USD weakness likely to continue

17 March, 2016

With the US Federal Reserve holding rates steady yesterday and lowering its Fed funds rate forecasts to two rate hikes in 2016, aligning with the market expectations, the US Dollar is likely to remain weak in the near term, which should, in turn, see the Euro and the Yen strengthen. The British Pound could, however, remain the exception as we expect to see another test down to 1.40 levels.

EURUSD Daily Analysis

EURUSD (1.12): Following a small bodied candlestick pattern the day before, EURUSD closed on a bullish note yesterday. Prices are back to the ECB highs of 1.120 resistance which could see another leg of consolidation come in within the 1.13 - 1.12 resistance zone. On the 4-hour chart, the price action still remains a bit doubtful as the Stochastics points to a bearish divergence to the modestly higher highs in price. Support at 1.113 - 1.1105 will be the initial level of interest if the upside is capped but a decline to 1.10 could confirm the much-needed correction.

USDJPY Daily Analysis

USDJPY (112.02): USDJPY continues it decline with prices now testing the 112.0 support level. A break below this support could open strong declines lower towards 111.0. On the 4-hour chart, prices still remain flat with no bias in sight. Prices have attempted to breakout from the descending triangle pattern but will little success failing to clear the 114.7 - 114.35 resistance. With 112.5 support being cleared, USDJPY will see potential declines towards 111.310.

GBPUSD Daily Analysis

GBPUSD (1.423): The British Pound managed to post a strong reversal yesterday following a decline to the 1.41 handle. With prices trading above 1.40 the bias remains to the upside for the resistance at 1.43. Currently, the GBPUSD's rally has seen a retest back to the breakout of the trend line. If this is validated GBPUSD could resume its declines and test the 1.4025 - 1.40 support level.

Gold Daily Analysis

XAUUSD (1257): Gold prices are back above the $1250 handle and closed yesterday with a strong bullish price action coming after the previous day's doji pattern. We can expect Gold to continue consolidating within the 1275 - 1250 levels unless there is a break of the 1250 support in which case, a dip back to the previous support at 1230 - 1225 is likely.


Source link  
Inflation in Mexico set to rise on higher fuel prices

Mexico's inflation is likely to be boosted higher as the government announced that it would be hiking fuel prices by nearly one-fifth from January. The government said that fuel price ceilings will be capped between 14.2% - 20% above December's prices...

Regional manufacturing indexes point to a stronger ISM manufacturing PMI

The Institute of Supply Management's Purchase Managers Index data is one of the most widely watched indicators. It is considered to be a leading indicator which gauges the strength in the U.S. manufacturing sector...

USDJPY Trims Gains. Support Seen At 104 - 103

A fairly quiet Monday saw USDJPY retreating from its recent highs ahead of the big events this week. USDJPY has retraced its gains and now trades just above the support level of 104. The markets look to another slow day today with no major events on the tap, leaving the bulk of trading on the technical aspects...


Dollar Supported, Heading Into FOMC

A quiet economic calendar today ahead of the FOMC and BoJ meetings this week could keep prices fairly flat. The US dollar looks well supported moving into the FOMC meeting first which could keep the euro subdued...

EURUSD Remains Supported Above 1.110

The Bank of England's decision to hold monetary policy steady saw the GBP surge against the US dollar, clearing 1.32 with 1.36 now coming into focus...

GBPUSD Moving Closer To Test 1.32. USDJPY Aiming For 104

Political developments in Japan and the UK saw the respective currencies react in the positive. While the GBP managed to close bullish on news that Theresa May is likely to be the new PM...


GBPUSD could test 1.32 on the descending wedge

Markets were trading cautiously yesterday after the initial positive sentiment flipped led by declines in Oil. ADP payrolls report yesterday showed 172k jobs being added to a better than expected jobless claims as well...

EURUSD eyes 1.07 on a breakout below 1.10

Risk aversion resumed after the US returned from holiday with investor sentiment turning sour after a third real estate fund suspended trading after an increase in investor redemptions. Sterling slumped as expected, fueled by BoE lowering capital buffer requirements...

Gold hits 1350 as expected

Gold prices rallied early today testing the 1350 resistance as noted over the past few days. Further upside is likely to continue if price clears the 1350 handle which could keep gold testing 1371.90...

  


Share: