British pound – MaiMarFX

Markets To Digest Trump Attack

July 15, 2024/in General News & Updates /by MaimarFX

Both euro and British pound opened lower this week as markets have to digest the attack on presidential candidate Donald Trump on Saturday. Uncertainty over the political situation in the U.S. weigh on the market’s risk appetite, which is why traders should brace for corrections.

The focus now turns to Trump’s first public appearance after the attempted assassination, which is expected to be at the Republican convention in Milwaukee later this week.

On the economic docket, the main focus will be on inflation reports from the UK and the Eurozone and on the European Central Bank rate decision on Thursday. The ECB is expected to leave interest rates unchanged at this month’s meeting but will likely give the market further guidance on a potential rate cut in September.

EUR/USD: The euro rose until a high of 1.0911. A next crucial hurdle comes in at around 1.0950-60 and in terms of new buying attempts we urge caution unless the higher barrier is significantly breached to the upside. A current support is now seen at 1.08.

GBP/USD: The pound sterling enjoyed lofty highs and flirted with the 1.30-resistance last week. Whether we see an upside break above 1.30 remains to be seen and hinges on the market’s risk appetite. A next higher target is seen at 1.3150. However, in the event of a correction, we see the 1.2750-area as a crucial support zone that could attract new buyers.

We entered the summer doldrums which is why we may face quieter trading conditions. Therefore, we will not invest much, trade with smaller positions and don’t trade every day.

Daily Forex and DAX Signals:

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

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.

www.maimar.co

Why The BoE Might Not Be In A Hurry To Lower Interest Rates

June 20, 2024/in General News & Updates /by MaimarFX

The UK CPI printed in line with expectations and dropped to the Bank of England’s target of 2 percent for the first time in nearly 3 years. However, while most of the contributors to the CPI headline figure (YoY%) seem under control, services inflation in the UK remains uncomfortably high. Therefore, today’s Bank of England monetary policy decision is likely to point to this still-elevated services inflation print and thus, the lack of urgency to alter interest rates. Consequently, traders bought GBP/USD in the minutes after yesterday’s CPI release.

A greater chance of a BoE rate cut is seen in September.

The BoE rate decision is scheduled for 11:00 GMT today.

GBP/USD: The pair managed to hold slightly above 1.27 following Wednesday’s UK inflation print. However, a leg lower is still highly possible and we will therefore pay attention to a price break below 1.2620 and further a sustained break below 1.26 in order to sell sterling towards 1.2550. On the other side, any bullish attempts above 1.2765 could be limited until 1.28 – the current resistance.

Daily Forex and DAX Signals:

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

Our trading ideas for today 20/6/24:

GBP/USD

Long @ 1.2725

Short @ 1.2690

Settings for all trades today: Entries from 8:00 am UTC, SL 25, TP 40

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.

www.maimar.co

EUR/USD And GBP/USD: Uptrends On Shaky Ground

May 27, 2024/in General News & Updates /by MaimarFX

Welcome to the last trading week in May.

The euro was able to hold above 1.08 after a recent correction. As long as 1.08 holds, the short-term uptrend in the EUR/USD remains intact and we focus on a next leg up towards 1.0950 and 1.10. The euro’s recent uptrend is however on shaky grounds after the Federal Reserve conveyed a hawkish stance, emphasizing that the disinflation process is still slow and that high interest rates might persist due to elevated inflation pressures. The markets’ lack of conviction as to when U.S. interest rates will fall, could generally be a bearish call for the euro and pound sterling.

The only central bank which still seems to be on track to cut rates in June is the European Central Bank. Therefore, all eyes are on the ECB’s rate cut on June 6.

This week’s main focus will be on the U.S. PCE Index, due for release on Friday. A downward surprise would be bearish for the U.S. dollar.

And again, we are off to a quiet start this week as both the US and UK markets are closed on Monday. So, don’t invest too much, trade with smaller positions or stay on the sidelines for now.

Daily Forex and DAX Signals:

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

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.

GBP/USD Sees Increased Volatility

May 23, 2024/in General News & Updates /by MaimarFX

This quieter week favoured a slight U.S. dollar recovery, at least in the EUR/USD, but the broader uptrend in this pair remains intact – provided that the euro remains above 1.08.

The GBP/USD saw some upward movement until 1.2762 on the back of rising volatility as traders prepare for an earlier-than-expected election in the UK. Prime Minister Sunak confirmed mounting speculation about the timing of the UK general election that is now on July 4. The surprise-move overturned expectations of an autumn poll.

Daily Forex and DAX Signals:

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

Our trading ideas for today 23/5/24:

EUR/USD

Long @ 1.0870

Short @ 1.0785

GBP/USD

Long @ 1.2735

Short @ 1.2685

DAX® (GER40)

Long @ 18760

Short @ 18660

Settings for all trades today: Entries from 8:00 am UTC, SL 25, TP 40

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.

www.maimar.co

U.S. Dollar Weakness

April 4, 2024/in General News & Updates /by MaimarFX

After Wednesday turned out to be a very quiet trading day, the U.S. dollar weakened in the afternoon hours which was due to weaker-than-expected economic data and dovish signals from Federal Reserve Chair Jerome Powell in a speech at a forum. Powell downplayed recent high inflation readings and indicated that nothing has really changed for policymakers which could be a sign that the Fed is on track to cut rates as expected by 75bp in 2024.

Consequently, the weakness in the greenback led to a surge in the euro and British pound, pushing the euro back above 1.0830 and the pound above 1.26. Whether the dollar’s counterparts can hold above their current supports remains to be seen tomorrow.

The focus will now shift to Friday’s nonfarm payrolls numbers.

Daily Forex and DAX Signals:

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

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.

U.S. Dollar Weakness

November 6, 2023/in General News & Updates /by MaimarFX

The British pound and euro reversed sharply higher last Friday after U.S. jobs data saw only 150k created in October, missing the market’s expectations of 180k. Furthermore, U.S. Treasury yield sell-off accelerated after Friday’s NFP report, which in turn weakened the U.S. dollar. There is a growing feeling that interest rates in the U.S. have peaked and that a potential recession in the next months could make rate cuts necessary.

GBP/USD

Technically, we got the price breakout we have been looking for. Sterling surged until almost 1.24 on Friday. The EMA200 oscillates at 1.2410 and if sterling bulls will want to turn the tide from bearish to bullish, they will need to stabilize sterling above 1.24. Watch out for a rise above 1.2415 now. A fresh support could now lie at around 1.2150.

EUR/USD

The euro hit 1.0746 after the 1.05-support has proved to hold. If the bullish bias continues, we will keep tabs on a break above 1.0760 in order to pencil in a higher target at around 1.0940.

DAX

The index was on the rise again and stabilized above the 15000-mark. We now see a next higher target at 15460 from where we may see stronger pullbacks. On the downside, the 15000-threshold, however, remains a crucial barrier.

This trading week will be a quieter week for traders in terms of market-moving event risks.

We will not invest too much at the start of this week.

Daily Forex and DAX Signals:

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

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.

www.maimar.co

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After Hawkish Fed Focus Shifts To BoE

September 21, 2023/in General News & Updates /by MaimarFX

As expected, the Federal Reserve kept interest rates unchanged at 5.25%-5.5% and left the door open for one more rate hike before the end of the year. The Summary of Economic Projections showed 50bp fewer rate cuts in 2024 than previously indicated. The Fed sees just two rate cuts next year which would put the funds rate around 5.1 percent.

The U.S. dollar rose in the aftermath of the Fed’s hawkish rhetoric and pushed both euro and pound sterling lower in turn.

This morning we see GBP/USD trading around 1.23. Below 1.2270 we expect further losses.

The focus today shifts to the Bank of England rate decision (due 13:00 UTC) while the BoE could go either way. Previous expectations were firmly in favor of another 25bp rate hike today but yesterday’s U.K. Consumer Price Index showed softening inflationary pressures which is why market pricing significantly shifts towards a rate pause now. However, according to a statement from UK Chancellor Hunt saying that “Inflation is still too high” and “It’s all the more important to stick to our plan to halve inflation”. In other words, a BoE 25bp rate hike is still well in the cards.

Daily Forex and DAX Signals:

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

Our trading ideas for today 21/9/23:

GBP/USD

Long @ 1.2380

Short @ 1.2290

Settings for all trades today: Entries from 8:00 am UTC, SL 25, TP 40

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.

www.maimar.co

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Euro: The Longest Losing Streak Since 1997

September 18, 2023/in General News & Updates /by MaimarFX

The euro confirmed a 9^th consecutive weekly loss, the longest losing streak since 1997.

The common currency dropped like a stone towards 1.0630 after the European Central Bank raised interest rates last Thursday but there were signs that rates had peaked. Recession risk and worsening sentiment indicators in Germany fuel arguments against further hikes.

Looking at the weekly chart we see, that despite the euro’s steep fall, it remains still above the crucial support area around 1.05. Given the recent bearish strength we could imagine that the pair tests the 1.06-level before a pullback towards 1.08 is in the cards. However, the U.S. dollar will play a major role this week, so traders will likely wait for the Fed decision before deciding which way to go.

EUR/USD

This week is again loaded with event risk, including multiple central bank decisions. We will focus on the Federal Reserve rate decision Wednesday and while the Fed is widely expected to leave rates unchanged this month, traders access the prospects of a further hike by the end of this year.

The Bank of England is expected to deliver a 25bp rate hike on Thursday. In case of a dovish hike or more precisely, if the BoE give a hint that rates are near their peak, the pound sterling will fall.

Daily Forex and DAX Signals:

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

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.

www.maimar.co

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U.S. Dollar Strengthen On Higher Treasury Yields

May 24, 2023/in General News & Updates /by MaimarFX

The U.S. dollar traded higher on firm treasury yields despite U.S. debt ceiling talks that appeared to have stalled on Tuesday. If the congress fails to reach an agreement to lift the country’s borrowing capacity, volatility could increase dramatically. Furthermore, the U.S. dollar’s safe haven status may come under questioning in case of a possible U.S. default.

The euro fell back towards 1.0760 on the back of the greenback’s recovery while sterling slid below 1.24.

EUR/USD: Below 1.0740, a next target is at 1.07. On the upside, a current resistance is seen at 1.0870.

As expected, also the DAX corrected recent gains and fell towards the crucial 16000-handle. We expect the recent support area to range from 16000 to 15950 where bulls may take the opportunity to jump back in.

Daily Forex and DAX Signals:

If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.

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.

www.maimar.co

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Focus This Week On U.S. CPI And BoE

May 8, 2023/in General News & Updates /by MaimarFX

Last week was characterized by an U.S. dollar decline on optimism that the Federal Reserve is near the end of its tightening cycle. On Wednesday, U.S. CPI data for April will show whether inflation has eased according the forecast to 5.5 percent in April from 5.6 percent in March, backing the hawkish market assumption.

Friday’s strong U.S. jobs report triggered a scaling back in Fed rate cut speculation for July, down to 36 percent from a 60 percent chance for a rate cut before the data. If CPI comes in higher, the dollar might regain some strength as the market has to reassess its rate cut speculation.

On Thursday, the Bank of England is expected to raise interest rates by another 25bp. With U.K. inflation still high at 10.1 percent, the BoE is likely to remain hawkish.

GBP/USD

The cable has hit the next higher target at 1.2650 while remaining within its recent uptrend channel. If the pair now breaks above 1.2675, we could see an extension towards 1.2720 but caution is advised. The pair entered overbought territory and is due for a correction. A support is seen at around 1.25.

Waiting for breakouts in the EUR/USD and DAX…

EUR/USD: A sustained break above 1.11 or below 1.09 is needed to revive momentum after days of consolidated movement.

In the DAX we still wait for a sustained break above 16000 which could lead to a run for 16300. On the downside, a recent support area remains intact between 15700 and 15600.

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.