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Daily Market Analysis from ForexMart (Fundamentals}

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Re: Daily Market Analysis from ForexMart (Fundamentals}

Postby Andrea ForexMart » Thu Nov 02, 2017 9:24 am

EUR/USD Fundamental Analysis: November 2, 2017

The EUR/USD pair waited for the FOMC minutes throughout the trading day on Wednesday, the minutes are expected to be issued during the American session. Aside from this pair, there are other many currency pairs that desire to know the thoughts of Fed members regarding the future rate hikes with expectations to help them determine the short-term trend for the U.S dollar.

This ensures that the single European currency was fixed in a very tight range at 30 pips, while markets in a long position understand that any choppy movement would lead to an unprofitable trade. Since the focus is centered on the positioning of trades prior the major news events coupled with large trends once the news was issued.
It became more interesting due to the subsequent news later this week which has equal of importance with concerns of the greens. It further opened the door for the possible reversal by the FOMC with the approaching news events.

The FOMC failed to achieve its target, however, most of the text remained unchanged, particularly the talks of future outlook that came in lower than market expectations. This resulted in a sudden minor shock for the USD, met some buying and pushed the bucks to a tight range until the end of the course after the minute's publication.
Considering all the projections formulated the entire day, the minutes conversely disappointed the markets which further triggered choppy data by means of the ADP report released earlier the day.

There are reports that confirmed Jerome Powell as the next head of the Fed Reserve but caused the dollar to weaken later this day, nevertheless, the effect of this news would likely be temporary.

Ultimately, the attention was turned towards the British pound as there are no releases from the United States or the European region for today. Hence, it is safe to say that there is some tight ranging and consolidation within the euro-dollar pair amid the trading day while waiting for the US employment statistics tomorrow which could roughly confirm the rate increase in December.


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Re: Daily Market Analysis from ForexMart (Fundamentals}

Postby Andrea ForexMart » Fri Nov 17, 2017 6:47 am

EUR/USD Fundamental Analysis: November 17, 2017

The EUR/USD pair had been moving unsteadily in the past few days as the pair moves up and down with high volatility as the greenback moves without a specific direction in the present global tone. The dollar is appealing to be bought in the short term yet the market maybe thinking twice. Although, there are instances where the rally of the dollar where it is being sold at a faster rate.

This maintains the pressure in the dollar and which would be advantageous for the euro. What’s keeping the market optimistic for the dollar is a rate hike from the Fed in December although, the market does not strongly believe this. There are no specific indications yet with indecisiveness of Fed members while the data move at a steady pace.

This has kept the dollar weak with any news or data to be released. In the past 24 hours, the euro decline to the area of 1.1750 which is seen to move down in general. The latest relevant news would be the continuation of the development of missiles from North Korea and the ongoing investigation on the accusation of Russian intervention in the US Presidential elections. These events would drive the dollar down.

For today, the speech of Draghi are expected during the London session but it is unlikely that he would discuss the monetary policy. Hence, traders should get ready for choppiness in trading this pair and be cautious in the liquidity of the pair.


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Re: Daily Market Analysis from ForexMart (Fundamentals}

Postby Andrea ForexMart » Fri Nov 24, 2017 8:47 am

GBP/USD Fundamental Analysis: November 24, 2017

The British pound moved at a steady pace for the day as the pound bulls could not really make use of the long weekend in the U.S. which induced low volatility in the past 24 hours. This resulted in a subdued trading of the currency since the GDP data has been released which does not have much of an effect on traders as well as the volatility.

The publication of the GDP data marked the day which is already anticipated. Yet, this did not have any significant effect on the pound quotations. This would be beneficial for the pound bulls since the economy is about to balance out. Moreover, another budget data which was released the other day giving a positive result that sustained the rate of the pound for short-term amid the Brexit negotiations.

The domestic concerns of the country which were face UK PM May and the German leader Merkel but this has a minimal effect on the Brexit talks. It is already presumed that a breakout would occur after the December meeting which is yet to be observed where there will be an agreement between countries. Ultimately, this will be beneficial for the U.K. economy as well as the pound yet this are just prospects.

For today, there is less economic calendar along with the U.S. Thanksgiving for the weekend. The pound is anticipated to range within narrow levels and consolidate through the course of the day. This day will most likely result in a lackluster trading as the weekend is drawing closer.
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Re: Daily Market Analysis from ForexMart (Fundamentals}

Postby Andrea ForexMart » Fri Dec 01, 2017 8:28 am

EUR/USD Fundamental Analysis: December 1, 2017

The EUR/USD pair resumed trading in a robust manner in the past 24 hours while the strength of the US dollar alternately moves higher and lower amid the trading session yesterday. Moreover, this helped the eurodollar pair to go nearer the 1.19 level and continues to trade during the first part of the day on Friday.

The headlines on Thursday was mainly about the American dollar along with its tax reform bill which continues to undergo the Senate. While President Donald Trump and his team remain confident that the bill will be approved, the delayed process has placed pressure on the USD. It is expected that the proposed law will be enacted in the middle day of the week and because of different issues, the approval was delayed. Since we are currently on the last day of the week, the bill is not yet approved, however, it is expected to be passed today.

The ratification of the tax reform could possibly provide a limited and short-term increase to the greens but the underlying strength of the single European currency is clearly apparent for everyone to notice. As the tax reform bill is also priced into the markets, there is no any significant run from the USD regarding the bill enactment. It is still unclear if the euro will keep on gaining strength and reach the 1.20 level which could possibly the next target of the bulls

Ultimately, there are no major economic releases from the United States or the European region for this day, since the tax reform is projected to rule over the present day. The other main focus is the decision of the euro bulls whether to continue pushing the euro higher.
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Re: Daily Market Analysis from ForexMart (Fundamentals}

Postby Andrea ForexMart » Mon Dec 04, 2017 8:06 am

EUR/USD Fundamental Analysis: December 4, 2017

The euro paired against the U.S. dollar declined since the dollar is starting to strengthen in the past day. The dollar was the highlight in the past week. This will be applicable for the data which will be released from the U.S. due to political issues.

Tax reform will be pushed through by the Senate which would be beneficial for the greenback. The dollar will continue to climb higher as long as the process goes on accordingly. This is what has been happening since Friday. On the other hand, the issue concerning Flynn adds more pressure to the dollar which will put it in a negative stand.

These changes will most likely be the highlight in the news when it comes to the dollar and focuses the week. The dollar will move steadily during the short-term as the end of the week approaches. The rate hike is also anticipated to push through from the Fed for this month. Even though the dollar will rally for a brief period of time, these factors placed the dollars at a good bidding.

There will be no major news from the eurozone or the U.S. for today. However, the dollar will remain strong for the day because of the reasons mentioned above. This keeps the euro under pressure that could result in consolidation and ranges around the level of 1.19 during the day.
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Re: Daily Market Analysis from ForexMart (Fundamentals}

Postby Andrea ForexMart » Wed Dec 06, 2017 7:15 am

GBP/USD Fundamental Analysis: December 6, 2017

The pound dollar pair resumed declining as the greenbacks remain unchanged. The market is generally preferred a wait-and-see mode since this last month of the year. However, the case of the British pound would likely show higher volatility due to the emergence of political turmoil within and over the United Kingdom. This further caused the GBP to weaken which was seen in the past couple of days.

During the previous entire week, the sterling is crowned to be the strongest currency among its rivals because of the agreement prospect concluded in the Brexit negotiations that helped the bid to keep under the British currency. Moreover, the pound climbs higher to the 1.35 mark and seems that the Cable pair plans to ascend to the 1.38 level upon the release of the contract details within this week or the next. There are expectations that everyone will end the year with satisfaction after the details were announced.

Nevertheless, the opposition of the DUP party towards the Irish borders interrupted the deal that erased hopes for the current week. This deterred the plans of UK Prime Minister Theresa May that delayed her domestic and international plans. It may also imply a tough decision to conduct any deal in the short-term for this apparently put pressure on the pound, while the pair slumped again to the 1.34 mark amid the current trading course.


Ultimately, there are no major economic releases from Britain as the spotlight is turned to the USD and the ADP employment report scheduled later today. On the other hand, UK services PMI data showed some weakness yesterday that further contributed pressure on the GBP. In case that the ADP figures came in positive, then the pair is expected to soften in the near-term.
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Re: Daily Market Analysis from ForexMart (Fundamentals}

Postby Andrea ForexMart » Tue Dec 19, 2017 5:56 am

GBP/USD Fundamental Analysis: December 18, 2017

The British pound trades in a strong manner since the day started even despite the lack of fundamental developments. Also, there are not much economic releases on Friday which allow the consolidation and ranging for the price action within that day. At the same time, there are reports about increasing support for the US tax reform bill during the American trading session, it further indicates that the bill is expected to be passed amid the course of the current week. Hence, this enables the US dollar to grow and pushed the GBP/USD pair downwards during Friday’s late session. When the bill is approved, the strength of the greenbacks is expected to resume in the near term, until the year ends. In turn, the Cable pair will continue to be under pressure throughout this period, however, the level of impact remains unclear.

On weekend, British Prime Minister Theresa May reiterated her determination to push through the Brexit process and she further stated her willingness to deal with it in the short term concerning the payment that the United Kingdom need to settle along with the possible trade access. These two factors are the most important elements to consider but the UK and the market seem worried about these. The process appears to be a little bit of delay but the encouraging speech delivered by PM May successfully give a slight raise to the sterling earlier this morning.

Ultimately, there is no major news from the US or the UK for the rest of the day while some consolidation and ranging are expected much for today. Moreover, volatility might get a slight boost upon the onset of the US session and further updates with regards the tax bill.

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Re: Daily Market Analysis from ForexMart (Fundamentals}

Postby Andrea ForexMart » Wed Dec 20, 2017 8:53 am

GBP/USD Fundamental Analysis: December 20, 2017

The GBP/USD currency pair was able to move ahead of the American dollar, as the USD lower in price amid smooth approval process of the tax bill. The passage was projected to support the dollar to increase, however, the effect was completely different. The market’s reaction remains uncertain not until the bill is already passed through in one of the US Houses and waiting for the Senate approval. However, there could be some delay due to procedural problems which could possibly place some pressure on the greenbacks that could further lead to uncertainty. As expected, the tax reform bill will be enacted by the Senate on a very tight margin and further requires the President’s signature to seal in the law. The whole scenario would likely be completed within this week, hence, the volatility in the USD should keep going until it happens.

The Brexit process does not have much improvement over this week and it is predicted to continue until New Year. Definitely, there will be some strong development in the process since the leaders on both sides clearly stated about the completion of a deal which may take a matter of time prior accomplishing the agreement. This notion seems to provide support for the pound in the past couple of weeks.

Ultimately, BOE Governor Mark Carney will have his speech but the impact to the market is predicted to be minimal. The market trend for today would likely be led by the USD and tax bill legislation. It is believed that the greens should gain more strength in the short and medium term in order to maintain the GBPUSD active.

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Re: Daily Market Analysis from ForexMart (Fundamentals}

Postby Andrea ForexMart » Thu Dec 21, 2017 7:50 am

EUR/USD Fundamental Analysis: December 21, 2017

The euro paired against the U.S. dollar still dominates the market as it positions strongly, although the volatile is starts to lessen come to the end of the week. The volatility would be much more minimize by the end of the week with the year about to end.

The U.S. tax reform bill was successfully passed that require Trump to seal it after which is anticipated soon. This is considered as an achievement for Trump as everyone in the team worked hard for this. It would also be beneficial for the large companies and gain more profit which would bring in more jobs in the U.S.

Trump has stabilized his position at the top which would now shift his attention to other bills such as the healthcare reform bill. However, the stock market and foreign exchange of the U.S. dollar did not have that much vigor, as the dollar is starting to decline recently compared to its position last week. It has been all over the market which supported the euro instead.

The EUR/USD pair was seen to touch on the 1.19 level but moved after into a consolidated yesterday. Trades are being traded just currently below the said level. When it comes to news, the final GDP data from the U.S. is anticipated today but there will be no other economic news to be published from the Eurozone. Hence, the trading range is presumed to tighten especially since the holidays are approaching.

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Re: Daily Market Analysis from ForexMart (Fundamentals}

Postby Andrea ForexMart » Wed Dec 27, 2017 6:31 am

EUR/USD Fundamental Analysis: December 26, 2017

The euro against the U.S. dollar started with a tight trading week in a facile environment in consideration of the current market situation. Majority of traders are on a vacation this Christmas holiday season and the New Year whereas most of them would not working. This would result to lower volatility and liquidity that would limit the range of trading for this week.

There is also not much economic data on the calendar with fewer fundamentals in the next days to come. The steady dollar was supported by the tax reform bill, which was recently passed by the Senate and signed by the U.S. President. This would benefit m0st of the companies with lots of tax benefits which is as much as important to Trump and his team. At the same time, this is foreseen to improve the labor market and boost the economy in the succeeding years.

Hence, the dollar gained a short-term boost from the bill which will most likely be in effect for this week. The euro is being traded in a right range with minor consolidation in the past few months. Although, the fundamental new was not enough to successfully break the trading range.
It is yet to be discovered where the trend will range and if it is sufficient to sustain the pair within its range until January.

For today, there is not much economic news that is anticipated to be released from the eurozone or from the U.S. It is holidays in most part of Europe, which could result to tight trading range and consolidation throughout the day.

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