Author Topic: Daily Market Analysis from ForexMart  (Read 28395 times)

Offline Andrea ForexMart

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Re: Daily Market Analysis from ForexMart
« Reply #345 on: October 26, 2017, 01:47:07 PM »
EUR/USD Fundamental Analysis: October 26, 2017

The EUR/USD climb higher due to various reasons including the result of the meeting of the ECB, the scheduled statement and the press conference later this day. The dollar also weakened across the market which pushed euro to move higher. Moreover, today is a significant day for the week. 

The statement and announcement from the ECB are anticipated after the press conference of Draghi. As the market expects the release of the statement, the ECB would give their hints and plans related to QE tapering during the press conference. If they were able to give a definite plan and timeline, it would be a big help for the euro which is already presumed to rally after. The data from the eurozone gives out positive data and for this reason. Hence, the ECB does not have a reason to postpone the tapering but the pace of the program is still in question.

Draghi is exerting oneself not to appear hawkish in the past few months to avoid pushing the euro too high. It is yet to be known today is the policy is to be sustained. It will not be an easy task for him since the euro will most likely go up since there is no definite timeline of the QE tapering from the central bank. Other than that, the data from the U.S. in the past 24 hours has also been positive as the data on durable goods came out stronger than anticipated. As for the dollar, the GDP data would be significant which will be released from the U.S. tomorrow.

For today, consolidation is anticipated during the first half of the day while the traders are already preparing for the ECB release in the afternoon. Volatility will also be present in the trading following the announcement and the press conference. It is recommended to wait on the sidelines until everything has settled down.

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Re: Daily Market Analysis from ForexMart
« Reply #345 on: October 26, 2017, 01:47:07 PM »

Offline Andrea ForexMart

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Re: Daily Market Analysis from ForexMart
« Reply #346 on: October 30, 2017, 02:23:49 PM »
USD/CAD Fundamental Analysis: October 30, 2017

The U.S. dollar against the Canadian dollar closed the week high which makes the next week trading to be awaited by traders. Initially, the dollar has been moving steadily but the negative data the previous week pushed the pair to climb above towards 1.26 level with risks imposing the possibility for a breakout towards the level of 1.27.

The movement of the trend was driven by the retail sales data from the Canada which was published in the previous week that gave out a week data and has further escalate doubts to the BOC which has an inclination to increase its rates in short-term. The loonies may have declined but with the incoming Monetary policy statement from the BOC and press conference would open the possibility to become hawkish again. Although, they have been clear in the past that the central bank would not raise their rates for the remaining months in 2017 and presumably even in the early months of the following year. This lessens the hope for it and frustrated the market which resulted to a sell-off in the loonies.

On the other side, the dollar has held steady and was further pushed by a positive GDP data that may have raised the possibility of a rate hike in December. The pair moved towards the 1.28 level and even further towards 1.29 by the end of the week. However, the prices were affected by the reports on who will be the succeeding Fed Chair with chances to be Powell. At the same time, the oil prices soared which assisted in strengthening the Canadian dollar and drove the price to close for the week.

For this week, the Canadian dollar is anticipated to rally in the beginning which includes settlement of payments in oil in the present time of the year. In the latter part of the week, the labor data from the U.S. and Canada are to be released which would have an impact on the prices of the pair. Moreover, if the results of the data are good, the USD/CAD pair would rally and this would confirm the next Fed rate hike in December.

Offline Andrea ForexMart

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Re: Daily Market Analysis from ForexMart
« Reply #347 on: November 02, 2017, 05:21:14 PM »
EUR/USD Fundamental Analysis: November 2, 2017

The EUR/USD pair waited for the FOMC minutes throughout the trading day on Wednesday, the minutes are expected to be issued during the American session. Aside from this pair, there are other many currency pairs that desire to know the thoughts of Fed members regarding the future rate hikes with expectations to help them determine the short-term trend for the U.S dollar.

This ensures that the single European currency was fixed in a very tight range at 30 pips, while markets in a long position understand that any choppy movement would lead to an unprofitable trade. Since the focus is centered on the positioning of trades prior the major news events coupled with large trends once the news was issued.
It became more interesting due to the subsequent news later this week which has equal of importance with concerns of the greens. It further opened the door for the possible reversal by the FOMC with the approaching news events.

The FOMC failed to achieve its target, however, most of the text remained unchanged, particularly the talks of future outlook that came in lower than market expectations. This resulted in a sudden minor shock for the USD, met some buying and pushed the bucks to a tight range until the end of the course after the minute's publication.
Considering all the projections formulated the entire day, the minutes conversely disappointed the markets which further triggered choppy data by means of the ADP report released earlier the day.

There are reports that confirmed Jerome Powell as the next head of the Fed Reserve but caused the dollar to weaken later this day, nevertheless, the effect of this news would likely be temporary.

Ultimately, the attention was turned towards the British pound as there are no releases from the United States or the European region for today. Hence, it is safe to say that there is some tight ranging and consolidation within the euro-dollar pair amid the trading day while waiting for the US employment statistics tomorrow which could roughly confirm the rate increase in December.

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Re: Daily Market Analysis from ForexMart
« Reply #348 on: November 17, 2017, 02:45:05 PM »
EUR/USD Fundamental Analysis: November 17, 2017 

The EUR/USD pair had been moving unsteadily in the past few days as the pair moves up and down with high volatility as the greenback moves without a specific direction in the present global tone. The dollar is appealing to be bought in the short term yet the market maybe thinking twice. Although, there are instances where the rally of the dollar where it is being sold at a faster rate.

This maintains the pressure in the dollar and which would be advantageous for the euro. What’s keeping the market optimistic for the dollar is a rate hike from the Fed in December although, the market does not strongly believe this. There are no specific indications yet with indecisiveness of Fed members while the data move at a steady pace.

This has kept the dollar weak with any news or data to be released. In the past 24 hours, the euro decline to the area of 1.1750 which is seen to move down in general. The latest relevant news would be the continuation of the development of missiles from North Korea and the ongoing investigation on the accusation of Russian intervention in the US Presidential elections. These events would drive the dollar down.

For today, the speech of Draghi are expected during the London session but it is unlikely that he would discuss the monetary policy. Hence, traders should get ready for choppiness in trading this pair and be cautious in the liquidity of the pair.