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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%.


            • 5 important things this week will bring us!

              More at:


              FOMC Meeting Minutes (Wed, 21:00 MT (19:00 GMT) time) – The Federal Reserve announced the “patient” way of its monetary policy and decided to leave its interest rates unchanged during the last meeting in January. The minutes from that meeting will shed more light on the current economic outlook by the Fed. If it contains any supportive data for the greenback, the American currency will go up.

              Australian jobs data (Thu, 2:30 MT (00:30 GMT) time) – the level of employment change is expected to advance by 15.2 thousand jobs. At the same time, the level of the unemployment rate is forecast to remain at the same level of 5%. If employment change is higher and the unemployment rate is lower than the forecasts, the AUD will go up.

              US headline and core durable goods orders (Thu, 15:30 MT (13:30 GMT) time) - According to analysts, the level of durable goods orders will increase by 0.8%, while its core level will rise by 0.2%. The higher-than-expected figures will push the USD higher.

              Canadian retail sales and core retail sales (Fri, 15:30 MT (13:30 GMT) time) - The headline indicator will likely remain at the same level. As for core retail sales, analysts expect it to decline by 0.5%. If the actual releases are higher, it will help the Canadian dollar to rise.

              Speech by the ECB president Mario Draghi (Fri, 17:30 MT (15:30 GMT) time) – the ECB president will speak as he accepts an honorary degree from the University of Bologna. His comments or answers to the questions may provide an opportunity to trade the euro.

              Hot topics:

              Theresa May plans to dispatch her ministers across Europe during this week in an attempt to save her Brexit agreement and ask the EU members to make concessions so that the party can vote for a re-written deal. She still has 9 days left before the vote in the Parliament on February 27. If her attempts are unsuccessful by that date, the Parliament will take over the process.

              Reportedly, the US and China have made great progress in trade negotiations last week. Next round of the talks will continue in Washington. Hopefully, they provide us with more clues on the conditions of the deal.

              Trump released declaration of a national emergency along the U.S.-Mexico border in an attempt to get funds for building a wall along the US-Mexico border. This news affected the USD negatively.


              • How market sentiment may affect your trading decisions.


                When you read or watch the analysis, you often face with the following statement: “it is recommended to trade on the market sentiment.” Are you surprised that the market has its actual feelings? Of course, it does! As the market is literally a crowd of different players, most of which are actual human beings, it has a really strong psychological basis. Financial markets are driven by emotions, which are used by smart traders to earn money. In this article, we are going to help you to understand the types of market sentiment and its measurements.



                • Evergreen buck goes down ahead of Fed minutes

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                  On Wednesday, the evergreen buck slumped versus the common currency and the UK pound because a dive in American Treasury gains diminished its attractiveness in the face of hopes for dovish news on interest rates from the major US bank.

                  Bond gains were pressured by economic data, which have clung to the weak side for the last time. For the last month the 10-year benchmark Treasury yield has gone down from 2.80% to 2.64% against the backdrop of uncertainty over how far the major US financial institution can afford tightening monetary policy.

                  Such uncertainty definitely makes Wednesday special, as traders are waiting for the publication of the minutes from the recent Fed gathering, where the major American financial institution opted for a more neutral as well as data-dependent stance, giving up its previous guidance about the probability of further interest rate lifts.

                  Investors are going to look for clues about how fast and how far the major US bank is about to have its balance sheet reduced. The Cleveland Fed President, Loretta Mester told that she appreciated the idea of ending the balance sheet wind-down in 2019 because such an outcome could potentially leave a considerable amount of crisis-era liquidity in the system, neutralizing any leap in market interest rates. Moreover, she added that official interest rates would most probably ascend rather than tumble.

                  Estimating the purchasing potential of the greenback versus a number of its main peers the USD index hit 96.333, slumping by 0.5% from its overnight maximum. The common currency was close to a one-week maximum at $1.1351 because German producer price inflation data for January turned out to be higher than anticipated.

                  Overnight the Chinese Yuan managed to ascend by about 0.5% versus the evergreen buck hitting 6.7227.


                  • Bollinger bands

                    Bollinger bands represent another useful tool for trend determination. It’s no brainer that if prices decide to trend, they don’t move in a straight line, but deviate to the sides. Bollinger bands are designed to keep track the price’s deviation from the 20-period MA.

                    We are going to learn!



                    • Dow inches up

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                      On Friday, the Dow managed to conclude the trading session up on upbeat mood after American leader told that a trade agreement with China is real.

                      As a matter of fact, the Dow Jones Industrial Average soared by 0.70%. As for the S&P 500, it surged by about 0.62%. The Nasdaq Composite rallied by 0.91%. Eventually, the Dow concluded up for an eighth week in a row.

                      In a sign that China and America were still committed to coping with their differences on trade, China’s Prime Minister extended his visit to America to proceed with negotiations with American rivals.

                      Tech equities rallied due to profits in Intel and Intuit.

                      As a matter of fact, Intuit managed to tack on by 6.8% having reported fiscal second-quarter outcomes on Thursday. They topped forecasts made by

                      As for Intel, it managed to go up by 2.1% following a positive assessment from Morgan Stanley.

                      Morgan Stanley had Intel's stocks upgrade from equal-weight to overweight and also ramped up its price objective from $55 to $64 on hopes that the chip producer is going to be one of the key winners when spending on cloud computing goes up.

                      Kraft Heinz went down by up to 27.5% having revealed on Thursday that the SEC had come up with a probe into the company's accounting practices. Moreover, the company also posted a quarterly loss of $15.4 billion.

                      Energy equities concluded the trading day up because American crude prices surged on expectations that a US-China trade pact would back global economic surge, thus powering oil demand.

                      Western Digital, DISH Network, and Intuit turned out to be amount the top-notch S&P 500 gainers for the trading session.


                      • Keeping trades over the weekend: your chance or failure?

                        Have you ever thought whether to keep a trade open over the weekend? If yes, was a decision like this always profitable for you? If not, maybe you should put off doubts and fears and try it? We have gathered the information you should know about keeping trades over the weekend.



                        • European stock markets are impacted by India-Pakistan clash



                          On Wednesday, European stock markets started lower after fresh hostilities showed up between Pakistan and India, making Asian assets dive and also pushing traders into safe havens, including the Japanese yen.

                          The STOXX 600 lost 0.5%. As for the key regional indexes, all of them found themselves in the red. American stock futures for the S&P 500 lost 0.1%.

                          Previously, Pakistan told it had delivered air strikes in Indian-controlled Kashmir and also put down two Indian jets.

                          Pakistan and Indian currencies and bonds headed south, while MSCI's broadest index of Asia-Pacific stocks outside Japan declined by 0.15% because the threat of conflict between the nuclear-armed countries increased.

                          Besides this, financial markets were monitoring the US-North Korean summit, expected to burst out in Hanoi on Wednesday. American leader is going to meet North Korean leader Kim Jong Un, with America urging the isolated country have its nuclear weapons program dismantled.

                          The heightened geopolitical risks helped a number of assets considered safer than shares. For instance, one of them is the Japanese yen that soared versus the evergreen buck.

                          The evergreen buck kept to a three-week minimum after on Tuesday Fed Chair Jerome Powell repeated that the major US bank had shifted to a more patient stance as for changes to interest rates.

                          Meanwhile, in the Forex market, the UK currency kept soaring after Prime Minister Theresa May gave British lawmakers a chance to vote on postponing Brexit. The UK pound was worth $1.3274, having ascended to $1.3288 on Tuesday, which is its highest outcome for five months.

                          Crude prices went up following a report that American crude inventories had slipped and producer club OPEC reportedly stuck with its supply cuts notwithstanding pressure from Donald Trump.

                          As for gold, it tumbled by 0.17% hitting $1,326.24.


                          • Canadian GDP growth may push the CAD up

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                            The level of monthly GDP for Canada is expected on March 1, at 15:30 MT time.

                            The level of GDP growth is the broadest measure of economic activity, which indicates economic health. Last time analysts forecast GDP growth to increase by 0.1%. The actual level came out in line with the analysts' expectations. If this time the release is higher than the forecast, the CAD will be supported.

                            • If GDP growth is higher than expected, the CAD will rise;

                            • If GDP growth is lower than expected, the CAD will fall.


                            • S&P concludes session above 2,800

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                              On Friday, the S&P 500 boasted solid gains, closing above a major level and neglecting data that indicated decelerating American economic as well as global surge as expectations of a US-China trade agreement kept risk appetite alive.

                              Eventually, the Dow Jones Industrial Average soared by nearly 0.43%. As for the S&P 500, it managed to gain by approximately 0.69%, concluding above 2,800 for the first time since November 8. Besides this, the Nasdaq Composite rallied by 0.83%.

                              The American economy kept demonstrating signs of deceleration.

                              As a matter of fact, in December, consumer spending in the United States, accounting for more than two-thirds of the country’s economic activity, decreased by 0.5%. As for February’s ISM manufacturing data, it confounded hopes for 55.5.

                              The dive in personal spending actually represented the most impressive slump since 2009.

                              The consumer consumption demonstrating considerable worries going into year-end turns out to be more than sufficient to keep the Federal Reserve on the sidelines for the time being.

                              The dismal data arose after the Chinese economy demonstrated a dive in factory activity for the third consecutive month. However, the tempo of the deceleration had speeded down, backing hopes a bottom was already forming.

                              Furthermore, sentiment on Wall Street was also backed by signs that Chinese and American negotiators are very close to coming to a compromise.

                              Larry Kudlow told that the agreements achieved the previous week show considerable progress on forced technology transfer, IP theft as well as cyber interference.

                              In addition to trade, the financial markets were also driven by an ascend in energy shares notwithstanding a dive in crude prices on signs of weakness in the Chinese economy.


                              • 5 important things this week will bring us!

                                Read at:


                                RBA rate statement (Tue, 5:30 MT (3:30 GMT) time) – The RBA Governor Philip Lowe is expected to leave the interest rate unchanged at 1.5%. However, the comments by him and the members of the Australian central bank may provide volatility to the Australian dollar.

                                Australian GDP q/q (Wed, 2:30 MT (00:30 GMT) time) – According to analysts, the level of GDP growth for Australia will increase by 0.5%. Higher-than-expected figures will boost the Australian currency.

                                BOC rate statement (Wed, 17:00 MT (15:00 GMT) time) – We anticipate no changes to the current level of interest rate (1.75%). The bank of Canada governor may throw some hints on the possible changes to the current monetary policy. If the BOC is hawkish, the Canadian dollar will rise.

                                ECB rate statement and press conference (Thu, 14:45 and 15:30 MT (12:45 and 13:30 GMT) time) – Here we also do not expect changes to the current interest rate, but the ECB president Mario Draghi may comment on the further changes to the current monetary policy. If the European central bank is more confident in the current conditions, the euro will rise.

                                US Non-farm employment change (NFP) (Fri, 15:30 MT (13:30 GMT) time) – Analysts forecast the level of NFP to increase by 185 thousand jobs. At the same time, the level of average hourly earnings is forecast to increase by 0.3% and the level of unemployment change is expected to decline to 3.9%. Higher figures for NFP and average hourly earnings and lower figures for unemployment rate will boost the USD.

                                Hot topics:

                                Pro-Brexiters in the Conservative party of Great Britain suggested several conditions for supporting Theresa May’s plan at the Parliament.

                                Reportedly, China and the US are in the final stage of getting a trade deal. China offers to lower tariffs on American products and the US considers to remove sanctions against Chinese products.

                                During the weekend Trump said that strong USD and rate hikes were hurting the economy.