Category Archives: Forex Fundamental Analysis

BoE Faces Conundrum | Investing.com

On Wednesday, data released by the UK Office for National Statistics (ONS) showed (excluding bonuses) rose 2.1% in August – slightly higher than the 2% forecast. However, in real terms, due to higher inflation, they fell 0.4% on the year before. The swaps market is expecting an 80% chance of a rate rise next month but the prospect of hiking rates when real wages are in negative territory will make any potential hike difficult to justify. The conundrum faced by the Bank of England is: raise rates […]

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We Should Now See Some Decent Moves

With the exception of , of which we had already known would rally and carry along, the Europeans and basically had a rather relaxed day listening to the swing kings. This should change today. The biggest surprise was that retested the 0.98361 high quite precisely. This is a rather strange development. I’ve counted it as the Wave EFC of an expanded flat but frankly, I’m pretty doubtful. Thus, I’m allowing for a possible overlap in Wave [c]/[v] that could edge a bit higher before reversing. However, it […]

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Kiwi Sinks As Peters Supports Labour Party

A day after China twice-in-a-decade Communist Party Congress commenced, statistics out of China showed that the economy continued to grow above the government’s annual target, giving more confidence on President XiJinping’s leadership. However, the expansion was slightly softer relative to the previous quarter, with the Australian dollar falling slightly in the wake of the data. In New Zealand, the Labour Party looks set to govern the country pushed the to a near five-month low. According to the National Bureau of Statistics of China, the second-largest economy grew […]

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Dollar Lacks Conviction | Investing.com

The lack of conviction and some questionable US economic data had all but stalled the rally against most G-10. The exception being where the election tail risk premium is being priced out and speculators are adding long positions anticipating a decisive Abe victory on Sunday. In reality, the latest US dollar rally was always suspect at best, based solely on optimism surrounding the possibility of Taylor’s Fed Chair appointment and a slightly more hawkish tone from the Fed. The former is a guess at best and the […]

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Yield And Risk Appetite Drove These Currencies Higher

By Kathy Lien, Managing Director of FX Strategy for BK Asset Management. Most of Wednesday’s major currencies traded higher including the . are up more than 3bp across the globe with U.S. stocks hitting fresh record highs. While and fell more than expected, risk appetite remains strong. We haven’t heard any new confrontational comments on North Korea and Fed President – the leading Fed chair candidate according to the betting markets – follows the same mantra of slow rate hikes as Yellen, who is positive for the […]

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UK Inflation Hits 5-Year High

The Bank of England is independent of the UK government and is charged with managing inflation which has a target value of 2%. Economists believe that low, stable inflation is good for the economy of a country, although consumers and workers subject to low or zero salary increases may take issue with them. Central banks use interest rates to control inflation and either retard or stimulate an economy; higher rates choke off inflation and can cool economic activity whereas “cheap money” is said both to be inflationary […]

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USD/CAD: Canadian Dollar Quiet Ahead Of Manufacturing Sales

The Canadian dollar continues to have an uneventful week. In the Wednesday session, is trading at 1.2523, up 0.02% on the day. We could see some movement from the pair in the North American session, as Canada releases Manufacturing Sales. The markets are braced for a third straight decline, with an estimate of -0.1%. The US will release two key housing indicators. is expected to slow to 1.25 million, and are forecast to remain unchanged at 1.18 million. On Thursday, the US releases and the . With […]

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GBP/USD Steadies Ahead Of UK Jobs Data

UK Data Likely to Highlight Tough Job Facing BoE Policy Makers European markets are poised to open a little higher on Wednesday, as we await the latest labour market data from the UK and speeches from ECB and Federal Reserve policy makers. The UK is a key focus for markets this week as traders try to determine whether or not the Bank of England will follow through on warnings that interest rates could rise at an upcoming meeting. Comments on Tuesday from Governor Mark and two of […]

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EUR/USD: Head And Shoulders On Daily Charts

: Markets are waiting for news on who will replace Janet Yellen Macroeconomic overview: The Federal Reserve said increased 0.3% last month after a 0.7% drop in August that was smaller than initially reported. The U.S. central bank said the “continued effects of Hurricane Harvey and, to a lesser degree, the effects of Hurricane Irma combined to hold down the growth in total production in September by a quarter percentage point.” Despite the hurricane-related setback, manufacturing remains on solid ground amid a weakening , firming global economy […]

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