Daily FX Analysis, Aug 22 – FOMC Brings No Surprises, Eyes on PMI Figures!

The U.S. Federal Reserve’s FOMC Meeting Minutes fails to surprise the market with hawkish bias. As per the minutes from the Federal Reserve’s July 30-31 monetary policy meeting, two of the Fed policymakers voiced their preference to make a 50 basis point rate cut in July rather than a 25 basis point cut to address the low inflation. The U.S. Federal Reserve policymakers were intensely divided over whether to cut interest rates. Minutes from the two-day meeting published yesterday on Wednesday revealed policymakers’ final decision to reduce the central bank’s benchmark interest rate by a quarter percentage point carried more opposition than was displayed in the rate-setting panel’s 8-2 vote, published after the meeting adjourned on July 31. Economic Calendar – Eurozone’s PMI Figures Today, the market prepares to trade the series of manufacturing and services PMI data from Eurozone.     EUR/USD – Manufacturing & Services PMI In Focus Despite mixed FOMC report, the EUR/USD pair managed to maintain its sideways range of 1.1115 – 1.1070. Traders are finding no solid reason to derive breakout of the range, however, today it has a good chance of breaking out of the range. It’s especially a busy day ahead on the Eurozone economic calendar. Important stats due out of the Eurozone include August prelim private division PMI figures out of France, Germany, and the Eurozone. In addition to PMI figures, the ECB monetary policy meeting minutes are also due out later today.   It’s been the 6th consecutive day, the EUR/USD continues to consolidate in

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Daily FX Analysis, Aug 21 – Brace for FOMC Meeting Minutes, Major Trade Setups!

While people enjoy summer holidays, the financial markets are experiencing thin volatility and lack of trading volume, which is why the Asian session has remained a bit quiet from the trading viewpoint. During the previous sessions, a decline in Treasury yields sent bank shares lower, which undermined the financial sector-weighted S&P 500 and Dow. Benchmark 10-year yield dropped nearly five basis points on Tuesday, or 0.05 percentage points, to 1.54% and triggered the risk-off sentiment for the second time this week. BTC/USD Bitcoin is trading at $10,200 amidst a building bearish momentum. BTC/USD is likely to plunge under $10,000 and even explore last week’s lows $9,469 as Bitcoin has already completed 61.8% Fibonacci retracement on the 4 hourly timeframes. Economic Calendar – FOMC Meeting Minutes As the markets prepare for the FOMC meeting minutes due out later today, Boris Johnson will be in focus early in the day.     EUR/USD – Going Nowhere, Sideways Channel Plays On Wednesday, the EUR/USD pair continues to consolidate within a narrow trading range of 1.1115 – 1.1070 as investors are finding no solid reason to determine the trend in Euro and US dollar. Previously, the single currency Euro experienced a macroeconomic setback, as data from the Union was generally discouraging. However, German PPI m/m data managed to underpin Euro’s demand. German PPI – For July 2019, the PPI (Producers Price Index) soared by 1.1% compared with the similar month of the preceding year. In June 2019 the annual rate of change all over had been +1.2%,

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Daily FX Analysis, Aug 20 –Major Trade Setups In Forex & German PPI Ahead!

The Asian session has been a bit quiet on the economic calendar as traders seem to be out on summer holidays, so we are facing a lack of volatility and trade opportunities in the market. Thus, there are no quantitative stats to present direction through the early part of the day. On the monetary policy front, the RBA meeting minutes provided the Aussie Dollar with direction. Quick Look on RBA Meeting Minutes Prominent features from the RBA meeting minutes included: Members anticipated 2nd quarter growth to be more solid. RBA Members also anticipated supply disruptions and mining investment to be scarcer of a burden on exports. Partial indicators point to subdued consumption growth in the quarter, however. The RBA expected dwelling investment to have declined further in the quarter. Public demand and non-mining business investment were expected to have continued to support growth. The unemployment rate stays at 5.2%. Whereas the unemployment rate remains unchanged, the employment to population ratio and participation rate prevailed around record highs. BTC/USD Bitcoin price rebounded recently and climbed above the $10,700 resistance against the US Dollar. The price is currently trading nicely above $10,500, but facing hurdles near $11,000.There is a mixing bullish trend line likely to extend support near $10,250 on the hourly chart of the BTC/USD pair. The price is likely to climb higher if it breaks the $11,000 resistance area in the near term. Economic Calendar – German PPI In Focus     EUR/USD – Horizontal Resistance Pushes Euro Lower On Tuesday, the EUR/USD pair lost

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Daily FX Analysis, Aug 19 –Major Trade Setups & EU CPI In The Limelight!

The summer calm will extend into this week as economic events will remain sparse. Nevertheless, meeting minutes from the central bank and the annual conference of central bankers at the Jackson Hole Economic Symposium should produce loads of headlines ahead of proposed policy easings in September. Besides, the trade and geopolitical tensions will also come to the fore as world leaders attend a G7 summit in France. Bitcoin (BTC/USD) has restored the psychologically level $10,000 whole figure level (as part of its ongoing 2-month consolidation) after some profit-taking during the previous week. Whereas the buyers see BTC/USD recapitulating an up channel. Bulls are also suggested to closely monitor Ripple (XRP/USD) and Ethereum (ETH/USD) as these seem to reclaim (after breaking last week) major prior support at 0.3 and 200 respectively. Economic Calendar – Eurozone’s Inflation Report In Focus   EUR/USD – Inflation Figures Set to Drive Price Action One of the most important fundamental today is the Eurozone’s July inflation figures which are due to kick the week off. Excluding any deviation from prelim numbers, the focus will be on the headline CPI figure. Later, the investors focus will shift to August prelim private sector PMI numbers due out on Thursday. Expect the German manufacturing PMI and the Eurozone’s composite PMI to be the key drivers. Moreover, the Eurozone’s service sector activity will need to extend support, though. Moderate growth in services and anticipate risk aversion to impact. The single currency hasn’t moved much as the EUR/USD pair continues to trade

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Daily FX Analysis, Aug 16 – Major Trade Setups & Economic Events!

On Friday, the U.S. dollar index experienced gains following a surge in U.S. retail sales eased concerns about the world’s top economy. Previously, the greenback was on track for a weekly gain versus safe-haven currencies such as the Japanese yen and the Swiss franc, pointing to some respite for frayed nerves following fears of recession and rallies in Hong Kong rattling financial markets. With that, one this is clear; the market is trading risk-off sentiment and investors are looking to park their investments into the non-risky or safe-haven assets such as gold, silver, and Japanese yen while sell-off is experienced in stock markets. Bitcoin, on the other hand, traded yesterday upwards and moved to $10,407, representing a 0.82% price increase on the day. Bitcoin has consolidated from just under $10,000 to over $12,000 this month and had most recently been on a downward streak. BTCUSD continues to hold below the strong resistance level of 10,400, currently dropping to near $10,000. Yesterday’s move looks like a lower’s high. Therefore the next target can be a lower low around 9,682. However, a bullish breakout of 10,420 can lead BTC towards 10,600 and 10,900. Economic Calendar – U.S Building Permits & Consumer Confidence!     EUR/USD – Slips Lower Amid Descending Triangle Breakout The EUR/USD pair declined to a new 2-week low of 1.1091, as US economic figures shocked to the upside, while ECB’s Rehn discoursed about “significant” stimulus required. US Retail Sales increased by 0.7% in July, more than doubling the 0.3% boost expected.

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Daily FX Analysis, Aug 15 – Major Trade Setups & Economic Events!

On Thursday, the U.S. dollar index continues to trade choppy due to lack of market-moving fundamentals. The market is currently trading the Risk-off theme which is driven by global slowdown across the board, for instance, a day before we saw weakening German data as well as a big miss on China data. As per Reuters poll of foreign exchange strategists, the Chinese yuan is likely to decline further beyond the current 7 per dollar rate across the upcoming year as Beijing steps back from managing the currency amid tariff threats from Washington. Bitcoin also remained in highlights, especially after BTC/USD found itself trading around $9,700, down a jaw-dropping 8% in the past 24 hours. This move surprised many traders as the drop came after Goldman Sachs analyst recently claimed that Bitcoin could soon hit $14,000, adding that BTC’s medium-term prospects are looking surprisingly bullish. Economic Calendar – U.S & U.K’s Retail Sales In Play! Retail Sales m/m – 8:30 GMT The UK retail sales, listed to be published later this session at 8:30 GMT, is expected to sink -0.3% m/m in May, following a 1.0% figure seen in June. Indeed, no-Brexit sentiments and ongoing geopolitical tensions between the U.S. and China is making consumers frightened which is causing a drop in retail sales. Worse than expected figures may put extra weight on Sterling today. US Retail Sales – 12:30 GMT The US economy is focused on consumption and inflation figures as this has been an opulent cause of the growth of late.

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