Forex is an over-the-counter (OTC) marketplace where the currencies of the world are traded. In contrast to other prominent financial centers, forex facilitates trade without a centralized exchange, implementing an exclusively digital platform. Limited barriers of entry, ease of transaction and high market liquidity are its calling cards. Easily the world's largest market, the average daily traded volume in forex dominates all other global marketplaces. For April 2016, daily volume measured more than US$5 trillion in value, according to BIS. Of that amount, trade of major global currencies such as the United States dollar (USD), euro (EUR), Japanese yen (JPY)…
Both central banks raised their benchmark rates by another 0.5% as expected, but the Bank of England softened its messaging, whereas its European peer remained aggressive, despite some less hawkish elements
The ECB hiked rates by 50bps today, maintaining that another 50bps is coming in March. However, the press conference delivered by president Lagarde proved to be confusing. Besides, obscure phrases like “continuity in a steady state”, she pointed to data dependency and a “meeting by meeting” approach. This suggests the 50bps in March is not a done deal. The market interpreted the press conference as dovish and the EURUSD sold…
The Fed hiked rates by 25 bps yesterday. However, the Fed chair, perhaps mistakenly, loosened markets when he stated, “If we feel like we’ve gone too far, and inflation is coming down faster than we expect, then we have tools that would work on that.” The press conference offered little pushback against current market thinking. This caused risk assets to rally, and money to rotate out of safety, e.g., FXCM’s…
The pair covers most of the losses from the increase in New Zealand’s unemployment and lacks firms direction, as markets gear up for the monetary policy decision by the US Fed
USDOLLAR showed resilience over the last few trading sessions. Yesterday showed a crack. There is a risk of heightened dollar volatility.
Heading towards the Fed release on Wednesday a sense of caution prevails. Despite the market looking for a pivot, the Fed has maintained an aggressive stance.
The pair is on the back foot ahead of the monetary policy decisions by the US Fed and the European Central Bank, despite expectations for a more aggressive move by the ECB
The BoC raised its overnight rate by 25bps to 4.5%. This was as expected and is regarded as the current cycle’s peak. The statement read that the central bank “expects to hold the policy rate at its current level.”
GBPUSD daily is trading in its bullish channel between the upper blue and red bands. The hourly chart also shows signs of positivity. Its trend-following EMAs and momentum-based stochastic have crossed up (black ellipses). If the EMAs develop angle and separation and the stochastic makes its way to its upper quintile and holds (blue arrow), an underlying bullish momentum will be present.
The pair showed signs of life as the BoJ did not build on December’s policy surprise, but the technical death cross and market optimism for a Fed pivot weigh on the greenback
Risk Warning: Trading Margin FX/CFDs carries a high level of risk, and may not be suitable for all investors. Leverage can work against you. By trading, you could sustain a total loss of your deposited funds but wholesale clients could sustain losses in excess of deposits.
Exchange: ${getInstrumentData.exchange}
${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.