13 July, 2017
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.
FOMC head Janet Yellen’s statements yesterday seem to reveal a more dovish stance when it comes to interest rates. Yellen seems to be indicating towards a more conservative gradual increase of interest rates. The FOMC Chief Chair also went on record that decreased inflation is a point of concern when assessing a potential interest rate hike. This statement resulted in investors selling USD.
EUR/USD gained 1.1479 but then fell to 1.1390 finally ending the day at a loss (-0.47%).
Postitive UK labor market data in combination with FOMC Head’s statement regarding a gradual interest rate increase boosted GBP/USD by 0.26% bringing up to 1.2883.
AUD/USD grew 0.55% in light USD sales and coming up to 0.7677.
USD/JPY lost 0.68% and is currently at 113.15.
Yet another safe haven during volatility: Metals also grew. Gold went up 0.28% reaching 1220.40, and silver gained 0.51% reaching 15.90.
In the world of commodities Oil prices dropped due to a lower than expected yield by US oil production shown in the weekly changes of oil production and reserves published by the US Department of Energy. Oil reserves saw a slip down to 7.564 million barrels a week, even though production was increased by 59K barrels a day.
This resulted in investors off-loading oil futures. This saw Brent drop by 1.00% slipping to 47.70, and WTI fell to 45.54 after losing 0.76%.
American stock on the other hand is trading in the green. Dow Jones gained 0.48% reaching 21532.5. NQ went up by 1.22% settling at 5783.6. S&P also had a gain, 0.66% going up to 2441.4.
EU indexes also experiencing an upsurge today. The FTSE gained 0.85% reaching 0.7420.7.В The CAC went up to a level of 5223.4. The DAX is trading at 12641.1 after gaining 1.18%.
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...
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...
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...
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...
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...
Mario Draghi shook up markets on Tuesday by announcing victory against deflation and stating that policy needs to gradually normalize...
It seems that investors confidence in commodity currencies were renewed as their prices grew while the safe-havens...
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...
CAD was the biggest mover on Friday with a sharp fall after the Canadian CPI slowed even more than expected...