Daily Market Analysis by ForexMart

[Luis ForexMart]

GBP/USD Fundamental Analysis: January 6, 2017

The GBP/USD pair continued increasing in value during the previous trading session. The reaction of the sterling pound to the recent market activity has been somewhat muted compared to other currency pairs. However, it still continues to trade in accordance to the current market trends. The past trading sessions saw a highly-volatile USD, and this has been reflected in the GBP/USD pair as well. The currency pair was able to stay just over 1.2300 and just below 1.2400 points due to the recent corrections in the US dollar.

The GBP/USD recent surge in value was mostly due to the generally upbeat data coming from the UK recently, with the UK services PMI data coming in at 56.2, thoroughly exceeding initial market expectations. This positive data has triggered the pair to move beyond 1.2300 points, and as the USD weakened during the North American session, the GBP/USD pair was able to go further towards 1.2400 points.

For today’s trading session, there are no major economic data scheduled to be released from the UK. However, the US is set to release its unemployment rate and average earnings data, as well as the highly-anticipated NFP report. If these set of data comes out lower than expected, then this could cause delays in the Fed’s rate hikes, thereby causing the GBP/USD pair to possibly move towards 1.2500 points. Otherwise, then the pair could possibly revert back to 1.2300 once the USD regains its strength due to the upbeat economic data coming from the US.

 

[Luis ForexMart]

USD/CAD Fundamental Analysis: January 6, 2017

The USD/CAD pair continued to exhibit a dismal trading activity during the previous session after it went below 1.3200 for a brief period before incurring a small reversion, The pronounced weakness in this particular currency pair was mainly due to the USD’s recent drop in value during the previous trading sessions. This, along with the significant increase in market volatility, has shown that market investors and traders are now returning from their respective holidays.

The Canadian dollar has been receiving additional support from crude oil prices, which is currently still maintaining its strong stance. This is why the USD/CAD’s movement is now largely influenced by dollar movement. Since the USD is now relatively weaker as compared to the past sessions, the USD/CAD’s value plummeted to below 1.3200, but was immediately faced with a lot of buying pressure, thereby causing the pair to revert back towards 1.3250 points.

For today’s market trading session, both the Canadian and US economies are set to release a large volume of economic data, among them the Canadian employment change data, unemployment rate data, and trade balance data, as well as the NFP report, unemployment rate data, and average earnings from the US economy. As such, the USD/CAD is expected to undergo a lot of market volatility. The USD/CAD pair is expected to continue its upward trend, and could possibly go through 1.3000 points.

 

[Luis ForexMart]

USD/MYR Technical Analysis: January 10, 2017


Malaysian Prime Minister Najib Razak guarantees the investors that the Malaysian Ringgit would stabilize in the next days to come which may be influenced by the oil market. Although, the currencies recent downfall was because of factors that cannot be controlled explained by Najib being the source of rate hike of greenback and raises expectations in the offshore market and uncontrolled speculations. The U.S. dollar yields seem to weaken but this is not sufficient for traders to place long positions as they are other ASEAN currencies that appeals to traders with lesser risks.

 

[Luis ForexMart]

USD/JPY Technical Analysis: January 10, 2017

The 10-year U.S. Treasury yields further driven by Non-Farm Payrolls brought the downfall of yield to 2.37 level. The pair USD/JPY declined to 115.80 level because of tension brought by Brexit. In the early briefing of Asia Pacific Activities Conference, the market fluctuated with minor stops seen causing the price to break at 116.00 level. The Gopher pair is sensitive to weak data from U.S. and sentiments of risks while some investors took advantage overnight as they hover under safe-haven currencies such as yen in the midst of Brexit crisis. However, this may be considered a bump since mid-February last year as the events brought by U.S. fiscal data may trigger the price trend considering the U.S. yields are still on the low and may take longer to rise.

 

[Luis ForexMart]

USD/CAD Fundamental Analysis: January 10, 2017

The Fund pair weakened yesterday that continues today worsen by the greenback that also depreciated. Although, the morning trading session for today was not active as there is no expected economic news to be released this day. There is a buildup of potential risks from the oil market as it declined because of supply surplus of the reserved from North America. Another factor is Brexit that the continues to loom the market bringing risk sentiments and the depreciation of the U.S. dollar.

Moreover, the President-elect Donald Trump added tension in the market as it brought uncertainty on what will happen in the future under his regime considering his vows during his campaign. It is also questionable on how the trading market will behave between America and its neighboring countries and what will be its effect in this new administration.

An active selloff for the U.S. dollar was seen across different instruments bringing it to a consolidation state in the lower part of its trading range.

There is no major economic news from the U.S. or Canada that would have an impact in trading. Hence, the market trend will depend on the current price trend guided by the market participants.The 1.3000 remains a strong psychological level and if there is no break seen within this region, then the price would further go up.

Moreover, the oil prices see few corrections here and there threatening for a correction in the price because of geopolitical pressure and expectations, the loonies could further weaken while the greenback strengthens in medium term which will only be supported when the 1.3000 psychological level remains resilient.

 

[Luis ForexMart]

EUR/USD Technical Analysis: January 10, 2017

The European region presented data of mixed type yesterday as Germany’s Industrial Production did not meet the expected results, on the other hand, the trade balance beef up. Whereas, the EU’s jobless rate published consistent statistics. These events caused traders to quit buying the euro and focus to the U.S dollar instead.

A short period of consolidation in the Asian session was followed by another round of attempt to recover the 1.1050 during the EU trades. The buyers had a tough battle around this level earlier, however, they were unable to reclaim it.

The EUR/USD run into the downside pressure and continued to move through the 1.0500 area in the middle session of Europe.

According to the 4-hour chart, the price pushed the 200-EMA downwards and jump near the 100-EMA, both exponential moving averages remained to be bearish and the 50-EMA ascended. Resistance is seen at 1.0550, support is found at the 1.0500 level.

The MACD histogram loses edge which confirmed weaker position for the buyers. The RSI oscillator stayed in the neutral zone.

We further support for a short-term bearish tone. The next target of the major pair sits below the 1.0500 mark, most likely the support levels 1.0400 and 1.0450.

 

[Luis ForexMart]

GBP/USD Technical Analysis: January 10, 2017

As the week starts, the British currency was marked red. The GBP/USD softened due to rising concerns about Hard-Brexit. However, the price index of Halifax provided minor support for the pound because the House Prices published a higher than expected results. Meanwhile, sellers consistently manage the overall market on Monday.

The sterling had a downward price break during the daily trades opening as it promptly spread its weakness until the 1.2200 level.

After the pair reached the level, the pressured area continued to fade while the pair advance towards the consolidation phase. However, the consolidation was short-lived making another bout of selling pressure which drove the Cable to the 1.2100 area.

A downward momentum further faded with some pips on top of the 1.2200 handle after it touched the 1.2123 mark, the price rebounded and lessened the amount of their losses.

The 1-hour chart showed that the sterling lead the moving averages towards a lower point, seeing the 50-EMA descended while 200 and 100-EMAs are trending flat. Resistance took the 1.2200 range, support entered the 1.2100.

The MACD indicator jumps into the negative zone. In case the histogram hovered in the negative territory, sellers will strengthen. The RSI stay close to the oversold condition, indicating another lower movement.

As shown in the 4-hour chart, the bearish bias will prevail. Sellers were able to come at 1.2100 level in the near-term, heading to 1.2000. There is still a possibility for the GBPUSD to make an attempt in reclaiming the resistance regions 1.2200 – 1.2230.

 

[Luis ForexMart]

USD/CAD Technical Analysis: January 10, 2017

The commodity-linked Canadian currency moved back as the dollar strengthened and oil prices declined. A bearish bias prevailed on Monday. The price tried to recover however, the 1.3260 hurdle prevents it to continue.

Upon reaching the aforementioned level, the greenbacks rebounded from the barrier and progress towards the 1.3190 region afterward.

The price continued to develop under the moving averages as indicated in the 4-hour chart. Shown in the same trading chart, the 50-EMA extended over the 100-EMA downwards. Moreover, the 50 and 200-EMAs maintained a lower position while the 100-EMA held an upward direction. Resistance lies at 1.3260, support entered the 1.3190. The MACD indicators improved which confirmed weak seller’s position. RSI hovered in the oversold readings.

The bearish sentiment is preferable to dominate as of now, another downtrend is further expected. The next target of the sellers are 1.3120 and 1.3190. The USD/CAD is able to bounce off its losses supposing that it breaks the 1.3260 handle upwards so it can reached the 1.3330 region.

 

[Luis ForexMart]

EUR/USD Fundamental Analysis: January 10, 2017

The EUR/USD pair exhibited bullish stances during yesterday’s trading session. The US has recently released its average wages data as well as its employment reports data, both of which turned out to be highly satisfactory particularly for investors. This set of data has then set the tone for the market’s movements this week. The USD has increased significantly in value as opposed to the EUR, but the EUR/USD pair was able to counter this movement and instead consolidated during the Tokyo and European trading sessions. The currency pair was able to break through 1.0580 from 1.0520 during the North American session before finally settling just below 1.0600 points.

The USD received little support from comments from Fed officials yesterday, which turned out to be hawkish. The currency pair is now back to trading near its weekly highs last week, a crucial position for both the USD and the EUR. The dollar will most likely be able to regain its strength if the EUR/USD experiences a breakdown. However, if the EUR is able to go beyond 1.0600 and possibly reach 1.0650 points, then the euro could increase in value, thereby putting the US dollar in negative territory. A number of large-scale banks and hedge funds are expecting the USD to regain its strength anytime soon since the fundamentals are all pointing towards a higher value for the USD. However, the dollar bulls must be able to obtain the right timing in order for the USD to strengthen further.

Today’s trading session is most likely to be dominated by the recent market trends as there are no major news releases expected from both the US and the European Union. The pricing of the USD is closely monitored by the market since this could be a catalyst on whether the stock market will be pushing through their bullish direction or consolidate instead.

 

[Luis ForexMart]

GBP/USD Fundamental Analysis: January 10, 2017

The sterling pound continued its weak trading activity during yesterday’s session as the fears and confusion surrounding the Brexit process as well as other such concerns continue to weigh down on the GBP, a trend which has been going on for the past weeks. The GBP/USD pair was unable to increase in value in spite of the marked dollar weakness during the previous trading session. Market analysts are speculating that the currency pair is currently locked within a highly bearish stance and could possibly incur more losses in the coming days.

Stock prices fell yesterday due to uncertainties surrounding the current position of commodity prices, particularly crude oil prices, as well as Brexit-related concerns. A lot of traders and investors are saying that the market might be well-headed for a hard Brexit, which means that the negotiations between UK leaders and EU officials might prove to be much harder than expected, and also implies that the UK might be unable to obtain free market zone access to the rest of the European Union once they formally leave the eurozone. In addition, Scotland seems to be taking measures to leave the UK in protest to Brexit, which means that the sterling pound is more likely to decrease further in value.

For today’s session, the current market trends are expected to continue since there are no scheduled releases from the UK and the US. The sterling pound is still expected to fail to bounce back from its recent low levels due to the various negative economic factors which continue to affect the state of the pound.