In unprecedented moves, we are seeing EUR/GBP trying to push to new highs again with the pivotal 0.8840 level still being tested after 3 failed attempts. The mantra of the modern day is to try, try and try again and with the EUR having come back sharply off the low 1.1100's, the market is full of confidence that this can be achieved eventually…read more here:
Just as the USD was pushing for new highs, we saw the Markit PMIs in the US released with the manufacturing index falling to 50.6 vs 52.6, with estimates around a median forecast of 52.7. We also saw services PMIs coming in at 50.9 vs 53.5 forecast, so this has helped stem the tide of USD strength though this may only be temporary…read more here:
This evening's release of the Fed minutes offered little to get excited over, with the main takeaway being much as expected in that the Fed will adopt a patient stance on policy as fresh incoming data offers fresh insight. The view in inflation at this stage is that weakness is transitory and that it is expected to pick up as the year goes on. As such, the Fed is in a neutral stance and will remain that way while the markets continue to price in odds greater than 50% that they will cut rates at the end of the year…read the full article here:
USD/CAD is now moving a little freely, with the spot rate now through the first bank of support at 1.3370-80. 1.3350 has found buyers since, so despite the strong data, the CAD will continue to have a tough time of if against the greenback, with yet more demand expected either side of…read the full article here:
After a tense start of the week, a new ceasefire is now impacting S&P positively. SPX is up 0.86%. Markets are recovering after Huawei was granted with a temporal permission by The US Commerce Department. Until August 2019, the Chinese multinational will be able to purchase US goods…read more here:
EUR/CHF is also easing off a little, though EUR/JPY is pretty steady below the 1.2300 mark, but price action should start to pick up once markets avert (some of) their attention away from Brexit.
We get EU consumer confidence out later on today, yet this is not expected to have much if any impact on the EUR given the event risks seen ahead…click the link below to read more:
Cable has now taken out the 1.2700 level, and should we close below here later in the day, then the signs are that the market is keen to test lower levels with a view to testing key support points ahead of 1.2660 and 1.2600.
EUR/GBP seems to have driven the move again, posting - what at this stage - looks to be the 12th straight day of gains, and now eyeing a move on 0.8794-0.8810, through which we have the 200dma cutting in. A sustained move above here will see the pivotal 0.8840 level tested, where a clear break could see the market looking to test 0.9000 higher up. This would then coincide with a move on 1.2500 in Cable…read more here:
In the first trading session of the week, US stocks struggled as the trade war rhetoric went from bad to worse. The US stock markets have reacted to the news that Google will not let Huawei devices carry Google maps and YouTube in the future editions of their phones. Stocks in China managed to recover as the Shanghai Comp. rose 1.19%. This move only came as the US commerce department announced a 90-day reprieve for Huawei. Elsewhere in Australia the ASX pushed 0.37% higher as RBA gov Lowe said the bank may consider cutting rates next month and lastly, the Nikkei 225 lost 0.14%...read the full article here:
AUD/USD gains were short-lived, with the post-election gap up over the weekend being slowly filled, with the backdrop of weakening risk sentiment hurting the commodity-linked pairs. USD/CAD is also trying to push lower to test 1.3400 again, but the dominant USD/risk factor continues to keep ranges frustratingly tight, though as we saw last week, the push for 1.3500+ offered little sustainable gain. We have to wonder if, at some point, the consistent buying will throw in the towel - in the near term at least!...read the full article here:
EUR will get much support this week, and for now, we look to be grinding (or trying to) lower towards initial support at 1.1140, though the signs are that we are more likely to test the 1.1110 cycle lows which stand in the way of a test of the key 1.1000-50 zone…read more here:
Good morning and welcome back to a brand new week with us here at EverythingFX!
In a weekend of election news, AUD/USD shot up at the open after Scott Morison claimed a victory in the latest Australian leadership election. The new leader pledged to be pro-business and said he would pass signature tax cuts, with this the ASX rallied 1.74% to 6.476. Over in Japan the Nikkei 225 was also bullish after trading 0.24% higher however in China the Shanghai Comp. fell just under 1% on more reports of the US-China trade talks stalling…read more here:
There has been a light reaction to the Canadian CPI data just released, which has seen the headline number fall from 2.0% to 1.4% reflecting the fall in Oil prices. The core rate is also lower however from 1.7% to 1.5%, though in both cases, the numbers were widely expected…read more: