Pound in favour

28 April, 2017

Our prop desk is shorting a number of Euro crosses as well as having another go at opening up some short equity index trades, although the overall level of activity is looking somewhat more subdued than it was earlier in the week.

Today marks the last trading session of the month and although we have a few notable economic releases, indications are that these will be far from stellar and April will finish with more of a whimper than a bang as far as the fundamentals are concerned. However geopolitical risk continues to cloud the horizon and with European traders facing another long weekend, the temptation to derisk some positions could set the tone in the hours ahead.

Sterling had been left to one side in the wake of last weekend’s first round of the French presidential election, but renewed optimism over a successful Brexit and the fact we saw some far better than expected retail sales figures coming from the CBI trade body has give the pound something to cheer. Cable is testing levels not seen since the pound’s flash crash of October last year and the focus will now shift to the flash Q1 GDP reading that’s due at 8.30am GMT. Expectations are upbeat here so any shortfall could leave traders itching to book profits – after this rally, there’s certainly scope on the downside.

US GDP readings for Q1 will also be in focus with this print expected at 12.30pm GMT. A somewhat lacking US durable goods order reading on Thursday is hiking expectations that the flash GDP reading will also disappoint, adding up another slug of woe to the US. Today’s print shouldn’t be negative but it could be close run, in which case another bout of profit taking from the greenback could be in order. And unless there’s a notable change of tone from the Fed in terms of cutting some slack with monetary policy then these latest gains for stocks will look difficult to justify, too.

EUR/USD has been very much on the back foot since yesterday’s underwhelming ECB meeting brought nothing new to the table and attention is now turning to the Eurozone’s scheduled release of inflation data at 9am GMT. Given the lack of intervention yesterday, the expectation here has to be that this print will disappoint too, but with oil prices drifting lower, it’s easy to see why the nascent inflationary pressures will be difficult to sustain. We have seen speculation that the outcome of the first round of the French Presidential election would help drive the decision to quicken the pace of policy tightening at the ECB, but with both candidate being seen as Eurosceptic to some degree, again there’s reason to argue that waiting until the shape of any new government in Paris is known may be the next trigger.

Source link  
Technical Analysis EUR/USD, XAU/USD

The H4 the price was unable to consolidate below 1.1400 (or see a 23.6% correction) of course this doesn’t mean that the currency pair won’t see a correction soon. If the pair surpasses 1.1400 near the intersection with the limit of the upper fan...

USD experienced an observable drop

Compounding the effect was a slip in retail sales fell continuing last month’s trend. Estimates gauge the possibility of another rate hike at under 50%., of course this is a disparate position from FOMC’s plan to commit 4 increases by 2018...

Fundamental Analysis - USD, EUR, JPY, GBP

The currency strengthened opposite the JPY and EUR, but slipped opposite AUD and GBP. Janet Yellen head of the FRS went on record in front of Congress pointing out the US economy’s positive trend which in turn will affect the Fed’s interest rate stance...

USD, EUR Woes and Safe Havens see a Boost

The US Dollar floundered against most other FOREX currencies yesterday. The only currency that fared worse than the dollar (resulted in the USD strengthening against it) was the EUR...

Yen Gains After Abe Setback

This week, the dollar is starting off on a strong note as US interest rates continue their increase from Friday. For example, 10-year yields...

Technical Analysis: Gold

Our four-hour chart is showing Tenkan-sen under the Kijun-sen, both while being horizontal. Chikou Span confirmative line bisects the chart from below, indicating a descending cloud reversing into ascension. XAU seems to be trading over both the Tenkan-sen and Kijun-sen...

Daily Fundamental Analysis

Mario Draghi shook up markets on Tuesday by announcing victory against deflation and stating that policy needs to gradually normalize...

Fundamental Analysis for Majors

It seems that investors confidence in commodity currencies were renewed as their prices grew while the safe-havens...

Technical Analysis DAX & AUD/JPY

The four-hour chart above clearly shows the Tenkan-sen line crossing the Kijun-sen from the bottom of the chart, we also see the blue line moving downwards, while the red is holding horizontally. The Chikou Span confirmative line is moving towards the bottom of the chart, indicating a descending cloud...

In the past 24 hours Bitcoin has gained 0.79% and reached $3267.8824229. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.0395% and is now at $1.1371. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -9.69% and is now at $85.7482123382. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Forex Market Analysis

Forex Currencies Forecasts

Top 10 Forex Brokers 2018

# Broker Review
6FIBO GroupFIBO Group84%