FX

USD/CAD set to resume lower?

The USD/CAD may be about to resume its bearish trend, thanks mainly to ongoing weakness or the US dollar and the rebound for crude oil boosting the appeal of the Canadian dollar. More to the point, there was a technical failure for the USD/CAD to hold its breakout above the key 1.32 handle on Thursday: …

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EUR/USD in reversal as dollar comes back to life

Following Thursday’s big falls for equities (because of concerns over economic recovery and new infections), the dollar has come back to life on haven flows. With the dollar extending its gains this late in the day on Friday, it looks set to extend its advance against the likes of the euro and pound next week. …

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GBP/USD heading to +1.26?

The Cable continues to show constructive price action as the dollar continues to weaken on reduced haven flows. Similar price action has been observable on the other major pairs with the EUR/USD breaking higher and USD/CAD lower etc. Have a look at this chart of the cable: The GBP/USD has now broken it bearish trend …

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AUD/JPY hits key resistance

The risk-sensitive AUD/JPY turned lower from a key resistance range in overnight trading, mirroring the price action on Wall Street where US stock indices gave up earlier gains to close at their lows Tuesday evening. The AUD/JPY has now for the second time in as many weeks failed to break thru the prior long-term support …

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USD/JPY arrives at key juncture

Despite ongoing risk off tone in the equity and commodity markets, the USD/JPY has been rallying sharply amid widespread dollar strength. But rates have now arrived at a key technical juncture. What happens next is important: a break above the resistance zone could pave the way for further sharp gains, while a rejection here could …

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EUR/USD dumped on ECB stimulus, Coronavirus

Following ECB’s decision to announce a massive, open-ended, €750 billion asset purchase programme in an effort to mitigate the economic impact of the virus outbreak, the EUR/USD has nosedived. Already under pressure because of a rallying US dollar, this package was the final nail in the coffin for the single currency. If it stays below …

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EUR/GBP hits resistance

The EUR/GBP has risen sharply over the past two and half weeks. Ongoing Brexit concerns have weighed on sterling while the euro has been supported by concerns the ECB will not loosen its policy like other central banks have this week in response to the outbreak of the coronavirus. However, with the virus spreading across …

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Fed surprises but is the 50 bp cut too early?

Did the Fed just cut interest rates because of the economic impact of the coronavirus or because of the recent slump in equity prices? Whatever the reason, supporters of Trump will claim that his renewed criticism of the Fed has done the trick. But make no mistake about it, the President will continue to call …

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