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NFP Data To Spur USD Strength?

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Dear Traders,

Global trade war fears are back in focus after news that the Trump administration was pursuing the metal tariffs against the EU, Canada and Mexico. While the news has led to a slide in the S&P 500 and Dow, the U.S. dollar received only little attention. The greenback is still seen as the top reserve currency but whether it can hold that title in the future remains an open question.

The euro received a slight boost from updates from Italy that an election is basically off the table. The Italian Five-Star Movement and the League parties have reached a new agreement on a possible coalition government. Prime Minister Giuseppe Conte accepted an offer to form a new government with the Eurosceptic Paolo Savona who has been named as EU affairs minister.

Today, all eyes will turn to the U.S. Non-Farm Payrolls report due at 12:30 UTC.  The U.S. economy is expected to have added 190K jobs in May while wages are expected to post modest upticks. An upside surprise in any headline figure of the report could spur the dollar’s strength.

We wish you good trades and a relaxing weekend.

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We wish you good trades and many pips!

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Trade War Has Begun

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Dear Traders,

Yesterday was the official start of a trade war with the Trump administration announcing a at least $50 billion tariff on Chinese imports. And that decision had a reciprocal effect. Subsequently, China announced plans for tariffs on $3 billion of imports from the U.S., including products from steel to pork.

Investors now fear an escalation in trade tensions between the U.S. and China while an escalation in trade wars could hurt global growth.

The Japanese yen served as a safe haven while the U.S. dollar’s fate is still uncertain amidst an uncertain geopolitical environment.

The British pound’s reaction to the Bank of England announcement was strong but short-lived. The BoE rate decision was a bit more hawkish than expected, increasing the odds for a next rate in May to 72 percent now. The pound soared to a high of 1.4220 but quickly deviated from its highs as market participants took profit at 1.42. We still see the pound trading within an uptrend channel which is why we expect further gains towards 1.4270. As mentioned in yesterday’s analysis, the current support around 1.4070 proved intact from where some buyers have shown up. For the bias to shift from bullish to bearish it would require a sustained break below 1.40.

The euro bounced off the falling trendline and tested the 1.23/1.2280 support area. If the euro climbs back above 1.2370 we expect further gains towards 1.24. A break above 1.2415 would shift the bias in favor of the bulls.

Traders will watch U.S. Durable Goods Orders today at 12:30 UTC.

It has been a very profitable trading week and we therefore advise traders to secure their weekly profit now.

Enjoy the weekend.

Daily Forex Signals:

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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 2018 Maimar-FX.

www.maimar.co

U.S. Dollar Sells-Off On Trade-War Concerns

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Dear Traders,

Tuesday’s price action was characterized by ongoing U.S. dollar weakness. Both EUR/USD and GBP/USD traded upwards as traders saw little reason to push the USD higher with the trade-war-theme still overshadowing the markets. Even though U.S. politicians have attempted to soften President Trumps ‘trade war rhetoric’, global concerns about a trade-war intensified. White House economic adviser Gary Cohn resigned as the U.S. administration prepares to impose steep tariffs on steel and aluminum, which Cohn had opposed.

The dollar sold-off and pushed other major currencies higher in return. Whether the euro and pound could onto their high levels remains to be seen as event risks loom with the ECB meeting and Brexit talks posing a threat.

EUR/USD: The euro broke above 1.2370 and headed towards 1.2430 on the back of a weakening dollar. We now expect a next hurdle to come in at around 1.2450 but advise traders to keep taps on the overbought situation in this pair.

GBP/USD: The pound traded with a tailwind and climbed above 1.39. For bullish momentum to continue the cable would need to stabilize above 1.3850. If the pound remains above 1.3860 we expect a potential test of the 1.40-resistance zone.

From the U.S. we have the ADP Employment Change due for release at 13:15 UTC which could provide a foretaste of what to expect from Friday’s NFP report.

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 2018 Maimar-FX.

www.maimar.co

GBP/USD: Prepare For Higher Volatility Around May Speech

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Dear Traders,

Thursday has been a challenging trading day for traders of the EUR/USD and GBP/USD as the U.S. dollar suddenly u-turned after U.S. President Donald Trump promised to impose tariffs on steel and aluminum imports. The dollar significantly depreciated against the euro after the EU said that it will “react firmly to Trump’s tariffs”. Trump’s announcement has brought to the fore the next escalation in trade wars which could be a permanent downgrade for the greenback. Hawkish rhetoric from New York President Dudley took a backseat to fears of a trade war.

Neither major currency pair provided a sustained profit yesterday while we had to struggle with false breakouts and choppy swings. However, we hope for more profitable trading conditions today while the focus will be on the British pound.

GBP/USD

The pound tumbled after U.K. Prime Minister Theresa May rejected the EU’s Brexit draft Wednesday and now the market is waiting for more clarity on the U.K.’s demands of late. Theresa May is delivering the sixth and final “Road to Brexit” speech today, detailing the Government’s plans for the U.K. outside the EU. The time for May’s speech has yet to be scheduled.

We expect higher volatility in the GBP/USD but advise caution as the pound is known for its exaggerated volatile swings.

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/

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 2018 Maimar-FX.

www.maimar.co