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Investment Theme – Commodity currencies struggle on faltering Trumpflation trade

Posted on March 29, 2017 at 9:59 am GMT

The pullback in the US dollar over the past two weeks has brought little relief to commodity-linked currencies, as their resilience against the resurgent greenback had been underpinned by the Trumpflation trade, which came close to being fully unwound this week. Currencies such as the Australian, New Zealand and Canadian dollars have come under pressure in the past week on fears that the reflation trade inspired by Trump has come to an end. Market expectations that Donald Trump’s presidency would [..]

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Forex Market Review (Asian Session) – Sterling weakens as UK starts Brexit process, dollar jumps on Fed rhetoric

Posted on March 29, 2017 at 7:38 am GMT

The pound was one of the worst performing major currencies during forex trading in Asia today, as the UK is set to trigger Article 50. The dollar was broadly stronger after a report showed US consumer confidence jumped to a 16-year high. British Prime Minister Theresa May has already signed the letter to initiate the formal process of leaving the EU on March 29, formally beginning two years of talks . Uncertainty surrounding the process weighed on sterling, pushing it lower [..]

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Technical Analysis – USDCAD bullish; attempts close above middle Bollinger line

Posted on March 29, 2017 at 7:17 am GMT

USDCAD is not much changed from where it started the day, while a successful close above the day’s open would mark the fifth consecutive day that the pair has done so. The short-term bias as depicted by the RSI is bullish as the indicator is at 56 after coming from neutral levels. The price failed to close above the middle Bollinger line -a 20-day moving average (MA)- in the previous days and the line, currently at 1.3393, could act as [..]

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European Session – Dollar stable; FOMC officials, including Yellen, in focus

Posted on March 28, 2017 at 3:17 pm GMT

Currency markets were in consolidation mode for the most part during today’s European session trading with major currency pairs not much changed from the levels they closed yesterday. Better-than-expected consumer sentiment did allow the dollar to advance a bit relative to other currencies. The dollar index was little changed relative to where it started the day, but above the 99 level and yesterday’s low which marked one of the lowest levels for the index since Donald Trump won the US [..]

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Asian Session – Dollar stabilizes after drop to 4-month low against yen; pound in focus ahead of Brexit talks commencing

Posted on March 28, 2017 at 7:58 am GMT

The dollar stabilized today after sliding to a four-month low against the yen in reaction to news of the setback on healthcare reform. Investors have now shifted their attention to US President Donald Trump’s other policies with regards tax cuts and infrastructure spending. The market’s disappointment eased as focus now turns back to US economic growth showing signs of improvement while the Federal Reserve is firmly on a path of rate hikes, albeit gradual. Chicago Fed President Evans, speaking yesterday, reiterated [..]

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Technical Analysis – USDJPY bearish bias; more than 4-month low recorded yesterday

Posted on March 28, 2017 at 7:12 am GMT

USDJPY is relatively flat on the day after hitting a more than four-month low during yesterday’s trading. The RSI indicator is bearish as it is well below the 50 neutral level at 31. Note that should it fall below 30 it would enter oversold territory. The MACD histogram is pointing to a bearish near-term bias as well, as it is negative and below the red signal line. The 112 handle could serve as a psychological barrier to any upside movement [..]

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European Session – Dollar index below 99 on Trump reform concerns; index lowest in four months

Posted on March 27, 2017 at 3:06 pm GMT

In today’s European session the dollar continued declining on the back of Friday’s failed attempt by the Trump administration to repeal the previous administration’s Affordable Care Act (ACA), widely known as Obamacare. In terms of economic data, the Ifo surveys measuring business morale in Europe’s biggest economy, Germany, all exceeded expectations. The dollar index fell below the 99 level for the first time since November 11 to reach 98.86 and was last down seven-tenths of a percent relative to Friday’s [..]

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Forex News – Dollar close to erasing post-election gains after Trump healthcare bill fails

Posted on March 27, 2017 at 11:18 am GMT

The US dollar rally suffered a major setback on Friday after the Trump administration failed in its attempts to repeal and replace Obamacare – a key election pledge. Having postponed the vote on the American Health Care Act from Thursday to Friday, House Republican leaders decided to pull the bill after it emerged that there was not enough support from within the Republican Party to ensure that the legislation would pass. The vote was viewed by the markets as the [..]

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Technical Analysis – EURAUD continues climbing; near two-month high recorded today

Posted on March 27, 2017 at 10:56 am GMT

EURAUD is up from the day’s open while it recorded a near two-month high earlier in the day. Should the pair finish the day higher, it would be the fifth straight trading day it would do so. The RSI indicator is hinting to a bullish short-term bias as it is currently at 64, a point which is comfortably above the 50 threshold that tends to distinguish positive from negative near-term sentiment. The stochastics are painting a similar picture as well [..]

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Forex News – Euro rallies on strong Ifo numbers and German CDU election win

Posted on March 27, 2017 at 10:50 am GMT

Upbeat news out of Germany today gave the euro an added boost. Business morale in the Eurozone’s largest economy rose to a six-year high in March. This was a big surprise considering recent concerns over the rise of nationalism across Europe but it appears that political issues have not affected German business sentiment. Meanwhile, news of the CDU victory in German regional elections in Saarland over the weekend boosted Chancellor Angela Merkel’s chances of winning the September 24 federal elections. The [..]

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