Category: US/Midday Session Brief

Forex Signals US Session Brief, August 9 – The Pullback in USD Continues

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The sentiment in financial markets has been negative in recent weeks, turning the risk sentiment off. Safe havens have been surging during this time while the risk assets such as Crude Oil and commodity Dollars have been tumbling lower. Yesterday [[WTI]] Crude Oil fell pretty close to the $50 level again, but that support zone survived once again and today we are seeing a pullback higher. Commodity Dollars are retracing higher again against the USD as well today, while safe havens are continuing their march, with [[USD/JPY]] trying to make new lows. So, it seems that it’s just the USD that is slipping lower.

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Forex Signals US Session Brief, August 8 – Markets Trade Sideways on a Light Economic Calendar

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In recent days we have seen some big moves in financial markets. Crude Oil has dipped lower and US [[WTI]] crude is now heading for the $50 level after breaking below $52 today. [[Gold]] has climbed more than $100 since last Thursday when Donald Trump announced new tariffs on China which hurt the sentiment in financial markets and sent safe havens surging. Risk currencies such as commodity have been declining pretty fast, which picked up pace yesterday after the Reserve Bank of New Zealand cut interest rates by 50 bps.

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Forex Signals US Session Brief, August 2 – Safe Havens are the Beneficiaries of New Tariffs on China

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Yesterday the USD was on a bullish run which started on Wednesday evening, after the FED meeting which wasn’t as dovish as markets were anticipating. The FED cut interest rates by 25 bps, but markets were hoping for either a 50 bps rate cut or even better, the FED leaving the door open for further rate cuts. As a result, the USD turned pretty bullish after the meeting, climbing nearly 100 pips higher across the board, but the USD started to reverse back down after the US manufacturing reports in the afternoon. Final manufacturing PMI came in a bit better than expected and moved away from stagnation but the ISM manufacturing softened further and it is heading towards contraction now.

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Forex Signals US Session Brief, August 1 – USD Turns More Bullish After the FED, While the BOE Keeps Denying the Obvious

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The July FED meeting is finally over. It took place in the last day of the month and the USD benefited from it, closing July on a bullish footing. Markets were fully pricing in a 0.25% rate cut this time, but considering that the global economy has slowed down considerably in Q2 with manufacturing in contraction in many major countries as well as the recent weakness that we have seen from the US economy, there was a possibility that the FED might cut rates by 50 bps yesterday. The other option would be leaving the door open for more rate cuts in the coming months. But, the FED just cut rates by 25 bps and despite Powell suggesting that this is not a one-and-done action, markets took that as a sign that this was it for the FED. As a result, the USD rallied higher and it continues to grind higher today.

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Forex Signals US Session Brief, July 31 – Inflation Falls Again in Europe, but Traders Remain on the Sidelines Ahead of the FED

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Today we have had quite some important economic data being released from all over the globe. It started early in the Asian session with the GfK consumer confidence which remained negative in Britain. The inflation report from Australia for the Q2 was released after that and it was surprisingly good, considering the economic weakness this quarter. Although, that couldn’t bring some life into the Aussie since markets are waiting for the FED meting later today.

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Forex Signals US Session Brief, July 30 – Risk Assets Extend the Decline as Sentiment Turns Negative Again on Weak Forecasts

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The main event for this week is the FED meting which will take place tomorrow in the evening. They are widely expected to cut interest rates by 25 bps, but traders are uncertain whether the FED will deliver just one rate cut tomorrow and end it there, of if they will enter an easing cycle. Hence the uncertainty in the forex market this week. Besides the FED, the Bank of England (BOE) will also hold its meeting on Thursday, although the central bank bonanza started with the Bank of Japan (BOJ) meeting today in the Asian session.

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Forex Signals US Session Brief, July 26 – Traders Waiting for the USD GDP Report

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Yesterday, the European Central Bank held its meeting and they sounded pretty dovish. But, markets were anticipating that, considering the weak economic data of the recent months from the Eurozone. What traders were hoping for this time, was a set date for a broader stimulus package, such as rate cuts and QE. Westpac expects the ECB to introdyce such a package in their September meeting, but markets wanted to hear that from the ECB, which they didn’t and as a result, the Euro climbed around 60 pips higher. Continue reading “Forex Signals US Session Brief, July 26 – Traders Waiting for the USD GDP Report” →

Forex Signals US Session Brief, July 25 – Everything on Hold Ahead of the ECB Meeting

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Forex traders have been trading the USD most of the time during the last few weeks. The US economy which was holding up well during the past year weakened in Q2, bringing back fears of a global recession. Although, the GBP has been interesting as well in the last couple of weeks as we headed towards election in the Conservative Party, which Boris Johnson won yesterday, taking the post of the Prime Minister as well. Today though, markets are concentrated on the European Central Bank ECB meeting.

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Forex Signals US Session Brief, July 24 – Euro Slips as Manufacturing Recession Gets Deeper in the Eurozone, GBP Rallies as the New Cabinet Forms

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The European Central Bank has turned pretty bearish in the last few months, as the economic data from the Eurozone continues to show further deterioration of the economy. The manufacturing and industrial sectors have been hit the hardest by this economic slump which has spread across the world. Inflation has also weakened considerably, but it is just a symptom of these two sectors. Today’s manufacturing and services reports from the Eurozone were released and we saw yet another decline in manufacturing activity. In Germany, the recession in the manufacturing sector deepened further, which affected the Eurozone manufacturing negatively, sending it deeper in recession as well.

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Forex Signals US Session Brief, July 20 – GBP Rebounds as BoJo Becomes the New PM but the Climb Stalls

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The day started with the inflation report being released from the Bank of Japan (BOJ) this morning. Inflation has been weak for a very long time in Japan, three decades counting back the years. This year, inflation has softened further as it has done across the globe, although core CPI (consumer price index) climbed higher to 0.7% in April and May, but that’s still really weak. In June, inflation weakened further, with core PCI ticking lower to 0.6% YoY as this morning’s report showed, and the BOJ is said to be lowering their inflation and growth forecasts for this year.

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