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How Low Can Euro And Sterling Go?

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Dear Traders,

The U.S. dollar advanced to new highs against the euro and British pound. The greenback resumed its uptrend in expectation the Fed will hike next month while other central banks are biased to ease. The euro weakened toward a fresh low of 1.06 after European Central Bank President Mario Draghi encouraged speculation the ECB will increase stimulus next week. Draghi said Friday the central bank will do what it must to raise inflation “as quickly as possible”. The euro could thus be vulnerable to further losses ahead of the ECB’s next policy decision on December 3.

Nonetheless, traders should be cautious with short positions as central bank actions are mostly priced in. The downtrend in the EUR/USD may come to a temporary halt at 1.0585, 1.0560 or 1.0520.

This week is a shortened holiday-trading week as U.S. markets will remain closed for Thanksgiving holiday on Thursday and Friday. Important economic reports are scheduled for release on Tuesday and Wednesday with U.S. Gross Domestic Product, Personal Consumption, Consumer Confidence and Durable Goods Orders.

Important eurozone reports are due for release today with the Eurozone’s PMI reports and Tuesday with the German IFO Business Climate.

Sterling traders should watch the U.K. GDP figures, scheduled for release on Friday. While GBP may find a short-term support at 1.5150, key support levels could only be at 1.51 and 1.5030. Resistances are seen at 1.52 and 1.5240.

This week starts off with important data releases such as German Services and Manufacturing PMI reports at 8:30 GMT, Eurozone’s PMI reports at 9:00 GMT and U.S. Existing Home Sales at 15:00 GMT.

We wish you a good start to the new week!

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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 2015 Maimar-FX.

www.maimar.co

 

 

 

Will Payrolls Confirm The Fed’s Hawkish View?

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Dear Traders,

As expected, the U.K. inflation report has been the catalyst for the the big downward move in the British pound yesterday. The pound dropped like a stone and provided short-traders a nice profit. The Bank of England indicated it remains cautious about raising rates and lowered its growth and inflation forecasts. The MPC minutes showed that only one member voted for a rate hike this month, with the majority saying underlying price pressures were not strong enough to warrant a rate increase. Despite the dovish report, BoE governor Mark Carney signaled in a later interview that investors should be ready for tightening in 2016. “At some point, rates are going to move. It’s not today, unfortunately”, he said.

The euro took a breather and traded directionless sideways. Traders had to struggle with fake-outs, eliminating previous gains in the EUR/USD.

Today all eyes will be on the Non-Farm Payrolls report, scheduled for release at 13:30 GMT. The majority of economists expect payrolls to rise by a larger amount than the previous month. Investors are waiting for a confirmation of a healthy U.S. growth, justifying an imminent rate increase. Dollar bulls would get a strong signal when payrolls exceed 200k, average hourly earnings increase and the unemployment rate remains either steady or shows a decline. On the other side, if the market will be caught by surprise and labor market data disappoints, the USD could fall quickly and forcefully.

Before payrolls are due for release,  U.K. data such as Manufacturing Production and Trade Balance (9:30 GMT) could impact on the pound sterling.

We wish you a wonderful weekend and a profitable trading day!

Daily Forex signals:

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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 2015 Maimar-FX.

www.maimar.co

 

 

 

No big market moves

/in /by

Dear Traders,

Yesterday’s price action remained relatively moderate. The highly anticipated U.S. ISM index fell short of the forecast but failed to trigger big market moves. The British pound tested the area slightly above 1.5240 but sold off sharply in response to weaker U.K. PMI reports. The support zone around 1.5130/10 still remains intact for the time being. A break below 1.51 could drive the cable towards 1.5010.

The euro, however, offered some gains for both sides. After a test of 1.1290, the currency pair turned into an intraday downtrend. A current support can be found at 1.1170. Below that level we will turn our focus to the 1.11-mark again.

Today, there are only second-tier economic reports scheduled for release, which could have a limited impact on the currencies.

7:30 EUR Germany Construction PMI

12:30 USA Trade Balance

17:00 EUR ECB president Draghi speaks

21:30 USA Fed’s Williams speaks

(timezone: GMT)

Daily Forex signals:

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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 2015 Maimar-FX.

www.maimar.co

 

 

 

U.S. Dollar Advanced Amid Optimistic Fed Comments

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Dear Traders,

The U.S. Dollar traded higher against the euro and British pound amid optimistic comments from Federal Reserve policy makers. Fed officials view the U.S. economy as strong enough to withstand a rate hike in 2015. Fed Bank of Atlanta President Lockhart said yesterday he remains confident the central bank will tighten this year and he indicated that the September FOMC decision was a close call.

Investors were relieved and drove the greenback higher, even though yesterday’s Existing Home Sales report was below expectations.

GBP/USD

Sterling declined against the greenback but stopped its slide slightly above 1.5480. Today’s focus will be on U.K. Public Sector Finances, scheduled for release at 8:30 GMT. Borrowing is expected to show a rise in August, increasing the chances for an upward move towards 1.5570 and 1.5625.

The only piece of eurozone data will be Consumer Confidence, scheduled for release at 14:00 GMT. Prior to that, U.S. House Price Index is due for release at 13:00 GMT, but the impact on the currencies could be limited.

Daily Forex signals:

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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 2015 Maimar-FX.

www.maimar.co

 

 

 

Fed delays Rate Hike – No appetite for U.S. dollars

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Dear Traders,

The Federal Reserve delayed its rate hike and left interest rates unchanged. Reasons for the Fed’s decision were recent global economic and financial developments which may put further downward pressure on inflation in the near term. Nevertheless, the committee’s outlook has not changed and they repeated to raise rates when they see further improvement in the labor market and stronger inflation.

The question of whether the Fed’s move was right or wrong continues to be controversial.

Those who have hoped for a rate hike were disappointed and sold U.S. dollar as an initial reaction to the decision. We went long and gained a nice profit of 100 pips in the EUR/USD and 91 pips in the GBP/USD. So all in all a profitable trading day even though we had to record some losing trades during the day, but with the right risk-management these losses have been less serious.

There are no important economic reports scheduled for release today. It could therefore be a quiet trading day.

We wish you a beautiful weekend!

Daily Forex signals:

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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 2015 Maimar-FX.

www.maimar.co

 

 

 

Will today’s economic data trigger big moves?

/in /by

Dear Traders,

Market participants are very cautious ahead of the Fed decision on Thursday. Price fluctuations have been muted as a result. Nonetheless short-traders were able to gain a small profit by yesterday’s decline in the EUR and GBP.

Today, we will pay closer attention to important economic data such as U.K. Consumer Prices, the German ZEW survey and U.S. Retail Sales. Each report could have a more or less significant impact on the currency pairs, but since the market is dominated by uncertainty and risk-aversion, the reaction to these reports could result in unsteady and choppy swings.

EUR/USD

Technically we see the next major resistance zone at around 1.14. Euro traders might look for an upside move until 1.14/ 1.1420. However, with a significant break below 1.1250, we expect the euro to depreciate towards 1.1180 and 1.11.

Chart_EUR_USD_4Hours_snapshot15.9.15

 

Important economic data:

8:30 UK CPI

9:00 EUR German ZEW Survey

12:30 USA Advance Retail Sales

(timezone: GMT)

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 2015 Maimar-FX.

www.maimar.co

 

 

 

Market is pricing in a Fed Hike Delay

/in /by

Dear Traders,

The FOMC Meeting Minutes failed to impress yesterday. While minutes were three weeks old, not taking into account China’s recent devaluation of the Yuan, there was no clear signal for a September liftoff. Rather, FOMC members were divided on the right time of a rate hike. With only one member voting for a September liftoff, market participants reduced the probability for such a step next month, sending the U.S. Dollar to lower levels as a result.

Within a quiet trading environment and with most market participants still on holiday, traders did not get any chance of huge profits. We will have to wait until September in order to trade larger market reactions.

While the euro has appreciated in value, the pound sterling bounced back from its 1.57-resistance.

Overview about current resistance and support-zones:

  Resistances Supports
EUR/USD 1.1155

1.1185

1.1210

 1.11

1.1050

1.1015

 

  Resistances Supports
GBP/USD 1.57

1.5750/75

1.58

 1.5645

1.5575/55

1.5470

Today, there is some interesting economic data from U.K. and USA due for release, which could impact on the currencies:

8:30 UK Retail Sales

12:30 USA Continuing & Initial Jobless Claims

14:00 USA Existing Home Sales

14:00 USA Philly Fed Index  

Daily Forex signals:

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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 2015 Maimar-FX.

www.maimar.co

 

 

Solution for Greece today?

/in /by

Dear Traders,

The U.S. dollar recovered on an overall positive dollar sentiment. Hawkish comments from FOMC member Powell saying that a first rate hike could come as soon as September, with a second move to follow in December, led further support to the greenback. The market is now shifting again its focus more towards the Fed and a liftoff in September, preferring to be long U.S. dollars rather than euros.

The euro remained weak even as optimism grows that Greece will avert default. Despite the the fact that a deal appeared within reach, a main reason for the decline in the euro is, that the currency became attractive as a funding currency. Eurozone finance ministers will meet again today to try to reach a final agreement to unlock aid.

The pound sterling slid below 1.58 and found a current support slightly above the 1.57-level. The up-trend is still intact. A break above 1.5835 could revive sterling’s strength whereas a significant break below 1.57 could drive the pair towards 1.5630.

The German Ifo Business Climate which is due for release today at 8:00 GMT and later the final Q1 U.S. GDP reading scheduled for release at 12:30 GMT, could be important reports to watch.

Euro-area finance minister’s talks will start today at 7 p.m. in Brussels.

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 2015 Maimar-FX.

www.maimar.co

 

 

Fed Chairman Janet Yellen Testimony

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Dear Traders,

what’s going on this week?

We will listen to the speeches of Janet Yellen  (Tuesday & Thursday) and Mario Draghi (Wednesday).

Yellen will speak the first time before the U.S. Congress since being chairman of the Federal Reserve. Market strategists expect that she will reinforce the Feds’ steady tapering course.

From the technical point of view we should expect following:

EUR/USD

Chart_EUR_USD_Daily_snapshot 10.02.

 

The Euro is trading in a down-trend channel. We should presume that a drop is very likely.

We go long above the level @1.3660 until 1.3710

We go short below the level @1.3590 until 1.3550/00

GBP/USD

Chart_GBP_USD_Daily_snapshot 10.02.

The Cable has a strong support at this level drawn in the picture.

We will look out for long contracts until 1.6500/60. For short contracts we will have our target at the level of 1.6300.

Daily, we update all our signal subscribers with exact entries and Take Profits Levels as well as appropriate money-management.

We wish you many good trades and a beautiful week.

 

2014 Expectations with the Fed and Janet Yellen

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Dear traders,

first of all we wish you a happy, healthy and successfully new year 2014!

We hope you had a good start and feel fit for trading with new energy. So, let’s see what we can expect for the beginning of the year:

Now it is confirmed, Janet Yellen will replace Fed chairman Ben S. Bernanke. She is the first woman to head the central bank in its history.

She is supposed to support for Bernanke’s policies that aims for price stability and long-term growth.

And what’s about the tapering?

The committee of the Fed, scheduled to meet January 28-29, probably will cut its monthly bond purchases in $ 10 billion increments over the next seven meetings. The first step towards the exit is taken last month with a reduction of asset purchases from $ 85 billion to $ 75 billion. This could generally lead to a bullish Dollar and maybe to a main downtrend for the Euro as it showed very bearish the first days of January.

EUR/USD

The Euro welcomed the new year with his bearish side. It is still trading on the lower line of its up-trend channel.

Under level 1.3570 we expect more short movement until 1.3485 and 1.3410. Above 1.3700 it may rises until 1.3815.

 

Let’s take pot luck. We will give you daily entries by our signals.

Good trades and many pips!