Tag Archives: through

CAD Rally Stalls After Reversing Longest Losing Streak Since 1971

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CAD Rally Stalls After Reversing Longest Losing Streak Since 1971CAD Rally Stalls After Reversing Longest Losing Streak Since 1971

Fundamental Forecast for CAD: Bearish

Steven Poloz’s refrain of a Bank of Canada rate cut that had become the preferred bet as the Loonie dropped brought a magnificent reversal for the CAD. However, toward the end of the week, the CAD rally stalled and CAD-crosses looked to oil for direction. For a majority of the week, a ‘Dash for Trash’ in Oil assets seemed sustainable as news of a coordinated global oil production cut appeared in the making. However, on Thursday, the news became obvious that such a plan was unlikely to develop, and the elusiveness of such a plan made Oil and, therefore, CAD unable to hold gains. One oil trader, Gerrit Zambo of BayernLB stated, “Don’t think there are many experienced people that really think Russia or Saudi Arabia would considerably cut production as long as they have the possibility to sell into the market,” read more

GBP/USD to Rebound to Succumb to Dovish BoE, Upbeat NFP Report

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GBP/USD to Rebound to Succumb to Dovish BoE, Upbeat NFP ReportGBP/USD to Rebound to Succumb to Dovish BoE, Upbeat NFP Report

Fundamental Forecast for British Pound: Neutral

The Bank of England (BoE) interest rate decision is likely to heavily impact the British Pound next week with the central bank schedule to release its updated forecasts, and the near-term rebound in GBP/USD may continue to unravel should the Monetary Policy Committee (MPC) show a greater willingness to further delay the normalization cycle. read more

Australian Dollar Recovery at Risk on CPI Data, FOMC Meeting

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Fundamental Forecast for the Australian Dollar: Neutral

  • Conflicting cues abound as markets eye CPI data to inform RBA views
  • Hawkish FOMC statement may renew risk aversion, sink Aussie Dollar
  • See how FXCM traders are positioned in AUD/USD with DailyFX SSI

The Australian Dollar launched an aggressive recovery last week, posting the largest five-day advance in three months against a backdrop of firming risk appetite. Follow-through is far from assured however as a busy docket of high-profile event risk promises volatility and threatens to cap upside momentum. read more

US Dollar Traders on High Alert Amid GDP, FOMC, Market Volatility

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US Dollar Traders on High Alert Amid GDP, FOMC, Market VolatilityUS Dollar Traders on High Alert Amid GDP, FOMC, Market Volatility

Fundamental Forecast for Dollar:Bullish

  • Through trading at a 12-year high, the USDollar Index has struggled to make meaningful progress
  • While uncertain risk trends remain ahead, a horde of event risk ahead is anchored by a FOMC decision and US GDP
  • See our 1Q 2016 forecast for the US Dollar in our Trading Guides page.

Technically, the Greenback (USDollar specifically) has advanced for fourth consecutive weeks through Friday’s close. That’s an impressive run especially considering it is marking serial, 12-year high closes. That said, the run is virtually devoid of conviction – which is momentum from a price perspective. The lift the currency has found to its present lofty level was founded mainly through monetary policy, and the premium it afforded has been largely absorbed. Yet, that doesn’t necessarily mark the end of the bulls’ control. A divergent rate bearing will be revived with a range of rate decisions led by the Fed’s meeting. What’s more, the stronger the push of all those catalysts tracing back to risk trends; the closer the market comes to unleashing the Dollar’s haven appeal. read more

Australian Dollar May Move on US Data After Static RBA

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Australian Dollar May Move on US Data After Static RBA

Fundamental Forecast for the Australian Dollar: Neutral

  • RBA likely to maintain status quo, Chinese PMI data may pass quietly
  • Impact of US news on risk trends biggest Aussie Dollar volatility risk
  • To see the 2016 outlook for AUD/USD, check out our Trading Guides

The Australian Dollar continued to recover for second week, bolstered by better-than-expected inflation data and firming market-wide risk appetite. The former weighed against RBA interest rate cut expectations while the latter fueled demand for higher-yielding assets, offering support to the sentiment-linked currency. Looking ahead however, upside follow-through may be compromised as a relentless stream of high-profile event risk promises to unleash sharp volatility. read more

Dollar Hits a 12-Year High, But Can NFPs and Sentiment Maintain Lift?

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Dollar Hits a 12-Year High, But Can NFPs and Sentiment Maintain Lift?

Dollar Hits a 12-Year High, But Can NFPs and Sentiment Maintain Lift?

Fundamental Forecast for Dollar: Neutral

  • The next FOMC decision is scheduled for March 16; and there is a wide gulf between the market’s and Fed’s outlook
  • Top event risk on the US docket are the January labor statistics and the Fed’s preferred inflation reading for December
  • See our 1Q 2016 forecast for the US Dollar in our Trading Guides page.

The USDollar closed at a fresh 12-year high this past week. Yet, the occasion of breaching such exceptional heights has repeatedly disappointed over the past year. For the Greenback, ‘breakouts’ have chronically lacked follow through. This isn’t just a technical shortfall, rather it is a sign of the lackluster fundamental drive behind the market. Divergent rate expectations, rising market volatility and a shift to consumer economies have all benefit the benchmark currency. However, this is not an endless well of strength. To project the Dollar further on already extended moves like those seen with EURUSD, GBPUSD and AUDUSD; a tangible upgrade is needed. Will we find it on the coming week’s docket or headlines? read more

The foreign exchange market Forex- FX, or currency market

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  1. The foreign exchange market  Forex- FX, or currency market

The foreign exchange market  Forex- FX, or currency market

Forex is a global decentralized market for the trading of currencies. This includes all aspects of buying, selling and exchanging currencies at current or determined prices. In terms of volume of trading, it is by far the largest market in the world.[1] The main participants in this market are the larger international banks. Financial centres around the world function as anchors of trading between a wide range of multiple types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies.[2] read more