We see that the upward momentum in Sterling assets continues today, with some of the most prominent voices in the decisions of the Central Bank of England's Monetary Policy Committee and the triumph of the Brexit bill voted in parliament by British Prime Minister Theresa may. However, despite the positive developments about Brexit in recent days, it is still worth noting that the uncertainties of Brexit continue in the country. For this reason, it is important to keep an eye out for possible exp…
Community Blog
EURusd overview
Yesterday, Italian Economy Minister Giovanni Tria, after a meeting with German Chancellor Angela Merkel, “we are behind our commitment to stay in the euro,” Euro assets recovered from today's European PMI figures after the UP-and-coming attacks continued. Looking at the data released, the euro zone service and composite PMI came above forecasts, and Manufacturing PMI resulted in parallel with expectations. In Germany, the service and composite PMI figures were better than predicted, while manufa…
EURusd overview
Industrial production in Germany today, despite expectations of 0.3 percent, while the country's trade balance remained below expectations of -1.0 percent, 19 billion 400 million excess gave. Negative data from both Germany and France in the last 2 days has created sales pressure on euro assets despite positive statements by ECB officials on the bond buying program. On the other hand, the rally in the bond interest rates in Italy has supported the drawback seen today by the parity side. On the o…
EURUSD overview
Yesterday, headline inflation figures in the euro zone remained far below market expectations, followed by the European Commission's economic forecast statement. The economic slowdown at the beginning of 2018 will likely be temporary, while the complex Outlook in the employment market will continue to be highlighted. Yesterday, Peter praet, a board member of the European Central Bank, said that monetary expansion could continue. On the US side, while the Non-Manufacturing Purchasing Managers Ind…
USD/JPY
The Yen (JPY) continued trading stronger against the Dollar in early Monday trading. With the Yen gaining strength and the inflation below target, the Bank of Japan (BoJ) sees too much risk to change current monetary policy. The BoJ attempted to normalize monetary policy by measures such as decreasing its bond purchase program.On Monday in Japan the CAPEX level as well as the Tankan Small/Large Manufacturers level data is set to be published
Yen strength to start the week
Themes from last week continue. Yen is the strongest, followed by the U.S. dollar. AUD/JPY broke to new lows and NZD/JPY is likely to follow soon. CAD/JPY and CHF/JPY already did it last with EUR/JPY not far behind. GBP/JPY is the only one standing with a decent buffer or does it have some catch-up to do?
New Week Opening Gaps?
I’m wondering if we are going to see big price gaps when the market opens again tomorrow.
In the last hours of NY session, the equities rebounded sharply along with yen and dollar losing some of their gains, but I don’t think this is over. While not exactly a panic, market moves showed a flight to safety. I believe the investors will continue closing their long positions against the US dollar and Japanese yen will continue making gains. Along with that tactic, I left 4 of my trades open over th…
In the last hours of NY session, the equities rebounded sharply along with yen and dollar losing some of their gains, but I don’t think this is over. While not exactly a panic, market moves showed a flight to safety. I believe the investors will continue closing their long positions against the US dollar and Japanese yen will continue making gains. Along with that tactic, I left 4 of my trades open over th…
EURUSD expectation
The euro zone Producer Price Index was announced below expectations on a monthly and annual basis. In the United States, 184 thousand as expected non-agricultural employment data amounted to 200 thousand. The average hourly earnings were 0.3 percent in line with expectations, while the Unemployment Rate data were reported as 4.1 percent in line with expectations. In addition, the data on non-agricultural employment and average Hourly earnings were revised upwards. When we look at the news flow, …
FX Strategy
In the G10 currencies today, USD and NZD are among the top gainers while CHF and JPY are the worst performers. USD is firming today given strong manufacturing PMI numbers and unexpectedly high Adp employment change yesterday. AUD was also subdued following weak trade balance data overnight. Elsewhere, the German Retail sales reported unexpectedly strong numbers (2.3% actual vs 1.1% expected) but we may not see much of an EUR move before inflation rate later today. In the equities space, the Nikk…
EURUSD parity overview
EURUSD continues to test 1.2070 resistance. Yesterday, the rise in unemployment rates in the United States was influential in the weakening of the dollar. In the US, however, employment data will be announced today and the euro zone will be followed by the leading inflation data. Technically, 1.2070 corresponds to a critical resistance.