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Currency Pairs Remain Range-Bound Ahead Of Next Week’s Central Bank Meetings

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Dear Traders,

The euro and pound were unable to hold onto their recent gains and weakened against the U.S. dollar Thursday despite political turmoil in the Trump administration. The euro tested the 1.23-threshold but was able to stabilize above that barrier – at least for the time being. Short traders were able to pocket a good profit yesterday as we entered short as soon as the euro dropped below 1.2350.

The pound sterling still rejects 1.40 and thus, remains range-bound between 1.40 and 1.39. As long as there is no sustained break above or below that range, there is nothing new to report.

This Friday we do not have great expectations as the focus turns to the central bank meetings next week so market movements could be flat ahead of the upcoming risk events.

Traders may keep an eye on the Eurozone Consumer Price Index at 10:00 UTC and the University of Michigan Sentiment at 14:00 UTC. However, none of these reports is expected to have a significant impact on the currencies.

We wish you a beautiful weekend!

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Potential U.S. Government Shutdown And Germany’s Coalition Talks In Focus

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Dear Traders,

The U.S. dollar continues to disappoint dollar bulls while being unable to find its footing against other major currencies. Market participants remain focused on the political risk potential around the U.S. government shutdown, which could take effect at the end of today’s trading day if no budget deal is reached. With developments in Washington being the primary focus, the dollar could remain under pressure.

The University of Michigan’s Consumer Sentiment Index is due at 15:00 UTC, but this report might only have a limited impact on the greenback.

The pound sterling gained further ground against the dollar and seems to be well on track to recover its post-Brexit referendum losses. The GBP/USD followed the recent uptrend and climbed back above 1.39 after finding fresh support at 1.38. If the pound holds above 1.3850 we could see a bullish run for 1.40 and possibly 1.4040.

The U.K. Retail Sales report is due at 9:30 UTC today and could have a minor impact on the pound’s price action.

The Euro held above 1.22 but traders should be aware of profit-taking ahead of the upcoming ECB meeting next week. There is increased speculation that ECB President Draghi will seek to talk the Euro lower following its rapid appreciation. Apart from the ECB’s monetary policy, there will be a vote by the Social Democrats in Germany to begin talks regarding a grand coalition this weekend. If the SPD votes against a coalition the euro could suffer a setback.

From a technical perspective we keep tabs on the 1.2350-level which could serve as a short-term resistance in the EUR/USD. Euro bears should however wait for prices below 1.2190 in order to expect accelerating bearish momentum.

We wish you good trades and a beautiful weekend.

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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 2018 Maimar-FX.

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USD Dips On Concerns Over Tax Cut

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Dear Traders,

We finally saw larger market swings Thursday with the EUR/USD finding directional bias toward the North.

The catalyst for the weakening USD was news the U.S. Senate would delay tax cuts to the corporate rate until 2019 and while a delay is not what dollar bulls want to hear right now, they sold dollars on the news.

EUR/USD: We got the price breakout we were looking for in yesterday’s technical analysis. After the break above 1.1605 the euro gained ground against the dollar and rose towards 1.1655. If the euro breaks above 1.1660 we may see a run for 1.1685 and possibly the crucial resistance zone of 1.17-1.1730. On the bottom side, we focus on dips below 1.1570 and 1.1550, that could reinvigorate fresh bearish momentum.

GBP/USD: The price action in the cable remains messy. As long as there is no directional bias, traders may have to struggle with false breakouts. We are still looking for profitable price breakouts either above 1.3165 or below 1.3090.

U.K. Manufacturing Production figures are scheduled for release at 9:30 UTC and could have a minor impact on the pound.

From the U.S. we have the University of Michigan Consumer Sentiment due for release at 15:00 UTC but this report is not expected to have a major impact on the dollar.

We wish you good trades and a beautiful weekend.

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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.

www.maimar.co

 

BoE Disappoints, Pound Falls, What’s Next?

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Dear Traders,

The Bank of England disappointed investors that have been buying the British pound ahead of the Inflation report as the medium-term inflation forecast came in lower than expected. Traders who had hoped for a hawkish tone or more than one dissent calling for a rate hike in the BoE’s monetary policy statement were disappointed. Officials cut their economic growth forecasts this year to 1.9 percent from 2 percent. While the BoE sees a slightly weaker path in the medium-term it expects inflation to be accelerating again by the end of 2019. To sum up, it can be said that the central bank is moving more slowly with a potential rate hike not being in the cards until 2019.

The pound dropped in response to the weaker forecasts but the slide came to a halt at around 1.2850. If sterling climbs back above 1.29 and is able to hold above that level we shift our focus back to a potential test of the 1.30-resistance level.

Today, traders will pay close attention to important U.S. economic reports such as Retail Sales and Consumer Prices, both reports are due for release at 12:30 UTC. Investors are looking for a positive reading, confirming that the U.S. economy is picking up the pace enough to withstand higher interest rates. However, a disappointment in U.S. data could send the dollar lower, providing the basis for fresh upswings in the cable and euro.

Last but not least, University of Michigan Confidence is due for release at 14:00 UTC.

We wish you good trades and a wonderful weekend.

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/

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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.

www.maimar.co

 

 

 

U.S. Dollars Recovers On Hawkish Fed Rhetoric

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Dear Traders,

The U.S. dollar regained some strength following a slew of hawkish Fed rhetoric. Federal Reserve Chair Janet Yellen reiterated in a town hall meeting that the U.S. economy is doing quite well. She was optimistic on the labor market and inflation and wage growth, saying that inflation is close to the Fed’s 2 percent goal.

These hawkish remarks helped the greenback to recover from its recent lows. The euro peaked at 1.0684 before falling back toward the 1.06-support level. Below 1.0570 we may see further losses towards 1.0480.

The British pound took a brief glimpse above 1.23 but was not able to stabilize above that high level. The 1.21-level will now be back in focus and if the pound drops below that mark, we expect a next lower target to be at 1.20. The beginning of next week is going to be interesting for sterling traders as U.K. Prime Minister Theresa May will set out her Brexit vision in a speech on Tuesday. Recent speculation about a so-called ‘hard Brexit’ has increased the pressure on the pound.

Today we will watch important economic data releases such as U.S. Retail Sales, scheduled for release at 13:30 UTC and University of Michigan Confidence due at 15:00 UTC. The Retail Sales report is expected to show an uptick in December and should this be confirmed, the dollar could recover even more quickly.

Have a nice weekend.

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/

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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.

www.maimar.co

 

 

 

Subdued Market Activity

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Dear Traders,

There was only little consistency in the performance of the U.S. dollar Thursday. U.S. Consumer prices were below expectations and as long as inflation fails to pick up, there is no call for rate increases by the Federal Reserve. Rather, the Fed may tend to be even more restrained in maintaining a hawkish stance, at least until inflation accelerates.

The recent price fluctuations in both major pairs left much do be desired for day-traders and the speculative interest was relatively muted. For now, we must wait until the risk appetite of investors increases in order to profit accordingly from new opportunities in the market.

The only interesting economic data releases could be U.S. Industrial Production, due at 13:15 GMT and University of Michigan Confidence at 14:00 GMT. Whether these reports will affect the USD remains to be seen.

EUR/USD: The euro traded between 1.1295 and 1.1230. If the pair falls back below 1.1235 we expect next crucial price levels to be at 1.1195 and 1.1170. However, if the euro climbs above 1.13 a next resistance is seen at 1.1330/50.

GBP/USD: The cable currently formatted a narrow trading range between 1.4170 and 1.4130. Above 1.4170, sterling must significantly break through 1.42 in order to regain bullish strength. Below 1.4130, the focus remains on the 1.41-mark but once this level is breached to the downside, GBP could slide towards 1.4050 and 1.40.

We wish you profitable trades and a wonderful weekend.

Daily Forex signals:

View our daily signal alerts https://www.maimar.co/category/daily-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 2016 Maimar-FX.

www.maimar.co

 

 

 

Can U.S. Retail Sales Boost Attractiveness Of The USD?

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Dear Traders,

After the first day of testimony from Janet Yellen the currency market returned to business as usual. Investors ignored the second day of her testimony and shifted their focus away from the dollar towards safe havens such as the yen. The euro continued to benefit from its role as a funding currency and trended upwards, extending its gains as far as 1.1376. The cable, however, traded lower and dropped towards its support at 1.4380. The GBP/USD defined a current trading range between 1.4590 and 1.4380 and therefore may need a catalyst in order to extend movements above or below that range. The U.S. Retail Sales report and U.S. Consumer Confidence, scheduled for release today, may trigger some movements in the greenback.

The euro traded resiliently above 1.13 on Thursday and euro-bulls must have strong nerves in order to pocket their later profits. Unfortunately we terminated our trading slightly too early and therefore missed out on the last profitable upward move in the EUR/USD.

The most important economic report today will be U.S. Retail Sales due for release at 13:30 GMT. Stronger spending is an indication of strength in the U.S. economy which is why the Fed is closely monitoring this report. Given the forecast of no outstanding rise, the risk is to the downside for the USD. In case the report surprises with a far higher increase than 0.1 percent, the greenback could rally.

Furthermore we have the GDP reports from the eurozone, scheduled for release at 10:00 GMT, which could have a short-term impact on the EUR/USD. Last but not least, Michigan Confidence, due for release at 15:00 GMT could affect the dollar.

Have a nice weekend.

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.

www.maimar.co

 

 

Whipsaw Performance In Both Currency Pairs

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Dear Traders,

While we initially anticipated further trendsetting movements in the GBP/USD on Thursday, traders have been disappointed by the cable’s zigzag moves ranging between 1.4445 and 1.4360. In the face of GBP’s recent depreciation, the currency might have taken a little breather yesterday, which has led to false breakouts and limited movements, making it an overall non-profitable trading day. Bank of England officials kept its monetary policy unchanged and said the outlook for growth and inflation has weakened further. Thus, investors continue to hold a very bearish bias over the medium-term.

The euro, however, started the day with some profitable bullish moves towards 1.0945. That short-term rise can be attributed to speculation that further European Central Bank stimulus may be limited. On the other hand, some ECB policy makers expressed a preference for an even larger rate cut, according to an account of the Dec. 3 policy meeting, published on Thursday. The ECB next meets on January 21 and investors will be looking for new insights into the ECB’s guidance.

The U.S. dollar slightly weakened on cautious comments from Federal Reserve President James Bullard, who sounded more cautious by saying the latest decline in oil prices may delay the return of inflation to the Fed’s target of 2 percent.

All in all, it was none of our favorite trading days as the market failed to provide much consistency in the currencies performances.

Today, traders will have another opportunity to watch out for some strong movements in the U.S. dollar. U.S. Retail Sales are scheduled for release at 13:30 GMT and this report could trigger a strong reaction in the greenback.  Retail Sales are expected to show a decline in December and any surprises could affect the dollar’s performance. Last but not least, Michigan Confidence is due at 15:00 GMT.

Let’s see if we can pocket some profit on the last trading day of this week.

Have a nice weekend.

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 2016 Maimar-FX.

www.maimar.co

 

 

Obedient Euro And Stubborn Cable

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Dear Traders,

The story is always the same: Whenever the euro increased its value too rapidly only because of speculation against the U.S. dollar, someone has to talk down the currency. This is what happened yesterday. European Central Bank member Ewald Nowotny said yesterday in Warsaw, that core inflation in the euro area is “clearly missing the ECB’s target”. He added that “…in my view it is quite obvious that in the current economic situation additional sets of instruments are necessary. These include structural measures”. His comments were perceived as a signal that the ECB could step-up more stimulus in the near-term. In response to the remarks, the euro bounced off the 1.15-level and weakened significantly against the U.S. Dollar.

In the end, the euro was re-balanced, falling back into its recent trading ranges below 1.14.

Moreover, the dollar received support from better than expected U.S. Consumer Prices.

It was not a good day for sterling traders. The British pound refused to trade above 1.55 and there was neither further bullish nor fresh bearish engagement in the GBP/USD. We had therefore to struggle with stop-losses without a profitable ending.

What is important for today?

Eurozone Consumer Prices are scheduled for release at 9:00 GMT today, which could have an impact on the EUR/USD.

Furthermore, traders should have an eye on today’s U.S. data. U.S. Industrial and Manufacturing Production are due for release at 13:15 GMT, followed by Michigan Confidence at 14:00 GMT.

We wish you a profitable trading day and a beautiful weekend.

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

 

 

 

Relief Rally ahead of next week’s Fed decision

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Dear Traders,

The Bank of England’s minutes sounded, against all odds, less dovish even though only 1 MPC member voted to raise rates. The pound advanced as a result and broke easily above the 1.54-mark. BoE policymakers said global developments haven’t shaken their conviction that the time for a rate increase is approaching. However, the BoE is likely to wait for the Fed to do the first step and see how the market reacts.

Sterling bulls had several profitable chances to gain profits. Today, traders should keep an eye on the BoE Inflation expectations, scheduled for release at 8:30 GMT. GBP marked a current resistance at 1.5475 and bulls could be looking for prices above that level in order to drive GBP for a test of 1.55.

Euro traders had to be patient and must unfortunately record further losses before the euro finally showed some upward momentum towards $ 1.13. Given the uncertainty going into next week’s Federal Reserve decision, volatility should be on the rise, leading to a possible relief rally towards 1.14 in the EUR/USD.

Important economic data for today:

12:30 USA PPI reports

14:00 USA Michigan Confidence 

Have a beautiful weekend!

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