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  • 5 important things this week will bring us!

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    Britain’s GDP and manufacturing production (Mon, 11:30 MT (9:30 GMT) time) – According to analysts, British GDP growth will remain at the same level. As for the level of manufacturing production, it is expected to advance by 0.2%. Higher-than-expected figures will support the British pound.

    New Zealand's monetary policy statement and press conference (Wed, 3:00 and 4:00 MT (1:00 and 2:00 GMT) time) – The rate hike is not going to happen, but the tone of the statement, as well as the comments by the RBNZ governor Adrian Orr during the press conference, may provide additional volatility to the NZD.

    Britain’s CPI (Wed, 11:30 MT (9:30 GMT) time) – The level of consumer price index for Great Britain is anticipated to decline to 1.9% in January. If the actual figures are higher, the GBP will be supported amid the Brexit uncertainties.

    US CPI and core CPI (Wed, 15:30 MT (13:30 GMT) time) – As for the US indicators, the headline CPI is expected to increase by 0.1%, while its core level (without food and energy) will rise by 0.2%. If the data is even more positive, the USD will strengthen.

    US PPI, retail sales and core retail sales (Thu, 15:30 MT (13:30 GMT) time) – Finally, on Friday the USD may rise due to the following releases. Analysts predict the levels of retail sales and PPI to increase by 0.1%. As for the level of core retail sales, it is projected to stay at the last month’s levels.

    Hot topics:

    Brexit remains one of the key uncertainties for the market and for the British pound in particular. The next Brexit debates at the Parliament are scheduled for February 14. During this meeting, the British Prime Minister Theresa May is expected to announce the results of her negotiations with the EU. However, May’s attempts to make changes to the current deal were rejected by the President of the European Commission Jean-Claude Juncker last week. That is why this meeting won’t be final in the long-lasting Brexit drama. Reportedly, the next vote on Theresa May’s deal is likely to happen no earlier than on February 25-27. As the final deadline for Britain's divorce with the EU comes closer, Theresa May wrote a letter to the Labor opposition leader Jeremy Corbyn suggesting a discussion between the parties to consider "alternative arrangements" to the Irish backstop. If her negotiations are successful, this may bring support to the British pound.

    The third round of trade talks between the US and China is expected this week in Beijing. The previous discussions were successful but did not lead to the final deal. This meeting will impact the market sentiment a lot, as the investors will be looking for any significant progress ahead of the final deadline of the trade truce on March 1.

    Also, the US government may be shut down again, if the officials do not reach an agreement on Trump's demand for funding the wall between the US and Mexico until February 15. If it happens, the USD will be affected.


    • Trading strategy for the Head and Shoulders pattern.

      In technical analysis, there are different chart patterns which help you to determine the further direction for the price. In the broadest sense, all of these patterns are divided into the two large groups: reversal and continuation chart patterns. You can learn how to define them in our Forex Guidebook. Today, we will present you the trading strategy for one of the most commonly known patterns. Of course, we are talking about the Head and shoulders pattern.



      • European equities rally as earnings surge expectations stabilize

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        13:12 13.02.2019

        On Wednesday, European equities went up because upbeat mood about Washington and Beijing trade negotiations backed global markets, while data revealed that earnings surge estimates for the European Union are stabilizing after abrupt downward revisions.

        The STOXX 600 rallied by about 0.3%, while Germany's DAX leapt by up to 0.2%.

        Asian stocks and Wall Street also soared because expectations strengthened that China and America will come to a compromise and dodge another round of American levies on imports from China expected to kick in by March 1.

        Madrid's IBEX headed south by 0.1% in the face of reports that Spain's minority Socialist cabinet could announce an early general election on the condition it loses a budget vote after its refusal to have Catalan self-determination negotiated.

        In the face of all the intricacies of Brexit, London's FTSE outperformed a bit, heading north by 0.4% after data revealed that UK inflation declined to a two-year minimum in January.

        Dutch bank ABN Amro, affected by loan impairments, headed south by 6.3% with fourth-quarter net gain below analysts’s estimate.

        Dutch blue chip counterpart Heineken was differently welcomed by the market, tacking on by up to 4.3% and set for its best performance since 2015 on better-than-anticipated outcomes.

        Akzo Nobel, the paint maker in the Netherlands ascended by 3.9% having marginally surpassed expectations.

        The euro zone's number one asset manager, Amundi was also appreciated by market participants, adding 4.3% having confirmed its profit objectives for 2020, notwithstanding negative market conditions in the fourth quarter.

        Among other companies whose outcomes stood out in morning trade, we should mention Ingenico that gained 7.2%, online gambling company Kindred Group that ascended by 5.8% as well as Swedish Match with its 7.5% leap - the top performer of the STOXX 600.


        • Market conditions I: Trends
          The market isn’t always the same. In order to choose the best trading strategy, you need to understand the market’s condition. Always start your technical analysis by identifying the market’s condition.
          There are two types of market conditions: trend and range. Let’s study this time, the first one.


          • Wall Street jumps on US-China trade upbeat mood

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            On Friday, Wall Street's key indexes were braced for reporting their biggest weekly profits for a month because traders were quite optimistic about the everlasting trade negotiations to tackle a bruising tariff clash between China and America.

            Donald Trump told that negotiations with China are going well and his country is very close to making a good deal with the Asian partner. Next week, talks between the world’s two leading economies will resume in the USA.

            Expectations for a trade pact ahead of a March 1 deadline has assisted the trade-sensitive industrials to earn about 17% this year, thus making it the best S&P sector in terms of performance.

            The group went up by 1.13% backed by bellwethers Boeing Co as well as Caterpillar Inc.

            The markets generally neglected US leader declaring a national emergency in an attempt to finance his announced wall at the US-Mexico border without congressional approval.

            Notwithstanding the threat of a national emergency, all 11 key S&P sectors managed to ascend, with financials soaring by 1.89%, becoming the top-notch performer.

            The banking sector ascended by 2.62% backed by key American lenders. As a matter of fact, Wells Fargo, Bank of America Corp, and JPMorgan Chase & Co tacked on 1.7%-3% right after Warren Buffett's Berkshire Hathaway ramped up its stake in the companies.

            ET the Dow Jones Industrial Average headed north by 1.36% being worth 25,785.36. As for the S&P 500, it jumped by 0.82% hitting 2,768.25, while the Nasdaq Composite rallied by 0.38% reaching 7,455.49.

            The S&P jumped over 10%, powered by a dovish Federal Reserve, progress on trade as well as a mostly positive fourth-quarter earnings reports.

            Nvidia Corp headed north by 2.5%, while Newell Brands Inc lost 20.4%.