Dukascopy_Analyst

Dukascopy_Analyst

"The biggest move for the week is sterling on Brexit worries and it will stay in the spotlight for the first half of the year leading up to the referendum." - State Street (based on CNBC) Pair's Outlook The Cable's volatility was contained by the 1.39 level from the downside and the 1.40 level from the upside, as the pair reacted on fundamental data. The...

Dukascopy_Analyst

"The contagion of a ‘Brexit' is spilling over to a full blown existential crisis for the eurozone: if Britain can renegotiate its status, why not anyone else?" - Christopher Vecchio, DailyFX (based on MarketWatch) Pair's Outlook The Euro rebounded after it touched upon the formidable 1.0970/50 demand area. However, the 200-day SMA remains intact, and it...

Dukascopy_Analyst

"Gold's rally since the start of the year, which returned as much as 19 percent at its peak, may be petering out now." - Sejul Gokal, Bloomberg Pair's Outlook The commodity keeps appreciating after establishing a strong base at 1,210 dollars (up-trend and monthly R3). The objective is now 1,264, namely this month's current maximum. In case the bulls remain...

Dukascopy_Analyst

"No matter what happens, investors would buy the yen." - Bank of Tokyo-Mitsubishi UFJ (based on Market Watch) Pair's Outlook Upon reaching the 111.00 yen, the US Dollar managed to regain the bullish momentum and close trade with a seven-pip rally yesterday. The support cluster circa 111.70, namely the monthly S3 and the weekly S1, once again proved to be...

Dukascopy_Analyst

"Unsurprisingly, the concerns for the global economy have continued to have disastrous consequences for the pound, which often performs poorly in a risk-off environment." - Currencies Direct (based on Business Recorder) Pair's Outlook On Wednesday the Cable suffered a rather serious decline for the third consecutive day this week, also crossing a strong...

Dukascopy_Analyst

The EU referendum is skewing the euro picture toward caution and prudence." - Roberto Mialich, UniCredit SpA (based on Bloomberg) Pair's Outlook The pair stalled after it had broken through the 200-day moving average. From above the fluctuations are now limited by 1.1050, while any attempts of the bears to push the price lower are to be prevented by a dense...

Dukascopy_Analyst

" put at risk important external financing sources for the UK's sizable current account deficit. In a worst-case scenario, a Brexit could also harm the sterling's role as a global reserve currency, removing what has been a significant support for our 'AAA' rating since the start of the global financial crisis." - S&P (based on Reuters) Pair's Outlook The...

Dukascopy_Analyst

"The combination of comments from Kuroda and broader market moves are helping support the yen and that's why it's stronger." - Wells Fargo (based on Business Recorder) Pair's Outlook Although neither technical level was breached yesterday, the USD/JPY currency pair closed trade with a 79-pip loss. The immediate support cluster, namely the monthly S3 and the...

Dukascopy_Analyst

"If there's one thing that traders hate, it's uncertainty, and this weekend's developments sharply increased the uncertainty surrounding Brexit." - Forex.com (based on MarketWatch) Pair's Outlook Gold managed to find support at 1,210 (monthly R3), which testifies in favour of a rally after the present consolidation is over. In case of a recovery we will...

Dukascopy_Analyst

"Dollar/yen lost momentum as investor bids into Tokyo shares faded. It appears that speculative accounts continue to lead the action. Comments overnight from U.S. authorities are also weighing on the dollar." - Global-info Co (based on Reuters) Pair's Outlook Although the USD/JPY inched higher on Monday, the immediate resistance in face of the weekly pivot...

Dukascopy_Analyst

"The referendum will likely dominate the pound in the near term, drowning out other factors that could move the currency." - Mizuho Securities (based on CNBC) Pair's Outlook The Sterling dropped more than 200 pips against the US Dollar on Monday, as the odds of a Brexit increased. The GBP/USD currency pair remains weak and could drop below the 1.41 major...

Dukascopy_Analyst

"I'm hoping the G-20 will be a trigger for a turnaround in market sentiment." - Ayako Sera, Sumitomo Mitsui Trust Bank Ltd. (based on Bloomberg) Pair's Outlook The pair dipped under the 200-day SMA yesterday, which reinforces our near-term bearish outlook on the Euro. The intraday rallies are now to be contained by a new resistance level at 1.1046, while...

Dukascopy_Analyst

"We think the current gold price rally will reverse, once risk-sentiment buying fades, similar to the trend seen in early 2014 and 2015." - Nomura (based on CNBC) Pair's Outlook The bullion saw a renewal of the confident uptrend on Thursday. Following success at the monthly R3 at 1,209 gold decided to move higher and eroded the weekly pivot point at 1,221. The...

Dukascopy_Analyst

"Although the market mood hasn't turned fully into a risk-off , we've been seeing the yen's strength across the board." - Mizuho Bank (based on Market Watch) Pair's Outlook Same as yesterday, the appeal for safe havens, such as the Japanese Yen, is relatively high. On Thursday the USD/JPY currency pair broke through a rather strong support area, leaving the...

Dukascopy_Analyst

"If an agreement is not approved by all 28 EU Member States at this summit, sterling would correct sharply against both the dollar and the euro." - Intesa Bank (based on PoundSterlingLive) Pair's Outlook Although the Cable edged closer to the resistance cluster around 1.44, it stabilised at lower at 1.4340. Nonetheless, the bullish momentum prevailed yesterday...

Dukascopy_Analyst

"The euro will continue to decline because the ECB has more ammunition" to carry out stimulus." - Toronto-Dominion Bank (based on Bloomberg) Pair's Outlook Downside risks for the Euro are on the table, considering that EUR/USD has tumbled for a fifth day in a row on Thursday. The bears are still unable to penetrate the 1.11 support area, with gains contained...

Dukascopy_Analyst

"With the uncertainty in the global economy and the relatively dovish Fed minutes that were out yesterday, gold prices will still be supported above $1,200." - OCBC Bank (based on CNBC) Pair's Outlook The daily chart has been showing mixed signals for several days in a row. Gold tested the third monthly resistance (1,209) yesterday, but ultimately closed the...

Dukascopy_Analyst

"If broader risk aversion is steadying, as we suspect, we have to think the yen is at risk of giving back more of its recent strength." - Scotia Capital (based on Reuters) Pair's Outlook The US currency remained unchanged against the Japanese Yen on Wednesday, as demand at 113.88 proved to be sufficient to keep the pair elevated. Technically, we might see a...