Posts

Pound Jumps On Brexit Hopes

/in /by

Dear Traders,

Many wondered yesterday what happened to the pound as it jumped more than 150 pips after falling to a weekly low of 1.3220. The high volatility was triggered by reports that the U.K. and E.U. have agreed a deal over the U.K.’s Brexit divorce bill, achieving a breakthrough in Brexit talks. The pound experienced high volatile swings in the wake of these reports and, unfortunately, some of our yesterday’s trades became victims of high volatility.

The GBP/USD could now head for a test of the 1.34-threshold and if the 1.3450-level is breached on the upside we could see sterling rallying towards 1.36. As for the bears, the bearish momentum came to an abrupt end yesterday and it will be difficult to only focus on the technical picture as the pound is mainly affected by Brexit talks.

The EUR/USD traded lower and that bearish bias can be attributed primarily to the demand for U.S. dollars. The Senate tax cut proposal advanced out of committee and toward a floor vote. With the tax reform moving closer towards realization we expect the greenback to receive a further boost. Ongoing concerns about North Korea however, seem to play a minor role for the dollar.

EUR/USD

The single currency faces a crucial support around 1.18 and if this barrier gives way to fresh bearish momentum we could see the euro falling back towards 1.1720. If 1.18 however holds, we anticipate a potential run for 1.20.

What will be important today?

The German Consumer Price Index will be release at 13:00 UTC but this report is not expected to have a major impact on the euro. From the U.S. we have revisions to the third quarter GDP scheduled for release at 13:30 UTC followed by Yellen’s appearance before the Congress at 15:00 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 2017 Maimar-FX.

www.maimar.co

 

The Dollar’s Fate Is In The Hands Of The U.S. Tax Reform Bill

/in /by

Dear Traders,

U.S. inflation data, at the end of the day, did not have a major impact on the U.S. dollar with the greenback ending the trading day virtually unchanged against the euro and British pound. The EUR/USD soared to a high of 1.1860 before it fell back below 1.18. Our assumption of a slight extension of gains in the EUR/USD has proved correct but the sharp intraday reversal could cause euro bulls to run out of breath now. While the 1.1910-Level remains a crucial resistance on the topside, the euro could now struggle to overcome the 1.1805-hurdle. If the single currency is able to stabilize above 1.18 we may see a run for 1.19 but with bullish momentum running out of steam the euro may head for 1.1730.

Euro traders should keep an eye on the Eurozone Consumer Price report due at 10:00 UTC, which could have a minor impact on the euro’s price action.

The current price action in the GBP/USD frays the nerves of day traders. The pair trades without any discernable direction and for traders looking to assign a directional approach, we recommend waiting for price breakouts either above 1.3270 and 1.3350 or below 1.31 and 1.3020.

Sterling traders should pay attention to a round of Bank of England speakers including BoE Governor Carney who is scheduled to speak at 14:00 UTC.

Apart from market-moving topics like Brexit and monetary policy, the fate of the U.S. dollar is in the hands of the U.S. tax reform. Today, the House will vote on its tax-overhaul bill, aiming to take the most concrete step toward overhauling the American tax system. House Republicans aim to get the tax reform done by year-end and that is exactly what dollar bulls want to see. How the dollar will trade in the near-term could therefore hinge on the outcome of today’s vote.

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 2017 Maimar-FX.

www.maimar.co