26/04/2017 06:09 With the ECB meeting looming, expectations of Trump's tax announcement and the ongoing French elections, low volatility has the potential to rise once more. 1) Don’t Write Off Le Pen Just Yet The polling data was accurate in the first round of the presidential election in France but that does not rule out a…
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Background With the US intending to impose a 20% duty on Canadian softwood lumber imports, the Canadian dollar was under pressure yesterday. This week, Friday is the “big numbers” day, with the scheduled release of US durable goods orders, as well as the ECB interest-rate decision and monetary policy statement. Management and risk description USDCAD’s…
Read moreLast week the US President Trump stated on Twitter that he will “unveil his major tax reform plan today” Wednesday April 26. Trump intends to dramatically cut corporate tax from the current rate of 35% to 15%, and will likely make tax exemption on US corporate overseas earnings. After the failure of his healthcare bill…
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Market Overview Risk appetite remains positive in the wake of the French election. The momentum in the bull run is still there but it will be interesting to see if it can continue as attention turns to the BoJ, ECB, European inflation and US growth which all come towards the end of the week. However,…
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Background The long-term outlook for the cross remains to the downside but we look for a higher correction intraday. This has resulted in another two-way play this week Monthly – Over the long term, we are looking for a move back to the reverse trend line support at 0.7975. For the last 5 months, we…
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Background Monday's GBPUSD upside failure was not extended yesterday. Overall, Tuesday was the fifth day in a row that saw prices consolidate after last Tuesday's powerful rise. Until last week's peak is broken our signals for sentiment cannot be strongly positive but the limited nature of profit-taking and the support of the 200-day line does…
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Trimmed mean inflation, the RBA's preferred CPI measure sits just 0.1% beneath their 2% target to further remove any concerns over easing in the coming months, even if employment does turn lower. Inflation data exceeded expectations today, which saw the trimmed mean CPI rise to 1.9%, up from 1.6% previously. This will be a delight…
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The buy signal we highlighted for global risk worked out well and we now see stocks pushing to new highs and outflows of the Yen. We see the potential for this underlying theme to continue which could provide bullish opportunities on JPY crosses and indices through multiple timeframes.
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Published on 25.04.2017 19:41 The British pound is slightly higher in today’s trading against its US counterpart after positive local data increased appetite for the currency. At 3.53pm (GMT) the pound was trading at $1.2817 up from $1.2795 in yesterday’s trading. Data out earlier today showed Britain's public sector borrowing fell to the lowest level…
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BackgroundDespite analysts' persistent worries over such things as lower-than expected US fourth-quarter GDP growth of 2.1%, lowered corporate earnings forecasts, rising interest rates and so forth, the equity market might be prompted to extend its 5.5% year-to-date gains.Yesterday, the S&P 500 exchange-traded fund (SPY) cleared its 30-day moving average on above-average volume and might be…
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