Daily Market Analysis by ForexMart

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Me and my team will be posting daily analysis on this thread. You may leave comments.

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USD/JPY Fundamental Analysis: October 27, 2016

The USD decreased its value in relation to the JPY during Wednesday’s session after yen traders resorted to safety buying as a reaction to the drop in US equity markets. The trading session closed down with the USD reverting back to its previous value against the JPY. The USD/JPY is currently at 104.468, increasing by up to +0.25% or 0.260 points.

Analysts are stating that the USD dropped further due to concerns regarding the Federal Reserve’s monetary policy and uncertainties regarding the impending US presidential elections. However, the rallying of the USD is an indicator that there is an increased possibility for a Fed rate hike in December, and risks are possibly leaning on the downside territory. This will then add more focus to the release of the Durable Goods report on Thursday and Advance GDP data which will be released this coming Friday.

Thursday’s trading session is expected to have more double-sided trades since traders are monitoring the general direction of the US Treasury yields, as well as high-risk assets demand. Traders should also consider monitoring the stock market, since the JPY is expected to increase if support levels for the US equity markets starts decreasing.

GBP/USD Technical Analysis: October 27, 2016

The GBP/USD was able to revert back from its losses during the previous trading day after the cable pair dropped down to its lowest levels since the Brexit referendum was announced. The currency pair fell by up to 150 pips during Tuesday’s trading session and hit 1.2081 points before reaching support levels. The currency pair was then able to recover some of its lost value and has recently had a session high of 1.2243 points. The pair was last seen trading at around 1.2225 points.

On the other hand, the expected US economic data came out as very ambiguous, after Services PMI data increased by 54.8 points for October, going above the expected 52.3 range. US home sales data surged by up to 3.1% for September and had a seasonal yearly rate of 593,000 after failing to reach the expected range of 600,000.

Support levels for the GBP/USD are expected to be at 1.2081 and 1.2000, while resistance levels are expected to be around the region of 1.2259 and 1.2297 points.

USD/CAD Fundamental Analysis: October 27, 2016

The CAD experienced substantial deprecation during Wednesday’s session in spite of a disappointing US crude inventories data. US oil stocks decreased by up to 600,000 bpm last week, going even lower than the expected increase of up to 700,000 bpm. This decrease in oil prices caused a decreasing trend in the Tokyo session after the data for the API inventory exhibited an increase by up to 4.8 million barrels, but crude prices were able to revert immediately after the US Energy Information Administration released its reports. However, these gains were again revoked after traders expressed concerns regarding the OPEC deal.

The USD/CAD pair experienced a significant increase by up to 0.213% during the past session, with the pair now trading at 1.3664 points after the CAD decreased in relation to the USD due to a drop in energy prices. For the rest of this week, CAD traders are expecting the release of the US durable goods data this Thursday. However, the main focus for this week is the flash GDP for the US. The overall growth for the US is showing an increased momentum, and this is expected to cause the USD to significantly increase since this will further cement the possibility of a Fed rate hike in December. However, a further lack of activity from the Federal Reserve might prompt the Bank of Canada to intervene on behalf of the central bank’s monetary policy.

October 27, 2016

China Reassures Investors to Impede a Six-year Low

Chinese Yuan is depreciating nearing a record low in six years. The government is finding ways to hinder the process and recover from this impending threat. However, the deputy Governor of People’s Bank of China (PBOC) said that there is no grounds for a relentless decline and they stopped it from happening.

China is giving off signs that the currency is being carefully monitored and investors should be careful in their trading positions against the currency. Despite this information, this would have much of an impact considering past connotations to the problem since the driving force is the appreciation of dollar.

The PBOC is saying if volatility arises, investors should not be agitated as they would definitely do something to stabilize the situation. China has already eased the local bonds and abandoned the necessity for inbound investment program quotas.

October 27, 2016

Economy Update: UK falls below France and ranked fifth as the world's biggest economy


As it was presented in the global economy table, the sterling pound experienced declivity. France ousted the economy of the United Kingdom and made it as the sixth-largest economy in the world.

The World Bank were able to conclude the ranking due to the average value of the currency within a certain period, including currencies accompanied by the dollar. Countries that slip past the UK are US, China, Japan, Germany, and France in terms of US dollar. The final line up all boils down to the exchange rates considering that the pound is five times weaker versus the greenbacks because of the EU exit. The annual GDP of the Britain is roughly £1.8 trillion which makes it powerless compared to the greens and eventually cause the country to plunge down in the table.

October 27, 2016

Singaporean Energy Corporations Face Added Pressure due to Energy Price Slump

Lending firm Oversea-Chinese Banking Corporation said in a statement that a number of Singapore-based energy corporations are now facing increased pressure due to the recent drop in oil and gas prices, which means that these companies might face difficulties with regards to repaying debts. The CEO of the said lending firm also stated that the final quarter of 2016 might become particularly difficult for the energy sector, especially since oil and gas prices have yet to recovery from this particular price drop.

EUR/USD Technical Analysis: October 28, 2016

The center of attention of the market is on the Initial Jobless Claims and Durable Goods Orders releases. For that reason, there was no major event scheduled in the European Union as per the market calendar.

The pair established a sluggish condition amid the Asian session yesterday. Meanwhile, the price reached the 1.0900 level by which the downward momentum subside. It further strengthens as the pair plunged off the region, enabling the EURUSD to regain its profits during the European trades.

It was shown in the 1-hour chart that the price maneuvered on top of 100-EMA where the euro meets a solid support. The 50 and 100 EMAs kept intact on its recent position while 200-EMA headed southward. Resistance arrived at 1.0950 region, support approached the 1.0900.

MACD expanded and demonstrated weakening against the seller’s strength. RSI prevail in the neutral position.

GBP/USD Fundamental Analysis: October 28, 2016


The GBPUSD demonstrated an active and ongoing trades on Thursday along with the UK GDP Data release. The GDP release was highly anticipated by profuse investors and the market generally since this quarterly basis is a primary indicator of the economic decline after the referendum was ratified.

Upon the issuance of the data, the pound and greens established a straight route approaching the 1.2240 range. The economic health indicator presented a better-than-expected 0.5% value compared to 0.3% which enable the pair to push towards 1.2270.

The bulls assumed that they could break the above level of 1.2270 but failed to do so. According to forecasts, resistance sits at 1.2280 but there is a tendency that it could manage to its daily high at 1.2273 or the possibility to made an immediate fallback.

USD/CAD Technical Analysis: October 28, 2016

The CAD experienced a drop in relation to the USD after dovish statements from the Bank of Canada last week plus corrections in crude oil prices put downward pressure on the CAD. The USD/CAD pair was able to maintain its bullish stance during Thursday’s trading session, with the pair remaining at the 1.3400 region, which is the pair’s current critical range. However, the pricing for the currency pair was able to drop slightly prior to the opening of the New York session.

The USD/CAD was able to go over its current moving averages after its 50-EMA provided ample support for the currency’s price in the daily chart. However, the pair is seen to have probable difficulties with regards to moving lower from the 50-EMA. The moving averages for the currency pair are generally higher, and analysts are expecting resistance levels to be at 1.3400 points while support levels are expected to be at 1.3300.

The MACD indicators for the USD/CAD pair is still consolidating within its levels, while the RSI remains at the overvalued trading range. Analysts are expecting that if the pair manages to go break through the 1.3400 region, then the USD will be able to have more profits upon reaching the 1.3470 range. On the other hand, if the pair drops and hits the 1.3300, then the market is advised to look at the trading range of 1.3250.

October 28, 2016
Apple Releases New Macbooks in an Attempt to Recover Market Losses
Apple Inc. has recently unveiled its new range of Macbooks as part of the tech firm’s attempt to revive a product which was predicted by Steve Jobs would be rendered obsolete soon by the iPad. Analysts are expecting that this newly-released product line would enable the firm to significantly update its long-term growth. The shares of the said firm has recently dropped by up to 1% and has traded at $114.48 towards the end of the New York trading session. Meanwhile, Apple stocks surged by up to 20% as a result of expected positive sales for the iPhone 7. However, the firm’s shares immediately gave up a portion of its value after the company released a rather careful sales forecast.

October 28, 2016
Apple Releases New Macbooks in an Attempt to Recover Market Losses
Apple Inc. has recently unveiled its new range of Macbooks as part of the tech firm’s attempt to revive a product which was predicted by Steve Jobs would be rendered obsolete soon by the iPad. Analysts are expecting that this newly-released product line would enable the firm to significantly update its long-term growth. The shares of the said firm has recently dropped by up to 1% and has traded at $114.48 towards the end of the New York trading session. Meanwhile, Apple stocks surged by up to 20% as a result of expected positive sales for the iPhone 7. However, the firm’s shares immediately gave up a portion of its value after the company released a rather careful sales forecast.

October 28, 2016

UK economy made a 0.5% growth after the Brexit authorization

Three months after the Brexit happened, UK economy manifested a fast recovery with the help of the country's service sector.

As it was indicated by the Office for National Statistics, there is a 0.5% increase in the economic health during the third quarter of the year. The result is lower compared to the previous quarter with a 0.7% rate, however, the latest increase is much stronger against the analyst's assessment.

Due to the better-than-expected outcome, the preconception regarding BoE's interest cut rate for the following week had subsided. However, the supporters of the referendum believes that these figures are an indication that the entire negative speculations about the EU exit are merely about fear-mongering.

October 28, 2016
Demand for Manufactured Capital Goods Weakened
The manufactured capital goods from America fell by 1.2% in September despite three consecutive months of gains. The demand for computers and other electronic products slowed down which is expected to affect business spending in the last quarter of the year.
Demand for new heavy machineries has been reduced because of the predominance of used construction equipments while the demand for transportation equipments declined by 0.8% that impelled durable goods lower by 0.1%. On the other hand, orders for electrical equipments and machineries including appliances has risen last month. However, this may shift course to a better predicament since the dollar appreciated as well as the oil and gas drilling activity has improved in the past months.

November 3, 2016

A 15-month Hike of Petrol and Diesel prices

Petrol and diesel prices soar sternly reaching the highest level since July 2015 due to the rising crude oil prices and the depreciation of pound since Brexit. The standard diesel is now priced at 118.7p per liter while the standard petrol is priced 116.7p per liter rising by 5.2p and 4.4p respectively. This has been the highest monthly increase in the span of three and half years.

The weak pound also has an effect to the wholesale market that has relatively put pressure to the wholesale prices. The RAC has forecasted that this will stabilise in the next months while OPEC agreed to reduce production. The next OPEC meeting will determined if the prices will steady before the end of the year.

November 3, 2016
Positive economic news leaves a better impact on Asian markets
The positive news yesterday regarding the Australian and Chinese economy boosts Asian markets. Despite of the skepticism about the expected result for the presidential election did not hinder traders to edged up in Asia. In addition to the favorable release on Thursday, a private gauge were used to assess the activities of China's service sector. According to results, the month of October is considered to be the fastest time period of expansion which indicate the strengthening of the China economy.
The purchasing managers index of Caixin China grew up to 52.4 in October, compared to 52.0 in September. While South Korea’s Kospi SEU gained 0.2% versus -0.17%, Hong Kong’s Hang Seng HSI were able to recover from -0.10% to 0.2% and S&P ASX 200 XJO of Australia made a 0.1% increase against the previous -0.08% .

USD/JPY Technical Analysis: November 3, 2016

The USD continues to be subject to downward pressure during Wednesday’s trading session due to uncertainties brought about by the upcoming US Presidential elections next week. The USD/JPY pair was unable to maintain its previous levels of 105.00 after a heavy seller resistance within this particular region, causing the currency pair to lose some of its value. Wednesday’s trading session saw the pair remain in the negative territory as the downward momentum for the currency pair continued. Seller pressure also pushed the USD/JPY further below 104.00 and is now approaching the 103.00 trading range.

The USD/JPY pair broke through 103.50 and is well on its way to 103.00. The pricing of the currency pair went over the 100-EMA and is testing the 200-EMA for the pair’s 4-hour chart. Meanwhile, moving averages for the USD/JPY is currently on the downward direction. Resistance levels for the pair are expected to be at 103.50, while support levels for the pair are expected to be at 103.00. MACD indicators for the pair declined, showing seller strength. RSI indicators are now a few pips away from the oversold level which signals a possible downward move for the pair.

If the USD/JPY continues to be subject to downward pressure, then the pair could possible reach its previous low of 102.50. However, there is still a probability that the pair would be able to reach its resistance levels at 103.50-103.80 points.

NZD/USD Fundamental Analysis: November 3, 2016

The NZD was able to reach its highest levels since October, causing the pair’s trend on its daily chart to go in the upward direction. Presently, the NZD/USD pair is trading at .7287 after increasing by +1.43% or 0.0103 points.

The Federal Reserve’s meeting on Wednesday backtracked to election-related concerns, whose results could possibly put an increased pressure on the USD. Democratic candidate Clinton is slowly being overtaken by Republican candidate Trump, and investors and traders are now banking on a possible Trump victory. Meanwhile, the Federal Reserve was unable to sway traders and investors with its most recent adjustments to its monetary policies. The Fed voted to maintain its current interest rates, but left out hints in its statement which could have either made or broke the possibility of a rate hike in December.

The NZD increased significantly on Wednesday after recent government data exhibited positive employment growth for the nation in the third quarter, with this growth accelerating to three times the previous growth rates in July and September. This could be an indicator that the Kiwi economy might be doing even better than what the Reserve Bank of New Zealand initially thought, and could also mean a possibility of an interest rate cutback in the coming weeks.

EUR/USD Fundamental Analysis: November 3, 2016

The EUR/USD pair continued to be on the bearish territory as the US dollar continued to decrease in value during the last trading session. The market is now considering the possibility of a Trump victory, and a lot of market players do not want to be caught off-guard which was what happened during the Brexit shock vote. The impending US elections has already prompted investors to go to safe haven currencies such as the JPY and CHF. Normally, investing in the USD during times like this would be beneficial to investors, but since the USD has turned risky, investors are now resorting to gold and other safer investments.

The currency pair is now placed over the 1.1100 region with a lot resistance levels surrounding this particular region. The statement released by the FOMC did little to appease the market since the statement was able to meet market expectations. However, the Fed is still open to the probability of a rate hike in December even though the central bank did not give out any hints during its previous bank meeting. The Fed statement was unable to induce market volatility and only caused a few jumps for the currency pair.

The market is not expecting any major economic news releases from the eurozone. However, the market is expecting the release of the UK High Court ruling which will be determining whether the Parliament will be invoking Article 50. If the Parliament votes “No”, then Theresa May would have full bearings of the Brexit strategies, causing the GBP to be negatively affected and could cause the USD to inch higher.

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USD/CAD Technical Analysis: November 4, 2016


The loonie established a neutral position versus its base currency as of yesterday. Seeing the greenbacks softened consequent to the unfavorable result of the American labor statistics. While news regarding the oil price reduction had affected the Canadian dollar.
The pair stayed in the neutral phase since last week and remained the neutral opinion until now. Moreover, USDCAD stick around the 1.3360 as its weekly lows. The price toggle in the boundaries of 1.3400 and 1.3350 levels.

As shown in the 1-hour chart are moving averages that sits in the neutral position as well. The pair headed over the downward direction but blocked by the 200-EMA. While the accelerating notion turned down upon arriving to the regions of 50 and 100 EMAs.

Resistance settled in the 1.3400 level, support is located at 1.3330 region. MACD indicator is placed within the centerline.

If the histogram attained the positive zone it means that buyer’s strength are growing. When the indicator reached the negative territory, this implies the seller's capability to manage the entire market. RSI is found also in the neutral domain. It is expected that the pair will maintain a bullish outlook providing that the price is on top of the 1.3330.

GBP/USD Technical Analysis: November 4, 2016


Since the recently issued UK’s Purchasing Managers' Index presented much better results which cause another reinforcement for the sterling on Thursday. On the same day, the pound were able to optimize on the back of BoE’s conservation of rates.

The pair demonstrated a positive tone and kept a bullish position amid the trading day. On the other hand, the GBP develop another bullish outlook in the interim of EU hours.

As traders attempted to push the pound to a higher level it reach the 1.2500 resistance level. Upon breaking the 100-EMA, the price headed north close to the 200-EMA ahead of the NY session. Current resistance can be found at 1.2500, support sits at 1.2400. MACD is located in the positive zone. The histogram escalated which means improved strength for the buyers. RSI is seen at the overbought condition.

In case that the pair preserved a bullish outlook, it would keep its reversal moving towards the 1.2500 region.

November 4, 2016

Estate Agency Groups expects for a sharp increase on house rents

The possibility of the increase of rents over the next five years were confirmed property agents of Savills. According to forecasts, it is feasible that the rate for rental amount will have an additional 19% upon this year until 2021 compared with the House Price Index which will surge for only 13%.

The escalation of prices will be much felt in London which will have an accrual of 24.5% while 10.9% only for house prices.

The reason behind this increment was the "post-referendum economic uncertainty" along with a low consumer sentiment. Even before Savills stated that there will be no proliferation within house values. However, the demand for real estate properties are also expected to have higher rates by which first time home buyers will have affordability issues.

EUR/USD Fundamental Analysis: November 7, 2016

The EUR/USD is expected to incur significant gains due to risks that Donald Trump could possibly win the upcoming presidential elections, something that the international market did not anticipate. However, some market players are also saying that the USD would be able to regain some of its strength over a few days and a relief rally would occur should Clinton come out as the winning candidate in the elections. Prior to the opening of the Monday session, Clinton was already cleared by the FBI with regards to her e-mails and this is expected to be good for her campaign and has already caused some currency pairs to open up certain gaps.

The EUR/USD pair has already dropped by up to 70 pips and this is just a sneak peek of what could possibly happen if ever Clinton wins the presidential elections, especially since the market is now anticipating a Clinton victory with Trump’s chances becoming invariably slim.

Market players are expecting that this particular gap in the currency pair will be temporarily covered, while the USD is set to regain some of its lost value during the next trading sessions, especially with the impending presidential elections.

Technical Analysis: November 7, 2016


The USD/JPY pair was able to make a small recovery during last Friday’s session after a series of risk-offs which hit the European and American stock market. However, the pair continues to stay in the negative territory and traded within Thursday’s low levels on Friday’s session. The currency pair had a fairly bearish stance after the pair experienced selling pressure above the 103.00 region. Resistance was encountered by USD bulls along the 103.20 trading range where the 200 EMA is also located. The 200 EMA maintained the pressure on the USD/JPY by resisting all possible recovery moves.


The 50 and 100 EMAs for the currency pair decreased quickly, while the 200 EMA maintained its bearish outlook for the session. Resistance levels for the currency pair is expected to be around the 103.50 range, while support levels are expected to come up at the 103.00 region. The technical indicators for the USD/JPY pair are seen to be slightly bearish, with an increase in the MACD indicator showing a weakness in seller positions. Meanwhile, the RSI indicators for the pair is still consolidating within its undervalued regions.


The USD/JPY pair is expected to have its resistance levels at 103.50 if the currency pair would be able to consolidate over the 103.00 region. However, the USD/JPY might again experience a decline if the pair closes the session with a lower value than this particular level.

USD/JPY Fundamental Analysis: November 7, 2016

The USD is expected to increase significantly against the yen during Monday’s trading session as a result of investor reaction to reports that the FBI will be dropping its investigation of US Presidential candidate Hillary Clinton’s e-mails and will not be filing any charges against the Democratic candidate.


This then means that the Monday session is most likely to be a risky day as investors are expected to go on an aggressive USD and stock-buying spree especially after last week’s sell-offs. Investors are also expected to sell their safe haven assets which were bought as hedge against the probability of a Trump victory, which includes the JPY, EUR, and gold stocks. The USD/JPY dropped to its support region located at the 102.799-102.155 range, going down at 102.533. The pair is expected to rally back to at least 104.03 to 104. 383 if the short-term rally for today’s session proves to be strong enough for the currency pair.


Market players are expected to mainly focus on the upcoming elections even with new economic events taking place, after which, the market is expected to shift its focus on the expected Fed rate hike this coming December. These events are expected to induce an upward shift in the value of the US dollar. The Bank of Japan is expected to release the minutes of its latest Monetary Policy Meeting, while the Average Cash Earnings is expected to be released at 0.2%. Minor reports from the US to be released this Monday are the Loan Officer Survey, Labor Market Conditions, 10-Year Bond Auctions and Consumer Credit data.