Tag Archives: forex

Deteriorating Sentiment to Fuel Gold Rebound- Supported Above 1080

DailyFX.com –

Deteriorating Sentiment to Fuel Gold Rebound- Supported Above 1080Deteriorating Sentiment to Fuel Gold Rebound- Supported Above 1080

Fundamental Forecast for Gold: Bullish

Gold prices are sharply higher this week with the precious metal rallying nearly 3.9% to trade at 1102 ahead of the New York close on Friday. The gains come amid a tumultuous week for markets with the Dow Jones Index falling more than 5% during the first week of January, marking the weakest yearly start since at least 1896. read more

Australian Dollar Volatility to Continue on China, Jobs Data

DailyFX.com –

Australian Dollar Volatility to Continue on China, Jobs DataAustralian Dollar Volatility to Continue on China, Jobs Data

Fundamental Forecast for the Australian Dollar: Neutral

  • Australian Dollar Continues to Face China-Driven Risk Aversion Threat
  • Upbeat Jobs Data May Trim RBA Rate Cut Outlook, Cap Aussie Losses
  • Find Critical Turning Points for the Australian Dollar with DailyFX SSI

The Australian Dollar succumbed to broad-based risk aversion last week, dropping the most in over four years against its US counterpart. China appeared to be the epicenter of negativity as policymakers attempted to implement a new circuit-breaker system for limiting stock-market volatility. The setup envisioned pausing trade for 15 minutes if shares sustained a loss of 5 percent and stopping it altogether at a loss of 7 percent. read more

USD/JPY Eyes August Low- Widening Surplus to Keep BoJ on Hold?

DailyFX.com –

USD/JPY Eyes August Low- Widening Surplus to Keep BoJ on Hold?USD/JPY Eyes August Low- Widening Surplus to Keep BoJ on Hold?

Fundamental Forecast for Yen:Bullish

A further deterioration in trader sentiment paired with an improvement in Japan’s Balance of Payments (BoP) may spur increased demand for the Yen and trigger another near-term selloff in USD/JPY as market participants scale back their appetite for risk. read more

New Zealand Needs a Relief Rally to Take Eyes Off RBNZ Rate Cut Bets

DailyFX.com –

New Zealand Needs a Relief Rally to Take Eyes Off RBNZ Rate Cut BetsNew Zealand Needs a Relief Rally to Take Eyes Off RBNZ Rate Cut Bets

Fundamental Forecast for the Kiwi:Bearish

  • New Zealand Dollar Ends Last Week With Strongest Rise Vs. USD in 3-Months
  • Weak CPI on Less Global Demand Keeps RBNZ Ripe for a Rate Cute This Week
  • For up-to-date and real-time analysis on the Kiwi and market reactions to economic factors currently ‘in the air,’ DailyFX on Demand can help.

Risk markets are no longer staring at the abyss as they were at the beginning of last week, which is benefitting markets like equities, Oil, & the New Zealand Dollar. From the start of the year, the New Zealand Dollar has been on its back foot as traders were quick to look at the slack of high-interest rates that the RBNZ could cutto get the economy running smoothly again. The apex of this ‘sell the kiwi against anything,’ move was after the disappointing CPI print on the 19th. read more

USD/JPY to Stage Larger Recovery on Hawkish Fed, Dovish BoJ

DailyFX.com –

USD/JPY to Stage Larger Recovery on Hawkish Fed, Dovish BoJUSD/JPY to Stage Larger Recovery on Hawkish Fed, Dovish BoJ

Fundamental Forecast for Yen:Neutral

The near-term breakout in USD/JPY may gather pace next week should the Federal Open Market Committee (FOMC) along with the Bank of Japan (BoJ) highlight the deviating paths for monetary policy. read more

Japanese Yen Shouldn’t be Strong, but it will Likely Continue Higher

DailyFX.com –

Japanese Yen Shouldn’t be Strong, but it will Likely Continue HigherJapanese Yen Shouldn’t be Strong, but it will Likely Continue Higher

Fundamental Forecast for Yen:Neutral

The near-term breakout in USD/JPY may gather pace next week should the Federal Open Market Committee (FOMC) along with the Bank of Japan (BoJ) highlight the deviating paths for monetary policy. read more

US Dollar Slow To Respond to Risk Trends, Fed Keeping it Back?

DailyFX.com –

US Dollar Slow To Respond to Risk Trends, Fed Keeping it Back?US Dollar Slow To Respond to Risk Trends, Fed Keeping it Back?

Fundamental Forecast for Dollar: Bullish

  • Debate over the timing of the Fed’s next rate hike was drowned out by China, commodities and capital markets’ plunge
  • While risk aversion is broadening, the Dollar has yet to show it is serious about resuscitating its haven appeal
  • What are the Traits of Successful Traders? See what our studies have found to be the most common pitfalls of retail FX traders.

The Dollar still carries the glow of last month’s Fed hike and there is a new – and traditionally favorable – wind blowing in the currency’s favor: risk aversion. Yet despite, the encouraging fundamental circumstances, the Greenback is showing little of the drive it had enjoyed the past few years. The equally-weighted USDollar Index has inched up to a 12-year high while the trade-weighted ICE Dollar Index is virtually unchanged. Drives for commodity-currency based majors (USDCAD, AUDUSD, NZDUSD) and the tumble in the Cable (GBPUSD) seem to have more to do with counterparts than the Dollar itself. EURUSD, the world’s most liquid currency pair, perhaps best reflects the situation with a minor anti-dollar close week-over-week. read more

Watch China, Milk for Kiwi Cues

DailyFX.com –

Watch China, Milk for Kiwi CuesWatch China, Milk for Kiwi Cues

Fundamental Forecast for the Kiwi: Bearish

The New Zealand Dollar continues to display a tight relationship with the bigger overall macro-theme of China and the larger overall threat of an Asian slowdown. Since China began their most recent descent on the heels of the December rate hike out of the Federal Reserve, the Kiwi hasn’t held up well at all. Eleven of the past twelve days have seen the Kiwi trade lower against the greenback (for a total move of -6.3%), and if we match it up with the Yen, it’s even worse – with the same 11 of 12 tally but an even larger move lower; with a full -8.45% lost against the Yen over that 12-day sequence. read more