If there are signs of hawkishness from the RBNZ this week, NZDUSD might have significant room to gain in the medium term. The current area slightly below 63c coincides with the 23.6% weekly Fibonacci retracement, but a breakout from here probably wouldn’t face significant for several cents upward except for this month’s earlier highs around…
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Overall, the dollar reacted positively to strong job data at the end of last week because that suggests the American economy isn’t as weak as had been feared. However, ongoing gains by the greenback have been absent in most pairs as it remains technically overbought with few exceptions. The very clear resistance on this chart…
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Given the psychological importance of ¥130, lower buying volume so far this month and overbought based on the slow stochastic, technical analysis would suggest that further strong gains in the near future are unfavourable. However, higher than expected inflation this afternoon could drive the dollar strongly in the short term at least. The long-term target…
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The 100% weekly Fibonacci retracement, i.e. full retracement of losses in Q1 2020, is the main technical reference here and still a very strong support. A clear break below this would probably need a new catalyst from the RBA on Tuesday or Thursday morning’s balance of trade. Usually, a single NFP is unlikely to have…
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Balance of trade from both countries plus of course American core inflation are the key releases to watch this week. The BoC’s meeting on Wednesday afternoon GMT is unlikely to generate a clear movement on this chart but volatility during the subsequent press conference could increase as traders try to read behind the lines of…
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The following article was written by ATFX Chief Analyst of Asia Pacific, Martin Lam. Personal opinions today: Last week, the US announced that the unemployment rate remained at 3.7% in November, but the number of non-farm payrolls fell sharply in November, only 155,000. As early as the day before the announcement of the ADP private employment…
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UK markets saw a rather divergent performance yesterday with the FTSE100 slipping back and in the process dropping into negative territory for the year, while the FTSE250 rebounded strongly after its losses on Tuesday. The following post is courtesy of CMC Markets. While the recent rally in the pound may well be a factor in the…
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The following is based on research from DailyFX analyst Nick Cawley. DailyFX is a unit of IG Group Holdings plc (LON:IGG). For more of Nick's research see DailyFX.com. British Pound Falters on Concerns that UK Brexit Plans are Incomplete During a speech to the Lord Mayor’s Banquet, UK Prime Minister Theresa May said that the country should…
Read moreDMM FX Australia, who is closing up shop this summer as reported by LeapRate back in May is taking no extra risks before winding down. Today they notified current clients that due to an increased risk following the Brexit referendum and to further protect clients’ positions during this event, trading will be suspended from 07:10hrs (server time) for…
Read moreMost FX research analysts predicted volatility this week, and it looks like they are going to get it. With currency trading restarting as the weekend turned to Monday morning in the Far East, weekend polls showing a marked jump for the #VoteRemain side were clearly supporting a jump in the British Pound. The GBPUSD pair was…
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