Forex Signals US Session Brief, Sep 13 – Markets Continue to be Skeptical of the ECB and the ECB Knows it

Posted on September 13, 2019September 13, 2019 by Skerdian Meta

Today markets are following the sentiment we saw yesterday, following the ECB decision to reintroduce another monetary stimulus package. They cut deposit rates by 10 bps to -0.50%, while announcing a new QE programme, buying 20 billion Euros worth of bonds a month. The Euro lost more than 100 pips on that decision, but then reversed up from the previous support at 1.0920s, and now it’s nearly 200 pips off the lows.

Traders were hopping for stronger action by the ECB, such as setting the date for another rate cut and having a larger bond buying programme. So, their skepticism is showing in the Euro as it continues to climb higher. The ECB knows markets are skeptical, so certain members such as ECB’s Vasle commented today that the ECB could increase volumes and change conditions for bond purchases, if things don’t go well in the coming months. The ECB and the EU are urging governments today to take action by starting fiscal stimulus, so they are far from confident that yesterday’s actions will tackle the economic weakness in the Eurozone.

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Forex Signals US Session Brief, Sep 12 – ECB Eases Again, the Euro Tumbles

Posted on September 12, 2019September 12, 2019 by Skerdian Meta

Today was the day everyone has been waiting for, since late spring. The Eurozone economy has weakened considerably this year, with inflation falling below 1.0% and the manufacturing sector in contraction in major Eurozone countries. Many other major central banks have been cutting interest rates in the last few months as global economy deteriorates, so traders were anticipating something concrete today. Perhaps a rate cut, or restarting the QE, or both. Or perhaps announcing a fixed date for any of these options.

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Forex Signals US Session Brief, Sep 11 – The Euro Retreats Ahead of the ECB Meeting Tomorrow

Posted on September 11, 2019September 11, 2019 by Skerdian Meta

The sentiment in financial markets turned positive last week as China and the US softened their tones. As a result, risk assets such as Commodity Dollars and stock markets have been bullish and they continue to remain bullish this week, as the risk sentiment remains on.

This morning we heard rumours from the Global Times editor-in-chief, Hu Xijin, that China will introduce new measures to help the economy, which is helping the sentiment further. He tweeted: “Based on what I know, China will introduce important measures to ease the negative impact of the trade war. The measures will benefit some companies from both China and the US.” [[AUD/USD]] got a boost from the RBA, which suggested that there will be no QE programme coming up.

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Forex Signals US Session Brief, Sep 10 – Another Great Earnings and Employment Report From the UK

Posted on September 10, 2019September 10, 2019 by Skerdian Meta

Today financial markets have been pretty quiet once again. The risk sentiment remains positive and comments from China are helping keep the sentiment like that. China’s Premier Li said this morning that “trade talks will make progress” and they also removed investment quotas. An interesting piece today was a report from Reuters which suggested that the Bank of Japan is now more open to discuss additional monetary easing next week. This should keep the JPY bearish for some time.

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Forex Signals US Session Brief, Sep 9 – GBP Makes A Bullish Move in Quiet Markets

Posted on September 9, 2019 by Skerdian Meta

Last week, the sentiment turned positive in financial markets as China and the US softened their tones and pointed to a meeting in October. These relaxed some nerves and risk assets such as commodity Dollars and stock markets climbed higher. Safe havens turned bearish and are continuing to be sort of bearish today, with [[USD/JPY]] grinding higher, although traders still remain cautious, because one negative comments would send risk assets diving and safe havens surging. Although, the sentiment continues to be positive today and commodity Dollars are still climbing higher in a pretty quiet market. Continue reading “Forex Signals US Session Brief, Sep 9 – GBP Makes A Bullish Move in Quiet Markets” →

Forex Signals US Session Brief, Sep 6 – US Employment Report Comes In Positive But the USD Turns Even More Bearish

Posted on September 6, 2019 by Skerdian Meta

Markets were pretty quiet today during the European session although you could feel that the safe havens were still under pressure as they have been for most of the week. The sentiment has improved this week on softer tones from China and the US and as a result, Gold and the JPY turned bearish, while risk assets such as commodity Dollars have turned quite bullish. We heard some comments from Kudlow today, saying that US and China will pick up trade negotiations in October which improved the sentiment further, sending risk assets on another bullish run. Continue reading “Forex Signals US Session Brief, Sep 6 – US Employment Report Comes In Positive But the USD Turns Even More Bearish” →

Forex Signals US Session Brief, Sep 5 – US ADP Employment Report Improves the Sentiment Further

Posted on September 5, 2019September 5, 2019 by Skerdian Meta

The sentiment has been quite negative in financial markets in recent months and it kept deteriorating as the trade war escalated. As a result, safe havens such as the JPY and [[Gold]] have been absolutely surging while risk assets such as stock markets and Commodity Dollars have been crashed. But, this week the sentiment has turned around and despite the trade war at full scale and the global economy edging ever closer to a recession, markets are finding reasons here and there to keep the positive mood.

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Forex Signals US Session Brief, Sep 4 – USD Weakness Continues, Brexit Developments Keep the GBP Bullish

Posted on September 4, 2019September 4, 2019 by Skerdian Meta

The US Dollar has been on a strong uptrend recently, but yesterday it turned bearish after the US ISM manufacturing report. This report came in below 50 points, which means that the US manufacturing sector fell into contraction in August. Manufacturing has been contracting in most of the developed nations for months, but it was holding above stagnation in the US. Now that it fell into contraction, fears of a national recession increased, since in other countries the weakness in manufacturing is leading the way for other sectors to follow. The USD turned dovish after that report was released and the weakness has spilled into today, with the USD slipping lower against all major currencies.

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Forex Signals US Session Brief, Sep 3 – Fundamentals Send AUD and the GBP on A Roller-Coaster Ride

Posted on September 3, 2019 by Skerdian Meta

The most important event today in forex was the meeting of the Reserve Bank of Australia (RBA) in the Asian session. The RBA cut interest rates twice in June and July as the trade war escalated and the global economy deteriorated and they also let traders know that they would follow the FED. If the FED cut rates, the RBA would cut again. The FED cut interest rates in the last meeting about a month ago, but the RBA has kept them unchanged in the last two meetings. Before the meeting though, we had the retail sales report coming out of Australia, which showed an unexpected decline of 0.1% which gave AUD traders a care ahead of the RBA, assuming that the RBA would sound dovish or even cut rates after such a report and as a result, AUD/USD completed another bearish leg lower. But, they remained pretty much on hold on all fronts today and the Aussie turend bullish in the European session, with the price still climbing as I write.

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Forex Signals US Session Brief, Sep 2 – Euro and the GBP Extend the Decline Further Amid Quiet Markets

Posted on September 2, 2019September 2, 2019 by Skerdian Meta

Last Friday we saw a decisive move in Euro pairs towards the end of the day. The USD turned bullish across the board in the US session and [[EUR/USD]] headed for 1.10, which was the ultimate support level for this pair. The day and the week were coming to a close and whatever buyers were left in this pair panicked and turned into sellers, piling on the downside for this pair. As a result, the big round level at 1.10 was finally broken. That level turned into resistance this week and the bearish move resumed again after the 20 SMA caught up with the price on the H1 chart, which in turn, shows that the pressure is pretty strong on the downside.

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