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Trump Speech Leaves Investors Unimpressed
Dear Traders,
Well, as a trader, we were expecting much more from Donald Trump’s address to Congress. The market reaction to Trump’s speech was muted as specific details on infrastructure have been elusive. Trump promised to spend as much as 1 trillion dollars on infrastructure but he did not specify the timing and what spending he is referring to. While there were no details, Trump’s speech was notably less confrontational than his inaugural address. The U.S. dollar slightly strengthened following the speech but large market movements are still yet to come.
The pound sterling dropped below 1.2380 and we now expect the GBP/USD to trend lower towards 1.2260/20. The pound will now need to break below 1.2340 but before we could see accelerating bearish momentum it may head back towards a test of the current resistance at around 1.2430.
The U.K. PMI Manufacturing is scheduled for release at 9:30 UTC and could have a minor impact on the pound.
The euro depreciated against the greenback after failing to break above 1.0630. We will now wait for a sustained break below 1.0520 before anticipating further losses. Below 1.0520 we could see the EUR/USD tumbling towards 1.0450. On the upside we expect the 1.0620-level to lend a current resistance to the currency pair.
From the Eurozone, we have the German Unemployment report scheduled for release today at 8:55 UTC followed by the German Consumer Price Index at 13:00 UTC.
The most interesting piece of U.S. economic data will be the ISM Manufacturing Index due at 15:00 UTC which could have a significant impact on the dollar, provided that there is a surprise.
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We wish you good trades and many pips!
Any and all liability of the author is excluded.
Copyright © All Rights Reserved 2017 Maimar-FX.
Traders Prepare For Volatile Swings This Week
Dear Traders,
We welcome you to a new trading week. Financial markets are dominated by uncertainty surrounding Donald Trump’s administration, prompting large investors to adopt a wait-and-see stance. The U.S. dollar came under further pressure after Trump’s order halting some immigration, causing geopolitical tensions. Risk aversion has therefore led to a recent sideways trend with both major currency pairs trading in relatively narrow trading ranges. This phase of trendless and uncertain markets makes it difficult for day traders to benefit from limited fluctuations and the lack of price breakouts.
This week’s major event risks might bring some new momentum to the markets and trigger profitable breakouts. The economic calendar is very busy in terms of market moving data and traders await high volatility throughout the entire week. The week starts off with the German Consumer Price report, scheduled for release today at 13:00 UTC which could lend a support to the euro. On Tuesday, the Eurozone Consumer Price report will be important to watch while an upbeat report could lead to speculation that the European Central Bank might start to reduce its asset purchases in the near future. With regard to top-tier U.S. economic data, the FOMC rate decision and the Non-Farm Payrolls report (Friday) will take center stage this week. The FOMC committee will deliver an update on its policy stance on Wednesday and while the FOMC statement is expected to be relatively upbeat, the fiscal policy uncertainty may frustrate the greenback’s recovery.
For sterling traders, the most interesting event will be the Bank of England‘s ‘Super Thursday‘ which may shape expectations for the near-term outlook for sterling. The BoE releases its Quarterly Inflation Report alongside its monthly monetary policy decision. If BoE policymakers show greater willingness to drop their dovish tone and gradually move away from their easing cycle, the pound could be vulnerable to further gains, heading for a test of 1.2780/90.
Important data for today:
13:00 EUR German CPI data
13:30 USA PCE Report
15:00 USA Pending Home Sales
Daily Forex signals:
Additional daily and long-term entries are available for subscribers.
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We wish you good trades and many pips!
Any and all liability of the author is excluded.
Copyright © All Rights Reserved 2017 Maimar-FX.
Is The U.S. Dollar Poised For A New Round Of Strength
Dear Traders,
The U.S. dollar regained some of its strength, pushing the euro and cable lower. While the euro stopped its fall slightly above 1.0560, the British pound turned out to be Monday’s worst performer and dropped towards 1.2385. British companies are increasingly pessimistic about the future outlook and with the Brexit debate intensifying, the pound remains vulnerable to larger losses. We currently see a higher likelihood of a bearish breakout in the GBP/USD but we recommend traders waiting for a break below 1.2350 in order to sell sterling.
European Central Bank President Mario Draghi warned that Britain, rather than the Eurozone, would be the first to suffer from the consequences of a Brexit. When speaking at the European Parliament in Brussels on Monday he described a cocktail of political risks hanging over the global economy, including the Brexit vote, Donald Trump’s election and the looming Italian referendum. Draghi also signaled the ECB’s readiness to continue its monetary stimulus. At the ECB meeting next week, the central bank is widely expected to announce an extension of its bond-buying program.
EUR/USD – Interesting chart formation
While there are good arguments for both bulls and bears favoring one direction or another, it should be interesting in which direction the euro may be heading within the next days. Given the uncertainty ahead of the Italian referendum, the risk is to the downside but with investors staying on the sidelines in the run-up to the important vote on Sunday, the euro could also trade directionless sideways. For the time being, we expect the pair to range-trade between 1.0670 and 1.0570. Above 1.0670 it may head for a test of 1.0710, whereas a break below 1.0560 may invigorate fresh bearish momentum towards 1.0470.
Important economic data for today:
13:00 EUR German Consumer Price Index
13:30 USA GDP Report
15:00 USA Consumer Confidence
(Time zone: UTC)
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 2016 Maimar-FX.
British Pound Advanced On Risk Appetite While The Euro Trades Motionless
Dear Traders,
The best performer was the British pound which climbed towards 1.43 and provided sterling bulls a good profit. As already assumed in yesterday’s analysis the odds seemed to be in favour of an upswing although there were no fundamental drivers supporting the bullish bias. Speculations about higher inflation could have been a possible reason for the pound’s recent price rice. Inflation accelerated to 0.4 percent annually in March from 0.3 percent in February, forecasts show. U.K. Consumer Price Indices are scheduled for release today at 8:30 GMT and if data are in line with expectations, sterling could begin to give up its gains as a slight uptick has already priced in. Traders should bear in mind that the outlook for the pound remains fragile as long as uncertainty dominates the currency ahead of the EU referendum in June. However, given the recent upward movement the cable may also extend its gains towards 1.4325 and 1.4365, provided GBP is able to break through the 1.43-barrier. On the bottom side we expect the 1.4175-level to lend a short-term support for the currency pair.
All quiet in the EUR/USD. This has been the motto for euro traders as the euro’s sideways movement provides nothing but losses. The current resistance at 1.1450 proved to be intact while the 1.1372 prevented prices from falling. Amidst the sideways trend, breakout traders searched in vain for any profitable trading chances and struggled with false breakouts. However, we know that a sideways trend with fluctuations confined to a narrow band usually does not last very long. We are therefore looking for upcoming breakouts of that narrow trading range.
Daily Forex signals:
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 2016 Maimar-FX.
We are Maite & Marios Krausse, both born in Germany and trade full time in the Foreign Exchange Market (Forex) as independent traders.
Our teamwork began in 1998, when we got to know and love each other. 20 years later after having built our careers, our son was born, making us a happy family. Continue reading...
