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GBP Tests Support, What’s Next?
Dear Traders,
It came as it had to come in the GBP/USD: The British pound retreated from its highs and corrected some of its recent gains. Before yesterday’s pullback happened, we saw the pound touching a fresh post-Brexit high at 1.4377 but the U.K. employment report put an end to the cable’s rally. As we warned traders yesterday, the pullback was inevitable given the overbought situation in the GBP/USD. The job report was, however, generally positive and likely to keep the Bank of England on track to raise interest rates next month.
Today we have the U.K. Consumer Price Report scheduled for release at 8:30 UTC. If inflation numbers come in weaker than expected, the pound could drop towards 1.4230/20. A significant break below 1.4220 could even open the door for a larger decline towards 1.4150. If the pound sterling is, however, able to gain ground above 1.43, buyers may take the opportunity to buy pounds at lower levels with a higher target at 1.4420.
The euro’s climb above 1.24 had been brief while the pair EUR/USD was unable to hold above that important threshold – at least for the time being. With the 1.24-barrier being a hart nut to crack, we now focus on the 1.2350-support which is equivalent to a rising trendline of the recent uptrend channel. Euro bulls should pay attention to a break above 1.2425 which could justify accelerated bullish momentum towards higher targets.
The Eurozone Consumer Price report is scheduled for release at 9:00 UTC but as long as there is no surprise in the headline figure, the report’s impact on the price action could be limited.
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British Pound: Further Gains Or Bearish Pullback Ahead?
Dear Traders,
The biggest story in the markets on Monday was the bullish breakout of the British pound, which soared to a high of 1.4088 after it broke above the psychological level of 1.40. The bullish breakout was triggered shortly after the announcement of an agreement on a transition plan for the period after Brexit. The big question among traders is now whether there could be further gains in the pound.
Today, we have U.K. Inflation numbers due for release at 9:30 UTC and the expectation is for a 2.8 percent read from previously 3 percent. A weaker reading could be an excuse for sterling bulls to take profit on long positions. In a nutshell, there is a risk of a bearish pullback if inflation disappoints.
GBP/USD: If the pound drops below the 1.40-barrier it may extend its slide towards 1.3950. On the topside, if the pound climbs back above 1.4050 it could extend its gains towards 1.41.
The euro was able to stabilize above 1.23 and appears to be heading towards 1.2370 now. For euro bulls it will be interesting whether the euro could also overcome the 1.24-hurdle in the near-term.
From the Eurozone we have the ZEW Survey scheduled for release at 10:00 UTC.
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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.
Monetary Policy Speak And U.K. CPI Data Could Boost Risk Appetite
Dear Traders,
The price trend in both GBP/USD and EUR/USD remains disappointing overall. The price of the euro has barely changed with the currency pair still oscillating around 1.1670. The British pound found some halt near 1.3060 and ended the trading day above 1.31.
The lethargic market situation might soon come to an end as market participants brace for higher volatility ahead of today’s upcoming high-profile event. The Heads of the European Central Bank, Federal Reserve and Bank of England are scheduled to speak on a panel in Frankfurt at 10:00 UTC. Chances are slim that policymakers will reveal anything new that the market does not already know but traders should prepare for heightened volatility around this event. If none of today’s speakers touches on monetary policy, the round table discussion will be a non-event for traders.
Shortly before that, sterling traders will pay close attention to the U.K. Consumer Price Report at 9:30 UTC. If inflation data beats expectations the pound could soar towards 1.32 and 1.3250. On the bottom side we will wait for a break below 1.3020 and more importantly 1.30.
EUR/USD
In short-term time frames the euro seems to be primed for an upside breakout. If the price climbs above 1.1680 we may see some bullish continuation towards 1.1715/25. For bearish momentum to accelerate the single currency must significantly drop below 1.1640.
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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.
Pound Falls On Fears Of Collapse Of Brexit, Focus Now On Inflation
Dear Traders,
Trading was relatively quiet on Monday with the EUR/USD trading within a narrow 40-pip range. The picture was different in the GBP/USD, which started the week with volatile swings ranging from a daily high of 1.3312 to a low of 1.3225. As mentioned in our analysis from Monday, the pound sterling is currently torn between rising inflation and thus, higher interest rates on the one side and Brexit uncertainty on the other side. Yesterday, the pound came under selling pressure on speculation that Brexit talks could break down, unless the European Union gives ground at a summit of EU leaders later this week. A person familiar with the matter said the entire Brexit process will be in danger of collapse as long as negotiations are failing to make progress. The pound fell to a low of 1.3225 on the concerns about the lack of progress.
The focus will now shift to the U.K. Consumer Price Report, due at 8:30 UTC followed by BoE Governor Carney’s appearance before congress at 10:15 UTC. We expect the GBP/USD to remain vulnerable to volatile swings while we currently see the chances in favor of further bearish movement towards 1.30. If the cable breaks above 1.33 again, it may head for a test of 1.34 but the upward movement could be limited as Brexit concerns continue to weigh on the currency.
From the Eurozone we have the Consumer Price Report and ZEW Survey scheduled for release at 9:00 UTC. These reports may have a short-lived impact on the euro.
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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.
Sterling Traders Focus On U.K. CPI Data
Dear Traders,
We have seen a bit of a bearish reversal in EUR/USD Monday with the U.S. dollar recovering against the euro. Although yesterday’s slide in EUR/USD does not automatically mean that there will be a trend reversal, it should be noted that the technical picture may promise more downside momentum to come. If the euro falls below 1.1920 and further 1.1885 we could see a slide towards 1.1830. On the topside, buyers in the EUR/USD would first need to push the pair above 1.2030 in order to focus on higher targets at 1.21 and 1.2170.
The British pound ended the trading day virtually unchanged against the greenback with GBP/USD remaining confined to a narrow trading range between 1.3225 and 1.3160. Traders await the U.K. CPI report, due for release at 8:30 UTC today and if inflation data shows an uptick in August, the Bank of England may feel pressure to turn away from its dovish monetary policy stance. This would be positive for the pound but most volatility is expected on Thursday when the BoE announces its rate decision and outlook on policy.
If the pound rises above 1.3225 we may see a run for 1.3265. We bear in mind that the August high is at 1.3268, so sellers may sweep in to sell pounds around that resistance level. On the downside, we expect a support to be at around 1.3050.
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.
U.S. Dollar Falls On Healthcare Reform Failure
Dear Traders,
Yesterday’s trading was quiet for most of the day and both of our currency pairs fluctuated within narrow trading ranges. The big move occurred during the Asian session after two Republican senators said they oppose the Trump-backed healthcare reform bill, leaving it with insufficient votes for passage. The U.S. dollar fell sharply on signs the U.S. healthcare reform bill is effectively dead in its current form. Investors appear to be losing confidence in U.S. President Trump’s ability to deliver, not just on healthcare but on the rest of his revitalization agenda too.
EUR/USD surged to a high of 1.1538 and traders wonder whether the euro is on its way toward higher targets at 1.1565 and 1.1620. Let’s be surprised.
The German and Eurozone ZEW Survey are due for release at 9:00 UTC and could have a short-term impact on the euro.
GBP/USD rose in tandem with the greenback’s opponents and climbed back above 1.31. Whether the pound is able to maintain its high level remains to be seen but once 1.3120 is significantly broken, the chances are in favor of further bullish momentum. If the cable falls back below 1.3040 it could head for a test of the 1.30-support.
The U.K. Consumer Price Report scheduled for release at 8:30 UTC receives most attention and should be watched closely.
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.
We are Maite & Marios Krausse, both born in Germany and trade full time in the Foreign Exchange Market (Forex) as independent traders.
Our teamwork began in 1998, when we got to know and love each other. 20 years later after having built our careers, our son was born, making us a happy family. Continue reading...
