Forex Forum to Share, Discuss, Communicate and Trade Forex

Daily Market Analysis from ForexMart (Fundamentals}

Dive deeper into the fundamentals of the market. If you come across any major Forex related news item or wish to share your opinions and ideas related to the local or global economy, this forum is the place for you. Share the news and views about Fundamental Analysis and economic events here.
Image

Daily Market Analysis from ForexMart (Fundamentals}

Postby Andrea ForexMart » Thu Jul 21, 2016 6:42 am

Hi there!

I am Andrea, a ForexMart official representative. Me and my colleagues will provide you the latest Forex analysis on this thread to help you increase your trading efficiency. Thank you!
Andrea ForexMart, Official Representative
ForexMart
User avatar
Andrea ForexMart
 
Posts: 748
Joined: Thu Jul 21, 2016 3:14 am

Re: Daily Market Analysis from ForexMart (Fundamentals}

Postby Andrea ForexMart » Thu Jul 21, 2016 7:39 am

Fundamental Analysis for USD/CAD: July 21, 2016

The USD gained an increase versus the CAD after investors paid more attention to a possible hike in US interest rates rather than a recovery in oil prices. The USD/CAD pair went up by 0.0036 or +0.28% at 1.3060.

On Tuesday, the USD/CAD sustained its support from traders after the release of a positive US housing starts data, causing a drastic change in the possibility of a Fed rate hike by at least 50%, after previous indicators showed only a 20% hike.

The USD was previously backed up by healthy June data of US Non-Farm Payrolls and an unexpected upsurge in retail sales data. On the other hand, the CAD was previously supported by the Bank of Canada’s decision to maintain its interest rates while rallying for a stronger and more stable economic status.


USDCADH421.png
USDCADH421.png (26.75 KiB) Viewed 282 times
Andrea ForexMart, Official Representative
ForexMart
User avatar
Andrea ForexMart
 
Posts: 748
Joined: Thu Jul 21, 2016 3:14 am

AUD/USD Fundamental Analysis: July 22 2016

Postby Andrea ForexMart » Fri Jul 22, 2016 6:01 am

The AUD/USD pair shifted from greater rates down to a lesser flat rates earlier today. The Australian dollar is experiencing an adverse situation since its net position turned down against the USD. The AUD trading rate is 0.7476. In spite of the relentless decline of the Aussie dollar, the Reserve Bank of Australia will uphold the reduction of the percentage rates within two weeks, although the rate of the US dollar is surging.

After an hour session last Wednesday, AUD/USD can be purchased at 0.7477 while the pair flattened again in the Asian trade. The New Zealand dollar also regressed with the AUD. The Reserve Bank of New Zealand released a statement about their reduction on the interest rates, with regards to the restoration of the economic performance that were issued after the session.

The investors are expectant about the diversion of the United States' monetary policy after the US Federal Reserve increased in percentage rate and the RBA made an interest rate recession. While the Aussie dollar could possibly heightened their rate since it happened last May 2015.


AUDUSDH422.png
AUDUSDH422.png (26.69 KiB) Viewed 278 times
Andrea ForexMart, Official Representative
ForexMart
User avatar
Andrea ForexMart
 
Posts: 748
Joined: Thu Jul 21, 2016 3:14 am

Re: Daily Market Analysis from ForexMart (Fundamentals}

Postby Andrea ForexMart » Fri Jul 22, 2016 8:31 am

Fundamental Analysis for EUR/GBP: July 22, 2016

The EUR/GBP pair finished off last session with a gain of 27 points after the British Pound fell and the Euro sustained its value after the ECB held fast to its policy and rates. Traders are now monitoring Draghi’s address regarding the Brexit vote and the bond buying program. The ECB has left stagnant interest rates in the European Union.

However, the governing council has not taken any steps in spite of the uncertainties brought about by the Brexit referendum. The headline rates are still at zero and banks are still charged at 0.4% as penalty for leaving money inside the vaults of ECB. Retail sales on the other hand fell rapidly since December, with bad weather in the UK put to blame. Meanwhile the present currency volatility caused by the Brexit referendum and the recent attacks in Nice, France and Turkey continue to affect consumer confidence rates.


EURGBPH422.png
EURGBPH422.png (24.8 KiB) Viewed 276 times
Andrea ForexMart, Official Representative
ForexMart
User avatar
Andrea ForexMart
 
Posts: 748
Joined: Thu Jul 21, 2016 3:14 am

Re: Daily Market Analysis from ForexMart (Fundamentals}

Postby Andrea ForexMart » Wed Jul 27, 2016 9:55 am

Fundamental Analysis for EUR/GBP: July 27, 2016

The EUR/GBP pair went up by 47 points as the British pound reversed its gains after comments from the Bank of England made traders upset, as well as forecasts that the UK will most probably go into recession after the Brexit vote. According to the Chartered Institute of Procurement and Supply (CIPS), which issues monthly Purchasing Manager Index (PMI) surveys of the UK economy, a “Flash UK PMI” survey will soon be published which will reportedly follow the principles of Markit’s Flash PMIs for the Eurozone.

Last week’s market activity already exhibited the effects of the Brexit vote on Britain’s declining economic status. An additional report from CIPS/Markit indicated that business activity in the region has been declining at a fast rate, its fastest since 2009. The Composite version of the survey which was released last Friday printed at 47.7, its lowest dip since April 2009.


EURGBPH427.png
EURGBPH427.png (25.15 KiB) Viewed 268 times
Andrea ForexMart, Official Representative
ForexMart
User avatar
Andrea ForexMart
 
Posts: 748
Joined: Thu Jul 21, 2016 3:14 am

GBP/USD Technical Analysis: July 28, 2016

Postby Andrea ForexMart » Thu Jul 28, 2016 10:21 am

The British Pound’s value decreased after Wednesday’s session in spite of the positive GDP data for the 2nd quarter of the year. But the sterling pound obtained support from the United States after the Fed’s decision to keep their rates unchanged.

The GBP/USD pair remained neutral all throughout the session last Wednesday, with its trading instrument maintaining a support of 1.3100. Meanwhile, the resistance amounted to 1.3300. MACD’s indicator has dropped near the centerline, which signals a negative outcome for this particular indicator. A lack of movement from the histogram and its refusal to leave negative territories will mean a significant increase in the strength of buyers. However, if the MACD returns to its positive state then the buyers will ultimately have the ball, while the RSI remains ambiguous.

A downward trend is also seen in the 50, 100, and 200-day EMAs, which eventually led to a bearish cross forming in the hourly charts. The instrument went over the said EMAs and went past the 1 hour chart.

Ultimately, trends are looking bearish, with the GBP/USD pair in danger of falling below 1.3100. But this does not not eliminate the possibility of the said currency pair experiencing an increase of up to 1.3300.

GBPUSDH428.png
GBPUSDH428.png (21.9 KiB) Viewed 265 times
Andrea ForexMart, Official Representative
ForexMart
User avatar
Andrea ForexMart
 
Posts: 748
Joined: Thu Jul 21, 2016 3:14 am

USD/JPY Fundamental Analysis: July 28 2016

Postby Andrea ForexMart » Thu Jul 28, 2016 11:15 am

Prime Minister Shinzo Abe is preparing to issue an economic stimulus package about the competitive sale of Japan's Fuji TV last Tuesday that reached around 27 trillion yen but Japanese Yen still declined against the U.S Dollar. The exchange rate of USD/JPY is 105.568, up 0.953 or +0.91%.

The report from Kyodo News about the upcoming announcement of Abe made the US Dollar to gain more over Yen instead, and it approximately achieve $354 billion or 28 trillion yen.

The stimulus plan of Abe is already prepared before the policy meeting of the Bank of Japan finishes on Friday. The BoJ will lend their support for the monetary policy stimulus.

USD/JPY is expected to receive a support from the U.S Federal Reserve policy statement if they would release it at 1800 GMT because the Fed would not modify their interest rate in any moment. However, many investors are anticipating for a rate hike in Fed since there is a fifty percent possibility that the BoJ will have an increased on interest rate just before the December meeting take place.

A Fed rate hike will probably occur this month when the U.S economic reports will suppose to have a stronger result than expected. The U.S Federal Reserve considers some improvement in the labor market, wage growth and inflation before establishing a rate hike before the year ends.

An inflation hawk will allow the pair USD/JPY to make a progress but may recede if the Fed finishes a dove stances. In the rear of such issues and feedback, the main subject will be the resolution of BoJ on Friday.


USDJPYH428.png
USDJPYH428.png (25.86 KiB) Viewed 263 times
Andrea ForexMart, Official Representative
ForexMart
User avatar
Andrea ForexMart
 
Posts: 748
Joined: Thu Jul 21, 2016 3:14 am

Fundamental Analysis for EUR/GBP: August 3, 2016

Postby Andrea ForexMart » Wed Aug 03, 2016 5:44 am

The EUR/GBP pair traded at 0.8462 points prior to the Bank of England meeting this coming Thursday. Certain factors may weigh in on the value of the said currency pair, such as the Bank of England’s prospective move to cut its base rates below the US rates, which can add to its passive quantitative easing. However, some major banks are speculating that the dollar might be prone to a squeeze following the release of data on Friday.

The EUR has surprisingly done well in spite of the controversy brought about by the Brexit vote three weeks ago. It traded slightly lower than the dollar but is still higher compared to its value last February and has traded higher against the pound, its highest since three years ago. But the IMF has already stressed that Brexit is somewhat more damaging to the EU economy than it is for Great Britain, and the latest ZEW survey has shown reports of confidence going down, with economic sentiment indicators decreasing to its lowest levels since Germany’s financial crisis last 2012.

Some economists believe that this data means that investors are more concerned with Brexit’s effects on the German economy than the financial market’s response to Brexit.


EURGBPH403.png
EURGBPH403.png (24.62 KiB) Viewed 255 times
Andrea ForexMart, Official Representative
ForexMart
User avatar
Andrea ForexMart
 
Posts: 748
Joined: Thu Jul 21, 2016 3:14 am

Fundamental Analysis for GBP/USD: August 5, 2016

Postby Andrea ForexMart » Fri Aug 05, 2016 8:03 am

The cable pair GBP/USD went down by 150 points after the good news brought about by the Bank of England. The BoE added stimulus by cutting its rates, which increased the sterling pound’s trading value at 1.3165. The Bank of England increased its asset purchases by 425 billion pounds and cut 0.25% from its lending rates. It has also announced its plans to follow in ECB’s footsteps by buying corporate bonds. Money markets were also completely priced in a quarter-point decrease to the main rates of the central bank, and investors and economists believe that there will soon be new measures which can cause the economy to surge after the UK’s decision to cut itself off from the European Union.

On the other hand, the USD remained firm in spite of Thursday’s most recent low in six weeks, while the GBP remained in a tight range on top of renewed anticipation that the BoE will be cutting its interest rates for the first time since 2009 in an attempt to stave off a possible recession.

The dollar index fell flat at 95.56 on top of a six-week low of 95.003 early this week. The most recent focus for the USD is the expected release of US jobs data on Friday. It is expected that this will cause the Federal Reserve to increase its interest rates on the latter part of the year. US futures interest rates are suggesting a 40% chance of the Fed increasing its interest rates this coming December.


GBPUSDH405.png
GBPUSDH405.png (26.57 KiB) Viewed 249 times
Andrea ForexMart, Official Representative
ForexMart
User avatar
Andrea ForexMart
 
Posts: 748
Joined: Thu Jul 21, 2016 3:14 am

Fundamental Analysis for USD/CAD: August 8, 2016

Postby Andrea ForexMart » Mon Aug 08, 2016 9:05 am

The USD/CAD pair experienced an upsurge at 1.3175 after employment data in Canada disheartened investors, while US jobs data went up at an impressive rate. The week’s forecast for the greenback showed a continued surge for the currency pair. According to Statistic Canada’s labour force survey, the market lost a total of 31,200 in jobs last July, the biggest one-month drop in the last five years. Another report also showed Canada’s international trade deficit, which reached up to $3.6 billion last June.

The said data caused the CAD to go even lower against the greenback, which caused a reversal of a short-term moderate strength. The Canadian economy was deprived of one of the most crucial support in the past years because of the stagnant consumer demand during the last two months. This is while the other sources of growth, like energy patch, business investment, and manufacturing continue its struggle.

Analysts are suggesting that a dip in the Q2 GDP is likely to happen, mainly because of the losses incurred after the Alberta wildfires. Short-term interest differentials in the USD/CAD pair will remain in the USD’s favor due to a divergence in the general growth trends. The CAD also weakens during the latter part of the year, and seasonal considerations are being foreseen for the said pair.


USDCADH408.png
USDCADH408.png (26.95 KiB) Viewed 246 times
Andrea ForexMart, Official Representative
ForexMart
User avatar
Andrea ForexMart
 
Posts: 748
Joined: Thu Jul 21, 2016 3:14 am

Next

Return to Dive Deeper - Forex News and Fundamental Analysis

 

Who is online on Forum

Registered users: Baidu [Spider], Bing [Bot], Yahoo [Bot]

cron