GBP/USD – Page 24

Market Overreacted To Powell’s Comments

July 28, 2022/in General News & Updates /by MaimarFX

It happened as expected: The Federal Reserve raised rates by 75bp and the market misinterpreted this month’s hike as a pivot towards a dovish monetary policy stance and thus sent the U.S. dollar tumbling. This is a classic market overreaction towards a potential monetary policy shift when the current guidance is already priced in. Caution is however warranted as we could be still far from the peak.

Fed Chair Jerome Powell said that another big increase is possible and projected rates to be at 3.8 percent in 2023, a projection that is above market expectations. Yet investors interpreted Powell’s comments that rate hikes will slow. The key phrase was that the pace of tightening would slow at some point but that didn’t flag a pivot to lower rates or even a pause, according to Fed watchers.

However, both euro and cable overshot following Powell’s comments. The best performer was the pound sterling that broke above the descending trendline and headed towards 1.22.

We believe that gains in the GBP/USD could be limited to 1.2250 as the pair entered overbought territory.

There were no breakouts in the EUR/USD which remains in its current trading range between 1.03 and 1.01.

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.

Any and all liability of the author is excluded.

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Will The U.S. Dollar Retreat On A 75bp Rate Hike?

July 27, 2022/in General News & Updates /by MaimarFX

It’s the Federal Reserve’s decision day and traders brace for a 75bp rate increase. The market’s key question is whether the Fed is nearing a projected 3.4 percent rate peak around year-end before Fed policy makers can start easing again to tackle the risk of recession. We bear however in mind that the market is often ahead of itself which is why talking about easing monetary policy could be premature at this point.

Nonetheless, the growing risk of a recession may force Fed policy makers to deliver smaller rate increases towards the end of this year. A shift in the Fed’s forward guidance may produce headwinds for the U.S. dollar in the coming months. So, we may see the greenback struggling to hold onto its gains even when the Fed hikes as expected.

In other words, a 75bp rate hike may not be a bullish catalyst for the dollar if additional rate hikes this year are not signaled. And the chance of a 100bp rate hike is at only 13 percent.

Given the summer lull we do not expect market movements to be extraordinarily large.

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Daily Forex And DAX Signals 26/7/22

July 26, 2022/in General News & Updates /by MaimarFX

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.

EUR/USD

Long @ 1.0225

Short @ 1.0180

GBP/USD

Long @ 1.2065

Short @ 1.2040

DAX® (GER30)

Long @ 13220

Short @ 13140

Monthly results 2022:

June 2022: +333 pips

May 2022: +172 pips

April 2022: +111 pips

March 2022: +689 pips

February 2022: +531 pips

January 2022: +766 pips

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.

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Daily Forex And DAX Signals 19/7/22

July 19, 2022/in General News & Updates /by MaimarFX

Daily Forex & 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.

EUR/USD

Long @ 1.0160

Short @ 1.0110

GBP/USD

Long @ 1.1980

Short @ 1.1940

DAX® (GER30)

Long @ 12910

Short @ 12830

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.

Monthly results 2022:

June 2022: +333 pips

May 2022: +172 pips

April 2022: +111 pips

March 2022: +689 pips

February 2022: +531 pips

January 2022: +766 pips

We wish you good trades!

Any and all liability of the author is excluded.

www.maimar.co

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Daily Forex And DAX Signals 15/7/22

July 15, 2022/in General News & Updates /by MaimarFX

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.

EUR/USD

Long @ 1.0035

Short @ 0.9990

GBP/USD

Long @ 1.1860

Short @ 1.1810

DAX® (GER30)

Long @ 12640

Short @ 12570

Monthly results 2022:

June 2022: +333 pips

May 2022: +172 pips

April 2022: +111 pips

March 2022: +689 pips

February 2022: +531 pips

January 2022: +766 pips

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.

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The Euro’s Free Fall

July 12, 2022/in General News & Updates /by MaimarFX

The euro depreciated further and its value is now close to parity with the U.S. dollar. The region’s energy crisis and recession fears have sent the common currency into a tailspin and if there is no change in Europe’s tactic towards its energy crisis, the euro is going to remain in free fall.

Daily Forex and DAX Signals for today 12/7/22:

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EUR/USD

Long @ 1.0065

Short @ 0.9985

GBP/USD

Long @ 1.1875

Short @ 1.1840

DAX® (GER30)

Long @ 12770

Short @ 12690

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.

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U.S. CPI Data In Focus

July 11, 2022/in General News & Updates /by MaimarFX

The U.S. dollar was back around the highest level since 2020 while the euro fell to 1.0072, a fresh record-low against the greenback. Reasons for the negative market sentiment are more Covid curbs in China, rising price pressures and worries about the global economic outlook.

U.S. jobs data beat expectations last Friday which is why the market now sees a green light for the Federal Reserve to hike another 75bp on July 27. With hiring conditions remaining solid, the Fed may retain a hawkish stance while the market keeps betting on super-sized rate hikes at upcoming FOMC meetings.

This week’s focus will be on the U.S. inflation reading which is expected to get closer to 9 percent. U.S. CPI data is due on Wednesday.

EUR/USD: The euro was able to stabilize above 1.01 after its dip to 1.0072. The pair is in oversold territory, so some short-term pullback would be reasonable. Above 1.02, we see a lower resistance coming in at 1.03 from where fresh selling pressure could increase. However, if the euro falls again below 1.01, the focus turns swiftly to parity.

GBP/USD: The general bearish trend remains strong and traders eye a break below 1.1850 with a next lower target seen at 1.1750. On the upside, a current resistance is seen t 1.2120.

We wish you good trades!

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U.S. Inflationsdaten im Fokus

July 11, 2022/in General News & Updates /by MaimarFX

Der U.S. Dollar erreichte wieder den höchsten Stand seit 2020, während der Euro auf 1,0072 fiel und damit ein neues Rekordtief gegenüber dem Greenback erreichte. Gründe für die negative Marktstimmung sind weitere Covid-Drosselungen in China, steigender Preisdruck und Sorgen über die globalen Wirtschaftsaussichten.

Die US-Arbeitsmarktdaten übertrafen am vergangenen Freitag die Erwartungen, weshalb der Markt nun grünes Licht für eine weitere Zinserhöhung der Federal Reserve um 75 Basispunkte am 27. Juli sieht. Da die Arbeitsmarktsituation weiterhin solide ist, könnte die Fed ihre restriktive Haltung beibehalten, während der Markt weiterhin auf sehr große Zinserhöhungen bei den kommenden FOMC-Sitzungen setzt.

In dieser Woche wird das Hauptaugenmerk auf den US-Inflationswerten liegen, die sich voraussichtlich auf 9 Prozent zubewegen werden. Die VPI-Daten für die USA werden am Mittwoch erwartet.

EUR/USD: Der Euro konnte sich nach seinem Rückgang auf 1,0072 über 1,01 stabilisieren. Das Währungspaar befindet sich im überverkauften Bereich, so dass eine gewisse, kurzfristige Erholung durchaus angemessen wäre. Oberhalb von 1,02 sehen wir einen tieferen Widerstand bei 1,03, von wo aus sich neuer Verkaufsdruck aufbauen könnte. Fällt der Euro jedoch wieder unter 1,01, richtet sich der Fokus schnell auf die Parität als Kursniveau.

GBP/USD: Der allgemeine Abwärtstrend ist nach wie vor stark, und Händler achten auf einen Durchbruch unter 1,1850, wobei das nächste niedrigere Ziel bei 1,1750 liegen könnte. Auf der Oberseite wird ein aktueller Widerstand bei 1,2120 gesehen.

Wir wünschen gute Trades!

Der Inhalt des Beitrags spiegelt die persönliche Meinung des Autors wider. Dieser übernimmt für die Richtigkeit und Vollständigkeit keine Verantwortung und schließt jegliche Regressansprüche aus. Dieser Beitrag stellt keine Kauf- oder Verkaufsempfehlung dar.

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NFP Data In Focus

July 8, 2022/in General News & Updates /by MaimarFX

It’s U.S. Nonfarm payrolls day today.

Today’s monthly jobs report is currently forecast to show the US added 265,000 payrolls in June, the fewest jobs in over a year. The unemployment rate is expected to hold at 3.6%, near its lowest level in decades. While June’s small jobs gain might be a natural slowdown, a number of less than 100k jobs would be a concern. However, even if data surprise to the upside, it is unlikely that the NFP report unleashes a long-lasting bullish reaction in the light of growing certainty of a recession.

Payrolls are due for release at 12:30 UTC.

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Warning Bell

July 6, 2022/in General News & Updates /by MaimarFX

Yesterday’s strong market sell-off is sounding a warning bell.

The euro fell to a record low against the U.S. dollar and could reach parity in the near future. As for the euro area, there is not much to be positive about. Investors are dealing with the prospects of an energy crisis that risks sending the region into a recession. If the Nord Stream 1 gas pipeline from Russia is shut off, there could be much more pain for the euro. Parity could thus be only an intermediate target amid the euro’s decline.

EUR/USD: A next lower target is 1.0170. The former support around 1.0350 could now act as a resistance.

The British pound dropped below 1.20 and tested even the 1.19-level on the back of political instability. Two members from U.K. Prime minister Boris Johnson’s cabinet announced their resignations, adding to political uncertainty.

GBP/USD: If 1.19 breaks we see a next lower target at 1.18. A short-term resistance comes in at around 1.2150.

Our trading ideas for today 6/7/22:

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.

EUR/USD

Long @ 1.0275

Short @ 1.0230

GBP/USD

Long @ 1.1940

Short @ 1.1890

DAX® (GER30)

Long @ 12530

Short @ 12440

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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