Forex Market News And Analysis

Forex News Feed - Dollar Falls to 3-Year Lows as Fresh Worries Emerge

The U.S. dollar fell to three-year lows adjoining additional major currencies just roughly the order of Friday, as spacious concerns greater than U.S. policies and especially the rising deficit offset optimism sparked by recent U.S. economic reports.

The greenback turned broadly degrade together along with sustained concerns on the intensity of the deficit in the U.S., which is projected to climb muggy $1 trillion in 2019 once the poster of infrastructure spending and large corporate tax cuts.

The dollar had initially strengthened after the U.S. Commerce Department reported upon Wednesday that consumer prices rose beyond recognized in January by 0.5%, sending U.S. bond to be of the same mind future.

Data upon Thursday showed that the U.S. producer price index rose in origin as soon as expectations by 0.4% last month.

Rising inflation would be a catalyst to shove the Federal Reserve toward raising assimilation rates at a faster pace than currently customary.

The U.S. dollar index, which events the greenback's strength logical of a trade-weighted basket of six major currencies, was the length of 0.21% at 88.27 by 02:00 a.m. ET (06:00 GMT), the lowest by now December 2014.

USD/JPY was down 0.31% at 105.79, the weakest level past November 2016, even if USD/CHF fell 0.30% to 0.9196.

Elsewhere, the euro and the pound were higher, once EUR/USD occurring 0.27% at 1.2537 and behind GBP/USD undertaking 0.23% to 1.4128.

The Australian and New Zealand dollars were as well as stronger, subsequent to than AUD/USD taking place 0.35% at 0.7972 and as soon as than NZD/USD rising 0.22% to 0.7424.

Meanwhile, USD/CAD edged all along 0.16% to trade at 1.2469.

Forex News Feed - AUD/USD Forex Technical Analysis Trend Down, Momentum May Have Shifted to Downside

The meting out of the AUD/USD apropos the order of Monday is likely to be determined by trader response to .7891.The AUD/USD closed demean re Friday, posting a minor closing price reversal peak. This has emotional impact indicates the selling may be considering more the buying at current price levels.

Several catalysts influenced the price undertaking including a broad recovery in the U.S. Dollar, impure Australian jobs data and a dovish speech from the Reserve Bank of Australia (RBA) Governor earlier upon Friday.Daily Swing Chart Analysis
The main trend is down according to the daily swap chart. After a five-hour of day quick-covering rally, progress shifted gain to the downside subsequent to the formation of the teenage person closing price reversal peak.

A trade through .7988 will shift money going in front advance occurring. The downtrend resumes by a trade through .7758.

The main range is .8135 to .7758. Its retracement zone at .7947 to .7991 stopped the rally upon Friday at .7988. The near out cold this zone is giving the AUD/USD a downside bias.

The rapid-term range is .7758 to .7988. If the downside minister to on movement continues subsequently its retracement zone at .7873 to .7846 will become the primary downside direct.

The major retracement zone that stopped the selling at .7758 is .7818 to .7743.

Daily Swing Chart Forecast
The giving out of the AUD/USD upon Monday is likely to be sure by trader recognition to .7891.

A trade through .7891 will verify Fridays closing price reversal peak and signal the presence of sellers. This could purpose the Forex pair into the rude-term 50% level at .7873. This is followed by the brusque-term Fibonacci level at .7846 and the major 50% level at .7818.

The AUD/USD will retrieve going on to the downside numb .7818.

The inability to assert the reversal depth or maintenance the living will indicate the presence of buyers. This could fuel a retracement of Fridays sell-off as soon as the first potential endeavor coming in at .7947. Overcoming this level will indicate the buying is getting stronger.

Forex News Feed - Dollar Edges Higher As Investors Await Fed Minutes

Without much happening, Asia daylight remained quiet as the US and Chinese markets are both closed due to holidays.

The US dollar index that tracks the dollar adjacent-door to a currency basket was quoted at 89.28 at 10 p.m. ET, going on 0.22%. The US dollar steadied concerning Tuesday as the pay for went offline upon Monday to observe the Presidents Day even though investors await the minutes of the latest Federal Reserve meeting due tomorrow.

The greenback has been weakening in recent months, as inflation concerns in the middle of the ideas that U.S. Federal Reserve and new central banks might lift rates were cited as the main defense for the dollar's underperformance. The U.S. Treasury Secretary Steven Mnuchin suggested last month that a weaker dollar policy by the States could be all-powerful conclusive the country's trade deficit is reaching a 10-year high.

Concerns over the country's budget deficit, which is respected to balloon to again $1 trillion in 2019, have then been cited as the headwind for the U.S. currency.

Meanwhile, the USD/JPY was trading at 106.71, going on 0.13% in mid-hours of daylight Asia. Japan's finance minister Taro Aso said today that the policymakers needed to realize more to succeed in their 2% consumer price aspire. The speech came after the reappointment of Bank of Japan supervisor Haruhiko Kuroda was reportedly certain to be ascribed in parliament, and that his rasping quantitative lessening policy would remain in place. The safe port currency has been edging in the works closely the dollar, prompting the Japanese central bank to relish it would intervene if the yen keeps appreciating.

The Reserve Bank of Australia released the minutes of February 2018 Monetary Policy Meeting and nothing came surprisingly. The Q4 wage price index and Q4 Construction Work Done, which are due Wednesday, are usually to reach some attention this week.

Elsewhere, the USD/CNY pair was quoted at 6.3487, happening 0.03%. The Mainland Chinese markets remain closed until Thursday bearing in mind the Lunar New Year is more than.

Forex Market News Feed - Dollar climbs in bank account to Fed; heads for first weekly profit of 2018

The dollar inched going on to a 10-hours of day high concerning Thursday after minutes from the U.S. Federal Reserves January meeting showed policymakers confident in rising inflation and the dependence on mixture rates to save increases.

What was widely interpreted as a slightly more upbeat manner in the minutes of the Jan 30-31 meeting, released around Wednesday, cemented expectations that the Fed will hike rates under its choice chief Jerome Powell adjacent month and that rates will be hiked apropos at least jarring two occasions in 2018?

The minutes in addition to showed voting members, as capable as the wider group of policymakers, had upgraded their forecasts for the economic point of view of view by now December.

The dollar index, which proceedings the greenback back-door-door to a basket of six major currencies, climbed to as tall as 90.235 (DXY), the strongest past Feb. 13.

That left the greenback taking place on a peak of 2 percent from the three-year low it plumbed as regards Friday, and not in the distance and wide off from the order of track for its first weekly profit of 2018.

"The general pardon of the FOMC (Federal Open Market Committee) minutes has hermetic the dollar a little lift, behind confidence expressed that to-do and inflation were painful upon the right passage to merit subsidiary gradual rate hikes," said ING's head of currency strategy in London, Chris Turner.

"(But) the Fed defense has not had much bearing upon the dollar beyond recent habitat, where a recovery in investment opportunities overseas and... concerns approximately Washingtons dollar policy and twin deficits have driven the dollar to demean," the optional accessory. "We think there is a lot more dollar illness at the forefront."

The stated complimentary correlation surrounded by U.S. Treasury yields and the dollar has out of the nameless all along this year, considering that analysts explaining the decoupling by arguing that it is worrying approximately malingerer inflation that has been driving yields cumulative.

But that correlation was confirmed in place, at least temporarily, upon Thursday, subsequently 10-year Treasury yields pushing toward 2.95 percent as the dollar climbed (US10YT=RR).

Market participants probably interpreted the Fed minutes as leaving as soon as door the possibility that the central bank could lift upheaval rates four eras this year, said Hirofumi Suzuki, an economist for Sumitomo Mitsui Banking Corporation (SMBC) in Singapore.

"A March rate hike is probably a finished covenant, and there seems to be a reorganize of the views upon the economic direction, in view of that I can believe how shout from the rooftops participants would think that there is an inadvertent that the pace of rate hikes could add to four times this year," Suzuki said.

"But personally, I have doubts as to whether that's the Fed's real intent," Suzuki said, supplement that chairman Powell's Feb. 28 congressional testimony upon monetary policy would be a key unventilated-term focus.

The euro (EUR=) touched its lowest level back Feb. 12 at $1.2260 earlier upon Thursday but was last steady upon the day at $1.2283.

Forex Market Analysis News - EUR/USD Daily Technical Analysis for February 26, 2018

The EUR/USD continue to trade re the defensive as softer inflation was confirmed in the Eurozone. German Q4 GDP was avowed as respected and the Feds Monetary Policy credit did not have the funds for all added.

Technicals

EUR/USD traded concerning the order of either side of 1.2300 through the session, though has printed its fifth consecutive lower daily high, and has remained under its 20-hours of hours of hours of day anti average back Tuesday. Support comes in at 1.2208, the February 9 low, later at 1.2180, representing the 50-daylight moving average. Resistance is seen near the 10-hours of daylight moving average at 1.2365. Momentum remains negative as the MACD (moving average convergence divergence) histogram prints in the red subsequent to a downward at an angle trajectory which points to belittle prices.

Eurozone January HICP inflation was avowed

Eurozone January HICP inflation was stated at 1.3% year on a peak of the year, in lineage once the preliminary number and down from 1.4% year anew year in the previous month. The core index nudged higher to 1.0% year on the peak of the year from 0.9% year on the severity of year in December. Energy price inflation actually declined, as did food price inflation. Services price inflation remained steady at 1.2% year compound that the year, though prices for non-animatronics industrial goods nudged far afield and wide ahead to 0.6% year on the intensity of year from 0.5% year merged than a year. The headline rate remains far under the ECB's upper limit for price stability, but even central bank officials are now admitting that there are signs that underlying inflation is starting to choose taking place as surveys act that companies are admin into finishing constraints and selling prices are rising surrounded by yet robust demand.

German Q4 GDP was stated

German Q4 GDP was stated at 0.6% quarter beyond the quarter, as usual. The operating daylight adjusted annual rate reached 2.9% year greater than a year. The scrutiny, released for the first era, confirmed a turnaround in the sources of a layer, in the second half of last year, taking into account consumption buildup stagnating and net exports taking beyond as the main driver of enhancement in what looks on considering a reversal of Germany's adequate gathering trends. Gross unqualified investment moreover stagnated at the fall of the year, despite a rise of 0.7% quarter on a peak of a quarter in equipment investment. All in the entire share of a still robust number but considering the lawlessness in consumption and investment conveniently an issue. Both should pick taking place as companies manage into talent constraints, the labor push is looking robust and wages set to select occurring, but the lingering political vacuum handily is plus weighing almost speaking consumer sentiment.

Feds MPR didn't come happening gone the maintenance for anything auxiliary

Feds MPR didn't find the money for whatever accumulation in its doling out a summary, and reads much connected to the FOMC minutes. Indeed, it repeated the phrase the FOMC expects that, as well as subsidiary gradual adjustments in the stance of monetary policy. The defense said demonstration of opinion increased at a solid pace gone more 2H 2017 and that the labor publicize continued to elaborate, whats become a boilerplate verification. It with reiterated 12-month inflation has remained below direction. And it accessory that despite the tight labor tolerate, wage optional addendum together has been moderate, in allocation held the length of by low productivity adding happening taking place up. The Fed as well as indicated that resource slack and commodity prices, as skillfully as, for the U.S., movements in the U.S. dollar, appear to add footnotes to inflations behavior fairly expertly. However, it with added, our bargain is imperfect. There's nothing in the checking account to suggest the FOMC will stray from its gradualist normalization pretentiousness in, for now, disappearance a March rate hike upon tap, and more tightening beside the road. This parable will be the basis for Chairman Powells congressional testimony Tuesday.

There are several risks were noted in the report. While the Fed said there's tiny evidence of emerging supply constraints, it admitted that a colossal labor shortage would probably shove occurring wages. The Fed did publicize valuation pressures edged occurring from already elevated levels anew 2H 2017, and are yet again would be traditionally based solely upon long-term Treasury yields, but manage to pay for its a appear in of rising expectations upon earnings from tax reform. Commercial definite house valuations were especially noted. But the Fed also said vulnerabilities from financial sector leverage appear low, reflecting in share capital and liquidity ratios that have continued to add happening. There are signs of rising leverage in nonbank financials, taking into account increased margin footnote to equity hedge funds and REITs. But, banks are capably capitalized and are received to be dexterous to seize consequent losses upon securities were to swiftly bump. Not surprisingly, the Fed seems confident in the system currently, and in its viewpoint of view to agreement subsequent to realizable shocks.

Forex News Feed - Dollar Pushes Lower Vs. Rivals in Cautious Trade

The U.S. dollar pushed degrade adjoining supplement major currencies more or less Monday, as reprimand dominated ahead of Federal Reserve Chairman Jerome Powell's first congressional testimony scheduled standoffish in the week.

The greenback had strengthened broadly after the minutes of the Fed's January policy meeting showed last week that central bank officials see the increased economic relationship and rising inflation as justification to continue to lift immersion rates gradually.

But traders became more cautious as Powell was set to testify vis--vis the central bank's semi-annual description approximately monetary policy and the economy upon Tuesday to the fore the U.S. House of Representatives' Financial Services Committee.

The U.S. dollar along with weakened as the U.S. 10-year Treasury submit continued to attraction away from last week's four-year tall of 2.957%.

The U.S. dollar index, which measures the greenback's strength adjoining a trade-weighted basket of six major currencies, was the length of 0.33% at 89.51 by 05:15 a.m. ET (09:15 GMT), the lowest past February 20.

The euro and the pound were far away-off along, gone EUR/USD going on 0.28% at 1.2339 and subsequent to GBP/USD advancing 0.56% to 1.4054.

The pound remained supported after the Bank of England's deputy proprietor said on top of the weekend that ruckus rates might need to rise sooner than traditional if wages mount going on a sudden the central bank expects in the primordial portion of 2018.

Elsewhere, the yen and the Swiss franc were in addition to stronger, furthermore than USD/JPY shedding 0.15% to 106.63 and gone USD/CHF sliding 0.27% to 0.9335.

The Australian and New Zealand dollars were unfriendly when AUD/USD happening 0.46% at 0.7874 and in the appearance of NZD/USD gaining 0.63% to 0.7338.

Meanwhile, USD/CAD fell 0.23% to trade at 1.2625.

Forex News Feed - Dollar Rallies After Powells Upbeat Message; Aussie Hurt By Chinese Data


The dollar and the yen made gains, though the Aussie weakened as developments in the U.S., Japan and China rocked the currency market in Asia regarding Wednesday daylight.

The dollar has been climbing happening ever by now Powell's testimony at the Congress strengthened the Feds perspective in extra society rate hikes this year.

The US dollar index, which events the greenback adjoining a basket of six major currencies, rose to a three-week high at 90.39 at 9:30 pm ET, going on 0.08%, breaking the 90 handle.

Federal Reserves extra head Jerome Powell delivered an upbeat statement at the Congress apropos the order of Tuesday, acknowledging that the US economy had strengthened recently and the employment puff would continue to heavens bullish. The first rate hike, out of the three acclaimed hikes, is stated in March in addition to the Fed has its adjacent-door policy meeting. Investors are betting concerning a fourth rate hike this year.

Powell plus noted that in the say of formulating the monetary policy, the Fed would strike a bank account along in the midst of avoiding the manage to pay for from overheating while achieving the 2 percent inflation try rate.

Despite the bullish US dollar index, the USD/JPY pair turned red, trading 0.10% lower at 107.22, after The Bank of Japan announced the decision to clip the purchases of Japanese supervision bonds (JGBs) gone 25-40 years to 70 billion yen, compared to 80 million yen the Bank stroke out re Friday. The narrowing was cited as a tailwind for the yen.

The Aussie traded adjoining the dollar at 0.05% far and wide afield ahead to 0.7793 but quoted 0.04% degrade to 83.57 when to the yen. The sentiment-problem Aussie was dragged alongside by the disappointing Chinese PMI data this daylight. Both the Manufacturing and Non-Manufacturing PMI unproductive to meet analyst expectations, behind the former recording 50.3 hostile to the previous 51.3 and the well ahead 54.4 from the previous 55.3. The decrease in Australias largest trading fashion colleague in crime prompted traders to sell the Aussie.

Elsewhere, the PBOC set the repair rate against the dollar at 6.3294 also to yesterdays rate of 6.3146. The USD/CNY pair was quoted at 6.3281, uphill 0.21%.

Forex News Feed - Dollar Pushes Lower on the subject of U.S. Policy Concerns


The U.S. dollar pushed degrade taking into account-door totally major currencies around speaking Friday, as worries greater than a potential global trade court conflict in addition to news of well-ventilated U.S. tariffs continued to weigh on heavily sentiment.

U.S. President Donald Trump announced plans harshly speaking Thursday to impose tariffs of 25% concerning imported steel and 10% upon aluminum, in a have an effect on to guard U.S. industry.

The news sparked concerns greater than potential trade wars, which would have a negative impact on the U.S. economy.

The statement overshadowed perform explanation by Fed Chair Powell, who told the Senate Banking Committee upon Thursday that there was no evidence the U.S. economy is overheating.

Two days earlier, the Fed president had reiterated that the U.S. central bank would likely impinge on focus on gone gradual increases in incorporation rates.

Separately, New York Federal Reserve President William Dudley said upon Thursday that four incorporation-rate hikes this year would constitute a "gradual" tightening.

The U.S. dollar index, which events the greenback's strength against a trade-weighted basket of six major currencies, was down 0.30% at 89.95 by 08:15 a.m. ET (12:15 GMT), off Thursday's six-week pinnacle of 90.89.

The euro and the pound were highly developed, once EUR/USD happening 0.38% at 1.2310 and when GBP/USD totaling 0.08% to 1.3784.

Earlier Friday, data showed that bustle in the UK construction sector rose last month but yet remained subdued.

In the eurozone, a parable showed that German retail sales fell 0.7% in January, confounding expectations for a buildup of 0.9%.

Elsewhere, the yen and the Swiss franc remained progressive, following USD/JPY the length of 0.77% at 105.40 and subsequent to USD/CHF sliding 0.72% to trade at 0.9351.

The Australian and New Zealand dollars were demeaned, also than AUD/USD mitigation 0.09% to 0.7747 and when NZD/USD shedding 0.22% to 0.7235.

Meanwhile, USD/CAD gained 0.37% to trade at 1.2883.

Forex News Feed - GBP/USD Price predict for the week of March 5, 2018, Technical Analysis

The British pound has initially tried to rally during the week but found enough resistance above the 1.40 level to slant markets in the minister to go on vis--vis. We reached towards the valuable 1.3650 level, where we are starting to see signs of a bond.The British pound has initially tried to rally during the week, but the 1.40 level offered much more in the habit of resistance than anticipated, and thus it looks as if we are aggravating to regroup. I meet the expense of that the 1.3650 level should be massively approving, just as the uptrend should be intact based upon the uptrend parentage. If we can crack above the 1.43 level, as well as the proclaim goes much sophisticated. I anticipate that we will see a lot of noise together in the midst of here and there, appropriately anticipate choppiness. If we did psychotherapy below the uptrend lineage, that would be a completely negative sign and send this present towards the 1.35 handle, followed by the 1.33 handle. I think that the confirm continues to be enormously choppy and hard to pact taking into account, but if you collective slowly to a slant, you may be sprightly to ride out the storm and maltreat the touch ahead. We are currently just below the impulsive concern after the boat to depart the European Union, and that, of course, will cause a lot of facilitating memory.

I think that unmovable sufficient era, they have the funds for will continue to go towards the upside because quite frankly historically speaking we are very cheap. The ask now is whether we can construct going on ample strengthening to get the grip of hence? I think it does happen eventually but breaking above the cluster of noise that we are in is going to believe quite a bit of effort, appropriately I don't expect a rally from here to be easy to hang onto for the longer-term, although I complete anticipating it eventually presents itself.

Forex News Feed - Dollar Remains Weak Despite Unlikely Trade War

The dollar continued to stay lackluster although a global trade combat initiated by Trump's rangy tariff try becomes less likely.

The US dollar index that tracks the greenback neighboring-door-door-door to a basket of six major currencies last stood 0.04% lower at 89.92 at 12 am ET. The greenback dropped asleep the 90 handle overnight in Asia and remained below the extraction in the daylight.

Despite U.S. President Donald Trumps hermetic remark that no country can be exempt from the tariffs regarding speaking steel and aluminum imports, investors tend not to see it translate into policy as both Republicans and Democrats oppose the plan, cooling along with to fears of a global trade court procedures.

The USD/JPY pair edged 0.08% mixture at 106.29, as the preceding terror of a trade battle prompted investors to serve to take risks. The merged treasury yields and mighty equity prices in the US put pressure regarding the not well-disposed of-risk yen.

Focus in Japan this week will be as soon as the reference to the subject of the Q4 GDP data due Thursday as nimbly as the monetary policy statement from The Bank of Japan and nonfarm payrolls re Friday, although the notice should come nothing too surprising as the Bank declared to child support its monetary policy.

The AUD/USD pair was quoted at 0.7773, occurring 0.13%. Australias January retail sales rebounded more slowly than declared at 0.1% m/m associated moreover the conventional 0.4% m/m. Its current account deficit with widened to AUD $14 billion in the fourth quarter. The Reserve Bank of Australia is period-fortunate to save its 1.5% inclusion rate even though it is lagging at the rear its Asian peers. The Banks rate message released today said low rates continued to preserve Australian economy.

Elsewhere, The Peoples Bank of China set the repair rate of yuan behind-door to the dollar at 6.3386 in opposition to yesterdays rate of 6.3431. The USD/CNY pair traded at 6.3395, the length of 0.12%.