Daily Market Analysis from ForexMart

[Andrea ForexMart]

USD/CAD Fundamental Analysis: November 28, 2016

 

The USD/CAD pair was consolidating and trading in a tight range last week, with the strength of the USD being countered by equally-strong loonie. However, the currency pair briefly dropped at the 1.3380 trading range but closed down the week on a much higher note at 1.3600 points. The USD/CAD exhibited active fluctuations throughout the week but were quickly reversed after sellers and buyers both struggled to take control of the currency pair.

 

The USD had remarkable strength for the past three weeks ever since the results of the US elections, while the increasing value of the CAD was largely attributed to highly positive economic data from the Canadian economy, as well as the continued buoyancy of oil prices. The OPEC is set to have a meeting this coming November 30 and the organization is expected to produce a deal between oil producers with regards to production cuts, with producers expected to be in support of a production cut, which has boosted the CAD and has kept the USD/CAD pair in line.

 

For this week, the market is expecting the OPEC meeting and if the results of the said meeting turn out to be positive, then the USD/CAD pair could possibly go upwards to 1.3400 and could even go further at 1.3300 points. For the US, the NFP employment report is also slated to be released within the week, and if this particular data turns out to be positive, then this could be an indicator for the market as to whether the Fed would be increasing the frequency of its rate hikes for next year which could further strengthen the greenback.

[Andrea ForexMart]

EUR/USD Fundamental Analysis: December 5, 2016

 

The EUR/USD crashed during the previous trading session after the Italian government voted “No” against the proposed constitutional reforms which led to the Italian Prime Minister resigning from his post. This has caused the Italian economy to experience major disturbances since the vote would translate into major policy reversals and could possibly lead to financial woes and could make a lot of investors lose their confidence in the eurozone currency.

 

These previous events has caused the EUR/USD pair to incur a widened gap, with the currency pair now testing solid support levels at 1.0550 points. Market players are now closely monitoring if the currency pair manages to sustain its hold in the current support region since a break beyond this level could lead to the pair possibly reaching 1.00 points. For this week, the ECB is expected to hold a meeting later within the week, and majority of market players are expecting Draghi to outline the QE program timeline whose conclusion is expected this coming March 2017. If Draghi refuses to have an extension of the QE program, then this could give the euro a much-needed boost. However for now, the market is mainly focused on the possible repercussions of the recently concluded Italian referendum.

 

For today’s trading session, market players will be mostly focusing on the reaction of the European market on the results of the Italian referendum, since this will be a determinant on the euro’s next move especially since the outlook for the EUR was mostly positive until the results of the said referendum. There are no major economic  releases expected from the eurozone for today, and the European market is expected to be subject to tension as the EUR/USD pair will be undergoing significant pressure for today’s trading session.

 

 

[Andrea ForexMart]

GBP/USD Fundamental Analysis: December 6, 2016

 

The pound remains strong brought by the recent surge that conversely weakened the U.S. dollar. Traders attempting to reach between the 1.27 and 1.2750 range in today’s session. This gives a positive outlook for the pair with U.S. yields declining and greenback remaining weak.

The published results of the Services PMI gave high numbers at 54.2, even more than the expected value of 55.2. This indicates the continuous growth of Britain’s economy despite leaving the European Union. Concerns regarding Brexit especially the negotiations about Article 50 is still pending on what will E.U. gain from U.K. and what will those Euro leaders offer in return. Britain sees the free market access will continue while Euro leaders are careful with the negotiations as it might be taken advantage by other countries. Once the data will be released since negotiations then the U.K. economy can be finalized.

 

There is no major news to be published from U.K. then, the current price trend will continue. Traders could move the rate towards the 1.2800 level if the greenback continues to depreciate. It is quite difficult to reach the 1.30 mark with the downtrend being strong. If the rebound ends, the price could further go down.

 

[Andrea ForexMart]

USD/CAD Fundamental Analysis: December 7, 2016

 

The USD/CAD consolidated and tailed the direction of oil prices during the previous trading session, with the Canadian dollar slightly easing in value after oil prices displayed corrections during the trading session. The Canadian Trade Balance data also came out yesterday and exceeded initial market expectations which helped augment the value of the CAD. The currency pair mainly consolidated on both sides of the 1.3300 trading range.

 

The market is expecting the Federal Reserve meeting this coming mid-December, and although the Fed rate hike this December is basically minted within the market, market players are now more interested with regards to hints and guidances on the Federal Reserve’s rate hikes next year. The USD/CAD pair is expected to undergo an increase in pressure a few days prior to the Fed meeting since crude oil prices are a major factor in this issue, and another bullish stance is expected for oil prices in the coming days.

 

For today’s trading session, Canada is set to release a rate statement from the Bank of Canada, where the BOC is expected to maintain its rates and could give traders more insight with regards to the central bank’s stance with regards to the overall feel of the Canadian economy. Traders are expecting some hints with regards to the BOC’s views on future rate cut backs in the coming months, particularly next year.

[Andrea ForexMart]

GBP/USD Fundamental Analysis: December 7, 2016

 

The GBP/USD pair mostly consolidated and ranged on both sides of 1.2700 points since there was no major economic news release from the UK which could compel the pair to move, and this is why the currency pair had a muted session yesterday. However, since the Federal Reserve’s meeting is expected to induce volatility in the financial market, especially since the Fed is expected to announce its much-anticipated rate hike in this particular meeting. Market players are also expecting to receive hints with regards to the central bank’s future rate hikes in order to determine the USD’s direction in the short run. However, if the meeting fails to give out hints with regards to the bank’s future moves, then this could induce a weakness in the US dollar.

 

Meanwhile, the UK is currently bearing the brunt of the Brexit process, which is expected to last for a couple of years since this will most likely involve heated discussions with leaders from all over the eurozone in order to send out a warning to other EU countries wanting to go in the same direction as the UK.

 

For today’s trading session, the UK Manufacturing Production data is set to be released during the European session, and market players are expecting the data to come out as positive. If the data does come out as highly positive, then traders can expect the pair to hit 1.2800 points. Otherwise, the pair could continue consolidating on both sides of the 1.2700 region.

[Andrea ForexMart]

USD/CAD Fundamental Analysis: December 9, 2016

 

The USD/CAD is currently still subject to increased pressure after crude oil prices surged during yesterday’s trading session. The currency pair is expected to experience this particular pressure as long as oil prices continue to fluctuate and would only cease once crude oil prices reach equilibrium. If this phenomenon happens, then the strength of the USD would most likely dominate the currency pair, and the weak value of the CAD would cause the currency pair to increase in value.

 

Although the Canadian dollar is currently strengthening, its price is expected to drop once crude oil prices stop its fluctuations and cease from moving upwards, especially since certain issues with the NAFTA agreement will be reopened due to Trump’s re-negotiation, and any changes with this particular agreement would have a significant effect on the trade relationships between Canada and US. The CAD could also weaken due to minor market speculations that the Bank of Canada would be implementing rate cuts next year, and unless the currency pair manages to break through 1.3000, then the USD/CAD will continue to be on the upward trend with a target of 1.4000 points.

 

There are no major economic news releases expected from the Canadian economy for today’s trading session, and while the US will be releasing its UoM Consumer Sentiment data, this particular piece of news from the region is not expected to have a major impact on the market in general. Market players will now be shifting their focus to US yields, as well as on the scheduled Fed meeting next week, where the Fed is expected to finally implement its much-awaited interest rate hike. However, this event does not automatically translate to an increase in the value of the USD, but the market is expected to receive hints with regards to the Fed’s rate hikes this coming 2017.

[Andrea ForexMart]

GBP/USD Fundamental Analysis: December 9, 2016

 

The GBP/USD pair consolidated poorly during yesterday’s trading session after the sterling pound was adversely affected by the recent sharp drop in the value of the euro. The previous trading session initially started on a positive note for the GBP after it managed to regain some of its previous losses, causing the currency pair to hit 1.2700 points during the Tokyo and European trading session. However, the release of the ECB announcement caused the euro to incur massive losses, with the EUR/GBP pair experiencing devaluation. This then triggered the GBP/USD to retreat from 1.2700 and is currently hovering at the 1.2600 region.

 

The GBP/USD is expected to consolidate further with a somewhat bearish note as the euro tries to recover from this very significant loss of value. The Federal Reserve will be meeting at the start of next week, and the market currently has rate hike expectations of up to 0.25%. The dollar is then expected to exhibit weakness once  the announcement from the Fed is released, and market liquidity is also expected to be relatively low during this particular period.

 

For today’s trading session, there are no  major economic news releases from the UK, and the GBP/USD would most likely consolidate further along with a bearish stance and will be subject to added downward pressure due to the recent weakness in the value of the EUR.

[Andrea ForexMart]

EUR/USD Technical Analysis: December 9, 2016

 

The policy interest rates of the European Central Bank kept unchanged while the QE program extended is extended until April 2017. The single currency jumped from the 1.0850 region and made a dip in the 1.0650 amid American session and mixed trading on Thursday. Meanwhile, the pair successfully broke the area of 1.0750 during the annual trading as it continued to expand its vertical slope. The pair gained strength in the opening of the EU hours and tested the 1.0800 level. The buyers are able to push the price higher towards the 1.0850 handle. Upon the opening of the NY session, the EURUSD suddenly exhibited a reversal.

 

The price further rebounded in the 200-EMA as shown in the 4-hour chart, while the 50-EMA pass over in the 100-EMA with an uptrend. Both 200 and 100-day moving averages still exhibited a bearish slope, seeing the 50-EMA to rise.

 

The resistance touched the 1.0650 mark, support sits around the 1.0600. The MACD indicator grew less, favoring strength for the sellers. The RSI bounce back through the overbought position and shifted southwards.

 

The medium term and positive sentiment are expected to be neutral upon a correction below the 1.0700. The pair will probably drop towards 1.0550.

[Andrea ForexMart]

GBP/USD Fundamental Analysis: December 12, 2016

 

The GBP/USD pair had a lackluster performance during the entirety of last week’s trading sessions since the sterling pound experienced constant pressure from the much stronger euro. The EUR plummeted last week after the ECB announced its plans to extend its quantitative easing program, and the EUR/GBP lost a significant amount of its value, causing the sterling pound to be affected as well. Prior to this sudden drop in value, the GBP has previously exhibited remarkable resiliency in spite of the confusion caused by the Brexit process. The GBP rose during the first part of last week and was even able to go through 1.2700 points before eventually reaching 1.2800 points before the announcement from the ECB dragged the GBP down.

 

The GBP was also subject to added pressure due to delays in the implementation of the Brexit strategies as the Parliament is in the middle of heated debates regarding the implementation of Article 50 on the region. Since the timeline for the Brexit remains uncertain in spite of numerous meetings and debates within the Parliament, the sterling pound is expected to remain under pressure and any form of reversion should be immediately seen as a sell-off opportunity for the currency pair.

 

For this week, the market is expecting the release of the CPI data as well as the Claimant count change data from the from the UK. The Bank of England is also expected to make a statement on whether the central bank would be maintaining its current interest rate of 0.25%, and the Fed is also scheduled to make an announcement regarding its interest rate hike, as well as a statement on whether the central bank will be adding up the frequency of its rate hikes next year. Due to the large number of economic data scheduled to be released this week, the market is expected to undergo an especially high level of volatility within the week.

 

[Andrea ForexMart]

USD/CAD Fundamental Analysis: December 12, 2016

 

The USD/CAD was subject to pressure for the majority of last week’s trading sessions due to the continued buoyancy of oil prices despite a short drop in the commodity’s price. Since the Canadian dollar is hugely reliant on crude oil prices and with the fluctuations in oil prices, the CAD has been subject to wildly erratic activity during the past week as well. Presently, market players are expecting that oil prices would experience further surges during this week and the USD/CAD is expected to be subject to more pressure for this week as well.

 

The economic releases from Canada last week turned out to be pretty positive, with the Canadian trade balance data clinching the string of positive economic data from the region. The Bank of Canada has also decided last week that it will be sustaining its rates at 0.5%, signalling remarkable improvements in the Canadian economy and is expected to further improve due to future increases in oil prices. The currency pair is now forming strong support bases at the 1.3180 trading region.

 

For this week, the Federal Reserve is set to release its statement with regards to its long-anticipated interest rate hike, and the market currently has expectations of a 0.25% interest rate hike, plus hints on whether the central bank would be increasing the frequency of its hikes this coming 2017. The US is also set to release its retail sales data, while Canada will be releasing its Manufacturing Sales data, and these are expected to induce volatility for the USD/CAD this week. Analysts are speculating that if the pair manages to sustain its place at the 1.3000 region, then the currency pair would be able to continue its upward direction especially since crude oil prices could become tapered in the near future.

[Andrea ForexMart]

GBP/USD Fundamental Analysis: December 13, 2016

 

The GBP traded on a more positive note during Tuesday’s trading session due to the release of the UK inflation data, which came out better than the initial market expectations. The GBP/USD rose in value and was able to reach 1.2723 points before settling at 1.2710 points after increasing by +0.31% or 0.0040 points.

 

The inflation data from the UK exhibited a 1.2% increase last November, going well above the market expectation of 1.1%. The report also showed that the main catalysts for inflation in the region were culture, recreation, and clothing. The Core CPI data came in at 1.4%, again exceeding expectations of a 1.3% data release. Due to the positive economic data from the region, analysts are now saying that UK inflation could possibly reach the initial 2% goal during the first few months of 2017. However, this improvement might not be able to have much of an impact to the Bank of England’s impending decision-making this coming Thursday with regards to its adjustments in interest rates. BoE governor Mark Carney has also previously stated that the central bank would be willing to endure inflation overshoots if this would mean an increased economic support.

 

Wednesday’s trading session is expected to be somewhat light and muted as the Fed meeting looms close. However, since the GBP/USD had mostly positive reactions with regards to the shadow of the expected Fed rate hike, the present inflation data from the UK should be able to underpin the currency pair.

 

 

[Andrea ForexMart]

EUR/USD Fundamental Analysis: December 13, 2016

 

The pair EUR/USD traded lower this day with a tight range and low volume of trading. The major players are on the sidelines waiting for Fed’s final announcement.

 

The final CPI resulted lower than the expected 0.3% from the actual 0.1% reading. This shows the inflations date for wholesalers. The most recent German ZEW survey indicates augmentation with an expectation at 14.2 higher than the prior 13.8. It is predicted to come in at 16.5.

 

The market is now focus on Fed’s data with the NFIB Small Business Index forecasted at 96.7  higher than the former 94.9. The prices are anticipated to reach 0.3% compared to last month’s 0.5%. The U.S. Treasury 30-year bond should also be looked out for by traders with interest rates anticipated to be higher than the 2.90% on November 10 as it closed at 3.1748% yesterday.

[Andrea ForexMart]

NZD/USD Fundamental Analysis: December 15, 2016

 

The New Zealand dollar depreciated as more investors go for safe haven assets since commodity prices dropped in spite of the tension brought by the Federal Reserve's interest rate decision this week. The pair NZD/USD weakened by 17 points to 0.6698 after the greenback rebounded since the decline on Friday influencing the cross trades while the commodity prices remain low.

 

Currencies that are heavily influenced by commodities dropped to its lowest recorded rate for more than six years because of a drop in oil prices. Concerns in U.S. Junk bonds reemerged while majority are feeling pressured by the Fed's policy meeting this week. It is anticipated that the Federal Reserve Open Committee (FROMC) will proceed with the rate hike since the close to zero policy in December 2008 as the traders rely on hints for future changes.

 

The New Zealand's BNZ-BusinessNZ performance of services index for November will be announce today. While, Industrial production will also be released today from both Europe and Japan, as well as Tankan manufacturing index will be publicized by Japan.

 

[Andrea ForexMart]

USD/JPY Fundamental Analysis: December 20, 2016

 

The Bank of Japan is expected to maintain its previous monetary policies and give more positive economic expectations, thereby cementing speculations that the central bank could possibly induce an interest rate increase instead of a rate cutback. Because of the lack of policy adjustments, USD/JPY traders will now be shifting their focus on BoJ’s Kuroda’s statement regarding the increase in Japanese yields. There are speculations that Kuroda could either talk about economic expectations for 2017 or the risks involved with a sudden surge in bond yields. However, it is more definite that Kuroda will be treading carefully with regards to increasing market expectations of an interest rate hike.

 

The Bank of Japan could possibly sustain its present pledge-to-guide short term rates at -0.1% and 10-year Japanese Government bond yields at around 0% in spite of a somewhat positive sentiment for the Japanese economy. However, traders are advised to be careful with regards to holding Japanese bond yields at 0%, since long-term interest rates have now increased due to speculations of a steadier US rate hikes and an inflation surge under the Trump administration. The Bank of Japan is now under pressure due to calls for the central bank to add

up its 10-year yields target.

 

[Andrea ForexMart]

GBP/USD Fundamental Analysis: December 20, 2016

 

The GBP/USD pair exhibited consolidation and range trading during the past trading session, with the currency pair now trading over 1.2400 points with more consolidation plus a bearish bias for today’s sessions. The currency pair initially exhibited positive movement during the earlier sessions but dropped in value as yesterday’s trading sessions progressed. There were economic releases from the UK during yesterday’s session, but the Scottish Prime Minister has released a statement which inadvertently threatens the UK’s Brexit process after Scotland decided to remain in the European Union, whereas the whole of UK has already decided to relieve themselves from the eurozone. This has already increased the risk of the already very muddled Brexit process since Parliament members are now in the middle of debating the validity of Article 50 which is a vital part of the said process.

 

For today’s trading session, there are no major economic releases expected from the UK but the recent strength of the USD could dominate the whole market, and the continuing confusion with regards to the Brexit process could increase the downward pressure on the GBP/USD pair for the coming weeks. Any bounce found in the currency pair should be immediately seen as a short opportunity for this particular currency pair.

[Andrea ForexMart]

GBP/USD Fundamental Analysis: December 21, 2016

 

The GBP/USD pair is now struggling to cope with the effects of the markedly low liquidity during this holiday season, much like other currency pairs. However, the GBP/USD managed to fare relatively better in terms of market volatility as compared to other currencies since it had a 100-pip range for the previous trading sessions. In spite of the USD’s current strength becoming the dominant feature of the financial market, the lack of market volatility has managed to offset the USD’s strength and has become advantageous to other currencies such as the sterling pound. The USD is expected to regain market control eventually, but until that happens, then the GBP could still range and consolidate at the lower region of 1.2500 points.

 

As the Brexit process resumes, the GBP/USD is expected to trade with a bearish bias for the short term and medium term, especially since Scotland is apparently disagreeing with UK’s plans to leave the European Union and the UK will have to exert more effort in order to negotiate with all involved parties and make way for an easier Brexit process. Theresa May will also be needing additional support as the Brexit process begins, which is expected to become a long and arduous process.

 

For today’s session, there are no major news releases from Britain, and with the holiday season fast approaching, liquidity is expected to drop further which could lead to more ranging and consolidation on most currency pairs.

[Andrea ForexMart]

EUR/USD Fundamental Analysis: December 21, 2016

 

The EUR/USD pair experienced consolidation and ranging during Tuesday’s trading session, with the currency pair becoming limited to a 60-pip range in spite of the dollar’s increasing strength. This particular range for the EUR/USD is expected to become more limited and tighter as the holiday season approaches, mostly due to lowered liquidity during this period, with market players most likely taking advantage of this period to drive certain currency pairs in directions more favorable for their trades. Traders are advised against trading during this time, but if they do so, stop losses should be tight enough to avoid possible mishaps in the short term.

 

For today’s trading session, there are no major economic events scheduled to be released from either the US or the European Union, and the EUR/USD is expected to exhibit more ranging, albeit with a more pronounced bearish bias. If the pair would be able to reach the 1.0460 region, then this could be seen as an opportunity to trade in the short-term with a more secure stop loss. The recent strength of the value of the US dollar is expected to dominate the overall direction of the market both in the short run and the long run.

[Andrea ForexMart]

USD/JPY Technical Analysis: December 21, 2016

 

The JPY experienced a drop in value following the latest economic news release from Japan, where the Bank of Japan decided to maintain its current monetary policies until such time that inflation rates go beyond 2%. The Japanese economy is also reportedly continuing its recent recovery. The USD/JPY pair rallied during Tuesday’s trading session following this move from the BoJ, and buyers were able to take control of the pair and sent the USD/JPY soaring well beyond its daily highs. The USD went up from 117.00 to 118.00 in the London trading session, and was able to test the 118.00 region prior to the opening of the North American session. The value of the USD/JPY reverted from the 100 EMA in the pair’s hourly chart. Meanwhile, the USD went beyond the 50 EMA while on its way towards the upper region of the chart and veered away from its moving averages. Resistance levels for the currency pair is expected to come in at 118.00 points, while support levels are expected to be at 117.00 points.

 

The MACD levels for the currency pair stayed within its previous level, indicating the increase in buyer strength. The RSI indicators for the currency pair went upwards as well. If buyers are able to maintain its control over the USD/JPY pair, then the price of the value could possibly move up further to 119.00 points.

[Andrea ForexMart]

AUD/USD Technical Analysis: December 23, 2016

 

The consecutive events regarding the economic growth of US together with the fiscal policy issued by Trump and hawkish outlook of the Fed for 2017 set the minds of the investors to avert from higher-yielding currencies including the Aussie dollar.

 

The market carried a bearish sentiment on Thursday. The AUD/USD pair further decline after the 2-day narrow consolidation. The sellers pushed the AUD towards 0.7200 from the previous 0.7250 region in the EU hours. Moreover, sellers failed to surpass the 0.7200 mark which caused them to take a pause. After the price touched the aforesaid levels, it made a roll back.

 

As shown in the 1-hour chart, the Australian dollar bounce back through the 50-EMA and resumed a downward trend. The moving averages maintained a bearish pattern as indicated in the same timeframe. Resistance is at 0.7250, the support holds the 0.7200 handle.

 

MACD grew less which means further strengthening for the sellers. RSI still was seen in the oversold territory and supported another downtrend.

 

Technical indicators exhibit a bearish tone. It is highly expected for a downward movement within the 0.7100 and 0.7150 levels.

[Andrea ForexMart]

GBP/USD Fundamental Analysis: December 28, 2016

 

The GBP/USD pair traded within a tight range of 50 pips during yesterday’s trading session, and is expected to continue this particular trend along with ranging and consolidation for today’s session unless interrupted by a currency flow just before the month ends. The UK market was characterized by a remarkably low level of liquidity yesterday due to a UK holiday. However, some market players are banking on an increase in volatility just before this month draws to a close, as well as currency flows which could possibly occur towards the end of the week. However, the recent market trends are not expected to become completely altered even if the month-end currency flows appear and induce market volatility. This is because the recent dollar weakness is expected to continue up until the end of this week, and since the USD is expected to bounce back immediately after the holiday season, the recent trends might still be sustained even after the holidays.

 

For today’s trading session, there are no major economic news releases expected from UK, and this means that the GBP/USD would most likely engage in more ranging and consolidation up until the end of today’s series of sessions.

 

[Andrea ForexMart]

EUR/USD Fundamental Analysis: December 28, 2016

 

The EUR/USD is still experiencing a tight-lipped trading range after trading within 30 pips. The market liquidity is not expected to increase until next year since there are no signs of currency flows as of late. However, the new year is expected to bring back market liquidity since this signals the end of the holiday season. The EUR/USD had high trading ranges during the North American session yesterday, where it attempted to go beyond 1.0470 points in order to reach 1.0530 points. Meanwhile, the USD exhibited a marked weakness during these past few sessions, particularly against the EUR. This trend is expected to remain for the rest of the week as the market attempts to remove some of the bearishness of other currencies against the USD. The USD’s strength is expected to bounce back next week, and it is therefore vital that the euro bulls would be able to take hold of this opportunity and accomplish all moves in order to avoid the adverse effects of the USD regaining its strength.

There are no major economic data releases expected from the international community for today’s sessions, and this means that added consolidation and ranging could possibly be felt as there are no currency flows which could be a catalyst for added market volatility. As such, traders are advised to tread lightly and remain within the sidelines for this particular period.

[Andrea ForexMart]

USD/CAD Fundamental Analysis: December 28, 2016

 

The USD/CAD pair is still trading with a bullish stance after spending almost the whole of the previous session trading above 1.3500 points, and this trend is expected to continue for today’s session. The USD traded on a somewhat much weaker tone in relation to other currencies, but in the loonie’s case the weakness of the US dollar seemed to have little if not completely no effect on this particular currency, with the CAD easily trading over 1.3500 points and could possibly become more positive  when the USD regains some of its recent losses next week. Market speculators have long since been saying that the CAD might soon be subject to a very strong uptrend, and traders should be loading up on longs in order to make way for bigger future gains.

 

The USD/CAD pair seems to be already unaffected by the movement of oil prices unlike a few weeks back, wherein the CAD had significant reactions to the wild careening of oil prices. Now, in spite of the recent increase in oil prices, the CAD continues to trade strongly. However, the next few weeks are expected to hit an adverse effect on the Canadian economy since the recent economic data from the region has done little to appease investor sentiment, and oil prices are expected to continue increasing, and Trump will be assuming office in January. The somewhat weakening of the CAD is evidence of this foreboding string of events next year.

 

Today’s trading session will most likely be characterized by more consolidation and ranging with a bullish undertone since there are no major news releases from the Canadian economy.

[Andrea ForexMart]

EUR/USD Fundamental Analysis: December 29, 2016

 

The EUR/USD pair became somewhat active during the previous trading session after a lackluster performance during the past few days, and this is especially good news for traders who are waiting for any sign of market activity since the holiday season has caused the market liquidity to diminish. The currency pair was able to go beyond its daily price range of 30-40 pips, and the USD’s recent price surge has caused the EUR/USD pair to plummet below 1.0400 points and even reached 1.0360 points. However, the negative pending home sales data from the US has caused the currency pair to go back above 1.0400 points.

 

As the new year starts and the holiday season comes to an end, the market’s volatility and liquidity is expected to return, and liquidity levels could possibly go higher. However, the strength of the US dollar is not expected to be stalled anytime soon, and government leaders from both the UK and the European Union are now preparing for the onslaught of the Brexit process next year, which is expected to be very tedious for both regions. On the other hand, Germany will also be holding its elections next year, and the market will be closely monitoring Merkel’s performance before and during the elections. However, until such time that these things happen, market players should first monitor just how long will the USD be able to maintain its recent strong stance. For the EUR/USD pair, the currency pair is expected to consolidate with a bullish undertone as the market adjusts to the very disappointing pending home sales data from the US.

[Andrea ForexMart]

GBP/USD Fundamental Analysis: December 29, 2016

 

The USD was able to regain some of its lost strength during the earlier parts of yesterday’s trading session, which was felt all throughout the market, and has also affected the sentiment of the sterling pound. The GBP then plummeted and the GBP/USD pair went way below 1.2200 points after almost two months as a result of a very disappointing home sales data. However, as the North American session commenced, the GBP/USD pair was able to surface over 1.2200 points and has hovered over this level for the rest of the trading session. But it still remains to be seen whether the currency pair would be able to deflect the effects of the USD’s ever-growing strength.

 

The effects of the long and winding Brexit process is expected to be seen during the next several months since various government leaders from the UK and the EU is set to debate on how to go through with the process in general. These are expected to create a constant pressure for the sterling pound, and all reversions on the part of the GBP/USD could immediately be sold by bears, therefore making it hard for this currency pair to make any significant advancements in the coming months.

 

For today’s trading session, since there are no major economic data which is set to be released from the UK region, the GBP/USD pair is more likely to encounter more consolidation with a bullish undertone, especially since the market is currently experiencing low volatility and liquidity due to the holiday season.

[Andrea ForexMart]

USD/CAD Fundamental Analysis: December 29, 2016

 

The USD/CAD pair continued to trade in an upward direction due to substantial support coming from the USD, which was basically the market’s theme during yesterday’s trading session. The currency pair was able to maintain its buoyancy in spite of the recent surge in oil prices. Market speculators are now stating that oil prices could be well on its way towards reaching its optimum price and once oil prices stop going in an upward direction, then this could put more pressure on the Canadian dollar, thereby inducing a strong uptrend on the USD/CAD pair.

 

The USD experienced a short correction during yesterday’s session after the US home sales data came in at a disappointing reading of -2.5% which fell short of initial market expectations of 0.5%. Luckily, the market is now shifting its focus on the Fed’s rate hikes this 2017, particularly the pricing of these rate hikes. The strength of the USD is very evident as of late, since the lack of trading and relatively low market liquidity was unable to mask the dollar’s strong stance, as well as the CAD’s pointed weakness.

 

For today’s trading session, there are no major economic data scheduled to be released from Canada, while the US is expected to release its weekly oil inventory data. Since the market is relatively thin due to the holiday season, expect an added consolidation for the USD/CAD with a bullish undertone.