Daily Market Analysis by ForexMart

USD/CAD Fundamental Analysis: June 5, 2017

The USD/CAD pair went through a very restricted week of ranging and consolidation activity as the pair’s overall accumulated range amounted to a just a little more than 120 pips. This range is currently the tightest for the USD/CAD pair and this illustrates the intensity of the ongoing struggle between the pair’s bulls and bears. Now that the currency pair has already moved past 1.3500 points, this marks a shift in the trend of the currency pair especially since the USD/CAD pair has been recently unable to surpass 1.3500 points during the past two weeks, indicating that the pair’s bulls are struggling with regards to dominating the movement of the currency pair.

Thanks to the pair’s bulls, the USD/CAD pair has managed to prevent itself from falling any further as the bulls remain struggling against the bears in order to make sure that the currency pair does not fall hard and fast. The bulls have been helped in part by the recent drop in oil prices whose downfall was mostly due to a surge in production and inventory and has made sure that the Canadian dollar remains weak across the charts. However, the irony here is that one of the primary reasons behind the currency pair getting bogged down through 1.3500 points was the recent surge in oil prices, but now that oil prices have already dropped in value, the USD/CAD pair has reached a point of no return where there is no expected assistance coming from external factors. But since the Canadian economy has been showing signs of steady improvement during the past months, this steady uptrend in the country’s economy is expected to remain in effect at least during the short-term period.

For this week, the Canadian economy will be releasing its unemployment rates and employment change data, both of which are expected to give a clear depiction of the current status of the Canadian economy. If the employment report comes out as positive, then the USD/CAD pair could possibly make a move towards 1.3400 and could even move lower through the bottom rungs of its range.

EUR/USD Fundamental Analysis: June 5, 2017

The EUR/USD pair underwent a very volatile trading action last week after it was able to stick to certain resistance and support levels, thereby making last week a relatively painless week as far as the currency pair’s traders and investors are concerned. The buyers only had to choose the correct buys in order to gain profits as the EUR/USD pair’s uptrend was pretty much evident since it was able to maintain its hold on to certain selling and buying points.

The first half of last week’s trading session was a rather lackluster time for the EUR/USD pair, with the dominant market trend being the performance of the dollar as the market anticipation for the month-end flows increased by the day, wherein the market was generally expecting an influx of US data such as the NFP report. This then caused the EUR/USD pair to drop in terms of its value but since the 1.1100 points contained a lot of buys, the pair has managed to revert strongly against any quick drops in its value. As the second half of last week’s session commenced, this was marked by a transition into a new month and was characterized by several economic reports such as the ADP employment report, which impressed the market by coming in at a strong reading of 153,000, thereby increasing the chances of a positive NFP report, which would ultimately increase the possibility of a Fed rate hike this month. But the NFP fell short of its market expectations as well as the wages report, and this was more than enough for the EUR/USD pair to surge by over 70 pips and closed down last week’s session at its range highs located at 1.1280 points. ]

For this week’s session, there are no major news coming from the EU except the ECB press conference scheduled on Thursday. The market is instead expected to shift its focus towards the UK elections as this will have a significant impact on the standing of the euro. If Theresa May manages to win over a strong majority vote, then the euro could possibly drop a few points, although the bullish undertone for the EUR/USD pair is expected to remain intact at least for a few more days.

June 5, 2017

Indian Economy Boost by 7.2 percent, World Bank Says

Apparently, India was able to recover from the negative effects brought by the demonetization as the World Bank estimated a 7.2 percent strong growth for the Indian economy, compared with 6.8 percent gained in 2016.

According to an official from the said international financial institution, they revised its projections regarding India’s improvement with 0.4 percentage points versus forecast made in January, however, the country still wear the crown as the fastest major economy to grow among other countries around the world. While the growth forecast for China remained steady at 6.5 percent for this year and 6.3 percent for the upcoming 2018 and 2019.

Based from the most recent Global Economic Prospects of World Bank, projected growth for India is 7.5 percent by the year 2018 and 7.7 percent for the following year, 2019.

In both years, the assessment was down to 0.3 percent and 0.1 percent points in comparison to predictions in the first month of the year.

Given that increase towards the India’s economy in FY2017 is roughly lower than the previous predictions that reflect indicates a sustained resurgence in the private investment sector as foreseen back then.

June 5, 2017

South Korea Began Stimulus Fiscal package of $10 billion for Job Sector

South Korea will release a stimulus package worth 11.2 trillion won equivalent to $10 billion U.S. dollars on Monday. This will support social welfare subsidy and part of methods for achieving the pledge of President Moon Jae-in to generate 810,000 jobs in the public sector. It is the first supplementary budget for work sector according to the country’s chief of budget Park Chun-sup.

In particular, about 5.4 trillion won is allotted for social welfare jobs such as educators, firefighters, postal employees as stated by the finance ministry while 2.3 trillion won will fund financial aid for maternity leave and medical assistance for elderlies. Overall, It is anticipated to increase 71,000 jobs for the public sector and 15,000 jobs for the private sector.

This strategy is anticipated to stimulate economic growth by 0.2 percent for the year and augment the 2017 outlook from 2.6 percent. It is also supposed to boost both income and consumption as disposable household income dropped by 1.1 percent in the fourth quarter while private consumption rose by 0.4 percent but is still lower than the overall economic growth.

June 5, 2017

US Jobless Rate Drops to 4.3% as Hiring Declines

US unemployment rates fell to its lowest levels reached within a 16-year period last May/ Market investors took this as a sign that the ever slow-paced US economic expansion has already reached a whole new level that has made it exceptionally hard for business to score workers with suitable working experiences. The country’s jobless rate is currently at 4.3%, which is its lowest point reached since May 2001 and is just under the level it reached during the 2001-2007 economic expansion period. On the other hand, hiring rates have posted a significant decline at a seasonally-adjusted jobs record of 138,000 from last month, which makes up about two-thirds of the recorded growth rate for the entirety of 2016.

USD/CAD Fundamental Analysis: June 6, 2017

The USD/CAD pair continues to exhibited a very tight price action as the pair’s bulls and bears continue to fight out for the control of the currency pair and is expected to remain as the pair’s dominant trend in the short-term period. The pair has been trapped in a very limited range ever since the currency pair managed to push forward past 1.3500 points with buyers dominating the 1.3400 trading range.

During the past few days, oil prices have remained stable, thereby decreasing the amount of leverage it gave to the Canadian dollar and was one of the reasons why the loonie was unable to take full advantage of the dollar weakness which was due to a series of dismal US employment reports last week. Oil prices has also continued to be very disappointing due to rising tensions in the oil-rich Middle Eastern countries and has subsequently diminished its support for the loonie. In spite of the pair making a headway towards 1.3460 for a short while, it was almost immediately met with several buys, causing the USD/CAD pair to retreat towards 1.3500 points, where it is expected to stay put at least in the coming days. The market is now preparing itself for the trading sessions on Thursday and Friday as the currency pair would most likely undergo a volatile trading session due to Comey’s testimony as well as the release of the Canadian employment report on Friday. This is why traders are advised to remain in the sidelines until such time that a break shows up on the pair’s range before inducing any kind of progress in their trades.

For today’s session, there are now major releases from both the US and the Canadian economy and the USD/CAD pair is expected to continue consolidating throughout the duration of today’s session.

GBP/JPY Technical Analysis: June 6, 2017


The British pound against the Japanese yen broke on the lower side during the Monday session which was upturned indicating bullishness in the trend. It is directed towards the 143 level and higher up that fills the gap. There is a robust resistance seen in the previous trades that makes the reversal unexpected. However, if the price is set higher, this would persist to an elevated level pointed to the 144 region.

It is anticipated to have volatility for this pair regardless of the next move since the market is in a “risk on” or “risk off” sentiment. Moreover, the British elections worsen the situation as it affected the British currency that brings unpredictability in the market until the election on Thursday. Other global economic concerns will also affect the trend.

Volatility is the current focal point of the market and if it gaps more than the 143 region, more buying opportunities will come out for the market. However, if the election polls showed conservatives leading in Britain, this push this pair aimed higher with chances to break higher than the 144 region then shift towards the 145 handle.

Traders should not expect that trading this pair would be easy that makes trades on small positions to be ideal for this pair or one could opt to wait in the sidelines as GBP/JPY is one of the pairs risky to position in the market.

June 6, 2017

Service Sector of United States Slowdown in May

Services sector activity of the United States softened last month due to downswing in factory orders, however, increase in jobs has reached its 2-year high further reflected a protracted improvement in the labor market amid downturn in jobs growth in May.

Moderation in the tertiary sector of industry coupled with further data released on yesterday showed manufactured orders fell in April. The initial slump occurred in five months as the output of laborers remained steady in Q1 which implies a tighter range for a rapid economic expansion.

The non-manufacturing business activity index dropped six-tenths percentage point which accounts to 56.9 reading. A reading on top of 50 would mean a two-third increase in the U.S. economic activity.

According to reports, new orders of services industry loss 5.5 percentage points in April. The costs of products and services under non-manufacturing industries descended on the back of its growth for the past 13 consecutive months. Nevertheless, the gauge of service sector employment boost by 6.4 percent near its highest level recorded in July 2015, showing stability for the labor market as the nonfarm payrolls gained 138,000 previously and 174,00 in April.

The value for price paid dive could probably lure the attention of some officials of the Fed Reserve on the meeting dated June 13-14 to discuss the monetary policy.

The central bank of the United States is predicted to increase its benchmark by 25 basis point during the session.

June 6, 2017

Slow Growth of Scottish Economy, EY reports

Based on the forecast of the EY Scottish item club that the GDP growth will be weak falling below expectation with 0.9% growth this year where a half of it is expected for the Britain and will predominantly hit the retail sector. It is anticipated to fall by 0.1% this year and will decrease in a bigger number by 0.5% and 0.3% in 2018 and 2019 respectively.


Consumers will be greatly pressured from this which will increase by 1% in 2017 and below 1% in the succeeding years until 2020 while the employment is assumed to drop by fall this year.


On the other hand, the manufacturing sector will rise following the overall economy for the first time since 4 years ago, because of higher demand and depreciation of sterling which will boost exports.


Overall, the Scottish economy is foreseen to have a sluggish growth than the Britain by 0.7% in 2018 before gaining its momentum again to reach 1.4% growth within this decade.

June 6, 2017

World Bank Predicts Seven-Year High for 2018 Global Economic Growth

In a statement made last Sunday, the World Bank predicted that a possible correction in trade growth stemming from post-crisis lows might be able to help strengthen the international economy and enable a seven-year high for next year’s economic growth status. However, the bank also stressed that there are certain threats to the emerging markets niche, including a fast-expanding wealth economy, which could derail the predicted growth rate for the economy. The financial institution said that international economic growth could possibly reach 2.9% in 2018 as compared to this year’s mere 2.7%. Price stability in commodity prices has helped emerging markets out of its two-year slump, while several countries around the world are finally showing signs of improvement following a large-scale financial crisis.

EUR/USD Fundamental Analysis: June 7, 2017

EUR/USD traders entered into monitoring mode during the previous trading session as a slew of economic news releases are expected to become the dominant market trend this coming Thursday and Friday. A very choppy price action was also seen in the EUR/USD pair as the majority of traders and investors are waiting in the sidelines as part of their preparations for a heavy trading environment during the last two days of the week.

The EUR/USD pair in particular is having a very hard time with regards to advancing past 1.1300 points, with the currency pair stopping abruptly at 1.1283 points and was unable to make any more headway in spite of the dollar weakness. The drop in the USD’s value is being seen as more of a risk than an advantage since the dollar is apparently preparing itself for the onslaught of economic data this coming Thursday and Friday. For Thursday, the market will be reacting to the Comey statement, the UK snap elections, and the ECB press conference and this is why the market will be in for some major volatility surge. This is why what the market is undergoing right now is merely a prep for Thursday and it is recommended for currency traders to step away from the limelight and start making moves once the dust settles on Thursday.

For today’s session, there are no major releases from the US or the EU economy save for the US crude oil inventory data, and traders can expect a somewhat safe ranging and consolidation price action for the pair, with 1.1300 points as the designated price ceiling for the pair as of the moment.

GBP/USD Fundamental Analysis: June 7, 2017

The GBP/USD pair experienced a major correction during yesterday’s session as its previous gains were due to a reaction on the most recent opinion polls, which outlined a clear victory for UK PM Theresa May. However, these opinion polls were quickly forgotten by the market as the market shifted its focus on more immediate geopolitical events which could have an influence on the cable pair.

The opinion polls, although somewhat positive at first, had no lasting effect on the price action of the sterling pound and as such, the GBP/USD pair corrected its gains and is now back at 1.2900 points in spite of the dollar weakness as the pound had to deal with some problems of its own. The GBP is now under heavy downward pressure as the snap elections are set to commence this coming Thursday and since the majority of opinion polls are still giving off an ambiguous stance, the market is in turn unsure of what steps it should take next and this has put additional pressure on the sterling pound. In addition, the dollar is also relatively weak as of late since it will be reacting to Comey’s testimony set tomorrow, which falls on the same day as the snap elections. This is one of the reasons why traders refuse to make any clear moves on the GBP/USD pair and instead shift to a wait and watch mode until such time that all activity subsides and be safe enough for them to resume trading.

For today’s session, the US economy will be releasing its oil inventory data while there are no major releases coming from the UK economy. The GBP/USD pair is then expected to range and consolidate throughout today’s session as it preps for tomorrow’s polls.


GBP/USD Fundamental Analysis: June 7, 2017

The GBP/USD pair experienced a major correction during yesterday’s session as its previous gains were due to a reaction on the most recent opinion polls, which outlined a clear victory for UK PM Theresa May. However, these opinion polls were quickly forgotten by the market as the market shifted its focus on more immediate geopolitical events which could have an influence on the cable pair.

The opinion polls, although somewhat positive at first, had no lasting effect on the price action of the sterling pound and as such, the GBP/USD pair corrected its gains and is now back at 1.2900 points in spite of the dollar weakness as the pound had to deal with some problems of its own. The GBP is now under heavy downward pressure as the snap elections are set to commence this coming Thursday and since the majority of opinion polls are still giving off an ambiguous stance, the market is in turn unsure of what steps it should take next and this has put additional pressure on the sterling pound. In addition, the dollar is also relatively weak as of late since it will be reacting to Comey’s testimony set tomorrow, which falls on the same day as the snap elections. This is one of the reasons why traders refuse to make any clear moves on the GBP/USD pair and instead shift to a wait and watch mode until such time that all activity subsides and be safe enough for them to resume trading.

For today’s session, the US economy will be releasing its oil inventory data while there are no major releases coming from the UK economy. The GBP/USD pair is then expected to range and consolidate throughout today’s session as it preps for tomorrow’s polls.

USD/CAD Fundamental Analysis: June 7, 2017

The USD/CAD pair exhibited a ranging and consolidating price action throughout the duration of yesterday’s session as the market shifted into a monitoring mode as preparation for Super Thursday. The majority of market players are refusing to take any unprecedented positions in the market and this is why a choppy price action is being seen for the USD/CAD pair as well as for other major currency pairs.

The only positive note for the currency pair yesterday was the steady strengthening of the value of the CAD, which had bearish undertones as a result of a surge in oil prices and was even able to keep itself at its higher ranges. This rise in oil prices was mostly due to the recent standoff in the oil-rich Middle East which might potentially endanger oil production and has subsequently affected oil prices. This then contributed to an increase in the value of the CAD and has caused the USD/CAD pair to trade lower within the 1.3450 range. The currency pair is expected to continue trading within a very limited range, with sells situated at 1.3500 points and buys located at 1.3400 points. If the currency pair manages to make a break and veer away from its current price action, then this might induce some major movements in the pair and the market will be waiting to see what happens in the next few days.

For today’s session, the US will be releasing its oil inventory data while there are no major releases from the Canadian economy. The USD/CAD pair is most likely to undergo a limited consolidation for today’s session.

NZD/USD Technical Analysis: June 7, 2017

The NZDUSD rallied amid trades on Tuesday and broke the level on top of 0.7150 smoothly. The Kiwi dollar continued to search for buyers on dips and tend to handle some pullback as an opportunity to increase rate.

The market tried to touch the region above 0.72, en route 0.75 afterwards. As shown in the chart, the area around 0.71 handle provides a lot of support and regarded to be the floor of the market in the near-term uptrend. The commodity space continues to weigh on the market and the NZD seems to be the “barometer” towards the overall sentiment of futures trading. Watch closely for the commodity because it could possibly show the way.

It could be a good move to buy dips moving forward because it suits the current status of the New Zealand currency. Selling remains impossible as far as we breach under the 0.71 mark. A successful break down prompts the market to reach the range below 0.7050 which is very supportive previously, along with the 0.70 region. In any case, the market remains to be volatile, however, the moving averages came in reliable, particularly the 48-hour MA shown in green color, hence it should offer further buying opportunities.

The volatility driven market persists, but the late impulsivity indicates that buyers begin to develop more confident as it moves ahead. Moreover, the dips will provide value which is an advantage to market participants.

GBP/USD Technical Analysis: June 7, 2017

The GBPUSD had attempted to rally yesterday, however, retreated to the level 1.2950 to return underneath the 1.29 handle. In the past few sessions, the market appeared to have a little bit of overall bullish pressure, waiting for the results of UK elections expected tomorrow. In this case, the market will probably experience choppiness and unprepared to conduct a significant move yet. Short-term volatility is predicted along with some choppy spots but a general ascending momentum should also be anticipated. It does not mean that a pull cannot be accomplished, it only implies that longer-term charts and the range below 1.2750 should offer massive support that will surely lure the attention of the majority of market participants.

After the session on Friday, the long-term outlook for the pair shall be available as it could be very difficult from this moment and the next.

Buying the dips remains to be the best option for the Cable but the dips showed to be somewhat steep. You should have got small positions as of now and after the election results in order to acquire lesser damage that might suddenly arise.

Markets have lots of speculation regarding the election decision, therefore a cool level head should be maintained as this is crucial for the following sessions.

In the longer-term, the pair might break the 1.3050 mark as it allows the market move higher freely, or maybe reach its long-term target found at the region 1.3450.

EUR/USD Technical Analysis: June 7, 2017

The EURUSD aimed to make a rally during Tuesday session but look for a strong resistance around 1.1280 region to make a reversal. Then, rebounded through the 1.1240 mark.

Meanwhile, the market remains to be bullish and attempted to front run the monetary policy statement of the European Central Bank.

The ability to break out in the upside enable the market to move towards the area on top of 1.13. The 1.15 range is the top of the latest consolidation seen in the EUR/USD for the past years.

Moreover, the market might experience difficulty in breaking above the mentioned range, however, series of attempt were made to get through the area and identify its capacity to hold on.

Buying in the dips resumes progressing forward despite anticipated noise.

As the Britain will leave the European Union, there is a chance that some statements will weigh against Euro’s value. Either way, the interest rate hikes from the United States may catch more attention.

A breakout to the upside is possible while the 1.12 market must be the “floor” in this market.

USD/CAD Technical Analysis: June 7, 2017

The U.S. dollar against the Canadian dollar declined in the early Tuesday session. Although, there is a sufficient support found at 1.3450 level to recover. Later on, the resistance level was found at 1.3490 and move to and fro within the trading range. This is already expected as the market waits for the release of Crude oil inventories later this day. This has a direct influence on USD/CAD pair.

The oil market has a big influence with this pair which will mirror the movement of oil price fluctuations. It seems that the crude oil market will persist with a bearish tone for long-term. Later on, it is anticipated for this pair to surge higher but will most likely result to extreme choppiness in the market. Overall, the trend is predicted to be bullish for long-term positions.

The 1.35 level is becoming a significant level and a break over this would move the psychological level towards the 1.36 mark which is also much more relevant for long-term traders. It may be best to put on hold shorting this pair until the price breaks at 1.3400 region below. This would indicate a bearish tone for the market.

There is a lot of noise found in the pair because of the OPEC production cut and concern regarding the Gulf states particularly between Qatar and Saudi Arabia divisive issues. These contribute to the bearish tone on crude oil that opens a chance for a rally intermittently.

USD/JPY Technical Analysis: June 7, 2017

The U.S. dollar was behind of the Japanese yen during the Tuesday session. The USD/JPY pair broke lower than the 110 region which makes weaker to further decline. On the other hand, the 110 mark is being resistive. A move lower towards the 108/ region is the next target because of 61.8% Fibonacci retracement level and a whole number that offers significant level.

In the current condition of the market, it is better to sell this pair, especially if the 110 level and below is sustained. Also, market should be careful of volatility with the presence of bearish pressure as the U.S. dollar depreciates

More traders could play on the safe side with the ongoing tension between Saudi Arabia and Qatar. There is a somehow a pressure underneath and entails a “risk off” in trading. A move higher than the 110.50 level would counter the negativity in the market that would push the trend to go higher.

Overall, traders should expect high volatility. It may be difficult to bring the price higher with the strong resistance level while the 108 region is a significant level that traders cannot ignore following a rollover during the Tuesday session. If the price breaks lower than 108 region, then this would propel the price downhill in the next trading sessions.

AUD/USD Technical Analysis: June 7, 2017

The Australian dollar against the U.S. dollar broke the 0.75 resistance level during Tuesday session. Although, this was reversed with signs of support in the lower channel being tested again which would most likely go higher.

The price consolidation lower than the 0.75 level is being supportive that makes buying lows as a wise move in this pair. The support moves until 0.7450 region and it would be best to wait until it breaks lower before selling this pair.

The gold market attempts to break higher during the day of the trading session which would have an effect to the Aussie. When the gold rises and breaks higher than the $1300 level, it would give a bullish sentiment in the market and could trigger to move higher. Moreover, it seems that the market has changed its focus on Aussie where formerly the New Zealand dollar outpaces it in the market.

The GDP data from Australia to be released today would have an impact to this pair. Nevertheless, buyers are dominating the market.

It is best to wait for the price to break lower than the 0.7450 region before shorting this pair. Despite the volatility in the market, the positive momentum remains positive in the succeeding trading sessions. However, the impulsiveness of the market in the past few days has slowed down the rate of the market.

EUR/USD Fundamental Analysis: June 8, 2017

The EUR/USD pair exhibited a very intermittent trading action within a very limited range, and although the currency pair had a single clear move amidst the haze of its incessant ranging and consolidation, the market chose to interpret the currency pair’s movement as very choppy ahead of Super Thursday. Although the EUR/USD pair did manage to move towards the bottom rungs of 1.2200 points, it was almost immediately met with large-scale buying, causing the pair to retreat towards over 1.1250 where it is currently located.

This downtrend in the EUR/USD pair was mostly due to reports that Draghi could possibly make amendments to the central bank’s inflation targets but was immediately reversed after another report came out which hinted at Draghi being very hawkish with regards to overall growth. These kinds of speculations are usually expected during a very big trading day like today, although the real deal is expected to happen during today’s trading session. The UK snap elections is one of the highlights of today’s session, and although the Conservatives seem to have the upper hand as of the moment, the essential factor here would be the margin of victory and this will have an effect on the value of the euro. Next up is the ECB rate announcement, wherein the central bank is expected to maintain its rates, which will be followed by the ECB’s press conference where the market will be closely monitoring whether Draghi’s statement will be hawkish or otherwise. James Comey’s testimony is also another thing to watch today as this will reveal whether Trump had any involvement with the Russian probe which could cause a drop in the USD. The 1.1300 point range has been the pair’s key level for the past weeks and due to repeated attempts and failures of breaking through this range, a target of 1.1500 could be easily reached if the pair would be able to surpass 1.1300 points.

Due to several events happening today, the market is expected to be highly volatile and traders are advised to stay away from the sidelines first and wait for all the fanfare to subside before making any trades.

GBP/USD Fundamental Analysis: June 8, 2017

The GBP/USD pair chose to remain cautious and remain within the sidelines during yesterday’s session, although what should excite the pair’s bulls more is that the cable pair was able to stay afloat over its critical support range of 1.2900 points throughout yesterday. Although the pair momentarily dipped at just under this range, it was immediately met with a lot of buying and this caused the pair to return to its original range and is now trading at just above 1.2950 points ahead of Super Thursday.

The UK snap elections is set to commence today and while several opinion polls paint a pretty picture as far as the Conservatives are concerned, the margin of victory is actually the most important part of the polls. Anything less than a widely-spaced victory would be considered as a major failure for Theresa May as this could prove all her efforts to be futile and might have a negative effect on the status of the sterling pound. But then again, this will all boil down to just how big of a majority May will be able to garner at the end of the elections. A bigger majority would be more beneficial for the pound and this will then dictate the price action of the pound in the short term. The 1.3000 point-range of the GBP/USD pair has been a very critical range for the pair for the longest time, and repeated attempts to go past this range will be a formidable barrier before the pair can advance towards 1.3400 points. If the pound becomes bearish, then this could cause the pair to drop towards 1.2750 points and even 1.2500 points depending on how negative the results of the polls are for May.

In addition to all of this, Comey will also be making his testimony today and this is expected to put more downward pressure on the dollar, although if Comey refuses to indict Trump, then this could serve as a breather for the USD. All in all, this day is expected to be a very volatile trading day for the GBP/USD pair.

EUR/USD Technical Analysis: June 8, 2017

The EURUSD edged lower, however, bounced off from Wednesday’s support prior the meeting of the European Central Bank scheduled tomorrow along with the leak regarding ECB will lower down inflation predictions.

Moreover, the bund yields decline causing the single European currency to become unattractive and yet traders raise concerns with concerns to the forward guidance of the bank as this could lead the pair to a higher stance.

Additionally, the United Kingdom would likely do polling considering the presidential race tightened significantly but decreased by 18 points roughly because PM Theresa May had announced a snap general election. The pull out made by May would likely result to another hung parliament bringing a chaotic Brexit.

The pair rebounded at 1.221 support close to the 10-day moving average. While resistance highlighted the 1.1284 region around the weekly highs. The next aim for resistance is the level 1.1299 near the highs of November 8.

Momentum appeared to be neutral considering the moving average convergence divergence (MACD) to print within the zero-index level. The histogram is positioned also close to zero with a flat trajectory which suggest for further consolidation. The relative strength index (RSI) showed a neutral stance as it prints at 64 found on the higher end of the neutral range.

USD/CAD Fundamental Analysis: June 8, 2017

The USD/CAD pair had a bullish trading action during yesterday’s session after the pair struggled to go beyond its critical resistance range located at the 1.3500-1.3530 range. But so far, this region has managed somewhat to escape the wrath of the pair’s bulls. But now that there are several important economic events lined up for today’s session, the USD/CAD pair could go in either direction which makes trading generally unsafe at least for today.

As of the moment, the USD/CAD pair is trading at just over 1.3500 points as the market is preparing itself for the slew of geopolitical events happening within the day. The surge in the pair’s value during the previous session was mostly due to a drop in oil prices after the US inventory data released yesterday showed a significant inventory progression paired with ambivalent expectations. This means that oil continues to be sold off while inventory and production remain at its range highs, which is pretty bad news for the loonie. This caused the USD/CAD pair to exceed 1.3500 points. However, the pair’s bears managed to redeem themselves via a selloff at the 1.3530 trading range which has stemmed any upward move in the currency pair at least for now. Now that oil prices are expected to remain weak in the coming days, the Canadian dollar would possibly remain under pressure, although a speaking engagement from Poloz and the release of Canadian employment data today might help the CAD to improve its outlook. The Comey testimony will also determine the short-term price action for the USD, and it seems that the market is in for a very interesting trading day today.

Aside from the BoC speech and the release of the Canadian employment data, there are no expected news from the Canadian economy while other geopolitical events within the international sphere are not expected to have any significant effect on the USD/CAD pair. However, traders are still strongly advised against making any active trades today and instead wait out the events before engaging in any trade decisions.

NZD/USD Technical Analysis: June 8, 2017

The New Zealand dollar dropped in the beginning of Wednesday session. There is a sufficient support found in the 24-hour EMA in the hourly chart sufficient to reverse the trend to move higher. It seems that the pair would try to reach the 0.72 region and above. A breakout would be the best deal as this makes the start of buying again similar with staying in the lows and how long can it be maintained on yesterday trading.

The pair could further rise if the commodity market, regardless of its type, steadies as it gains strength. It could be the CRB or the ETF outside of the U.S. that are still part of the commodity market as a whole.

Buying on the lows is still ideal for this pair despite its breakdown during the Wednesday session. The 0.7150 is found to be supportive especially the 0.71 handle. Hence, it won’t be long before the buyers dominate the market again considering its value when retreated to lower levels.

Consequently, there will be volatility seen in the trend from time to time which is an opportunity for bulls waiting for a chance to sell this pair when the Kiwi recovers.

June 8, 2017

‘Hard’ Brexit Weigh Against UK Economic Performance

The British economy is projected to slow down this 2017 and the following year as it was inundated by diverging issues caused by Brexit negotiations.

The Organisation for Economic Cooperation and Development (OECD), said that risks and expected results of the referendum would likely hurt private consumption.

According to forecasts, UK economic growth is 1.6 percent for this year while predicted to gain one percent in 2018 with a steady outlook versus estimated figures in March.

Moreover, OECD presented their prediction for other economies in 2018 showing positive growth and set out a constant projection for the United Kingdom.

The organization assumes for a hard Brexit thinking that Britain is going to trade against a much restrictive term under the World Trade Organisation upon leaving the European Union in 2019, in case that it fails to obtain an all-inclusive free trade agreement.

The most recent OECD’s world economic outlook indicates slower growth which could drive jobless rate higher than five percent. Nonetheless, the intergovernmental entity told that "swift progress in negotiations and an outcome that retains strong trade linkages with the European Union would lead to better outcomes than projected".