vendredi 20 mars 2015
Technicals on forex majors still developing again but the DAX remains bullish
Posted on 05:21 by nice news
There has been an incredibly volatile reaction across forex markets in the wake of the FOMC meeting. Much of the initial sharp selling pressure against the dollar has been retraced and markets are in a state of uncertainty. This means that it could still take a few days before a true market trend emerges from the actions of the Fed. My base case analysis remains that markets got too far ahead of themselves and Wednesday was a reality check, however the bull run of the dollar is going to remain the key trade for 2015.
Equity markets have chopped around and this was shown in Wall Street giving back some of the gains from the previous day. The S&P 500 dropped back by 0.5% as traders try to make sense of everything. Asian markets have been mixed overnight with the Nikkei 225 up 0.4% benefitting from the weakening of the yen. European markets are trading slightly higher in early exchanges.
In forex trading there is little significant movement amongst the majors, however the commodity currencies (Aussie, Kiwi and Loonie) have all strengthened slightly as the oil price has just picked up slightly from yesterday’s low. There is little economic data to drive markets on Friday with the UK Public Sector Borrowing expected to show an influx of £7.7bn into government coffers in February. There is also Canadian CPI inflation which is expected to remain flat at 1.0% on an annualised basis. We also have FOMC members Dennis Lockhart and Charles Evans (both doves) making speeches today.
The EU leaders meet today in Brussels and the traditional two major topics will be Greece and Ukraine. The EU needs to know that Greece is developing on its economic reforms. With regards to Ukraine, there has been an agreement to link the lifting of the economic sanctions on Russia with the implementation of a full ceasefire agreement in Ukraine.
Chart of the Day – DAX Xetra
Such is the
Equity markets have chopped around and this was shown in Wall Street giving back some of the gains from the previous day. The S&P 500 dropped back by 0.5% as traders try to make sense of everything. Asian markets have been mixed overnight with the Nikkei 225 up 0.4% benefitting from the weakening of the yen. European markets are trading slightly higher in early exchanges.
In forex trading there is little significant movement amongst the majors, however the commodity currencies (Aussie, Kiwi and Loonie) have all strengthened slightly as the oil price has just picked up slightly from yesterday’s low. There is little economic data to drive markets on Friday with the UK Public Sector Borrowing expected to show an influx of £7.7bn into government coffers in February. There is also Canadian CPI inflation which is expected to remain flat at 1.0% on an annualised basis. We also have FOMC members Dennis Lockhart and Charles Evans (both doves) making speeches today.
The EU leaders meet today in Brussels and the traditional two major topics will be Greece and Ukraine. The EU needs to know that Greece is developing on its economic reforms. With regards to Ukraine, there has been an agreement to link the lifting of the economic sanctions on Russia with the implementation of a full ceasefire agreement in Ukraine.
Chart of the Day – DAX Xetra
Such is the
Technicals on forex majors still developing again but the DAX remains bullish
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