FX

Share: Canada’s international trade deficit narrowed slightly in December. USD/CAD trades virtually unchanged on the day at around mid-1.3400s. Canada’s merchandise trade deficit with the world narrowed from C$219 million in November to C$160 million in December, Statistics Canada reported on Tuesday. This reading came in better than the market expectation for a deficit of

Share: EUR/USD consolidates recent losses around one-month low, probes three-day downtrend. ECB hawks forget the last week’s failed attempt to please bulls, upbeat EU data also favors Euro buyers. Receding concerns about US recession, hawkish Fedspeak exerts downside pressure on the pair. Fed Chair Powell, ECB’s Schnabel could entertain traders, Sino-American news is important too.

Share: The Dollar is around 10% off the highs seen in late September. Consensus expects the Dollar to weaken further this year, and economists at ING agree. Sustained EUR/USD gains beyond 1.15 may be harder to achieve in H2 “At the heart of the bearish Dollar view is the call that the Fed will shift

GBP/JPY extends Friday’s recovery moves to attack short-term key resistances. One-week-old descending trend line precedes key SMAs to challenge bulls. Upbeat MACD signals, U-turn from monthly support line keeps buyers hopeful. GBP/JPY remains firmer around 159.20 as it stretches the previous day’s rebound from a three-week low during early Monday. In doing so, the cross-currency

USD/CAD resumed its uptrend once it reclaimed the February 1 daily high at 1.3379. USD/CAD Price Analysis: A daily close above 1.3400 will exacerbate a rally to 1.3500. otherwise, further downside is expected. USD/CAD climbs in the North American session after hitting a daily low of 1.3311 before Wall Street opened. Nevertheless, a strong US

The US Dollar strengthens across the FX space, a tailwind for the USD/CHF. USD/CHF Price Analysis: Shifted to neutral biased once buyers hurdle the 20-DMA. The USD/CHF is surging sharply during  Friday’s North American session, as Wall Street is set to finish the last trading day of the week with losses. Therefore, the USD/CHF is

Strategists at Rabobank point out that the change in the Bank of England’s language favours the doves, they see scope for further rate rises. They continue to expect poor United Kingdom fundamentals to be a drag on the British Pound.   Key quotes: “The USD has found further traction on the back of the January

The ISM Service PMI released on Friday showed the index rose back above 50, into expansion territory. Analysts at Wells Fargo, point out that after just a single month under 50, the services ISM shot back up into expansion. However, they warn the breadth of services expansion has still slowed. Key quotes: “The slowdown in

Here is what you need to know on Friday, February 3: Nonfarm Payrolls (NFP) data day is here and the end of a full week. Wednesday and Thursday saw the Federal Reserve, European Central Bank and Bank of England report, and now the NFP becomes the cherry on top of an eventful week. It is a lot to pack

USD/CHF is facing barricades in stretching its recovery move above the 0.9140-0.9160 supply zone. A hawkish commentary from SNB Chairman failed to strengthen the Swiss Franc bulls. The RSI (14) is struggling to scale into the bullish range of 60.00-80.00. The USD/CHF pair has rebounded after a corrective move to near 0.9115 in the early

EUR/JPY remains within the consolidation theme around 141.00. The 200-day SMA emerges as the next level of contention so far. EUR/JPY keeps the side-lined trading unchanged around the 141.00 region so far on Thursday. Extra consolidation should not be ruled out in the very near term. In case the downside accelerates, the next support of

GBP/USD Price Analysis: Bulls eye a run to test the 1.24s resistance GBP/USD rallied overnight on US Dollar weakness following the Federal Reserve event. The pair burst through 1.2350 resistance. GBP/USD now depends on the Bank of England and US jobs data on Friday. The following illustrates the technical structure of the price on the

The Dollar peaked in late September, shortly after long-term US real rates peaked. In the view of economists at Société Générale, the next leg of Dollar weakness might be slower and not in a straight line. A pause, perhaps? But not the end of the Dollar bear market  “The reluctance of the US market to

US Dollar steadies after snapping three-day winning streak. Market’s anxiety probes DXY bears as US stock futures fail to trace Wall Street, yields stabilize. Downbeat US data, yields weighed on the USD the previous day. Fed Chairman Jerome Powell has a tough task of defending US Dollar bulls amid dovish hike expectations. US Dollar Index

EUR/USD has extended its up move after breaking above the December high of 1.0730. Economists at Société Générale note that the pair could target the 1.1040/1.1080 area. Break of 1.0940 brings 1.1040/1.1080 in play “Daily MACD has turned flattish and is at a much lower level as compared to the highs achieved in November denoting

USD/JPY struggles to extend week-start rebound amid strong statistics from Tokyo. Japan’s Unemployment Rate remains unchanged but Industrial Production, Retail Trade cross market forecasts in December. Mixed sentiment, hawkish concerns surrounding BoJ keeps Yen pair sellers hopeful. US CB Consumer Confidence, risk catalysts will be crucial ahead of the FOMC. USD/JPY grinds higher around 130.50

According to Markets Strategist at UOB Group Quek Ser Leang, USD/MYR faces a solid support around 4.20 for the time being. Key Quotes “USD/MYR dropped to a fresh 9-1/2month low of 4.2200 last week before closing lower by 0.98% (Friday’s close of 4.2410).” “Further USD/MYR weakness is not ruled out but in view of the

China’s cabinet said on Saturday it would promote a consumption recovery as the major driver of the economy and boost imports, state broadcaster CCTV reported per Reuters. The news highlights cooling of global demand and recession concerns behind the readiness from China policymakers to act. Also read: PBoC to roll over lending tools to spur growth