Gold started the week on the back foot, testing the $1208-$1205 area, but managed to recover its earlier losses and ended the day up $1.55 at $1214.09 an ounce. Gold has come under renewed pressure in recent days, as investors recalibrated their outlook on U.S. monetary policy in the light of recent economic data. The U.S. economic calendar is relatively light for the next couple of days and market players will probably sit on the sidelines ahead of Fed Chair Janet Yellen’s testimony. Yellen is scheduled to appear before the House of Representatives Financial Services Committee on Wednesday. The key levels remain unchanged, as the market co...
EUR/USD 4 hour The EUR/USD is moving sideways after failing to break above the previous top (red). A bullish breakout could however restart the uptrend towards the Fibonacci targets of wave 5 vs 1+3 and the round level of 1.15. 1 hour The EUR/USD expanded the wave 4 (orange) correction back to the 50% Fibonacci level. The wave 4 (orange) becomes unlikely if price breaks below the 61.8% Fibonacci level. USD/JPY 4 hour The USD/JPY is moving higher in a neat bullish trend channel towards the Fibonacci targets of wave 5 vs 1+3. Price could extend the uptrend towards the Fibonacci levels of wave X vs W. 1 hour The USD/JPY retraced back to a suppor...
Previous: On Monday, trading on the euro closed slightly down and within Friday’s range (intraday bar). My expectations for Monday came off in full. In the first half of the day, the NFP report continued to provide support for the dollar. Given that the economic calendar was empty, euro bulls were easily able to induce a rebound from the trend line and return the price to 1.1408. Day’s news (GMT+3): 09:00 Japan: machine tool orders (Jun); 13:00 UK: MPC member Haldane speech; 13:00 USA: NFIB business optimism index (Jun); 14:00 UK: MPC member Broadbent speech; 15:15 Canada: housing starts (Jun); 17:00 USA: JOLTS job openings (May), wholesa...
On one hand, a rate hike in Canada is priced in. On the other hand, there is no 100% consensus among analysts that the BOC will indeed pull the trigger. Here are two opinions: Here is their view, courtesy of eFXnews: CAD: BoC Hike In The Price; Investors May Sell On Fact – Citi Citi Research argues that as the BoC rate hike this week may have been priced in by markets, investors may sell on fact which may restrain CAD in the short term. On the technical front, Citi notes that the RSI reading for USD/CAD has reached oversold levels. “Downside may be limited at 1.2764-1.2823, Aug and Sep 2016 lows. The pair may range trade between 1.2823-...
“Why is the Fed so desperate to raise rates and tighten financial conditions? Why has the Fed shifted from a dovish to a hawkish bias?” That is the question on every trader’s, analyst’s and economist’s mind in the past month. Is it because the Fed is suddenly worried it has inflated another massive equity bubble (major banks now openly warn their clients the market is in frothy territory, if not inside a bubble), or is the Fed just worried that it will fall too far behind the curve and be unable to regain control of the economy once inflation spikes, without creating a recession (in what will soon be the second ...
USD/JPY is in a nice recovery since mid-June when the market turned up from 108.80 after a completion of a bigger three wave fall. That said as we can see bulls took charge and can now be unfolding a bigger impulsive structure. We see first waves one and two completed, which means recovery up from the 110.95 level can be blue wave three in the making, that can extend towards the Fibonacci projection zone at 161.8 in the next couple of days. USD/JPY, 4H...
WD-40 Company (Nasdaq: WDFC), the San Diego, California based manufacturer and global marketing organization – in more than 176 countries and territories worldwide – of multi-purpose maintenance products manufacturer under the WD-40 and 3-in-One brands, today reported financial results for its third fiscal quarter (Q3) ended May 31, 2017 as follows: Total net sales: UP 2% to $98.2 million compared to the prior year fiscal quarter. Year-to-date total net sales were $283.9 million, an increase of $0.4 million compared to the prior year fiscal period. (Conversion of the Company’s foreign subsidiary results to U.S. dollars had...
It’s been over one week since we have entered the second half of 2017. Markets have so far been edgy in the latter half of the year with the S&P 500-based ETF (SPY – Free Report) adding about 0.2%, Dow Jones-based fund (DIA – Free Report) gaining about 0.4% and Nasdaq-based ETF (QQQ – Free Report) going down by about 0.2% in the last five trading days (as of July 7, 2017). Small-cap fund iShares Russell 2000 ETF (IWM – Free Report) was even more lackluster with about 0.5% loss in the last five days (as of July 7, 2017) (read: Trump Slump to Oil Slide: Top ETF Stories of First-Half 2017). Issues from Fe...
Dollar/yen finally breaks the cycle high of 114.37, trading at a new high of 114.46. Is this move for real? It is still awaiting confirmation. In any case, the pair extends its rise along the steep uptrend support line. The next high is 115.35, which was the high level in March. Beyond that point, 116 and 117 are the next caps. To the downside, we find 113.50, followed by 112.75. The Bank of Japan continues buying Japanese bonds with newly created money. The Federal Reserve has recently raised rates and intends to begin reducing its balance sheet later this year. Monetary policy divergence takes its toll on the yen and the authorities in To...
The New Zealand Dollar underperformed in overnight trade, falling against all of its G10 FX counterparts. The move lower tracked a drop in local front-end bond yields, hinting that a dovish shift in RBNZ policy expectations was the culprit behind the selloff. Soft card spending numbers seem too flimsy of a catalyst for the move however, making a mystery of the reason for investors’ change of heart. By contrast, the Australian Dollar and its corresponding bond yields moved higher in tandem. Here too, the day’s offering of domestic economic data didn’t seem to make a strong impression, clouding the reasons for traders’ apparently ...