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Showing posts with label USD. Show all posts
Showing posts with label USD. Show all posts

Sunday, 29 November 2020

A.I. Range forecast for 30-Nov-2020 [Popular pairs against JPY]

A.I. Range forecasts of popular pairs against JPY until the end of Monday (UTC). For some whose last Trend and Momentum have been better fitted, their figures are also available below.

Japan is one of the biggest markets where FX trading is active among the private and corporate investors.

[AUDJPY]

Range forecast: 76.414 (-0.59%)  -  77.321 (+0.59%).
Confidence: 74.6%.
The chance of Downside swing is more considerable.

[EURJPY]

EURJPY Trend & Momentum 27-Nov-2020

Range forecast: 124.1 (-0.34%)  -  124.64 (+0.1%).
Confidence: 71.6%.
The chance of Downside swing is more considerable.

[GBPJPY]

GBPJPY Trend & Momentum 27-Nov-2020

Range forecast: 138.12 (-0.31%)  -  138.6 (+0.04%).
Confidence: 73.9%.
The chance of Downside swing is more considerable.

[USDJPY]

USDJPY Trend & Momentum 27-Nov-2020

Range forecast: 103.59 (-0.49%)  -  104.26 (+0.15%).
Confidence: 69.9%.
The chance of Downside swing is more considerable.

To check Forex trading signals on your Android devices, download Forex Signal by QROSS X.

Thursday, 26 November 2020

A.I. Range forecast for 26-Nov-2020 [AUDJPY | EURGBP | EURNZD | EURUSD | GBPUSD | USDJPY]

The range forecasts of selected FXs for next 24h. The time-line is based on UTC as usual.

[AUDJPYTo the QROSS X Trend and Momentum

Range forecast: 76.409 (-0.43%)  -  77.144 (+0.52%) , for next 24 hours.
Confidence: 73.7%.

[EURGBPTo the QROSS X Trend and Momentum

Range forecast: 0.88877 (-0.28%)  -  0.8943 (+0.34%) , for next 24 hours.
Confidence: 69.7%.

[EURNZDTo the QROSS X Trend and Momentum

Range forecast: 1.6953 (-0.29%)  -  1.704 (+0.22%) , for next 24 hours.
Confidence: 74%.

[EURUSDTo the QROSS X Trend and Momentum

Range forecast: 1.187 (-0.28%)  -  1.1951 (+0.4%) , for next 24 hours.
Confidence: 73.2%.

[GBPUSDTo the QROSS X Trend and Momentum

Range forecast: 1.3329 (-0.18%)  -  1.3419 (+0.5%) , for next 24 hours.
Confidence: 74.4%.

[USDJPYTo the QROSS X Trend and Momentum

Range forecast: 104.12 (-0.13%)  -  104.48 (+0.21%) , for next 24 hours.
Confidence: 72.8%.

To check Forex trading signals on your Android devices, download Forex Signal by QROSS X.

Saturday, 21 November 2020

A.I. Range forecast for 23-Nov-2020 [AUDJPY | EURGBP | EURUSD | GBPUSD | USDJPY]

The range forecasts of selected FXs for 24h from the next market opening. The time-line is based on UTC.

[AUDJPY] To the QROSS X Trend and Momentum

Range forecast: 75.643 (-0.22%)  -  75.968 (+0.21%) , by the end of Monday.
Confidence: 71.9%.
The chance of Downside swing is a little more likely than Upside.

[EURGBPTo the QROSS X Trend and Momentum

Range forecast: 0.88843 (-0.41%)  -  0.89316 (+0.12%) , by the end of Monday.
Confidence: 65.5%.
The chance of Upside swing is more considerable while Upside margin is limited.

[EURUSDTo the QROSS X Trend and Momentum

Range forecast: 1.1838 (-0.16%)  -  1.1885 (+0.24%) , by the end of Monday.
Confidence: 66.3%.
The chance of Upside swing is more considerable.

[GBPUSDTo the QROSS X Trend and Momentum

Range forecast: 1.3148 (-1.06%)  -  1.3354 (+0.49%) , by the end of Monday.
Confidence: 66%.
The chance of Upside swing is more considerable while Upside margin is limited.

[USDJPYTo the QROSS X Trend and Momentum

Range forecast: 102.96 (-0.83%)  -  104.49 (+0.64%) , by the end of Monday.
Confidence: 68.5%.
The chance of Upside swing is more considerable.

To check Forex trading signals on your Android devices, download Forex Signal by QROSS X.

Friday, 13 November 2020

A.I. Range forecast for 13-Nov-2020 [EURGBP | EURUSD | USDJPY]

The range forecasts for selected FXs until around the Monday afternoon. The time-line is based on UTC.

[EURGBP]

Range forecast: 0.89604 (-0.28%)  -  0.90099 (+0.27%) , until around the Monday afternoon.
Confidence: 63.7%.
The chance of Downside swing is a little more likely than Upside.

[EURUSD]

Range forecast: 1.1803 (-0.17%)  -  1.184 (+0.14%) , until around the Monday afternoon.
Confidence: 63.8%.
The chance of Downside swing is more considerable.

[USDJPY]

Range forecast: 104.55 (-0.15%)  -  104.92 (+0.21%) , until around the Monday afternoon.
Confidence: 69.6%.
The chance of Downside swing is a little more likely than Upside.


Sunday, 1 November 2020

A.I. Range forecast for 2-Nov-2020 [AUDJPY | EURGBP | EURUSD | USDJPY]

The range forecast until the end of next Monday for some major FXs. The time-line is based on UTC.

[AUDJPYTo QROSS X Trend and Momentum

Range forecast: 73.032 (-0.62%)  -  73.664 (+0.24%) by the end of next Monday.
Confidence: 74.1%.
The chance of Downside swing is more considerable.

[EURGBP]  To QROSS X Trend and Momentum

Range forecast: 0.89689 (-0.29%)  -  0.90848 (+1%) by the end of next Monday.
Confidence: 78.1%.
The chance of Upside swing is more considerable.

[EURUSD]  To QROSS X Trend and Momentum

Range forecast: 1.1625 (-0.18%)  -  1.1668 (+0.19%) by the end of next Monday.
Confidence: 68.3%.
The chance of Downside swing is more considerable.

[USDJPY]  To QROSS X Trend and Momentum

Range forecast: 104.26 (-0.34%)  -  104.75 (+0.13%) by the end of next Monday.
Confidence: 67.8%.
The chance of Upside swing is more considerable while the expected margin will be limited.

It is possible that the Trend and Momentum indicate the different direction against the A.I.'s review.

As many are aware, the US presidential election is being held on 3-Nov in US time. Financial markets, including FX, are possibly impacted according to the outcome. It must be kept in mind.

Regarding Brexit, the internal market bill is being scrutinized and voted in the House of Lords on 9-Nov. Since the bill includes some controversial clauses, there is a certain possibility the Peers could block the bill. It is 2 months to go until the transition period is over.

Thursday, 23 April 2020

Coronavirus outbreak was just an excuse and the worse will be coming to the market?

Vito Corleone (From Wikipedia)
The son of Antonio Andolini.
Don Ciccio had killed Antonio Andolini, and the Don was revenged by Antonio's son. At least, Don Ciccio was right about his future.

Don Ciccio:
...When he grows, he'll grow strong.  ...When he's a man, he'll come for revenge.
As written on the last post, the oil price digged further its bottom at which WTI crude oil contract for May reached in negative territory. Theoretically, the possibility of negative price is anticipated because of the shortage of oil storage. But I thought OPEC+ or US will prevent from the situation being worse.
Some says that hedge funds or speculators sold their holding contracts as the uncertainty of storage availability and its costs ahead.

The Irish Times: What do negative oil prices mean for the prices you pay at the pump?
... The reasons for this are complicated, but essentially for every barrel of oil consumed in the world, 30 are traded. This means that financial institutions and hedge funds are speculating now on the price of oil that will be delivered in May. Contracts for May had to be settled by April 21st, and with a raft of traders left with oil contracts on their hands in the face of extremely low demand, they were forced to offload their contracts at negative prices.

DJIA recovered since the end of March.
While the oil markets tumbled, the global stock markets have recovered since the end of last month. DJIA (Dow Jones Industrial Average) has recovered about 5,000 points (27.0%) though it is still over 6,000 lower than the record high.
Some big economies, including US and Germany, are trying to reopen their businesses as they have been suffering from the lockdown for a month. It maybe a positive sign for the market but the things are not so simple either.

What was the outlook of the financial markets before Coronavirus outbreak? The major stock indices were climbing to the historic high in recent years to decades. No one was thinking the Tokyo Olympic game would be postponed except for some conspiracy theorists.
But on the other hand, PMI numbers in the largest economies have already been in lower territory in which the outlooks were negative. German manufacturing PMI has been well below 50.0 since the beginning of 2019, and the numbers in Eurozone and Japan have been more or less similar to German one, too. UK has been struggling to get Brexit done for 2019 (since 2016). US economy has been relatively stronger than others while its PMI was also in downward trend.
While the stock markets were bullish, the real economies had started slow down even before Coronavirus outbreak. PMI is utilized as a leading indicator to forecast the economic confidence in coming months. As the PMI numbers were below 50.0 in 2019, the recent market crash could have some senses of the adjustment between the market and real economy. Coronavirus just triggered it, perhaps.
By the way, how about today's PMIs? In Eurozone, the manufacturing PMI is 33.6 as of Apr-2020, the lowest since the financial crisis 2008. The composite PMI, overview of service and manufacturing sectors, is overwhelmingly 13.5, the record low.
Reminding it is a leading indicator, the economy is expected to be worse in coming months as the impact of lockdown will be realized in our economies. When it did, we would see something worse in the financial market than the last one in 2008.

When the bubble grows, the bursting impact will grow stronger. When the time comes, it devastates the market and economy.

Tuesday, 3 March 2020

Fed emergency rate cut. Coronavirus or Shadow of Mr.Sanders? 3-Mar-2020

Fed overwhelmingly announced 50bps rate cut today soon after the US stock market opened.
DJIA once jumped, reacting to the rate cut, though it stays nearly flat since the market opened. It seems be about the response to the market turmoil due to the Coronavirus crisis. But this sudden announcement is a little weird as such rate cut without anticipation tends to surprise the market, which should be avoided.

While today's news are dominated with Coronavirus, this is the Super Tuesday in US. The latest polls suggest that Mr.Sanders has the best chance to win, who is known of Social Democratic ideology. It can be a weigh on the stock prices shortly even though the likelihood is already priced in.

We'll know it.

Comment on 4-Mar-2020 Morning:

Regarding the current outcome of Super Tuesday, Mr.Biden earning votes remarkably, leaving Mr.Sanders behind. Meanwhile, DJIA future is also gaining, which implies today's opening values will be higher.

Monday, 2 March 2020

Godfather says: I spent my whole life trying not to be careless.

Godfather's discipline is worth not only for mafia nor yakuza but also for investors and traders.

Don Vito Corleone:
I spent my whole life trying not to be careless. Women and children can be careless. But not men.
Since the worst week for global stock markets, investors and traders should have been pessimistic under the market turmoil due to the fear of Covid-19 so called Coronavirus.
As the share price plunged overwhelmingly plunged last week, modest bounce back could have been expected at the beginning of this week. But how many of them could confidently foresee today's market swing, particularly in US markets where DJIA (Dow Jones Industrial Average) shot up above 5.0% in a single day?  There were some positive signs in the markets today, as Bank of Japan and Bank of England ensured their help for the Coronavirus crisis, and Mr.Trump slammed Fed "slow to act". Meanwhile, RBA (Reserve Bank of Australia) will be the first to have the rate decision at 2:30PM on 3-Mar (Local time). Some says that RBA will be forced to cut the rate because of the market turmoil, but US markets closed with huge recovery today and it became unclearer if RBA will cut or keep the rate.

While the markets turned positive today, we didn't get any breakthrough against Coronavirus. For a last few days, we were talking about supply chain problem, travel restriction and economic damage by them. Some says the global GDP could lose a quarter of the forecast even in "mild" scenario whose other scenarios are "modest" and "severe" respectively. The number of cases are now increasing outside of China, including Europe and US as concerned.

As more analysis results came out over the weekend, those mitigated uncertainty of the impact of Coronavirus. But negative outlook looms for coming months possibly beyond 2020. During the financial crisis in 2008, the markets had been down to the bottom on a bumpy ride. It is still likely to see the second round of massive sell-off near future, perhaps in this month again. Who knows?
That's why we have to learn from Godfather's discipline.

Sunday, 1 March 2020

Seems little help the financial market as invisible Coronavirus surrounding globally 1-Mar-2020

Since the late last Friday to over the weekend, some good news and bad news are running the world. But as Covid-19 cases continue increasing globally, there is little sign mitigating uncertainty surrounding the societies.

Global stock markets have suffered from massive sell off, which is the worst since the financial crisis in 2008. Although Fed implied their rate cut in March and it recovered the US markets before closing on last Friday, more and more Coronavirus cases are confirmed day after day.

Apart from Coronavirus stories, US and Taliban signed a peace agreement on Staturday, which is a good news in those days. However, it is not good enough news to boost the current grim mood because it is unclear if the agreement actually bring a peace in Afghanistan for coming months. (The Guardian: US and Taliban sign deal to withdraw American troops from Afghanistan)
By the way, the market would little care about another good news of Mr.Boris Johnson's private.

FTSE 100 (2007 - 2008)
FTSE 100
Financial crisis (2007 - 2008), down 40% from peak.
Traders are keen to the tomorrow's market opening of which Asian & Pacific market is on top. Even though the major global markets are closed, the weekend markets help to anticipate the next market opening.

Hong Kong HS50 (Hong Kong),
DAX 30 (Germany),
FTSE 100 (UK),
DJIA (US)
at IG group respectively.

FTSE 100 (Last 2 years)
FTSE 100
Last 2 years, down 16% from peak. Just a beginning perhaps...
Unless any breakthroughs are implemented, this economic stagnation would be just a beginning and it is too soon to hunt cheap shares. Japan's PM Shinzo Abe called unprecedented school closure in nationwide this weekend, and it will be effective from Monday tomorrow. No such announce has been called for workers yet while some parents who have small children are arguing about difficulty to take care of their children during the school closure. If the situation is becoming worse, it could be inevitable for the government to limit the economic activities and it will be certainly a critical damage to the vulnerable economy as Chinese economy is slowing down already.
European countries are also reacting to Coronavirus spreading by emergency measures, such as cancellation of public gatherings or stricter boarder controls. Travel agencies or flight operators must be affected pretty badly.
Of course, United State is not the exception. It just recorded a first death case by Covid-19 this weekend. US stock market has been strongest for last years, but it is not clear how much Fed rate cut could stop further panic in the markets.

Unlike the financial crisis in 2008, the coronavirus does not only crash the financial markets, but possibly cease the most of people's activity. Nobody wants such draconian measures taken in Wuhan, but nobody wants to be infected by Covid-19, either. In short term, people will demand mental care, rather than vaccine which it expects to take more than a year to be supplied.

Monday, 24 February 2020

Japanese and Russian stock markets opening just after the bank holiday 24-Feb-2020

Global stock market plummeted on this Monday as Coronavirus (Covid 19) outbreak severely hit South Korea and Italy over the last weekend. One of the big Asian markets, Japan had a bank holiday this Monday and it is opening in a few hours from this time since the other market dived into the bloodbath. Japan is also facing uncertainty of Coronavirus spreading as increasing number of patients even excluding ones from Diamond Princess. Russia had a bank holiday on this Monday, too.

In the mean time, Japanese index Nikkei 225 futures market has gone down around 4.7%, and the index's opening price is also expected down near by the same level after the fair value adjustment.

Along with the Japanese market, other Asian and Pacific markets are also opening in the near time zone. If the other markets were bouncing back from the last miserable closing, the potential damage on Japanese market could be limited. This Monday, Australia's ASX 200 index has gone down by 2.25% but its future market does not indicate clear relief yet. US market was also bearish, which was the worst in 2 years. Dow Jones Industrial Average has lost more than 1,000 points equivalent to nearly 3.6%.

Sometimes, good news are suddenly coming in, but Asian and Pacific markets could not be optimistic yet, particularly Japanese market.

Here is the list of global stock indexes.

[Asia & Pacific]
(Australia) S&P/ASX 200
(China) SSE Composite Index
(Hong Kong) Hang Seng Index
(India) S&P BSE SENSEX
(Japan) Nikkei 225 Index
(New Zealand) S&P/NZX 50
(S Korea) KOSPI Index
(Singapore) STI Index

[Europe / Middle East]
(France) CAC 40
(Germany) DAX
(Italy) FTSE MIB
(Russia) RTSI Index
(Saudi Arabia) Tadawul All-Share Index
(Spain) IBEX 35
[Africa]

[North/South America]

Tuesday, 26 November 2019

Swiss Franc could surge in a coming week? Trend and Momentum 26-Nov-2019

Looking at the latest trend and momentums of EURCHF and USDCHF, they are expected to be into downward trend which means Swiss Franc will be relatively stronger against both Euro and US Dollar.
EURCHF Trend and Momentum
EURCHF Trend and Momentum
USDCHF Trend and Momentum
USDCHF Trend and Momentum

On this Wednesday, ZEW (Centre for European Economic Research) will publish their survey expectations which consist of business conditions, employment conditions and the other factors in Switzerland. (ZEW Survey - Expectations)

If the actual figure beat the market consensus or expectation, it would be positive for Swiss Franc, which could lead the currency more bullish Of course, in case the figure disappointing the market, Swiss Franc can be into bearish trend. The point is that ZEW publication on Wednesday is a remarkable one which could affect Swiss Franc fundamentally.

Regarding US Dollar, much more economic events are on ahead in coming days. (See the economic calendar on QROSS X). Perhaps, USDCHF can be more volatile than EURCHF in a coming week.


To check Forex trading signals, download Forex Signal by QROSS X.

Friday, 5 July 2019

Swiss Franc (CHF) bullish in a coming week? Trend and Momentum on 5-Jul-2019

As a result that Switzerland and EU failed to agree on their future relationship, the investors of each economy are not able to trade stocks listed on each other's stock exchange since last Monday. While the impact for the long term is still not clear, some says there is no immediate impact on Swiss side and EU maybe more badly affected. Another source says high frequency traders will be the most affected badly.

>> [SWI] Has the EU scored an own goal with Swiss stock exchange freeze?
>> [Bloomberg] Swiss Stocks Trade Smoothly on Day One Without EU Recognition

In the meantime, some trend and momentum of CHF indicates that CHF could surge in a coming week. Picked up some better fitted ones, here is the trend and momentum of CHFJPY and USDCHF respectively.

[CHFJPY]


[USDCHF]

To check Forex trading signals, download Forex Signal by QROSS X.

Monday, 1 July 2019

US Dollar surging as its trade tension with China eased 1-Jul-2019

After G20 conference in Osaka, US Dollar has been surging against other currencies as the market sees US's trade tension with China eased.
>> CNBC: Dollar advances to 2-week high after US-China trade tensions ease

The below charts describe AUDUSD and EURUSD respectively since the late last week.

[AUDUSD]


[EURUSD]

On 27-Jun last week, we picked up the Trend and Momentum for AUDUSD and EURUSD. Maybe coincident? or the signal just worked? Who knows...

To check Forex trading signals, download Forex Signal by QROSS X.

Thursday, 27 June 2019

US Dollar bullish shortly? Trend and Momentum on 27-Jun-2019

For the last few months, the world have been in geopolitical turbulence, consisting of US-China trade tension and US-Iran relation symbolically. UK's new prime minister will be designated by the end of July, while the recent poll indicates Mr.Boris Johnson is more likely to be a new PM than the foreign secretary Mr.Jeremy Hunt.

>> UK’s next prime minister — who are the lead candidates?

Let's shift the gear to technical matters, USD is expected to surge in a coming week according to the Trend and Momentum. The signal is more particularly observed in AUDUSD and EURUSD.

AUDUSD
[AUDUSD Trend and Momentum as of 27-Jun-2019]


EURUSD
[USD Trend and Momentum as of 27-Jun-2019]


To check Forex trading signals, download Forex Signal by QROSS X.

Tuesday, 30 April 2019

Australian Dollar surging in a coming week? Trend and Momentum on 30-Apr-2019

Australian Dollar (AUD) 's performance has been bearish for about last two weeks against some major currencies CAD or USD while NZD has been even weaker since the end of March.

Australian economy fairly depends on Chinese economy which is under pressure, and the second biggest economy could drive Australian economy and the value of its currency.

As a matter of technical indicators for the short term, the Trend and Momentum are indicating AUD could be surging in a coming week, and quick downturn after surging is also anticipated.

AUDCAD
[AUDCAD Trend and Momentum as of 30-Apr-2019]

AUDUSD
[AUDUSD Trend and Momentum as of 30-Apr-2019]

To check Forex trading signals, download Forex Signal by QROSS X.

Saturday, 27 April 2019

Japanese Market sleeping for a coming Golden week, USDJPY vs N225

This year, Japanese people have the longest consecutive national holidays for 10 days, and it started today. Tokyo market will have been closed for next week and on Monday in another week after the next. While Japanese stock market is closed, Forex market is opened in the world and the price naturally moves in Japanese Golden week.

As many investors who look at Japanese market know, N225 and USDJPY are positively correlated though the correlation has been relatively lower than before. Still, compared with other markets, for example FTSE100 vs GBPUSD, CAC40 vs EURUSD or DAX vs EURUSD, the two indexes of N225 and USDJPY have always positive correlations for a reasonable time frame (e.g. 1 year).

The point of this Japan's holiday season is how N225 moves on the first business day after the Golden week, 7-May-2019. Let's have a look at the historical correlation between N225 vs USDJPY, whose correlation period is 250 points for each.

[USDJPY and N225 for last 5 years]
[250 days Correlation USDJPY vs N225]
The current correlation (250D) is at around 40%. Whatever this number is considered, it could anticipate N225 after the holidays follows the direction of USDJPY for next week. USDJPY's latest closing is at around 111.60. Japanese investors would hope the market not to be volatile drastically...

The one side correlation seems be particular in Japanese market, and it is not for some other markets. In European markets, the stock indexes and exchange rates are correlated actually, but the correlation moves in positive as well as negative territories.
Look at other examples in European markets, the below figures describe the correlation between FTSE100 vs GBPUSD.

[GBPUSD and FTSE100 for last 5 years]
[250 days Correlation GBPUSD vs FTSE100]

And the correlation between CAC40 vs EURUSD and DAX vs EURUSD. (Correlation figure only)
[250 days Correlation EURUSD vs CAC40 and DAX respectively]
Their latest correlations are positive, but the numbers are varied from time to time more than Japanese market. However, Europeans do not have such Golden week anyway...

Friday, 26 April 2019

Review of New Zealand Dollar for last 3 days

Having recently posted an article about NZD forecast, we review those forecasts of NZDCAD, NZDUSD and NZDJPY which were picked up.

Although some of them once downed further, NZD has reverted against the downward trend for the past two weeks. It proves nothing in fact as no one can predict the future market at 100% surely. For the traders and our App users, it encourages that better fitted analysis would lead to more precise forecast.
Figures of those three FXs in Forecast vs Realized market are described as below. NZDCAD had downed a little bit more sharply at the analysis, and it seemed to have less room to deepen further for last 3 days.

[NZDCAD Forecast vs Realized market]
NZDCAD Trend & Momentum on 23-Apr-2019
NZDCAD 23 to 26-Apr-2019 (TradingView)
[NZDUSD Forecast vs Realized market]
NZDUSD Trend & Momentum on 23-Apr-2019
NZDUSD 23 to 26-Apr-2019 (TradingView)
[NZDJPY Forecast vs Realized market]
NZDJPY Trend & Momentum on 23-Apr-2019
NZDJPY 23 to 26-Apr-2019 (TradingView)

To check Forex trading signals, download Forex Signal by QROSS X.

Tuesday, 23 April 2019

NZD reviving in a couple of weeks? Trend and Momentum on 23-Apr-2019

NZD has sharply fallen since the late of last month. Particularly, NZDUSD has been downed by about 3.5%, and NZDCAD by 3.8% respectively.
It might have been a tricky situation in the forex market in this April, not just only for NZD but also for CHF which experienced a worst month since 2017 according to Bloomberg.

[Bloomberg] Franc Set for Worst Month Since 2017 Means SNB ‘Sleeps Easier’
The franc is headed for its worst month in almost two years, bringing relief to Swiss policy makers seeking a weaker currency in their quest to revive inflation.

The currency has lost about 2.5 percent of its value against the euro this month, a depreciation not matched since July 2017. The drop is spurring a re-think among some analysts, who are looking to revise their currency forecasts given the collapse in market volatility that has failed to boost demand for haven currencies.

In the meantime, the Trend and Momentum signals indicate NZD could revive in a coming week. The signals against USD, CAD and JPY.

NZDUSD Trend and Momentum on 23-Apr-2019

NZDCAD Trend and Momentum on 23-Apr-2019

NZDJPY Trend and Momentum on 23-Apr-2019

To check Forex trading signals, download Forex Signal by QROSS X.

Friday, 8 March 2019

USD downward trend in a coming week?

ECB's (dovish) decision shocked Forex market yesterday as their negative outlook to the European economy and geopolitical uncertainties over the world, such as Brexit, US-China trade war, ...

On the other hand, in short term horizon, USD have been relatively stronger for a last couple of week against major currencies JPY, CHF, AUD, NZD, GBP and EUR of course. Our trend and momentum signals indicate this bullish USD could get bounce back. In the next week, more stories about Brexit anticipated, the market could turn more negative mood. If it is, JPY or CHF which are traditionally safe asset in bearish market can be relatively stronger in the negative market.

Here are some of snapshots from the trend and momentum charts. Those are as of the beginning of today (UTC).

[GBPUSD Trend and Momentum 8-Mar-2019]
GBPUSD Trend and Momentum 8-Mar-2019







[AUDUSD Trend and Momentum 8-Mar-2019]
AUDUSD Trend and Momentum 8-Mar-2019







[EURUSD Trend and Momentum 8-Mar-2019]
EURUSD Trend and Momentum 8-Mar-2019

EURUSD jumped after yesterday's ECB decision.




[NZDUSD Trend and Momentum 8-Mar-2019]
NZDUSD Trend and Momentum 8-Mar-2019







[USDCHF Trend and Momentum 8-Mar-2019]
USDCHF Trend and Momentum 8-Mar-2019







[USDJPY Trend and Momentum 8-Mar-2019]
USDJPY Trend and Momentum 8-Mar-2019







To check Forex trading signals, download Forex Signal by QROSS X.

Saturday, 17 September 2016

Theory of Interest Parity 17-Sep-2016

It hasn't been updated for such a long time, but you could see Forex analysis in our App on your own mobile.
Anyway, today's title is "Theory of Interest Parity". It theoretically defines the future Forex level by interest rates in two currencies of which are consisted in the Forex. When you have USD 1 million and invest it in interest rates, you can just invest in USD or in other currencies by exchanging. If the exchange rate unchanged, you would like to choose the currency whose interest rate is the highest. Obviously, it forms arbitrage and the fair return should be same in whichever currency you invest. In this sense, the market expects the future level of Forex that a currency of higher interest rate will be weaker than another of lower interest rate.
Of course, the future market does not always respond as theoretically expected. However, this theory is theoretically missing an important factor. Gap in quantity of issued currency will certainly affect to the future exchange rate. When the (expected) productivity is not growing and the central bank issues more notes in the currency, it implies the value of each unit of currency should be deducted.
Currently, EUR interest rate has been in negative territory. In the theory, the value of EUR is going up. But quantitative easing and weak productivity in Eurozone suppose that EUR will not be stronger as the theory expects. In fact, USD is still strong despite their relatively higher interest rate.