2019-11-11 • Updated
The British pound fell against the dollar in the past week as the UK data indicated that manufacturing, industrial and construction output declined in May. A slightly stronger USD which was brought about by an upbeat NFP release resulted in a swift correction towards 1.2865.
The economic figures pointing to an economic slowdown released in the course of the past week may prevent the Bank of England from rising its borrowing costs. UK average hourly earnings and unemployment data are due on Wednesday. An indication of wage growth would slightly raise the probability of a rate hike this year and provide a modest support to sterling. Towards the end of the week, traders will be focused on the Fed Chair Yellen’s testimony as well as on the spate of the US economic data. If traders qualify Yellen’s statement as hawkish, the USD will gain some strength. The US inflation report, retail sales, and industrial production data will be released on Friday. Strong readings could also accord some support to the US dollar.
GBP/USD has recently dropped below 1.2875 (50 day MA). The technical outlook is still neutral though. The pound has likely moved into a consolidation phase. In the upcoming sessions, it will be trading within the broad range of 1.2800 (23.6% Fibo traced from this year low) and 1.3045 (this year high). The immediate bias is to probe lower levels. A break of the lower border of consolidation range will likely lead to the continuation of the downward movement towards 1.2682 (100-day MA), 1.2640 (38.2% Fibo level).
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Bearish Scenario: Sales below 78.99 with TP1: 77.93, TP2: 77.45, and upon its breakout TP3: 76.56 and TP4: 75.70 Bullish Scenario: Purchases above 78.00 (wait for a pullback to this area) with TP1: 1679.00 (uncovered POC*), TP2: 79.33, and TP3: 79.66 intraday
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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