Dukascopy_Analyst

Dukascopy_Analyst

"In my mind there's still concerns out there on price." - Ayers Alliance (based on CNBC) Pair's Outlook The bullion continues to pare the rally, which took place throughout the previous week amid dovish policy decisions of the Fed. Now the Greenback is back on track, meaning gold is now attracting the bears that are likely to attempt penetrating the long-term...

Dukascopy_Analyst

"With the Fed reaffirming its caution in hiking rates, we expect a more gradual recovery of the USDJPY pair." - UBS (based on Reuters) Pair's Outlook As was anticipated, the USD/JPY currency pair recovered from its intraday low on Friday, but was unable to post significant gains, due to the Bollinger band providing sufficient resistance. However, the Bollinger...

Dukascopy_Analyst

"Going up is hard to do, but the dollar will go up." - Goldman Sachs (based on Bloomberg) Pair's Outlook The bulls failed at the multi-month downtrend line (1.1320) on Friday and were thereby forced to commence a correction to the 1.1260 area. The first major support for this week is placed some 40 pips lower between 1.1223 and 1.1227 where the weekly pivot...

Dukascopy_Analyst

"Gold is finding support at $1,260, it is reluctant to go below that level and it is mainly due to weaker U.S. dollar." - Phillip Futures (based on CNBC) Pair's Outlook Gold's intraday gains were extending beyond the 1,270 mark on Thursday, but the bears consolidated their power and made prices suffer. Ultimately, the bullion was down to the weekly pivot point...

Dukascopy_Analyst

"At 113, the BoJ has leeway to wait but at 110-111 with the risk of further losses, they may not be able to forestall easing for much longer." - Kathy Lien, BK Asset Management (based on CNBC) Pair's Outlook The USD/JPY currency pair slumped for the fourth consecutive day yesterday, retaining its post-Fed weakness. The 112.00 psychological level failed to hold...

Dukascopy_Analyst

"We think the market holds its shortest sterling exposure since 2008 -- that is since the financial crisis." - BNP Paribas (based on Bloomberg) Pair's Outlook On Thursday the Sterling skyrocketed against the US Dollar, meeting resistance only at the third target, namely weekly R1 at 1.4510. However, the Cable closed below the 1.45 major level and is likely to...

Dukascopy_Analyst

"The fact that they didn't raise rates and wound back expectations for future increases in 2016 has obviously hurt the U.S. dollar." - Rochford Capital Pty (based on Bloomberg) Pair's Outlook EUR/USD rallied for a second day in a row on Thursday, owing to weaker US Dollar in the wake of dovish Fed decisions a day before. As expected, the currency pair eroded...

Dukascopy_Analyst

"The market jumped after the Fed meeting but there are a lot of people on the long side, so some sort of profit-taking is happening today." - Lee Cheong Gold Dealers (based on CNBC) Pair's Outlook The bullion commenced a reliable recovery on Wednesday, owing to softer than expected rate projections from the Fed. Backed by the January uptrend line, gold soared...

Dukascopy_Analyst

"The Fed struck a very dovish tone, marking down its projected rate increase trajectory, while noting overall resilience in the U.S. economy and the absence of inflation pressures, this should be encouraging for risk sentiment and risk assets." - DriveWealth LLC (based on Reuters) Pair's Outlook The Fed's dovish statement weakened the US currency on Wednesday,...

Dukascopy_Analyst

"The magnitude of the dollar's reaction signals that investors were waiting for a reason to sell dollars." - BK Asset Management (based on Business Recorder) Pair's Outlook The British Pound managed to recover from its intraday low yesterday, amid a dovish Fed statement. As a result, the monthly PP was once again confirmed as a strong support, as it pushed the...

Dukascopy_Analyst

"The market's reaction of selling dollars actually serves the Fed well as it creates favorable conditions for a country raising rates while capping its currency's strength." - Sumitomo Mutsui Trust Bank (based on Bloomberg) Pair's Outlook The Federal Reserve turned somewhat bearish on monetary policy yesterday, therefore leading to weaker Greenback and...

Dukascopy_Analyst

"Gold's reign as the top performing asset is largely supported by safe haven demand, and buying-interest into gold once again should not be discounted, especially if global growth sentiment turns south into the year" - OCBC (based on CNBC) Pair's Outlook The bullion switched into the wait-and-see mode, before the Federal Reserve is getting ready to announce...

Dukascopy_Analyst

"Outside JPY, CHF, USD and SEK, it is hard to find a positive currency story, since USD has not converted into an investment currency yet, the Fed's ability to dampen USD appreciation should remain limited and not go beyond a tactical impact." - Morgan Stanley (based on PoundSterlingLive) Pair's Outlook The BoJ retained its negative rate policy yesterday and,...

Dukascopy_Analyst

"We retain the view that the next rate hike could come as early as June, and it would be reasonable to expect further increases in the second half of 2016. However, this outlook remains data dependent." - ANZ (based on CNBC) Pair's Outlook The Sterling suffered a rather serious decline against the US Dollar on Tuesday, as fears of a ‘Brexit' returned. A strong...

Dukascopy_Analyst

"The meetings of the BOJ and the ECB revealed that even negative rates can't guide currencies lower amid a lack of conviction for the Fed." - Mizuho Bank (based on Bloomberg) Pair's Outlook Even though the most traded FX cross was little changed on Tuesday, trading volume surged to one of the highest levels in about 30 days. EUR/USD is awaiting the scheduled...

Dukascopy_Analyst

"I think there are too many long positions in the market. They are taking some profit." - Lee Cheong Gold Dealers (based on CNBC) Pair's Outlook Unexpectedly high bets on rate increases from the US Federal Reserve later in the year pushed the yellow metal noticeably down against the American currency. The February uptrend was tested for the first time since...

Dukascopy_Analyst

"We remain in a structural bull market for the U.S. dollar, which has a further 10-15% to go." - Andrew Sheets, Morgan Stanley (based on MarketWatch) Pair's Outlook USD/JPY keeps consolidating within the boundaries of the symmetrical triangle. Eventually, the pattern is expected to be broken to the downside, considering that the bears remain in control of the...

Dukascopy_Analyst

"Expectations for dovishness from the Bank of England could see the pound underperform other risk correlated currencies, especially if the jobs data isn't strong." - Josh O' Byrne, Citi (based on Reuters) Pair's Outlook Bullishness of the Cable that we have been observing since the beginning of March proved to be insufficient to carry the price over the...