Up Coming Prediction Of Major Pairs

Up Coming Prediction Of Major Pairs

Euro Punches Past 1.17 On Strong German GDP (14-Nov-2017    at   03:49:29 pm)

The euro has posted gains in the Tuesday session and is trading at a 3-week high. Currently, EUR/USD is trading at 1.1716, up 0.42% on the day. In economic news, German Preliminary GDP accelerated to 0.8% in the third quarter, above the estimate of 0.6%. German Final CPI remained unchanged at a flat 0.0%. Eurozone Flash GDP remained unchanged at 0.6%, matching the forecast. ZEW Economic Sentiment reports were mixed. The German release of 18.7 missed the forecast of 19.8, while the Eurozone reading jumped to 30.9, above the estimate of 29.3 points. Central bankers will attend an ECB event in Frankfurt, and the markets will be listening closely to Mario Draghi and Janet Yellen.

Market Update - European Session: European GDP Data Shows A Broad-Based Recovery Underway (14-Nov-2017    at   03:48:09 pm)

German economic engine humming along; other European GDP data beats expectations as well (Italy, Poland); could increase the pressure from Germany for monetary policy to be normalized more quickly than seen currently

GBP Remains Vulnerable Ahead Of Inflation Data (14-Nov-2017    at   03:38:31 pm)

European equity markets are expected to open a little lower on Tuesday, following similar moves in Asia overnight and a flat opening session in the US. There doesn't seem to be much really driving the markets right now and what little there is doesn't appear to be having a great impact. The Chinese data overnight disappointed across the board and investors pretty much shrugged it off, although it's worth noting they were only marginal misses and were in keeping with the broader trend.

China Could Tighten In Mid-2018 (14-Nov-2017    at   03:35:38 pm)

While Germany's Q3 GDP increase of 0.8% over Q2 beat expectations by 0.2% bumped the euro up towards 1.17 USD per EUR, this has come at a cost. European Central Bank Vice President Vitor Constancio congratulated himself on Monday, stating that the ECB monetary policy was highly successful. Yeah, right: after injecting more than €2 trillion in the economy! And even so, the Eurozone is still flirting with deflation.

RBNZ Holds OCR Steady. Dual Mmandate Expected To Be Introduced (14-Nov-2017    at   03:31:36 pm)

The Reserve Bank of New Zealand's monetary policy meeting released last week showed at the central bank kept the overnight cash rate unchanged at 1.75% as widely expected. Although there were expectations for the central bank to maintain a dovish outlook, it was widely regarded as neutral.

The US Dollar Doesn't Like Talks About The Rate (14-Nov-2017    at   03:29:33 pm)

Despite being pretty clear and logical, talks about the benchmark key rate increase in the USA in December are "haunting" some monetary politicians and investors. These doubts, which were mentioned in Patrick Harker's comments below, put pressure upon the "sensitive" USD.

EUR/USD: US Monthly Budget Statement (14-Nov-2017    at   03:03:09 pm)

The EUR/USD exchange rate sustained an upward trend after the monthly report of the US budget balance was published. The Euro was little changed against the Greenback at the 1.1665 mark to remain under bullish sentiment, targeting the 1.1680 area on Tuesday morning.

Pound Slides As UK Parliament Votes On Brexit Bill, Aussie Bounces On Business Confidence (14-Nov-2017    at   02:56:08 pm)

Ahead of a busy day in terms of economic data out of the UK, the US and the Eurozone, the pound moved lower as doubts over May’s leadership continued weighing on the currency, while markets were also cautious whether British lawmakers would approve the government’s Brexit bill. The aussie was the biggest winner of the session, gaining on business confidence despite disappointing figures out of China pressuring the currency.

Overblown UK Inflation Data Demand Answers | Chinese Economic Numbers Disappoints (14-Nov-2017    at   02:53:52 pm)

Investors are cautious but steady while they await more clues on the monetary policies and digest the economic news. We had a slew of economic data out of China which was mostly on the sub-standard side. The fixed asset investment for the country during the period of January and October was dreary. It printed the reading of 7.3%, below the forecast of 7.4%. The retail sales number also missed the forecast of 10.4%, There has not been any good news in the industrial production number either as it was also below (6.2%) the forecast of 6.3%.

Data-Driven Tuesday To Sway Investor Sentiment (14-Nov-2017    at   02:13:47 pm)

After a slow start to the week, economic data are back in focus, with reports from both sides of the Atlantic scheduled to make headlines. The action picks up at 07:00 GMT with a report on German consumer prices. Germany’s CPI index is forecast to rise 1.6% annually in October. The so-called Harmonized Index of Consumer Prices is expected to come in at 1.5%.

Can Euro Retain Gains Vs British Pound? (14-Nov-2017    at   02:07:40 pm)

The Euro after declining towards 0.8800 against the British Pound found support. The EUR/GBP pair traded higher recently and broke an important resistance near 0.8865. During the upside move, there was a break above a major bearish trend line with resistance at 0.8855 on the 4-hours chart. The pair also settled above 0.8850, the 200 simple moving average (green, 4-hour) and the 100 SMA (red, 4-hour).

Forex: Chinese Data Disappoints (14-Nov-2017    at   02:02:09 pm)

China's economy has been robust throughout 2017 as a continued recovery in manufacturing and industrial sectors, a healthy property market and surprisingly strong exports have helped push growth in the first three quarters close to 6.9%. However, data on Tuesday from the Chinese National Bureau of Statistics showing fixed-asset investment growth declined to 7.3%, through January to October, below forecasts of a 7.4% growth. Further disappointing data showed year-on-year industrial output coming in at 6.2% in October and significantly lower than September's strong release of 6.6%. Many believe this contraction in growth is likely to continue in the coming months, albeit at a very moderate pace, as China looks to limit the risk of debt, which slows demand, and its push to improve pollution that has negatively impacted factory output. Consumer data is also showing signs of waning as Retail Sales (YoY) for October came in at 10%, missing forecasts of 10.4% and below the previous months reading of 10.3%. With President Xi Jinping stating that 'China will focus on quality over speed as it pursues economic growth' and restating the need to improve pollution and reduce riskier lending, it is likely that China will struggle to move towards a more domestic demand driven economy.

UK Inflation Expected To Accelerate (14-Nov-2017    at   01:36:21 pm)

The markets were seen trading a bit subdued in yesterday's session. The US dollar managed to hold its ground amid a quiet trading day. Oil prices were seen trading mixed as OPEC reported that crude oil supply declined 0.46% during the month of October. The report showed that demand for oil could increase in 2017 and 2018. However, oil prices were little changed towards the end of the day.

If Bonds Are Right, A Steep Equity Correction Is Underway (14-Nov-2017    at   01:18:04 pm)

2017 has seen many hedge fund and portfolio managers send warning signals that an equity market correction is overdue. Overstretched valuations, tighter monetary policies, geopolitical risks, a slowdown and high debt levels in China and low inflation, are some of the factors that could potentially trigger a market correction. However, all of these warnings are being ignored, and stocks continue to score new highs.

Currencies: Euro Holds The Lead As Risk Rally Slows (14-Nov-2017    at   01:09:31 pm)

USD/JPY again held up well yesterday even as risk sentiment turned less buoyant. EUR/USD kept a cautious upward bias. Today's eco calendar heats up. Especially US PPI might move the dollar, but the focus remains on tomorrow's US CPI and retail sales. Sterling traders will keep a close eye at UK CPI and at the debate on the Brexit withdrawal bill

Comparing the House and Senate Tax Plans (14-Nov-2017    at   12:25:21 pm)

Last week marked a key milestone in Congressional Republicans' efforts to pass a tax overhaul plan in advance of next year's midterm elections. The House Ways and Means Committee passed its version of a tax package, which we expect to pass a full House vote. In the other chamber, the Senate Finance Committee released the details of its tax plan, which differed in several key ways from the House package. The Senate plan is still more fluid and is likely to change as it winds its way through the mark-up process this week. In this report, we summarize the key differences between the House and Senate tax packages and discuss some of the key policy sticking points that we foresee as the major challenges to the completion of a final tax package.

Australia's Business Conditions Sharply Improved In October (14-Nov-2017    at   12:17:45 pm)

The pair is expected to find support at 0.7604, and a fall through could take it to the next support level of 0.7579. The pair is expected to find its first resistance at 0.7660, and a rise through could take it to the next resistance level of 0.7691.

Euro Trading A Tad Higher, Ahead Of ECB President's Speech (14-Nov-2017    at   12:13:48 pm)

The pair is expected to find support at 1.1647, and a fall through could take it to the next support level of 1.1624. The pair is expected to find its first resistance at 1.1685, and a rise through could take it to the next resistance level of 1.1700.

Pound Trading Marginally Lower, Ahead Of Britain's Crucial Inflation Data (14-Nov-2017    at   12:10:56 pm)

The pair is expected to find support at 1.3072, and a fall through could take it to the next support level of 1.3030. The pair is expected to find its first resistance at 1.3145, and a rise through could take it to the next resistance level of 1.3176.

Current Ultra-Loose Monetary Policy To Persist: BoJ Kuroda (14-Nov-2017    at   12:08:44 pm)

The pair is expected to find support at 113.34, and a fall through could take it to the next support level of 113.05. The pair is expected to find its first resistance at 113.82, and a rise through could take it to the next resistance level of 114.01.

Swiss Franc Trading A Tad Lower This Morning (14-Nov-2017    at   12:07:44 pm)

The pair is expected to find support at 0.9940, and a fall through could take it to the next support level of 0.9913. The pair is expected to find its first resistance at 0.9990, and a rise through could take it to the next resistance level of 1.0013.