Forex Trading Library

Greenback Continues Rising Days Ahead of US GDP

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Nasdaq Hits Record High, Remains Bid Along with SPX and Dow

NAS100 recorded an all-time high yesterday at 7820 after several companies reported better than expected numbers for quarter one. eBay, Lockhead Martin, and iRobot, just to name a few, all surprised to the upside. All indices remain bid ahead of the NY open on the back of Twitter’s results as now, expectations are that all corporate mammoths report upbeat revenues.

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CPI Inflation Miss Takes Aussie to Fresh 6-week Lows

The Australian dollar suffered great losses into the London session. It remains relatively downbeat after quarterly inflation missed expectations. Against the greenback, Aussie dived from 71c down to a daily low of $0.7026. This comes as the CPI revives the RBA’s dovish stance, especially at 0.0% when 0.3% is expected. That also marks a 6-week low. Below the 71c. barrier, price action is bearish and from here traders eye the critical support at 70 cents.

Euro Declines After German Ifo

Although the dollar trades marginally better against counter-currencies, Germany’s Ifo data is pushing down the euro. The figures highlight the loss of momentum in the biggest economy in Europe and validate investors’ concerns around the effects of trade tensions in businesses. Expectations are for EURUSD to remain weak. However, any weakness on the short-term could be limited around the $1.12 psychological support. If bears increase bets, the exchange rate could get closer to the next support at $1.1174.

Brexit Uncertainty Takes Centre Stage Once Again

Theresa May’s extension didn’t end the turmoil in the UK. Now, it’s all about politics. The UK PM is thinking of pushing through parliament new legislation that would save conservatives humiliation from the European elections. Her move comes after backbenchers and MPs talked about changing legislation in order to allow another leadership challenge. Coupled with intraday news flows that borrowing reached a 17-year low, the pound remains a victim of bears. Since the sideways market broke, GBPUSD could move lower towards $1.29 psychological support.

Dollar Remains Upbeat But Still Rangebound

The buck delivered good results over the past couple of days amid optimistic data surrounding the housing markets. Ahead of the US GPD on Friday, any potential moves are likely to remain within confined ranges rather than cause major breakouts. USDJPY trades in a tight sideways market between 112 and 111.60. However, it carries an upside bias above the 25 daily moving average.

WTI Holds Firm Near October 2018 Levels

US oil bounced off at the $66.67 resistance as widely expected. However, it remains relatively bid as long as bulls maintain control of the market. The said critical level was reached after the US announced the end of waivers for Iranian sanctions. This move saw crude gaining an extra $2 per barrel. Market participants look forward to receiving the latest weekly EIA stocks report in order to decide on directional trades. The impact could be minimum given the rejection at the strong level didn’t bring any new players in.


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