Following a profitable week for us, the Pound tested a seven-week high of the 1.23500 zone during the course of last week's trading session. The BoE raised interest rate by 25bps on Thursday to a new 15-year high of 4.25%, an attempt to tame double-digit inflation in the UK and the Sterling rose 0.5% against the dollar on the back of the news but was unable to...
Following the massive slide couple of weeks ago; we scooped over 800pips profit as the US oil finished last week's trading session up approximately 4%, after factoring in gains from the first four days of the week. This indicates consolidation and the possibility of a technical rebound, which has immediate resistance at both the trendline identified on the 4H...
Following approximately 2,000 pips in profit last week (see link below for reference purposes); we took a fresh new look at the chart as US Oil prices hit their lowest point since December 2021. I think the slump in oil prices this time, had little to do with supply-demand but more with the crisis of confidence at banks that provide the liquidity for trading this...
The crisis in the US banking sector last week lured market participants into a safe haven in the Yen as the US dollar showed signs of losing momentum. Following this development; the Yen closed the week with approximately 3% gain against the dollar. Heading into the new week, the Greenback doesn't seem popular at this moment as the call for rewidening the Fed's...
Following a profitable week for Gold (see link below for reference purposes); the rally in gold shows that it has become the spotlight as the banking crisis drove more investors towards it for safe havens. Gold hit 11-month highs, breaking from the mid-$1,900 zone and strongly heading for the $2,000. As the fears that the U.S. economy could end up in a deep...
The U.K. economy reflected signs of positivity with preliminary estimates showing gross domestic product rose by 0.3%. However, the potential to raise interest rates at the BoE's next meeting in two weeks’ time remains on the table as inflation has been running at around 10% for the last six months. From a technical perspective, it is obvious that price action is...
Following a profitable week, price action is at a critical juncture in the market where both a bullish and bearish momentum could be triggered in the new week. The new week is laced with a series of macroeconomic events; so we shall be focusing on the fundamental event for signals to make an informed decision. BoJ Monetary Policy Meeting Minutes - its first...
Following the reversal of Covid-19 policy — the Chinese manufacturing sector posted its biggest improvement in more than a decade last month, service/activity is climbing and the housing market is stabilizing. Economists speculate that the reopening may see Chinese oil consumption hit a record high this year and It was indeed a positive week for the oil commodity...
In the absence of high-impact events from the UK this week, the anticipation of the testimony by Fed Chair Jerome Powell on Tuesday and Wednesday as he delivers the semi-annual monetary policy report to lawmakers is on everyone's radar. Obviously, his comments will shed light on whether stakeholders are in tune with the central bank’s view on how high it will have...
The personal consumption expenditures (PCE) price index witnessed its biggest increase in six months bringing the index to 5.4% for the last year - a whopping 0.6% increase. As the Federal Reserve gears to ratchet up rate hikes again amidst fear of inflation, Gold appears to be consumed by the same inflation that it is supposed to be a hedge against. With prices...
Despite the rebound in UK consumer confidence in February and the GfK’s consumer confidence indicator jumping seven points to -38 (a 10-month high), the Pound Sterling relinquished its previous gain to close the week above a strong demand zone at the $1.19000 zone. Supported by strong economic data, the demand for the Greenback has virtually increased in the last...
The US oil still found a way to finish in neutral territories as bulls jumped in to buy into a market that scraped three-week lows just two days earlier at the $74.00 zone. The hopes of increased demand are still a possibility in this market as the Chinese government (the world's largest importer of crude oil) has lifted all COVID restriction policies hereby...
Since the last publication; price action moved over 400 pips in our direction (see link below for reference purposes) as the Greenback rose 0.6% to close the week just below the 135.000 zone. The Japanese yen was among the worst-hit Asian currencies as the US Dollar hit a six-week high against a basket of currencies after stronger-than-expected inflation readings...
Hey guys, last week I was bullish on gold, but after the recent PA I changed my bias to short. -First, the price formed the so-called "Bearish Flag" formation, this is a pattern that is a trend continuation and the TP is the duplication from the initial leg. -Second, looking at the DXY I am more for a strong dollar for the near future judging by the recent...
OPEC+ panel endorsed the oil producer group's current output policy at a meeting on Wednesday - 2nd February 2023, leaving production cuts as agreed last year in place amid hopes of higher Chinese demand and uncertain prospects for Russian supply. Despite fundamental expectations, the US Oil prices tumbled 8.5% during the course of last week's trading session to...
Continuation of an uptrend with a 20% potential uptrend. The SL is just below the trendline but even if taken out, watch to get back in as fundamentally the likelihood of a downtrend is minimized by the fact that there is a tremendous need for modernization by the electricity providers, to enlarge their grids`capacity.
Gold was unable to crack the psychological level at $1,950 to bring fresh hopes of a new wave of bullish momentum and this can not be unconnected to the reassuring U.S. economy as the fear of recession recedes at least in the meantime. Data reported on Friday reveals that the PCE Index grew 5% in the year to December, versus an annual expansion of 6.8% in June...
Despite price action being caught within a channel between the 143.000 and 138.000 level since the beginning of the year; We have identified a flat channel on the 4H timeframe which we shall be using to guide our trading activities for this week. Disclaimer: Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high...