Category: Fundamental Analysis

The major currencies were little-changed against the US Dollar in overnight trade as markets digested the prior session’s volatility. The greenback fell by the most in two weeks against its top counterparts following comments from Fed Chair Janet Yellen that traders perceived as diminishing the scope for interest rate hikes in 2016. The priced-in probability for tightening at the June meeting – the next of the heavy-duty quarterly outings where key policy changes tend to emerge – dropped to 29.6 percent from 38.1 percent yesterday. On balance, Yellen’s remarks echoed…

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Japan’s daily, the Nikkei reported over the weekend that the Japanese PM Shinzo plans to announce a package of new spending measures on Tuesday to boost the economy. According to the local newspaper, Abe will probably unveil details of the measures at a press conference the same day that Japan’s 96.7 trillion yen ($US855 billion) budget for fiscal 2016 is expected to become law. Japan’s consumer inflation remained flat in the year to February as low energy costs and weak consumption restrained price growth, keeping the Bank of Japan under pressure…

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The GBP/USD ended the week at 1.4126 falling 2.45% this week on the stronger US dollar and increased worries over the possibility of an exit from the Eurozone after terrorism in Brussels heated up the debate.  Sterling Pound has already dropped at least 2 percent versus all of its Group-of-10 counterparts this year, and options prices suggest it will fall further against every one over the next three months. That would see the U.K. currency’s losses extend beyond June 23, when the public will vote on the nation’s membership of…

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The NZD/USD will enter the new week on Tuesday at 0.6691 falling steadily after touching a 2016 high just a week before. The strength of the US dollar weighed heavily on the commodity currencies as well as commodities. The kiwi is trading at 0.691. New Zealand’s trade surplus expanded from a revised $13 million in January to $339 million last month, beating the $57 million surplus forecast by markets. Pair breaks key support level at $0.6750 marks and trading around $0.6695 levels. Short term bias remains bearish for the moment….

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On Thursday, before 9:30 am, the trend of GBP/USD pair had been a well established bearish trend. And then at 9:30 the data from UK about the retail sales of February was released. Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity. The strength of this data was a clear signal for the markets to immediately respond in favour of GBP. The pair shot up in…

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