Cable has found a footing after three straight down days, which yesterday culminated in a new 10-day low low at 1.2557 . The pair has since taken root in the 1.2570-85 . EURGBP has similarly come to a directional halt below the six-day high seen yesterday at 0.8990, which is just 2 pips short of the six-month peak that was seen last week. This week’s June PMI...
By Andria Pichidi - July 3, 2019 GBPJPY Sterling made a return to underperforming ways after much worse than expected manufacturing and construction PMI data, which were followed up by some dovish remarks from BoE Governor Carney late yesterday. Meanwhile today, the June UK services PMI disappointed. The data fell to 50.2, a 3-month low and dropfrom May’s 51.0...
The UK’s June construction PMI was much weaker than expected in dropping sharply to a 43.1 headline reading, down significantly from 48.6 in May and indicating the sharpest pace of contraction in the sector in just over 10 years. The median forecast had been for a modest rise, to 49.3. Sharp declines were seen in both business activity and incoming new work. Risk...
By Andria Pichidi - June 29, 2019 An important week is coming up as we will have an outcome of the well anticipated Trump-Xi meeting, while finally the 1st and 2nd of July will see OPEC+ members meet in Vienna. In addition, NFPs will be out on Friday and a broad range of PMIs and other early indicators are expected during the week. Monday – 01 July 2019 ...
As week, month, quarter and half year all conclude, the key commodity currencies have all breached key psychological levels today. USDCAD has slipped under 1.3100, AUDUSD has broken 0.7000 and NZDUSD has broken 0.6700. The Loonie has had a strong month on the back of the rising Oil price. Technically USDCAD last breached the 20-day moving average back on June...
Back in May, Andria wrote that “The next immediate Resistance for the asset is set at October’s Resistance at $8,230 which is also the midpoint between 23.6% and 38.2% Fib…. A clear breach above the $8,230 Resistance as stated above, could open the doors towards 38.2% Fib. level, at $9,500.” Yesterday (June 26) BTCUSD breached $12,500 and closed in on $13,000, up...
The Reserve Bank of New Zealand (RBNZ) is widely expected to keep the OCR (Official Cash Rate) at the current record low 1.50%, when they announce their decision at 02:00 GMT on Wednesday. The OCR is the means by which the RBNZ manages monetary policy for the New Zealand economy, by lending overnight cash at 25 basis points above the OCR, and receiving deposits...
The May US durables data were almost as disappointing as the April figures. US durable orders declined another 1.3% in May after falling a revised -2.8% in April (was -2.1%). Weakness was in transportation orders, which dropped 4.6% following the prior 7.6% plunge (revised from -5.9%). Much of the rest of the report was better than expected. Excluding...
Good Morning - RISK OFF - USD weakens further, US Equities closed flat, Asian markets down, Bonds up, GOLD out the park ($1435 and 6 year high - down to 1426 now) and JPY & CHF bid. USDIndex breached n broke 96.00 - next stop 95.50, JPY breached n broke 107.00 ( trades at 106.90 - CPI was a tick higher at 0.7%) EUR holds 1.1400 GBP 1.2750 CHF - at 10 mth lows...
AUDJPY is the biggest mover out of the main Dollar pairings and associated cross rates, presently off highs but still showing a 0.4% gain on the day. The cross posted a six-day peak at 74.78 earlier. The high was seen ahead of the open of European markets, amid a backdrop of buoyant stock markets in Asia, before a weak opening on European equity markets saw the...
Yesterday, June 20, Cable broke and breached the 20-day moving average for only the sixth day in the last 60 and recovered the 1.2700 handle as the USD had one of its worst days of the year. The recovery in GBPUSD was much more to do with USD weakness than GBP strength. But how long can the downtrend in Sterling persist? Well, as the old adage goes, trends can run...
By Andria Pichidi - June 20, 2019 USDJPY hit a 5-month low at 107.45 following the Fed’s dovish signal. In the near term this could scope for a rebound, in the medium term however there is nothing positive for the asset. For one, BoJ Governor Kuroda strongly emphasized during his post-meeting press conference today (following the widely anticipated decision to...
By Andria Pichidi As you might already noticed, we have seen a very strong rally in Oil prices so far today, which has catalysed a strong bid for the Canadian Dollar as well. The WTI crude prices are up by nearly 3% since the Fed’s announcement, and are up by 5.7% from week-ago levels. However what triggers out attention, is the fact that the energy managed to...
USDZAR moved back to the key 14.2000 support zone yesterday following a breach of the trend-line that has been running from early 2019. The FOMC following through and delivering the Dovish statement and press conference the markets had been anticipating. The Fed left rates unchanged but shifted to an unambiguously dovish gear, noting that "uncertainties about...
The Canadian Dollar, buoyed by a 4.5%-plus (over $3.00/barrel) rally in oil prices over the last day, has seen some moderate outperformance, which has taken USDCAD to a three-session low at 1.3331. The triple whammy of tensions in the Middle East and particularly the Gulf supporting Oil prices, the fact that markets are expecting the Fed to follow Draghi into...
By Andria Pichidi , USDCAD led a quite sharp turn higher in the Canadian Dollar , which saw USDCAD tumble by about 45 pips in reaching S2 of the day at 1.3336, down from over 1.3380 following the much hotter Canada CPI report, which saw a 0.4% m/m rise overall, taking the y/y to 2.4% from 2.0%, and the core reading to 2.3% from 2.0%. The pairing had been steady...
By Andria Pichidi - June 17, 2019 NZDJPY has remained buoyant at 70.70 after bouncing from a 5-month low on Friday at 70.42, on Yen selling. This price action comes with there being little directional impulse in stock markets in Europe or Asia, but also as Kiwi leads gains since Asia Pacific trading amid better risk sentiment. Markets are anticipating major...
A policy-packed week, with monetary policy meeting in the world’s major economies (Fed, BoJ, BoE), and the potential for guidance regarding future interest rate actions, albeit cuts in the prevailing rates are expected. In UK, voting race begins for the next Prime Minister. In the data-front, ficus turn on inflation and Retail sales. Monday – 17 June 2019...