Last week proved quite eventful for financial markets. More than we expected.
The Federal Reserve cut its fed funds rate on Wednesday by 25 basis point to a range of 2% to 2.25%. Fed Chairman Jerome Powell said, “It's not the beginning of a long series of rate cuts,”. The current rate cut is a reaction...
Yesterday, markets somehow tried to price the rate cut in and realized that the door that has been opened for a cycle of rate cuts by FED is not the beginning of a downward cycle.
Therefore, the dollar continued to dominate the foreign exchange market, but the stock market was experiencing problems.
We would like to draw attention to an important nuance in the...
The main event of yesterday was undoubtedly the announcement of the outcome of the meeting of the Federal Open Market Operations Committee. The 0.25% cut has "symbolic importance" as one analyst puts it. data from the Fed funds futures market has suggested that for weeks 100% of investors already expected at least that much.
We still do believe that we have to...
At the last meeting, the Governing Council of the European Central Bank (ECB) decided that the interest rate remain unchanged. Also, Mario Draghi said that officials had not discussed the rate cut. Accordingly, the euro has a good chance this week to rebound from the medium-term range lowest level. In this regard, our position on the euro - we buy primarily...
Perhaps the main event that jogged financial markets and had effected on the momentum of oil prices valuations, as well as gold prices, was an incident in the Strait of Hormuz. This time the United Kingdom and Iran were involved. Three Iranian warships tried to block the passage of the British company BP tanker. A British warship offset the attempt, but the...
The graph has just formed a morning star as the price touches the support level of the bearish channel and the price was also touching the oversold level on the RSI. This means that the price is getting ready to change direction and we might see bullish moves over the coming days. This pair has been looking very interesting lately after the BOE (Bank of England)...
Trade what we see:
GBPJPY on the daily frame has been over extended and given the uncertainty around the UK economy and the Bank of England Sentiment / Brexit, the break below now could gather some momentum.
Stop Loss above the S/D zone
1)The roadmap is clear now. This pullback can push GBP$ as low as 1.33s and still, we are in a good position to add longs.
2)Bank of England may not hike rates, but who cares! TVC:DXY could recover back to 94s and it wouldn't matter as it eventually has to drift lower towards 74s.
3)Any GBP$ weakness translates into a 'load the...
Over the last 11-years, GBPUSD highest closed was on Jan. 31st 2015 +2.33% or +359 pips.
Then, so far Jan. 22nd, 2018 +460 pips; time to place a short! Targets on the weekly chart 61.8% 1.3645, finally 1.3530 near 50.0% Fibonacci.
Market on the 1 day timeframe looks very promising for a resurgence of the pound to go trending up as well due to bank of England raising the interest rate from 0.25% to 0.50% which was done to meet inflation rates.
Higher interest rate means higher exchange rate cause people are willing to exchange their currency to GBP to add on interest.
This also fits with...
My statistical studies shows that GBP hard data release today is likely to be dissapointed. CAD will also have somewhat dissapointed data in my opinion, however relatively it will have the smallest "dissapoinment gap" amongst the Majors.
In addition, today we will have 2 speeches coming out from MPC Member Broadbent and the BOE Governor Carney, both of whom has...
At first I thought Carney was very concerned with inflation and yet it seems he is more concerned with Brexit and given the BOE independence, they can divert from the original inflation target i.e. withstand more inflation or GBP weakened to smooth the Brexit experience.
Given his talk, I don't think the PM will reverse her tone.
GJ has began its fall, and there is a very large range to fulfill, the question is, what fundamental movement in the market will drive the plummet and to what extent? Many complex factors will fuel the move down, and it is imminent.
Trade the BOE decision...SHORT...if brake-out and confirmation occurs reposition accordingly.
Trade la decision del Banco de Inglaterra. Si rompe la resistencia y se confirma la movida reposiciona la operación.
Many are expecting a rate cut from BoE this Thursday. Will Carney deliver the cut? Will Pound hit back up to 1.3800 level?
Watch the video analysis to find out more: www.youtube.com