Author: FX
On Friday, the Canadian employment report showed better-than-expected numbers. The Loonie fell against the US Dollar but rose against its other rivals. Analysts at CIBC point out that the report supports their view that the Bank of Canada will increase rates by 50 bps next week, before pausing in 2023. Key Quotes: “After a roller coaster few months, the Canadian labour market moved sideways in November. The 10.1K job gain was in line with consensus expectations, as gains in full-time jobs were almost fully offset by losses in part-time employment. Looking through the volatility inherent to this series, the Canadian…
In the last month, we have had a sharp sell-off in the US Dollar. Economists at Nordea expect the greenback to remain supported in the near-term, however, EUR/USD is set to edge higher next year. Dollar’s rise on increasing recession risks to be brief “In the short-term, we believe EUR/USD is bound for a slight pullback, rather than a quick trend reversal for a higher EUR/USD. Key to our thinking is that downside risks prevail in financial markets, which will benefit the safe haven USD.” “Looking ahead, the USD is likely to rise initially in response to rising recession risks…
Following Chair Powell and economic data that weighed on USD this week, the strong NFP numbers (263k vs. 200k) managed to reverse that pressure. Next week is quieter but remains significant, OPEC meetings kicking things off over the weekend and the RBA and BOC lead the December central bank announcements. Have a look at the most important events of the coming days in our usual weekly publication. Sunday – Monday – 05 December 2022 OPEC Meeting (All Day – Sunday) ECB President Lagarde Speech (EUR, GMT 01:45) ISM Services PMI (USD, GMT 15:00) –…
As most technical analysis courses will tell you, there is no “Holy Grail” indicator that can guarantee profits in the forex market. That doesn’t mean you should give up the search for the “best” technical indicator that works for you. Don’t forget that you can always mix and match indicators or tweak their settings to come up with a consistently profitable strategy. The possibilities are endless! But before you get overwhelmed by all the options, start off by answering these four key questions first: 1. What do you want to use the indicator for? As with most activities, the choice…
KEY POINTS: Recommended by Zain Vawda Get Your Free EUR Forecast EUR/USD FUNDAMENTAL BACKDROPEUR/USD consolidates above the psychological 1.0500 level ahead of the NFP report out later today. The Euro is currently trading at 6-month highs to the greenback around 1.0540 as the dollar index continues to slide.European data released yesterday did little to justify the Euros recent rally against the greenback as German retail sales missed estimates while the S&P PMI numbers from both Germany and the Euro area remain in contraction territory. This morning brought some positive news as the Euro areas producer price inflation (PPI) slowed significantly…
The South African Rand sees a sharp decline as the markets digest a damning report related to US currency stashed away in a sofa at the President’s game farm. USDZAR, H1 As the African National Congress December elective conference draws nearer, the proverbial cat has been thrown amongst the pigeons, as a panel led by the former chief justice concluded its findings into an investigation following the theft of US currency to the value of $580,000 at a game farm owned by the president. The said currency was initially dismissed by Mr Ramaphosa as being proceeds from the sale of…
Reviewed by Nick Cawley on December 10, 2021.Trading forex news releases requires a tremendous amount of composure, preparation and a well-defined strategy. Without these qualities, traders can easily get swept up in all the excitement of a fast-moving market to their detriment. This article provides useful strategies on how to trade forex news during a major news release. Other articles in this series: Forex News Trading StrategiesThere are two common strategies for trading forex at the news release: Initial Spike Fade strategy News Straddle strategy Each one provides a robust plan for traders to follow, depending on the market environment…
USD/JPY Price and Chart AnalysisUSD/JPY breaking below the 200-day moving average.US Jobs Report (NFP) is now key ahead of the mid-December FOMC meeting. Recommended by Nick Cawley Get Your Free JPY Forecast Most Read: USD/JPY Collapsing Towards a Fresh Three-Month LowThe US dollar continues to make fresh multi-month lows against a range of other currencies with USD/JPY now down just over 12% from its October 24 multi-decade high. The latest leg lower, fueled by comments from Fed chair Jerome Powell on Wednesday and a benign core PCE reading on Thursday, may not be over yet with the latest US Jobs…
Markets expect to add more than 200k jobs in November. According to the FedWatch Tool, the Feds are considering a lower rate hike for December. Dollar bears could accelerate amidst the weaker NFP reading. December is generally a quiet month for the markets, but there is a solid risk appetite as we head into the December NFP report. What to expect? The market anticipates that the US economy will generate another 200k jobs in November, following growth of 261k in October. Additionally, the unemployment rate improved from 3.7% to 3.6%. It should be highlighted that the 200k more jobs, while…
It’s NFP Friday, people! Will Uncle Sam’s official jobs report seal the deal for a Fed pivot and this USD/CHF triangle breakdown? Before moving on, ICYMI, yesterday’s watchlist checked out EUR/USD’s ascending triangle ahead of the core PCE price index and ISM manufacturing PMI. Be sure to check out if it’s still a valid play! And now for the headlines that rocked the markets in the last trading sessions: Fresh Market Headlines & Economic Data: U.S. Oct core PCE price index slowed from 0.5% to 0.2% vs. 0.3% m/m forecast U.S. Challenger job cuts jumped 416.5% y/y in Nov U.S.…