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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 Dec 28, 2017 6:19 am

GBP/USD Fundamental Analysis: December 27, 2017

It was a holiday in the majority of the places in Europe, including the U.K. that makes it not surprising if the pound persisted to consolidate and traded within a tight range for the most part of trading yesterday. The GBP/USD pair falls within a tight range since there is few major economic news.

It will not be surprising to have lesser volatility and liquidity this holiday season. At the same time, there is not much placing of trades and more on profit-taking in the past week, which can be seen mostly in the smaller market such as bitcoin. Although, it was not that obvious for pound despite there is a bigger market that is why grabbing the opportunity of any selling of this pair prior to holidays is relevant.

Come the second week of January, both liquidity and volatility will most likely gain momentum. Until then, traders should get ready for choppiness within a range near the end of the year. The market has reopened following a long weekend yet, there is still fewer traders this week since most still wanted to extend their vacation until New Year. Hence, consolidation of the pair within a tight range will persist in the next few days.

When it comes to data the Conference board’s Consumer confidence data from the U.S. is anticipated to be released today but this would not bring much volatility in the market. There is no major economic news from the U.K. Thus, there will be low trading and slow movement in the market for the rest of the day.

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Re: Daily Market Analysis from ForexMart (Fundamentals}

Postby Andrea ForexMart » Wed Jan 10, 2018 4:15 am

GBP/USD Fundamental Analysis: January 9, 2018

The GBP/USD pair trades around a tight range yesterday considering the fact that consolidation period is already expected in the markets. The US dollar remained unchanged, as it traded initially for the week, the course showed mainly about trade positioning and the price action was monitored by the market participants which limits market’s actions.

The British economy is predicted to recover if the Brexit process will flow according to the plan. The economic data issued from the United Kingdom last week was choppy and should be regarded as an indication for negotiators about the importance of Brexit talks to go as planned r else it might bring adverse effect for the UK economy. This was avoided almost be everyone since uncertain UK economy is far from the goal of international leaders. With this, the leaders of Euro and the UK will be responsible for this and should outline some good trade agreement for both sides.

On the other hand, the United States are waiting for the incoming data because the figures sent last week was choppy and obscure. The market expects for a three-time rate hike this 2018, however, the new Fed Chair Jerome Powell will take over in February and it remains uncertain about his plans and the way he works. Hence, this could lead to some risks for the dollar and the American economy as well. The Federal Reserve and the upcoming data should coincide in order to drive away this concept, resulting in stability for the dollar which is essential for the world economy.

Generally, there are no fundamentals or economic data from the UK or the US for today but the ranging between the levels of 1.35 and 1.36 should resume in order to engage more participants, particularly the day traders.

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Re: Daily Market Analysis from ForexMart (Fundamentals}

Postby Andrea ForexMart » Wed Jan 17, 2018 4:12 am

GBP/USD Fundamental Analysis: January 16, 2018

There is a hint of bullishness in yesterday’s trading session of the pound since there is no fundamental news to affect the market aside from the bank of the holiday in the U.S. As a result, the pound bulls have become relax in trading. Most likely, this is one of the reasons why the pair has been steady in the past few days but failed to break the level of 1.38 amid the weakness of the dollar.

Other than that, it could possibly be because of a big news expected to come this week, particularly the inflation data and retail sales data. Traders and investors anticipate the data prior to positioning themselves to any direction. The incoming data from the U.K. came out stronger which brought choppiness to trading while others came in weak, which has brought further uncertainty to the Brexit negotiations and affect the U.K. economy.

Yet, the pound was able to take advantage of euro strengthening and the weakening of the dollar. Although, this may not last for a long time. More importantly, the pound is beginning to gain momentum to move higher regardless of its condition. Also, rate hikes from the U.K. are also becoming an issue after its one rate hike last year. The succeeding hikes are deemed to be more important and the central bank has to be certain on its support actions from last year to boost the U.K. economy and confidence of investors.

There is no major news from the U.S. for today but the U.S. is presumed to return to the market following their long weekend holiday. On the other end, the inflation from the U. K. is highly anticipated later this day as it will have a significant insight on the movement of the market and give a hint on which direction does the GBP/USD pair will go.

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Re: Daily Market Analysis from ForexMart (Fundamentals}

Postby Andrea ForexMart » Fri Jan 19, 2018 3:17 am

EUR/USD Fundamental Analysis: January 18, 2018

There is choppiness in trading the EUR/USD pair and continues its trading between 1.22 and 1.23 without no specific direction yet. Yesterday, the pair moved higher in the first half of the day, which will most likely favor the dollar. However, it shifted by the end of the day when the dollar has recovered and became stronger.

The euro has been gaining momentum in the past week although the euro rallied against the dollar in the previous month, which was influenced by the decline of the dollar while the euro became stronger. It was only in the past week that the euro started to strengthen independently due to the possibility of ECB tapering and completion of the quantitative easing by the end of the year. This largely influenced the euro as it rose higher and has most likely continued during the first half of yesterday. It reached the level of 1.23 and established a beeline on the trend.

Yet, this was reversed during the second half of the day as the ECB was thrown into a disarray following the quick rise of the euro and should be brought down through statements and confirmation of the QE to return to normal levels. It clearly shows that their position would lead to termination of the QE, which was further supported by the incoming data. Although the central would rather strengthen the euro slowly. Thus, this supported the euro and slid down while the dollar was able to grow during the U.S. trading session and further pushed the price lower than 1.22 as of the moment.

For today, there are is no major news from the U.S. or the eurozone, which will most likely continue the choppiness for the day. Support is found in the area of 1.2180 then move further towards 1.21.

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