Treasury Secretary Steven Mnuchin said the administration was close to “major tax reform.”. Combined with good company quarterly results, The Dow (+0.85%) rallied 134 points while the S&P500 (+0.76%) gained 17 points. Pre French election concern with a suspected terrorist attack in Paris overnight which left a police officer dead…. read more
Daily
The following is a summary of the previous day’s foreign exchange market movements in the major currencies and the commodities markets. It is meant as an informative guide to the reasons underlying currency and commodity movements seen in the previous day’s foreign exchange trading. Together with a market snapshot at close of the New York session, indicators/events released during the session are outlined compared with their expected level of influence before release. This fundamental analysis summary also highlights upcoming data/events which may influence currency movements upon their release.
You will also find a technical analysis snapshot at time of release, highlighting support and resistances of each of the major currencies and gold. Coupled together with the reasons behind these important levels, traders can expect some support or resistance when these levels are reached.
Daily Outlook
April 20, 2017A drop in Oil prices of approx. 4% weighed on stock markets overnight. Crude trading as low as $50.52 a barrel. Crude stocks fell 1 million barrels, less than anticipated. Concern now around whether OPEC cuts were enough. DOW (-0.58%) biggest hit with a 120 point drop as a result… read more
Daily Outlook
April 19, 2017Overnight, UK Prime Minister Theresa May called a snap election for 8 June. After initial selling in the Pound, GBP/USD rallied hard appreciating almost 400 pips after the market realised a May lead government would strengthen the UKs BREXIT negotiating power. Resistance at the 1.290 level has paused the rally…. read more
Daily Outlook
April 18, 2017This morning, US Treasury Secretary Steve Mnuchin said an August Tax reform deadline is not possible, however he still expected tax reform to be enacted this year. In contrast with Trumps comments, Mnuchin also said long term dollar strength is positive. This saw late session gains in the US Dollar… read more
Daily Outlook
April 13, 2017Sharp drops overnight in USD/JPY and the Dollar Index as President Trump told the Wall St Journal he thought the currency was getting “too strong”. Trump stated he preferred a weaker currency and low rates. USD/JPY hit a low of 108.905 on earlier this morning, not quite testing the 200-day… read more
Daily Outlook
April 12, 2017Gold rallied overnight due to continued geopolitical tensions. The precious metal is up 10% this year, currently trading above Fridays Syria spike at $1,274.8 The volatility index once again rallied to January 3 highs of 16.4. Traders expecting a pick-up in global currency, commodity and equity indices volatility over coming… read more
Daily Outlook
April 11, 2017EUR/USD weak bounce, re-visits Friday trend break but nothing more; USD/JPY still no strength of its own despite turn higher in Nikkei; Swissie firm on European haven trade CAD/USD helped by oil and Canadian Housing Starts; AUD/USD lower with metals. The short AUD/CAD trade has seen a 200 pip sell… read more
Daily Outlook
April 10, 2017By late US session on Friday, markets had reversed moves from the US strike on Syria. Gold reversing it’s $19 move as markets turned their attention to Trump and Employment figures. A mixed Non-Farm Payrolls report eventuated, with a 98K actual Vs 180K forecast. With unemployment falling 0.2% and average… read more
Daily Outlook
April 7, 2017Range traders likely to take advantage of todays expected tight ranges, as markets eye tonight’s activity. ANZ has issued a sell USD/JPY trade recommendation. An unwinding of the ‘reflation’ trade makes USD/JPY vulnerable to further weakness. ANZ “recommend selling USD/JPY at 110.55, targeting 106.50. We will reassess above 112.60.” The… read more
Daily Outlook
April 6, 2017March FOMC minutes released this morning, stated the Federal Reserve will start unwinding its $4.5 trillion in bond holdings, purchased during quantitate easing, over the course of this year. This unwinding will essentially be the equivalent of a rate hike. An unwinding of the balance sheet could delay rate rises… read more
