Fundamental Analysis: GBP/USD – 29th March 2016

Fundamental Analysis: GBP/USD – 29th March 2016

Yes, we have seen a 125 pip rally of GBP/USD pair partly due to UK data right before the Good Friday holidays in most of the major markets and at the same time slight misses in US consumption and inflation, followed by the long weekend. This meant that GBP had more than its fair chance to rally. Speculators themselves must have had a part to play in that, especially the technical speculators. Have a look at the following technical diagram, which projects the possibility of a further upwards movement. The…

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Fundamental Analysis: outlook of JPY against major currencies – 28th March 2016

Fundamental Analysis: outlook of JPY against major currencies – 28th March 2016

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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GBP/USD Weekly Fundamental Analysis – March 28- April 1, 2016 -Forecast

GBP/USD Weekly Fundamental Analysis – March 28- April 1, 2016 -Forecast

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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NZD/USD Weekly Fundamental Analysis – March 28- April 1, 2016 -Forecast

NZD/USD Weekly Fundamental Analysis – March 28- April 1, 2016 -Forecast

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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Fundamental Analysis: The past week’s GBP/USD story – What’s next?

Fundamental Analysis: The past week’s GBP/USD story – What’s next?

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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