euro came under pressure Wednesday after ECB officials addressed the pace of the euro’s rise, which is only natural after the single currency’s rapid appreciation. Governing Council member Ewald Nowotny argued that the appreciation in the single currency ‘is not helping’ the ECB in terms of price stability. The euro dropped below 1.22 after rejecting the 1.23-resistance. Ahead of the ECB’s policy meeting next week, we might see more profit-taking and consolidation in the EUR/USD.

The British pound, on the other side, took out the 1.3850-hurdle on hawkish comments from MPC member Michael Saunders. He said that interest rates will likely have to rise faster than the markets are currently anticipating in 2018. His assumption spurred bullish momentum in the GBP/USD, sending the currency pair to a high of 1.3943. However, with a potential BoE rate hike still several months away, the pound was not able to hold onto its high level and corrected some of its gains. For day-traders, it was a very profitable trading day with both of our yesterday’s long entries hitting their final profit targets.

EUR/USD

Most recently, the euro traded with a downward tilt and we will thus focus on a trading range between 1.2250 and 1.21. A break above 1.2260 could spur further bullish momentum whereas a break below 1.21 could lead to further losses.

Daily Forex Signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2018 Maimar-FX.

www.maimar.co

Pound Rises As BoE Hints At Rate Hike

/in /by

Dear Traders,

What a trading day for Sterling traders! The pound jumped to 1.34 as the Bank of England hinted at a rate hike “in the coming months”. While the central bank’s Monetary Policy Committee voted 7-2 to keep interest rates on hold, it was talking in much stronger terms about tightening. The pound initially plunged to 1.3150 before jumping to fresh one-year highs. Sterling traders’ efforts paid off and we were able to gain a nice profit of more than 100 pips by trading our yesterday’s long entry.

BoE Governor Carney said that the majority of the MPC see that “the balancing act is beginning to shift” and that “some adjustment of interest rates may be needed in the coming months”. The market is now looking to the November meeting as a possible time for a BoE rate hike. The Bank of England meeting in November is a Super Thursday on which the central bank releases its inflation report, along with the economic outlook and its rate decision. However, there is some doubt about the BoE’s strong rhetoric: If MPC officials have deliberately taken a hawkish tone to support the market’s appetite for sterling in order to slow inflation it may be some time before they are going to raise rates.

We currently see GBP/USD trading around 1.34. Next hurdles will be at 1.3450 and 1.3480 before the focus shifts to a potential bullish breakout beyond 1.35. Looking at larger time frames, a break of the 1.35-level will be crucial for a long-term bullish trend.

The U.S. dollar in contrast benefitted from the U.S. CPI which fueled hopes for a Federal Reserve rate hike in December. Furthermore, the Trump reflation trade came back into focus, providing some relief for the greenback.

U.S. Retail Sales are due for release at 12:30 UTC but today’s report is not expected to help the USD strengthening.

EUR/USD: The support around 1.1830 is still unbroken but this could change in the near-term – provided that the euro remains below 1.1950. We now expect the pair to trade between 1.1950 and 1.18. Any breakouts above or below that range could accelerate the respective momentum.

We wish everyone a relaxing weekend.

Daily Forex Signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2017 Maimar-FX.

www.maimar.co

 

 

 

 

Euro And British Pound Flying High

/in /by

Dear Traders,

After the euro’s strong performance from Tuesday, the cable followed with a rise towards 1.30. A reason for the pound’s flight were hawkish rate comments made by Bank of England Governor Carney who said the BoE may need to begin raising interest rates and will debate a move in the next few months. “Some removal of monetary stimulus is likely to become necessary” Carney said on Wednesday in Sintra, Portugal. The pound sharply strengthened in response to his remarks.

Technically, the GBP/USD broke out of its recent downtrend channel and is currently headed towards 1.30. Buyers should pay attention to higher prices above 1.3060 in order to buy pounds towards 1.32. A current support is however seen at 1.28.

Traders who traded the EUR/USD Wednesday had a tumultuous session with the currency pair fluctuating choppily between 1.1390 and 1.1290. Everything from profitable breakouts till loss-making fake-outs was included in yesterday’s trading but at the end of the day, we were able to post a small profit.

Meanwhile, the euro was torn between the market’s (mis)interpretation of Draghi’s recent upbeat remarks, suggesting the beginning of the ECB’s withdrawal from its accommodative policy, and the central bank’s back paddling afterwards. The conflicting ECB signals sent the euro on a roller coaster ride but the follow through of the euro’s latest rally had a greater impact than quelling speculation. Consequently, the euro broke above 1.1390 and tested the 1.1420-level. Given the strong uptrend in the EUR/USD we expect the euro to continue its rally towards 1.15/1.1550. If the pair touches 1.15, sellers may take the opportunity and jump back in. A pullback towards1.13 however, may attract the attention of buyers.

From the Eurozone we have the German Consumer Price scheduled for release at 12:00 UTC, a report which could have an impact on the euro.

The U.S. GDP report due for release at 12:30 UTC will be of interest for dollar traders.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2017 Maimar-FX.

www.maimar.co

 

 

 

GBP/USD Ignores Dollar Strength After BoE’s Surprise Divison

/in /by

Dear Traders,

The market digests the Fed’s hawkish policy shift and sends the U.S. dollar higher. The euro declined on the back of a strengthening dollar and thus, EUR/USD headed towards the lower barrier of its recent sideways trend channel. We now expect a next support to come in at 1.11 and 1.1070. Current resistance levels are however seen at 1.12/1.1225.

While the EUR/USD was the best performer for day traders Thursday, the GBP/USD went on a roller coaster ride after the Bank of England’s split came as a surprise for sterling traders. The pound rose against the dollar after a surprise division within the BoE’s monetary policy committee, with three members of the MPC voting for a rate increase. Given this hawkish shift despite the uncertainty that follows last week’s U.K. election, a rate hike may be closer than the market currently expects. The pound rose towards 1.28 in an initial reaction to the MPC statement. A break above 1.2820 may send the pound higher towards 1.2860 while a sustained rally in the GBP/USD might be difficult given the renewed strength in the USD. Sterling bears may however wait for a renewed break below 1.2720 in order to sell pounds towards 1.2650.

Having gained a good profit this week we recommend securing your weekly profits today.

Have a wonderful weekend!

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2017 Maimar-FX.

www.maimar.co

 

 

 

GBP/USD: U.K. Inflation Report To Dictate Price Action

/in /by

Dear Traders,

While the U.S. dollar ended the day virtually unchanged against the euro, it traded slightly lower versus the British pound Monday. Meanwhile, there were no new insights from Federal Reserve Chair Janet Yellen. She reiterated several previously stated positions when speaking at the University of Michigan. Yellen said she expected the U.S. economy to continue to grow at a moderate pace and that gradual interest rate increases “can get us where we need to be”. Fed policy makers expect two additional rate hikes in 2017.

The British pound recovered some losses and rose towards 1.2430. However, as long as the pound remains below 1.2450/70, we favor a bearish stance. For sterling to rally it would possibly require a break above 1.2480 and further 1.2505. Today’s price action will hinge on the U.K. inflation report, scheduled for release at 8:30 UTC. If Consumer Price growth comes in with a downtick, sterling could fall towards 1.2340. Stronger inflation however, may encourage sterling bulls to push the currency beyond the 1.2470-level.

The euro trod water with the price reluctant to push above the 1.06-mark. Euro traders remain risk-averse ahead of the French elections and with no market-moving data on the calendar, the euro might continue to trade sideways within tight trading ranges. The German ZEW Survey is scheduled for release at 9:00 UTC but this report cannot be considered important enough to free the euro from its lethargy. In short-term time frames we expect the euro’s price action to be limited to a trading range of 1.0640 and 1.0530.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2017 Maimar-FX.

www.maimar.co

 

 

 

Quiet Trading Environment

/in /by

Dear Traders,

Not much has happened in the market on Wednesday and trading can be described as very quiet. Market-moving economic data was still lacking and thus the price action in both major currency pairs was constricted to tight trading ranges. The technical picture has therefore not changed.

While none of our daily entries was triggered in the EUR/USD, the cable showed a slight upward trend towards 1.2550. The 1.2550-barrier is considered an important resistance and if the pound rises above that level we may see a continuation of the recent upward trend, driving sterling towards 1.26 and possibly even 1.2660. On the bottom side we will pay attention to a potential break of 1.2440. Lower targets could be at 1.2420 and 1.2320.

Bank of England Governor Mark Carney is scheduled to speak in London today at 18:30 UTC. This speech might be worth watching given accelerating inflation and recent hawkish comments. If Carney highlights a hawkish outlook despite the risks surrounding the U.K.’s exit from the EU, the pound could extend its gains. If he however, takes a neutral stance on monetary policy, sterling could fall back towards 1.24.

The euro traded between 1.0715 and 1.0640. As long as there is no fresh price breakout above or below this range, there is nothing new to report.

From the U.S. we have Continuing and Initial Jobless Claims scheduled for release at 13:30 UTC but these reports are of secondary importance to the greenback.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2017 Maimar-FX.

www.maimar.co

 

 

 

Can The Pound Hold Onto Its Gains? Carney Will Decide

/in /by

Dear Traders,

At the end of the day, the FOMC meeting has proved to be a non-event for traders with the Federal Reserve holding interest rates flat and providing no new insights on the pace of future rate hikes. As expected, there were no surprises and so the U.S. dollar resumed its decline against its major peers. The Fed reiterated its intention to raise rates gradually as the labor market tightens and market participants will now shift their focus to Friday’s jobs report. Due to the fact, that the FOMC statement did not appear overly hawkish, an imminent rate hike in March is increasingly unlikely.

The euro rose again towards 1.08 after marking a short-term support around 1.0730. Traders are eagerly waiting for the euro to break through the 1.0810-barrier and once that level is breached we may see the euro further rising towards 1.0870. Current supports are seen at 1.0715 and 1.0660. From the Eurozone, there will be no major economic reports scheduled for release today so we expect the price action to depend on the demand for dollars.

ECB president Mario Draghi is scheduled to speak at 12:15 UTC but today’s speech is not expected to have a major impact on the euro.

Today will be a big day for sterling traders with the Bank of England publishing its quarterly inflation report alongside the MPC statement and rate decision. Moreover, BoE governor Mark Carney will hold a press conference following the announcement. While the BoE is expected to stand pat, policymakers may revise up its growth and inflation forecasts. Inflation is on the rise and for Carney it could be a communicative challenge to keep monetary policy unchanged in the face of accelerating price growth. Investors suspect that the central bank might shift its bias from neutral to slightly hawkish while traders are pricing in a higher likelihood of a hike than a cut. This assumption is expressed in the pound’s recent rise.

The BoE will release its Quarterly Inflation Report and rate decision at 12:00 UTC, followed by a press conference 30 minutes later.

GBP/USD

The pound is facing its resistance zone at 1.2730-75. Whether this barrier could give way hinges on the BoE statement. Above 1.2685 a test of 1.2720/30 becomes increasingly likely. On the downside, the 1.26 support is intact. Below that level we may see the pound tumbling towards 1.2550/20.

Daily Forex signals:

Additional daily and long-term entries are available for subscribers.

View our daily signal alerts https://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service https://www.maimar.co/signals/

We wish you good trades and many pips!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2017 Maimar-FX.

www.maimar.co