The euro advanced on Draghi’s talk of reflation. The pound took advantage of Carney’s change of mind. The Canadian dollar took advantage of higher oil prices and previous hawkishness from the BOC. But the rest of the currencies did not go anywhere fast. AUD/USD was very cautious, taking one step forward, one step backward. And [...]
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EUR/USD seems unstoppable, trading comfortably at the highest levels in nearly 14 months above 1.14. What’s next? Here are two opinions: Here is their view, courtesy of eFXnews: EUR: What Has Changed? Where To From Here? – Danske Danske Bank FX Strategy Research notes that recent ECB communication topped by Draghi’s hawkish speech on Tuesday [...]
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Monthly Forex News Events that Might Affect EURUSD Volatility – July 2017
The technical forces have sent the EURUSD to new 2017 year highs more than the fundamental forces. The EURUSD rallied to more than 7-month despite the US Fed delivering a new rate hike at its June meeting and despite numerous signals coming from the ECB which isn’t just ready to widen down the stimulus program. The focus now is shifting to the summer trading conditions as there aren’t many fundamental drivers in the upcoming month, which can impact the EURUSD exchange rate.
The month of July is set to be a very quiet month it terms of price activities as there aren’t any major risk events that can disrupt the EURUSD volatility. The seasonal pattern for July sees the EURUSD exchange rate moving slightly higher which means that the current bullish trend has higher chances to remain intact or at least not to see any major reversal.
The seasonal pattern only gives us the tendency of a particular currency to exhibit a certain behavior at a certain time, so we have to carefully monitor the pattern and how the fundamental forces interact with the price action.
Going forward, we’re going to analyze and disseminate the major news event for the upcoming month that can be the catalyst for higher EURUSD volatility.
“Don’t risk significant money in front of key reports, since that is gambling not trading.” Paul Tudor Jones
The month of July will only bring some minor risk events that can be the catalyst for the EURUSD to exhibit higher volatility. The two main risk events are the Fed interest rate decision which is highly expected to hold rates while on the other side of the monetary policy spectrum we have the ECB interest rate decision. The ECB stand firm by its stimulus program and no major changes in monetary policy are expected.
The post Monthly Forex News Events that Might Affect EURUSD Volatility – July 2017 appeared first on Advanced Forex Strategies.
The Bank of Canada is hawkish and this was reaffirmed in the Portugal Central Bank fest. Prices of oil had been stabilising after the flirt with $42. It is even more than stabilising: WTI now trades well over $45. Everything was set for a test of USD/CAD under 1.30. Can it hold its ground at [...]
The post USD/CAD dips under 1.30 – can it confirm the break? appeared first on Forex Crunch.
Better than expected growth in the US: 1.4% in the final read for Q1 2017. This is an annualized figure. Quarter over quarter it is around 0.35%. The upwards revision is mostly due to an upgrade in personal consumption: 1.1% in the final read. The GDP price index was revised down: 1.9% against 2.2%. Also, [...]
The post US GDP upgraded to 1.4% – USD/JPY ticks up appeared first on Forex Crunch.
Pound/dollar is deep into the pre-election territory, trading around 1.2980. This was high before the June 8th vote. The pair has already reached a high at 1.2995, getting very close to the psychological barrier of 1.30. The cause is Carney: the Governor of the Bank of England changed his mind quite quickly. From saying it [...]
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