|Day's Range||1.335 - 1.343|
|52 Week Range||1.1995 - 1.3616|
Investing.com - The dollar edged lower against a basket of the other major currencies on Monday but remained supported by expectations of higher interest rates, while bitcoin prices jumped as futures trading in the digital currency got underway.
Investing.com - The dollar was steady against a basket of the other major currencies on Monday but remained supported by expectations of higher interest rates, while bitcoin prices surged as futures trading in the digital currency got underway.
The Pound continues to get plenty of attention from traders as political concerns fester. The BoE, ECB, and Fed will all announce monetary policy decisions the middle of this week. Gold remains under pressure and will see increased speculation this week.
With no impactful economic data releases on the calendar today, the markets are focusing on a plethora of Central Bank meetings scheduled this week.
The US Dollar strengthened during the previous week on US tax reform and Friday’s non-farm payrolls data showed the economy created more jobs than expected in November.
GBPUSD pair likely to be highly volatile next week as Brexit news, FOMC and BOE rate announcements are expected to dominate the headlines
GBP/USD continues to be very volatile as we work our way through the negotiations, but I believe that longer-term we have rather bullish pressure that should eventually causes market to break out.
There’s red across the table for the Euro/Dollar, which sees 6 sell prompts in both the short and long-term and no less than 7 bearish signals in the mid-term, but, in contrast, the interbank is neutral at less than 12% long. Dollar/Yen has bullish models prevailing in all three time ranges, with 6 buy prompts in the short-term, 7 in the mid-term and 5 in the long-term, and they indeed are in line with the more than 23% long interbank. Pound/Yen also has green signals dominating across the chart, as it sees 5 buy prompts in both the short and long-term and 7 in the mid-term, but they are not supported by the interbank, which is neutral at less than 11% long.
The market was choppy during the Thursday’s session as it tried to cross the important 1.18 level. The longer-term view of the market is positive with the target of 1.21 level and break above this level will be a buy and hold situation for the market. The pair initially went in a sideways direction on Thursday’s session but then bounced significantly to reach the 1.3333 level below and then reached higher towards the 1.35 level.
Euro/Dollar’s short and long-term charts are both divided between red and neutral signals, whereas the mid-term scale sees 6 sell prompts, but the interbank is neutral at less than 15% long, and it does not support the technicals. Neutral models prevail across the chart for the Cable, which sees 4 neutral models in both the short and mid-term and 6 neutral indicators in the long-term, and they indeed are in line with the less than 2% short interbank. The mid and long-term scales turn neutral with 5 and 6 studies, respectively, but the interbank is bullish at more than 19% long, and it confirms the 1-hour models.
Global Equities have continued to trade in a cautious manner. The Nikkei Index has stabilized after yesterday’s steep losses with some slight gains today. Gross Domestic Product numbers will come from Europe. Tomorrow Average Hourly Earning data will come from the States.
The Pound has continued to lose value as concerns are rising about a potential failure at the Brexit Summit next week because of growing political problems for Prime Minister Theresa May’s Tory-led government. Gold remains under pressure, and the Euro has struggled also. The Pound was taken lower on Wednesday as the U.K Theresa May led government ran into more trouble.
In an unsurprising move, the Bank of Canada decided to hold its benchmark lending rate at 1%, after two small hikes earlier in 2017. The BoC stated on Wednesday that it has decided to keep its target for the overnight rate right where it is, while rate hikes in July and in September continue to work their way through the economy. The central bank commented, “While higher interest rates will likely be required over time, the bank will continue to be cautious, guided by incoming data in assessing the economy’s sensitivity to interest rates, the evolution of economic capacity, and the dynamics of both wage growth and inflation.” The markets had expected the BoC to keep the rate steady but the news saw CAD come under selling pressure, with USDCAD trading up from 1.2660 to just above 1.2800 where it has steadied overnight.
If this market breaks down below the 1.3333 level then this market will slip further. Going ahead, the market will remain volatile because of the negotiations related to Brexit gathered pace and more clarity emerges.
Brexit trouble, a possible U.S government shut down, tax reforms and Merkel’s attempts to form a coalition government are all factors outside of the macroeconomic data for the markets to consider through the day. And let’s not forget about the ongoing investigations into the Trump election campaign.
Bitcoin continues to be the darling of the markets as the prices broke through the $12000 region early in the morning and continue to rise during the course of the day. The prices have risen by more than 6% for the day so far and it appears only to be a matter of time before the $13000 region is broken and we have bet on the theory that the bitcoin prices would break the $15,000 price region by the end of the month. The stock markets continue to be under pressure over the last 24 hours as the market await further data and developments from the US.
GBPUSD’s gradual declines from 1.3550 seems dragging the pair beneath a short-term ascending trend-line, which if sustained could further fetch it to 1.3330 and then to the 1.3280-75 horizontal-line. Should the quote continue declining below 1.3275, the 1.3220 and the 1.3180 rest-points may please sellers. However, pair’s inability to extend latest downtick may trigger its upside to the 1.3405 and the 1.3450, breaking which 1.3480 and the 1.3510 can re-appear on the chart. During the pair’s additional advances beyond 1.3510, the 1.3550 and the 1. ...
The ADP Non-Farm Employment Change numbers will be published in the States today. Wall Street continues to exhibit nervous conditions. The Pound has lost value in early trading this morning as U.K politics remains fragile. Bitcoin rally continues.Federal Reserve Shadowing Broad Markets, Wall Street Remains Nervous
The market ahead will remain volatile as the US passes the tax reform bill. The market was extremely volatile during the yesterday, initially falling lower but found the strength to bounce back to its open level. This is a psychologically important level and if the market breaks from here then it will go towards the 0.75 level.