Blog – Page 41 – The Plot

February 26
2016

EUR/USD Ends Consolidation Period with Move Down

Today, EUR/USD has ended its short consolidation period with a sharp move down. The currency pair was hurt by weak inflation data released from countries of the eurozone and fell apart completely after the release of US economic indicators, basically all of which were very good. Of a particular note was the upward revision of gross domestic product. US GDP grew 1.0% in Q4 2015 after expanding 2.0% in Q3 […]

February 25
2016

EUR/USD Consolidates as Traders Doubt Fed Rate Hike

EUR/USD stayed in a consolidation mode, trading little changed, as fundamentals did not help the currency pair to establish a trend. On one hand, the positive report on US durable goods sales fueled the dollar’s strength. On the other, doubts about ability of the Federal Reserve to raise interest rates this year did not allow the greenback to rise against the euro. Initial jobless claims rose by 10k to 272k last week, in line with expectations […]

February 24
2016

EUR/USD Avoids Another Session of Losses, For Now

EUR/USD was falling today, threatening to log yet another session of losses. But the currency pair has erased its losses, at least for now, after a string of poor economic reports came out from the United States. Seasonally adjusted flash Markit services PMI dropped sharply from 53.2 in January to 49.8 in February even though forecasters had promised a small increase. The move below the neutral 50.0 level indicates […]

February 23
2016

EUR/USD Remains Weak After Mixed US Data

EUR/USD continued to fall today, albeit with slower pace, even though economic data from the United States was mixed. The currency of the eurozone is still plagued by uncertainty regarding membership of Great Britain in the European Union. Additionally, the German business climate indicator dropped sharply, surprising market participants who were prepared just for a small decline. (Event A on the chart.) S&P/Case-Shiller home price index rose 5.7% in December 2015 […]

February 22
2016

Dollar Gains on Euro amid Brexit Fears

The only report released from the United States was the Markit manufacturing PMI, and it was not good at all. Yet it did not prevent the dollar from gaining on the euro as manufacturing data released from the eurozone today was also weak for the most part. But the most important factor hurting the euro were fears of the possible exit of Great Britain from the European Union. Flash Markit manufacturing PMI dropped […]

February 20
2016

Weekly Forex Technical Analysis (Feb 22 — Feb 26)

EUR/USD Floor pivot points 3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res 1.0863 1.0965 1.1046 1.1148 1.1229 1.1331 1.1413 Woodie’s pivot points 2nd Sup 1st Sup Pivot 1st Res 2nd Res 1.0960 1.1036 1.1143 1.1219 1.1326 Camarilla pivot points 4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd […]

February 19
2016

2016 Presidential Candidates and the US Dollar

International investors are biding their time on evaluating the outcome of the next US presidential election as the field of candidates gets winnowed down. The US presidential election process historically has no discernible effect on financial conditions. Financial players are sophisticated enough to know that campaign promises are not likely to become real-world actions. Newly elected presidents hardly ever achieve their campaign promises, and certainly not in the first […]

February 18
2016

FOMC Minutes Don’t Prevent EUR/USD from Sliding

EUR/USD extended its decline on Wednesday even though minutes for the Federal Reserve’s January meeting were noticeably dovish, making traders believe that it will take longer for the Fed to continue with its monetary tightening. Yet it is important to note that the minutes showed that the Committee was still showing willingness to continue monetary firming, albeit with slower pace. As for macroeconomic reports released from the United […]

February 18
2016

EUR/USD Slides Further Down

EUR/USD fell today, extending its drop for the fifth consecutive trading session. The currency pair paused its slide after the release of European Central Bank’s policy minutes even though the notes were very dovish. (Event A on the chart.) Meanwhile, US data was relatively positive with the unexpected drop of jobless claims and the small improvement of the manufacturing sector. The only downside was the decline of leading indicators. Philadelphia Fed manufacturing index […]

February 16
2016

EUR/USD Extends Decline for Third Session

EUR/USD declined for the third straight session on Tuesday as prospects for monetary easing from the European Central Bank in March were weighing on the common currency of the eurozone. Yet the drop was limited today as market participants were in doubt regarding the ability of the Federal Reserve to continue its monetary tightening. Talking about the Fed, it is going to release the minutes of its January meeting tomorrow, and traders hope that the notes will help shed […]