Dukascopy_Analyst

Dukascopy_Analyst

"It's probably reasonable to think we can spend time down below $1.05 now." - National Australia Bank Ltd. (based on Bloomberg) Pair's Outlook EUR/USD bounced back from 1.0730 on Friday and posted an 80-pip loss during the trading session. Monday is important day in terms of EU and US fundamentals. A possible Fed announcement to raise a discount rate may...

Dukascopy_Analyst

"Despite popular opinion, gold's strongest periods of price appreciation over the past 50 years have coincided with rising interest rates. So I think a rise in rates could actually be beneficial for gold." - MineLife Pty Ltd. (based on Bloomberg) Pair's Outlook After moderate losses at the end of last week, gold opened substantially lower Monday morning. The...

Dukascopy_Analyst

"With limited progress on structural reforms that could boost productivity, Abenomics has not significantly improved the long-run outlook for Japan's economy." - Capital Economics (based on WBP Online) Pair's Outlook Although the USD/JPY edged lower at the end of last week, the loss was only nine pips big. The Greenback is expected to take advantage of the...

Dukascopy_Analyst

"With the futures market pricing in a close to 70 percent odds of a December rate action, USD strength is likely to persist." - IG Securities (based on Business Recorder) Pair's Outlook Last Friday the Sterling suffered a heavier-than-anticipated loss against the US Dollar, slumping over 100 pips, therefore, erasing all weekly gains. The 23.60% Fibo managed...

Dukascopy_Analyst

"Certainly $1,000 will be tested but we're not necessarily thinking that it's going to collapse." - BMI Research, a unit of Fitch Group (based on Bloomberg) Pair's Outlook Gold was fully unchanged in value yesterday, with both bulls and bears failing to establish a lead after minutes of the latest FOMC meeting. Today we see the Dollar weakening and this...

Dukascopy_Analyst

"If we are right, the Bank will probably respond by stepping up the pace of easing. The end-January meeting is the most likely venue to announce this." - Capital Economics (based on WBP Online) Pair's Outlook The USD/JPY appreciated only 18 pips on Wednesday, piercing the nearest resistance, which is now forming a support cluster along with the weekly R1....

Dukascopy_Analyst

"The dollar strength continued since earlier this month following the upbeat jobs data, but investors have found a lack of fresh trading cues to prompt them to buy further." - Bank of Tokyo-Mitsubishi (based on Market Watch) Pair's Outlook After having tested the immediate support cluster, the Sterling managed to preserve the bullish momentum yesterday, but...

Dukascopy_Analyst

"I don't think there's any fundamental shift here, just a bit of profit-taking after the minutes, and I don't see any change to the dollar's trajectory." - Barclays (based on Reuters) Pair's Outlook EUR/USD gained value on Wednesday, despite hawkish FOMC meeting minutes mentioning a potential rate hike in December. A rally is being extended on Thursday, with...

Dukascopy_Analyst

"If you show me inflation, I'll show you a higher gold price." - Evolution Mining Ltd. (based on CNBC) Pair's Outlook Precious metal confirmed the lowest level since year 2010 at 1,070 which was reached back in July. US CPI data pushed odds for a Fed rate hike strongly to the upside and decreased demand for the safe-haven metal. In case it consolidates below the...

Dukascopy_Analyst

"The big risk is that the minutes convey that many FOMC members are less convinced on a December hike than the market now thinks and could easily be swayed by market uncertainty or other events to wait another couple of meetings." - CitiFX (based on WBP Online) Pair's Outlook Yesterday the disappointing Industrial Production figures weighed on the US currency,...

Dukascopy_Analyst

"On those occasions where the U.S. dollar does dip, people are prepared to step in, but they don't want to drive it any further from here." - ANZ Bank New Zealand Ltd. (based on Bloomberg) Pair's Outlook Ignoring fundamentals, EUR/USD continued to underperform and closed below 1.0650 on Tuesday. As mentioned in our previous analysis 24 hours ago, the pair is...

Dukascopy_Analyst

"It seems all over the world, the economy is weak, also within China and India, so the potential market for consumers has also declined." - Heraeus Precious Metals (based on CNBC) Pair's Outlook With markets expecting to see rising US CPI numbers later on Tuesday, the bullion continued to lose steam yesterday. Traders are selling-off the precious metal on the...

Dukascopy_Analyst

"It looks like a big bet on the Fed finally putting its money where its mouth is. It looks as though the Fed will indeed kick off its tightening cycle in December, providing a stark contrast to other major central banks and thus providing durable support for the dollar." - Westpac Banking Corp. (based on Bloomberg) Pair's Outlook Due to Japan falling back into...

Dukascopy_Analyst

"The focus on inflation, or rather the lack of it shifts back to the UK and the US today and it is this lack of inflation that could well prompt a change of expectation on the part of the US Federal Reserve in the context of a possible rise in rates next month." - CMC Markets (based on WBP Online) Pair's Outlook On Monday, the Cable tested the immediate support,...

Dukascopy_Analyst

"Conditions for a test of parity may finally be falling into place." - Nomura Securities (based on Bloomberg) Pair's Outlook EUR/USD traded on the downside yesterday, owing to uncertainty over European economic outlook and despite positive inflation data. The newest eight-month low at 1.0650 has already been touched Tuesday morning. We are now fully focusing on...

Dukascopy_Analyst

"Markets have already concluded that the Fed will raise rates in December and I don't think the big picture has changed. I expect the dollar to strengthen further a bit towards the Fed's policy meeting (on Dec. 15-16)." - Trader at a Japanese bank (based on Reuters) Pair's Outlook The British Pound remained flat against the US Dollar on Tuesday, with the Cable...

Dukascopy_Analyst

"We think USD gains have further to run, but with the Fed also sensitive to headwinds created by currency strength, we think gains are likely to be limited in scope." - BNP Paribas (based on Business Recorder) Pair's Outlook Yesterday the Cable managed to return above the 1.51 level, thus, stabilise above the September low. Although the British currency still has...

Dukascopy_Analyst

"The dollar is pausing from its rally as markets may have raced ahead on Fed rate hike expectations for December." - Ueda Harlow Ltd. (based on Bloomberg) Pair's Outlook On Monday the most traded FX cross has tried to recover Friday losses, but it failed to come back at least above 1.0750. In addition to that, important bearish support was provided by the monthly...