Posts

U.K. Inflation Hits Highest Level In 41 Years

/in /by

U.K. inflation rose to 11.1 percent from a year ago while this result increases the chances the Bank of England will raise interest rates again next month.

From a technical perspective, there could be room for a bullish extension towards 1.2060 but sterling bulls should be careful since the pound remains slightly overbought. The current support area is seen at around 1.17.

Our trading ideas for today 17/11/22:

EUR/USD

Long @ 1.0410

Short @ 1.0340

GBP/USD

Long @ 1.1925

Short @ 1.1885

DAX® (GER40)

Long @ 14340

Short @ 14290

Settings for all trades today: Entries from 8:00 am UTC,  SL 25

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.

We wish you good trades!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2022 MaiMarFX.

www.maimar.co

Follow us on social media:

Facebook

Twitter

Instagram

Fed Holds Dovish Line, Focus Shifts To BoE

/in /by

The Federal Reserve held its dovish line and continued to project near-zero interest rates at least through 2023 while the central bank upgraded its forecasts for economic growth and the labor market. The dot plot showed that seven of 18 Fed officials predicted higher rates by the end of 2023 compared with five of 17 at the December meeting which was a slightly larger group of ‘hawkish dots’.

As for the withdrawal of the ultra-easy monetary policy, Fed Chair Jerome Powell said in a virtual press conference that the time to talk about reducing the Fed’s asset purchases was “not yet”.

While prospects of stronger growth have ignited some concern about higher inflation among investors the Fed expects that a bump in inflation this year will be short-lived.

In a nutshell, the market did not get such a hawkish outcome leading to a shift in the current risk sentiment. Instead, the Fed’s projected policy path and its upgrade of the economic outlook provide a positive backdrop for risk assets, which is why the anti-risk dollar weakened.

Today we will have the Bank of England rate decision at 12:00 UTC. The BoE is expected to leave monetary policy unchanged but volatility could pick up around the time of the decision.

GBP/USD: The technical picture has not materially changed. We will pay attention to price breakouts either above 1.4020 or below 1.3850 and further 1.3780.

DAX: The index hit our bullish target of 14720. If there is no break above 14760, the DAX could be due to a correction now. A higher support is seen at around 14500.

We wish you good trades!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2021 MaiMarFX.

www.maimar.co

Follow us on social media:

Facebook

Twitter

Instagram

GBP/USD Jumps On BoE, Focus Now On NFP Report

/in /by

The British pound posted a sharp increase after the Bank of England stated that negative rates are not coming in the foreseeable future. The main focus had been on the debate about the feasibility of negative interest rates and while the BoE stated that it is appropriate to get ready for negative rates if needed, they do not intend to signal that this policy tool will be implemented in the near-term. The central bank forecast that the U.K. economy is heading for a powerful rebound thanks to an aggressive push to vaccinate citizens. Furthermore, the inflation is expected to rise sharply towards 2 percent in spring.

This was enough for GBP/USD to jump from a low of 1.3565 to a high of almost 1.37. Technically, the pair is back in its sideways range where we pay attention to prices between 1.3750 and 1.3610.

EUR/USD: The euro succumbed to the dollar’s rebound and fell towards 1.1950. Traders should now focus on lower targets at 1.1930 and 1.19 from where we could see a reversal since the pair is in oversold territory.

DAX: The index was finally able to take out the 14030-barrier and could now be primed for a test of 14130. Above that level there are no significant resistances until 14350.

Today we have the Non-farm payrolls report scheduled for release at 13:30 UTC which is forecast to show that 100,000 jobs were added in the U.S. in January after a 140,000 drop in December. A stronger report could increase the buying pressure in the U.S. dollar.

We wish you a beautiful weekend!

We wish you good trades!

Any and all liability of the author is excluded.

Copyright © All Rights Reserved 2021 MaiMarFX.

www.maimar.co

Follow us on social media:

Facebook

Twitter

Instagram

GBP/USD: Highly Profitable Trading

/in /by

Dear Traders,

Those of you who traded the GBP/USD recently, were able to achieve a significant profit by trading our daily signal alerts. Yesterday, this was once more the case while our short trade hit the profit target in less than five minutes. The pound slid to a low of 1.2602 after Bank of England Governor Mark Carney said he is still worried about the impact of Brexit on the economy. Carney said in yesterday’s morning statement that now is not the time to hike rates. In short, his view is still very bearish and with Brexit negotiations having just begun it could be a bumpy road for the U.K. in the next months. In case of any bad headlines, the pound will fall but looking at the technical picture, we currently see chances of a, at least short-term, recovery from sterling’s low levels.

GBP/USD

The currency pair stopped its fall at the lower bound of its recent downward channel. While this does not necessarily mean that further losses are unlikely, that halt just increases the likelihood of a potential pullback towards 1.27 and 1.28. Furthermore, the Relative Strength Index (RSI) approaches oversold territory, underpinning the chances of short-term upward movements. If the pound drops however below 1.2590 we expect accelerated bearish momentum towards 1.2550 and 1.25.

The performance of the EUR/USD is lagging behind since price fluctuations narrowed. The euro declined on the back of a slightly stronger U.S. dollar but the decline was limited to a low of 1.1118. We will now pay attention to a break of 1.11. After the 1.1075-level has been breached, we could see the euro tumbling towards 1.1020. Current resistances are however seen at 1.1150 and 1.12.

Daily Forex signals:

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

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

Subscribe to our daily signal service http://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 http://www.maimar.co/category/daily-signals/

Subscribe to our daily signal service http://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 Cable: Sideways Trend As Major Market Movers Lack

/in /by

Dear Traders,

With U.S. markets shut on Monday, we had a pretty quiet market and low market volatility. Thus, any larger market movements were lacking and both of our major currency pairs fluctuated in narrow sideways trading ranges.

During Asia-Pacific trading hours the euro finally dropped below 1.06 and is now within its support area between 1.0580 and 1.0560. Given the recent bearish momentum the euro may extend its losses towards 1.0550 but in short-term time frames the single currency is in an oversold territory which is why we could see some pullbacks today. Current resistances are seen at 1.06 and 1.0635 from where sellers may jump back in.

German and Eurozone PMI reports are scheduled for release at 8:30 and 9:00 UTC but these reports are not expected to have a significant impact on the euro.

The British pound was unable to break through the 1.2480-barrier and finally gave up its modest gain, sliding back towards 1.2430. If the pound falls below 1.2425, we may see further losses towards 1.24 and possibly even 1.2350. Sterling bulls should however wait for prices above 1.2480 in order to buy sterling towards 1.2550.

Bank of England Governor Mark Carney will testify before the U.K. Parliament at 10:00 UTC and his comments could have an impact on the pound’s price action.

Daily Forex signals:

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

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

Subscribe to our daily signal service http://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

 

 

 

Fed Delivered Hawkish Rate Hike And Boosted Demand For USD

/in /by

Dear Traders,

The Federal Reserve delivered a slightly hawkish rate hike with Fed officials expecting three quarter-point rate increases in 2017, up from the two seen in previous forecasts. The Fed’s projections for growth, unemployment and inflation over the next three years were largely unchanged from September. With regard to fiscal policy the FOMC statement did not include language referring to changes in fiscal policy. When asked about how Trump’s fiscal policy plans influenced the Fed’s forecasts and could affect future decisions, Yellen said it was too early to judge how fiscal policy would affect Fed policy.

All in all, yesterday’s FOMC statement had a positive impact on the U.S. dollar even if the risk of a pullback in the greenback persists.

EUR/USD: After having tested the 1.0470/60-support we may see some corrections before year-end. It might be tempting to sell the pair in case of a break of 1.0460 but traders should be careful as liquidity traditionally dries out before the Christmas holiday season.

Yesterday’s trading has been somewhat challenging especially for traders who have not had a proper risk management during the day. An appropriate risk-management is therefore essential for the long-term success.

GBP/USD: The cable broke below its recent upward trend channel but it was able to hold above 1.25.

Today’ focus shifts to the Bank of England and its monetary policy announcement at 12:00 UTC. We prepare for volatile swings in the GBP/USD and hope for some profitable movements. No changes are expected but it will be the central bank’s rhetoric which should have a major impact on the pound.

From the U.S. we have the Consumer Price report scheduled for release at 13:30 UTC, which could affect the price action in the greenback.

Daily Forex signals:

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

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

Subscribe to our daily signal service http://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 2016 Maimar-FX.

www.maimar.co

 

 

 

The Euro Refrains To Trade Below 1.07

/in /by

Dear Traders,

There was little consistency in the performance of the EUR/USD Tuesday and the euro’s roller coaster ride gave traders no cause for joy. The euro peaked at 1.0816 before it ended the day in negative territory. We went long and short but no movement proved to be sustained. However, the 1.07-support level is still unbroken and as long as the euro remains firmly above that level, we shift our focus to an upside break above 1.0820.

There is no important economic data from the Eurozone today. From the U.S. we have the PPI Report at 13:30 UTC and Industrial Production figures at 14:15 UTC due for release but these reports are not expected to have a dramatic impact on the greenback.

The pound sterling fell towards 1.2380 after a report showed U.K. inflation unexpectedly slowed last month. Meanwhile, BoE policy makers shifted to a neutral stance with Carney saying in testimony that the neutral path is “appropriate” and officials are not considering expansion of any of the Bank of England’s programs. Sterling traders should pay attention to U.K. Employment Report at 9:30 UTC today as any surprises may lead to volatile swings in the GBP/USD. Technically we are waiting for a renewed break below 1.24 in order to sell the pound towards 1.2350. Above 1.2560 however, the bias may shift in favor of the bulls.

Daily Forex signals:

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

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

Subscribe to our daily signal service http://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 2016 Maimar-FX.

www.maimar.co

 

 

 

U.S. Dollar Takes A Breather While Euro And Pound Recover Slightly

/in /by

Dear Traders,

We got what we have been looking for: A breakout of the cable’s narrow trading range. While an initial attempt to buy sterling above 1.2235 proved unsuccessful, breakout traders were later able to profit from the pound’s sharp drop towards 1.2080. Sterling tumbled before BoE Governor Carney’s testimony to the House of Lords Tuesday but bounced back from its fresh low of 1.2082 as Carney said there were limits to the Monetary Policy Committee’s (MPC) willingness to look beyond an overshoot of their inflation target. In other words, his comments on inflation mean that further easing is unlikely in the near term, highlighting policy makers’ concerns about the risk of stagflation, which arises from the depreciation of the pound.

Carney’s recent comments suggest the MPC will stick to the sidelines at the next ‘super Thursday’ event on November 3.

Technically the pound remains confined to a recent 100-pips trading range between 1.2250 and 1.2150. Above 1.2250 it could head for a test of 1.2320 whereas a break below 1.2130 may drive the GBP/USD to fresh lows around 1.2050.

The EUR/USD however, failed to show larger movements yesterday and remained stuck between 1.09 and 1.0850. It was the second consecutive trading day on which none of our signal entries was triggered. European Central Bank President Mario Draghi defended the ECB’s easy monetary policy but conceded that low interest rates are not ‘costless’ for the eurozone and policy makers “certainly prefer not to have to keep interest rates at such low levels for an excessively long time”. Draghi’s ‘neutral position’ drove the euro higher but gains were capped at 1.09 for the time being. We are still looking for a significant break above 1.09 but any upward movements could be on a shaky footing as a next resistance is seen at 1.0950.

There are no major economic reports scheduled for release today. The only reports come from the U.S. and will be Advance Goods Trade Balance at 12:30 UTC, Services PMI at 13:45 UTC and New Home Sales at 16:00 but none of these reports is expected to have a major impact on the greenback.

Daily Forex signals:

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

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

Subscribe to our daily signal service http://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 2016 Maimar-FX.

www.maimar.co

 

 

 

GBP/USD: Steeper Decline Or Short Squeeze?

/in /by

Dear Traders,

Today will be an important day for the British pound and sterling traders seem to be waiting in their starting blocks. The Bank of England will announce its policy decision and release the minutes of its meeting at 12:00 GMT. While the central bank is expected to keep monetary policy unchanged, traders and analysts pushed back their expectations of a BoE liftoff. The market is currently pricing in a very dovish BoE tightening cycle, not expecting the central bank to raise rates until well into 2017. These speculations are manifested in the pound’s sustained downtrend. But we have learned from past experience, that any surprises can quickly alter the market’s sentiment which is why investors were caught on the wrong foot sometimes. Some currency traders even stress the idea that sterling’s’ weakness looks considerably overdone. It is worth noting that the depreciation of the British pound should suit policy makers and could have a positive impact on inflation. Any shifts away from the central bank’s dovish monetary policy stance could trigger a strong rebound in the GBP/USD.

However, following the motto “the trend is your friend”, traders should, for the time being, prefer to sell any rallies towards lower targets.

GBP/USD

Taking a look at the weekly chart, it is tempting to focus on a steeper decline, targeting at the 1.40-barrier. But first, we will pay attention to the 1.43-level and GBP will need to break significantly below that level in order to reveal fresh bearish momentum towards the next support at 1.4230. Current resistances are seen at 1.4530, 1.46 and 1.4640.

Chart_GBP_USD_Weekly_snapshot14.1.16

The euro bounce back from its 1.08-support and started a small relief rally against the U.S. dollar. The next hurdle will be at 1.09 and it remains to be seen whether the currency pair will be able to extend gains towards 1.0940 and 1.0980. There are no major important economic reports due for release today. The German GDP report, due for release at 9:00 GMT, may have some impact on the euro. However, the euro remains to trade between 1.10 and 1.08 and as long as there is no breakout above or below these zones, traders will have to wait and focus on the current trading range.

Fed President Bullard is scheduled to speak at 13:30 GMT. At the same time, U.S. Continuing and Initial Jobless Claims are due for release.

Daily Forex signals:

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

Subscribe to our daily signal service http://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 2016 Maimar-FX.

www.maimar.co