Forex Signals US Session Brief, July 19 – Quiet Markets Ahead of Major Events in Coming Weeks

Posted on July 22, 2019July 22, 2019 by Skerdian Meta

Forex traders have been concentrating on the USD recently, trying to figure out by how much the FED is going to cut interest rates in next week’s meeting. Last Thursday we saw the USD dive nearly 100 pips lower after comments from FED’s Williams who said that the FED could be more aggressive and the markets anticipated a 0.50% rate cut, which is more than the 0.25% expected. But, another FED member popped up on Friday saying that a 25bps rate cut would be appropriate and the USD reversed higher. Today there’s not much on the economic calendar and forex traders are staying on the sidelines, given that there are some important events coming up in the next two weeks.

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Forex Signals US Session Brief, July 19 – The USD

Posted on July 19, 2019 by Skerdian Meta

Yesterday during the European session and for most of the US session, markets concentrated mostly on the Euro and the GBP, for a change after trading the USD for many weeks. The Euro was declining after a report in Bloomberg that the ECB might lower their inflation target, while the GBP was climbing after some impressive retail sales figures for June. Although, the attention has turned into the USD again now. Continue reading “Forex Signals US Session Brief, July 19 – The USD” →

Forex Signals US Session Brief, July 18 – Euro Falls on Lower Inflation Rumours, GBP Jumps on Positive Retail Sales

Posted on July 18, 2019July 18, 2019 by Skerdian Meta

Traders have been trading the USD during the past several weeks. The market turned against the USD during most of June after the FED turned dovish in the June meeting, but the situation improved in the last week of last month ahead of the G20 summit. The USD has been sort of bullish throughout this month, although we saw a retrace lower yesterday. Today though, the focus has shifted away from the USD as traders concentrate on the Euro and the GBP.

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Forex Signals US Session Brief, July 16 – GBP Continues to Fall Despite A Great Earnings Report

Posted on July 16, 2019July 16, 2019 by Skerdian Meta

The UK economy has taken a downturn in Q2. Brexit has affected the British economy negatively, but in Q1 we saw some decent economic figures and a rebound in the economy. Although that was due to stockpiling from UK firms ahead of a disruptive Brexit, which seems the most likely scenario now. That rebound was going to come to an end though, after companies built up their stock. That proved to be true, as the economic data has shown in Q2. Certain sectors of the UK economy have fallen in contraction in Q2, although employment and earnings remain in a good position. The unemployment rate remained at 3.8% today which is way below the natural level, while earnings jumped higher to 3.4% in May from 3.1% in April. Yet, the GBP continues to slide today.

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Forex Signals US Session Brief, July 15 – Markets Remain Puzzled Despite Positive Figures From China

Posted on July 15, 2019July 15, 2019 by Skerdian Meta

Last week was quite important for the USD and global markets in general. The FED turned really dovish in the last meeting, so markets were pricing in really high chances for a rate cut at the end of this month during the July FED meeting. But we saw some positive economic figures from the US in the last few weeks, which put the rate cut for this month in doubt. Although, Powell didn’t leave much room for interpretation regarding that last week during his testimony at the US Congress. He let markets know that a rate hike this month is a done deal, hence the bearish reversal in the USD by the middle of last week.

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Forex Signals US Session Brief, July 12 – Quiet Markets Today as Traders Try to Figure Out What’s Coming Next

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

The USD turned pretty bearish during most of June after the economic data from the US showed increased weakness in the US economy during the last few months. Although, with nothing left to buy in forex, traders returned to the USD again and we have seen the Buck climb higher since the last week of June. Rate cut odds slipped lower from around 100% at the end of June, which helped the USD. But the FED chairman Jerome Powell turned the sentiment around on Wednesday when he sounded pretty dovish in the first day of the testimony. He highlighted the risks that the US economy faces and the need for the FED to be cautious.

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Forex Signals US Session Brief, July 11 – The USD Continues the Retreat That Powell’s Testimony Started Yesterday

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

The US Dollar has been on a strong bullish trend since the end of Q1 last year as the global economy started to slow, while on the other hand, the US economy was expanding at a decent pace. As a result, the USD was the only major currency to invest in, with the Federal Reserve being on a fast tightening cycle during the last three years. The US economy started slowing down the pace of growth towards the end of last year, but the FED kept hiking rates, despite many calls from Donald Trump to stop the rate cuts.

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Forex Signals US Session Brief, July 10 – Sideways Price Action in Forex As We Await Powell’s Testimony, FOMC Minutes and US Inflation

Posted on July 10, 2019 by Skerdian Meta

In the last two days, the economic data has been really light and markets have been quiet compared to the previous weeks. Although, we will have quite a few important economic reports and events taking place in the second half of the week. The European session started today with the UK GDP, manufacturing and industrial reports being released earlier on. The GDP had been contracting in Britain during March and April, so the chances for another decline in May were high, despite expectations for a 0.3% expansion that month. The manufacturing and industrial reports released last month also showed a major decline of April, but they were expected to increase in may as well. The numbers coming out of the UK were positive today, which sent the GBP around 30 pips higher, but as I highlighted in one of the updates today, this jump on the positive figures would be a good opportunity to sell the GBP and that’s what we did. That trade closed in profit already. Continue reading “Forex Signals US Session Brief, July 10 – Sideways Price Action in Forex As We Await Powell’s Testimony, FOMC Minutes and US Inflation” →

Forex Signals US Session Brief,2 July 9 – The USD has Resumed the Uptrend, But Eyes are on Powell

Posted on July 9, 2019July 9, 2019 by Skerdian Meta

The US Dollar has been the only major currency safe enough to attract large investors in more than a year since the rest of the major economies of the globe have been weakening considerably since the beginning of last year. Majors sectors of different developed economies have fallen in stagnation or in contraction and the analysts are predicting that Germany will fall into recession now, after the recession we saw in Italy in Q2 of last year. Recession occurs when an economy contracts for two consecutive quarters.

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Forex Signals US Session Brief, July 8 – Are Germany and the Eurozone Falling Into Recession?

Posted on July 8, 2019July 8, 2019 by Skerdian Meta

The economy of the Eurozone has been weakening since summer last year, as the trade war started having its effect on global trade and eventually caught up with the major economies of the globe. The economic data has shown a considerable slowdown in the Eurozone economy and the manufacturing and industrial sectors are in a really soft spot, contracting in Germany, while the rest of the sectors are not doing much better either. The investor sentiment is also deteriorating and this morning we saw a further decline into negative territory for the German Sentix investor sentiment. That’s not the worst yet; the surveying firm Sentix said that Germany might actually head into recession. The Italian economy fell in recession during Q2 of 2018; so is it time for Germany to do the same now? If it does, then the economy of the Eurozone will likely fall in recession as well. The ECB said today that they might restart the QE program, which means that they might be preparing for this scenario, but let’s see how the data will be in the coming weeks.

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