Daily Market Analysis by ForexMart

USD/CAD Fundamental Analysis: February 28, 2017

The USD/CAD had a strong bullish trade during the previous session after the bulls were able to regain its dominance over this particular currency pair. The bulls had previously attempted last week to gain control over the pair after the release of a dismal retail sales data from the Canadian economy but was eventually unable to do so after the release of a very strong CPI data. The bulls had also attempted to break through yesterday but has failed from last week’s range highs.

The currency pair’s strong resistance and support barriers of 1.3060 and 1.3000 respectively has led the market to believe that the USD/CAD pair is in for some major uptrend and is evident of the importance of the support barrier with regards to the struggle between the pair’s bulls and bears. Since the bears have constantly failed to break through this pair, the pair’s bears are currently in full dominance of the USD/CAD. The USD/CAD was previously consolidating within the 1.3100 barrier but a surge in the value of the USD helped in boosting the currency pair following’s Trump’s statement that he will be adding up the country’s infrastructure spending. The pair eventually increased in value after oil prices somewhat dropped in value.

This drop in oil prices could cause trouble for the USD/CAD pair in the short and medium term since Canada is very reliant on oil prices. The pair’s bears could become seriously affected once the dollar strength and weak oil prices come together since this could trigger the pair to move significantly upwards.

There are no major news coming from the Canadian economy today but the pair could get some volatility from the US consumer confidence data and Preliminary GDP which will be released today. The USD/CAD could possibly consolidate within 1.3100-1.3200 points with a bullish undertone.

EUR/USD Fundamental Analysis: February 28, 2017

The market saw a very dismal durable goods data reading while Trump continues to further delay his long-awaited tax cut policies, thereby contributing to the further dwindling of the value of the US dollar. As a reaction to this particular phenomenon, the EUR/USD pair was able to reach 1.0630 points in a matter of a few hours and seems poised to move further.

However, the US dollar suddenly reverted its losses for no apparent reason at all and this caused the EUR/USD to drop further to 1.0600 before settling at just over 1.0580 points. Some market analysts are crediting this sudden surge in the dollar’s value to Trump’s previous statements regarding the infrastructure increases, a favorite campaign topic of Trump during his candidacy. Previously, there have been rumors swirling around that this infrastructure policies would not come into effect until 2018, but since Trump has already re-discussed this particular proposal, the market has since then been speculating that the increase might be implemented within the year which could help in keeping the buoyancy of the market. The USD has been able to revert its losses as a result but the real determinant here would be the rate statement next month as well as the FOMC rates.

Now that the market is slowly shifting its focus from Trump’s policies towards the move of the Federal Reserve, it is highly likely that the market’s movements will be relying on the Fed’s decision on when they will be implementing the next rate hike.

There are no major releases coming from the eurozone today but the US will be releasing its consumer spending data as well as its Preliminary GDP data today which could bring in added volatility to the USD and affect the EUR/USD pair. The currency pair is expected to continue consolidating with bullish undertones for today.

February 28, 2017


Consumer Confidence of the Eurozone Plummeted

The consumer confidence of UK for this month declined while the British currency weakened. The prices rose and wage growth dwindled which influenced the Britain’s economic powerhouse.

The monthly household sentiment of GfK had a dipped and stayed below zero for the 10th month. The level for major purchases also decreased which implied that British citizens probably controlled their expenditures.

Another assessment by YouGov coupled with the Centre for Economics and Business Research is the job security index which further decline reaching its lowest result three years ago.

After the Brexit referendum, the private consumption as well as the services industry have compelled the economy, however, it set out some signs of economic strain. During the EU exit, the inflation increased as the energy cost climb higher together with the 16 percent cut in the sterling pound.

Furthermore, the growth of credit had a steep decline in December whilst retail sales inched up at its slowest pace since January 2014.

February 28, 2017

Steady Economic Growth of Australia as Exports Rises

The Australian economy is assumed to have recovered after surge in demand for exports and increase in spending from consumers and government. It is predicted that GDP report to be released on Wednesday with grow by 0.7 percent in last quarter after a decline of 0.5 percent in previous quarter. Companies’ earnings rallied as much as 20 percent in fourth quarter driven by an almost 50% boost from miners.


Rise in money flow from exports has a big impact to country’s income and its nominal growth. This signals Australian economy to surpass technical recession as it continues to move optimistically.

EUR/USD Technical Analysis: March 1, 2017

The consumer price index of France inched up, however, it was unable to meet the projected level. While Italy’s rate of inflation remained consistent despite the forecasts about its potential decline. Moreover, the jobless rate in Germany is expected to decrease as mentioned by analysts and the German’s Manufacturing Purchasing Managers' Index is assumed to remain steady.

The single currency was not able to make some reversal on Monday. Buyers touched the 1.0631 region by which the spot eyed some renewed offers. The price turned back under the 1.0600 level and posted its session lows near 1.0567 area amid Asian session.

The EURUSD attempted to break the barrier in the European hours. The EUR made a slight recovery few of its losses during the night upon approaching 1.0600 in the mid-EU trades.

The price is close to the 50-EMA as it positioned in the neutral zone during the earlier trading while the 100-EMA preserved a bearish pattern and the 200-EMA drove downwards.

Resistance settled at 1.0600, support plunge towards 1.0550.

The MACD is situated at the centerline. When the indicator pierced the positive region, the strength of the buyers will grow while an entry in the negative territory will signal sellers to dominate the market. The RSI appeared to be neutral.

Furthermore, bullish momentum is possible to reclaim. The next target of the pair is 1.0630. The EUR/USD may resume its ascending movement to 1.0650.

GBP/USD Technical Analysis: March 1, 2017

The absence of news from the UK region was unable to provide support the British currency. Investors were bothered regarding the recent Scottish referendum. Traders on the other hand awaits for the remarks that Donald Trump will spoke in the Congress. The focus now is turned to the U.K Manufacturing PMI which is anticipated to be relatively lower compared with previous results.

The sterling nearly touched 1.2500 level last Monday but buyers were unable to surpass the 1.2475 region where they found resistance of the sellers. Sellers turned the price back towards 1.2400 and hold the spot below the pressured area throughout the European trades.

The GBP rebounded from the 200-EMA downwards and resumed its ascending trajectory, while the 100 and 50-EMAs took the descending pattern. Resistance hit 1.2500, support is at 1.2400.

MACD softened favoring added strength for the sellers. RSI is confined in the neutral zone.

The Cable could recover its strength by holding beyond the 1.2500 range.The next target of the bulls is 1.2567.

USD/CAD Technical Analysis: March 1, 2017

The greenbacks were able to gain strength versus other commodity currencies. The growth occurred due to the decline in oil prices and the investor’s interest regarding the US President policy. The announcement of the Central Bank of Canada about the interest rate decision is much awaited. It is expected that the rate will continue to be at 0.50%.

The price has spiked near 1.3190 on Monday but the level seems difficult to deal with. After the USD reached the region, the upward impetus lost its momentum. The USDCAD is in a tight range close to the barrier amid European hours.

The price takes up the 50-EMA and lead the 200-EMA higher and the entire moving averages ascended as indicated in the 4-hour chart. The major resumed its advancement on top of the MAs eventually. Resistance touched 1.3190, support hit 1.3120.

The MACD strengthened which imposed a buy signal. The RSI is positioned in the overvalued zone which favors a downtrend.

The immediate focus is at 1.3120 support region. A gap within this mark will shift the attention towards 1.3050.

EUR/USD Fundamental Analysis: March 1, 2017

The USD kicked off March on a very positive note after the US dollar was given a boost by some of the most unlikely sections, the source from which the USD gained its weakness. The market has been constantly skeptical with Trump’s policies ever since his inauguration, and this has put immense downward pressure on the value of the USD and has helped to keep the EUR/USD pair buoyant. The dollar was also unable to take hold of its own value since the majority of investors are not convinced with the overall viability of the US dollar.

However, the market eventually became used to Trump’s way of implementation and his policies as the year progresses and the stock market has also responded well to Trump’s latest implementations. Trump has recently announced yesterday that his administration will be executing large-scale tax cuts for corporations which will increase the competitiveness of US-based corporations in the international arena. In addition, the EUR/USD pair also decreased further after Trump announced his proposed guidelines for adding up the country’s infrastructure spending.

This, in addition to the market probability of a Fed rate hike this March increasing, has caused the US dollar to soar significantly across the board and has affected all major currencies in one way or another. For the EUR/USD, the pair’s value plummeted past 1.0600 points and is currently trading at 1.0550, with the outlook for currency pair looking very weak. If the USD continues brandishing its strength, then the currency pair might soon hit 1.0500 points. The US will be releasing its Manufacturing PMI data today, and the current trend for market is expected to be the recent strength of the US dollar.

AUD/USD Technical Analysis: March 2, 2017

The positive GDP of Australia and strong data of China PMI provided support to Aussie which further prevents it from acquiring losses. The period of bullishness ended on Wednesday while the bullish spike wane having touched the 0.770 level. The AUD loosened its grip upon its gains as the Asian session closes.

Sellers failed to regain 0.7650 despite series of attempts. Upon reaching the region, the spot turned back on top of 0.7650 during the morning trades of Europe.

As presented in the 4-hour chart, the price tested the 100 and 50-EMAs, seeing the 50-EMA en route downwards, 100-EMA is in the neutral ground and the 200-EMA preserved a bullish bias.

Resistance is found at 0.7700, support is at 0.7650.

The MACD declined which favored strength for the sellers. RSI stayed in the neutral area.

The commodity-linked pair will resume its bearishness when the US dollar sustained its current flow. A close down under from the 0.7650 would likely risk the 0.7600 mark.

GBP/USD Technical Analysis: March 2, 2017

The sterling softened following the bearish Manufacturing PMI of February while the market preferred wait-and-see mode for Construction PMI projected to keep steady rate.

The British currency moved near down the range on the back of fluctuations within the level 1.2500 - 1.2400 several weeks after. The sellers were able to gap the handle 1.2400 during the late trades in Tuesday, it further push the GBP downwards throughout the night. Nevertheless, the downward impetus faded in the earlier trading. Sellers successfully touched the 1.2344 by which the cable met some of its renewed bids that might save the buyers temporarily from possible losses.

Sellers resumed its gains during the latter part of the trading day. The spot remained to trade in the negative zone and highlighted 1.2300 region prior to the North American hours.

The major rebounded the 200-EMA lower and develop beyond the moving averages while the 100 and 50-EMAs descended as exhibited in the 4-hour chart. Moreover, the 50-EMAs made a downward crossover in the 200-EMA keeping its mild bullish tone. Resistance is at 1.2400, support holds 1.2300.

The MACD lost its steam which triggered strength for the sellers in return. The RSI stay around the oversold territory.

If the GBP/USD declined below the 1.2300 mark, it will prompt a downtrend shortly after.

EUR/USD Technical Analysis: March 2, 2017

The investors were disappointed to the speech made by Trump in the Congress, as the US President did not mention further details regarding his infrastructure and tax reform plans. The Fed helped the greenbacks to recover from the sell-off which renewed hopes for the possible rate hike in March.

The recovery slowed down at 1.0627 level on Tuesday. The price took another direction and continued to plunge lower. Traders made a cut within 1.0600 during the Asian trades pushing the European currency downwards. The dollars bull take control of the opening of the EUR stocks and gapped the 1.0550 mark then drove the pair lower. Having reached 1.0536, the descending trajectory seems short-lived.

A renewed selling interest appeared prior to the opening of the New York session which pushed the price further down

The EURUSD lead the 50-EMA downwards and the price is placed under the moving averages as set out in the 4-hour chart. The 50 and 100-EMA headed by while 200-EMA appeared in the neutral zone. Resistance touched 1.0550, support sits in the 1.0500 mark.

The MACD is seen at the centerline. When the indicator approached the negative region, the strength of the sellers will increase. An entry through the positive territory will manage the overall market. RSI is close to the undervalued territory which confirms a renewed downtrend.

In case the price hovered down from 1.0550, the major could possibly extend towards 1.0500. A break under 1.0500 could revive support at 1.0450.

USD/CAD Fundamental Analysis: March 2, 2017

The USD/CAD pair continues to be controlled by the pair’s bulls after the bulls managed to wrest control from the bears following several weeks’ worth of struggle. The bulls have now take complete control of the currency pair and its bears have become adversely affected by this move, something that has been predicted by analysts during the past few weeks.

The USD/CAD’s long streak of ranging and consolidation has initially kept prospective buyers at bay but now that the currency pair seems to have finally obtained some sense of direction after getting dominated by the bulls, buyers can now rest easy with regards to the movement of the USD/CAD. In addition, the US dollar has also exhibited a recent rally due to statements from the Fed that a March rate hike is highly possible, as well as Trump’s announcement that he will soon be implementing tax cuts and adding up the country’s spending on infrastructure.

The Bank of Canada released its rate statement yesterday and met market expectations of maintaining the current rate at 0.5%. Canada has recently been releasing a strong string of economic data, which is relatively good news for everyone except for those who expected the BoC’s statement to be more hawkish than present. The central bank reiterated that there are no expected rate hikes in the near future and focused on low working hours and wages. This has compelled the USD/CAD to drop down to 1.3300 points before settling at just under 1.3350 points. The Canadian GDP data will be released today as well as the US unemployment claims data, which are both expected to increase the pair’s volatility. But the USD/CAD is expected to remain afloat as the current trend would most likely be the USD rally.

GBP/USD Fundamental Analysis: March 2, 2017

The GBP/USD pair has recently been under severe pressure as a result of the real state of each currency starting to show through just like every start of a new month. A lot of analysts have been saying that the sterling pound might become the most adversely affected once the dollar rally sets in, but last week the GBP has still managed to save itself somewhat even though both the US and UK economy were faced with various economic and political uncertainties.

However, since the uncertainties surrounding the UK economy are expected to be more on the long-term side as compared with that of the US economy, the dollar’s rally would soon gain momentum long after the issues surrounding the US have vanished, and this is expected to have a significant effect on the stance of the GBP/USD pair. The market is now witnessing this phenomenon during the past days as the USD exhibited its newfound strength as an effect of Trump’s statements regarding tax cuts and the Federal Reserve’s announcement that a March rate hike is still being highly considered by the majority of Fed officials. This has caused the GBP/USD pair to shot down from 1.2400 down to 1.2300 and is now currently situated within the 1.2250-1.2300 barrier and would likely drop further in value, this, along with Scotland’s possible move of leaving the UK is bound to spell disaster for the state of the sterling pound.

The UK will be releasing its Manufacturing PMI data and the US will be releasing its unemployment claims data during today’s session, but the dollar rally is expected to be reverberating theme in the market, which means that the GBP/USD pair would most likely remain under pressure for the rest of today’s session.

EUR/USD Fundamental Analysis: March 2, 2017

The USD continued its rallying streak during the previous trading session and this has created a highly adverse effect on the EUR/USD pair. The currency pair has decreased by over 100 pips and is now trading within the 1.0530 points and looks poised for a further drop in value. The EUR/USD pair is expected to continue its weak trading stance for as long as the US dollar continues its rally.

The dollar strength has been initially triggered by Trump’s statement that his administration will soon be implementing tax cuts for corporations, but the Fed’s statement that an interest rate hike would most likely happen in March served as a catalysts for the dollar’s recent rally. If this comes into fruition, then the market expects the USD to expand its rallying streak and push down the value of the EUR/USD further.

This is why the market is now mainly focused on the Federal Reserve’s rate announcement as well as its accompanying statements. This is good news especially for the dollar bulls, since they will be benefitting from this focus shift in the US economy. For today’s session, the US will be releasing its unemployment claims data but regardless of how this particular data comes out, the EUR/USD pair would still remain under pressure for the rest of the trading session. The EUR/USD currently has a very solid support barrier, but once the pair pushes way past this level then the EUR/USD

GBP/USD Fundamental Analysis: March 6, 2017

The GBP/USD pair went through its worst week since the beginning of the year as the pair suffered greatly from the dominance of the dollar strength over the market last week. Unlike the euro, which has somewhat managed to recover as last week came to a close, the British pound continues to remain under pressure and could possibly retreat further in the coming weeks as the USD consistently regains its momentum.

The GBP/USD suffered last week primarily due to month end currency flows and this has caused the currency pair to revert back to 1.2300, with the pair continuing to trade just under that barrier for the rest of last week. The USD retreated slightly after Yellen’s statement which further stoked the fires for a possible interest rate hike this month, but this brief weakness in the USD’s value was still not enough for the GBP/USD to increase in value. This is because the sterling pound has its own set of issues that it needs to fix and the currency is not hugely dependent on the value of the US dollar unlike other major currencies. From the Brexit process to a possible Scotland referendum, the GBP/USD pair might take a while before it can finally get back on its feet, and as such all moves pointing to the upper part of the chart should be seen as a sell opportunity.

For this week, the UK will be releasing its annual budget data while the US will be releasing its NFP data, both of which are expected to dominate the movement of the currency pair. The NFP report is expected to come in as highly positive which could put the GBP/USD pair under more pressure, thereby endangering the support region of 1.2200 points.

USD/JPY Fundamental Analysis: March 6, 2017

The USD/JPY posted significant rallies last week following increased market expectations of a March interest rate hike from the Fed during the next scheduled FOMC meeting this coming March 15. US Treasury yields also rose while the market demand for the USD soared to new heights as various Fed officials gave out increasingly hawkish remarks. The USD/JPY closed down last week’s session at 113.994 points after increasing by +1.69% or 1.896 points.

Fed Chair Yellen added fuel to the fire of a possible rate hike by commenting last week that the central bank might deem it necessary to slowly increase the federal funds rate if the economic data coming from the US continues to be consistently good, with the Fed funds futures clocking in a 90% probability of the central bank increasing interest rates during its next scheduled meeting this month from an initial probability rate of 30% at the start of the week.

The direction of the USD/JPY this week would most likely be dictated by subsequent economic data which will be released since Fed officials are now in a blackout period. The market will be closely watching the release of the US Non-Farm Payrolls report as this will be a clincher on whether the Federal Reserve will indeed implement an interest rate hike or otherwise. The current market expectation for the data is an addition of 185,000 jobs for the month of February. Meanwhile, Average Hourly Earnings data are expected to rise by 0.3%, and Unemployment rates are expected to drop to 4.7% from its previous reading of 4.8%.

USD/CAD Fundamental Analysis: March 6, 2017

The USD/CAD bulls were finally able to take control of the said currency pair, with the effect of this particular move becoming evident in the market. The pair’s bulls and bears were both locked in a struggle during the past few weeks, with the major support barrier of 1.3060 the disputed region within the currency pair. The Canadian dollar momentarily strengthened as a reaction to a jump in oil prices and a consistently strong economic data and the USD also experienced a significant weakness on the board.

However, since last week, the USD/CAD began experiencing major changes in its stance. The former part of last week was dominated by month-end currency flows, which caused the CAD to be subject to tremendous downward pressure. The Bank of Canada also released its rate statement as well as the CAD rate, with the BoC meeting market expectations by maintaining its current interest rates. However, the central bank also reiterated that they were highly concerned with average wages data and the number of working hours although other economic data seemed good enough for the central bank. This simply means that there would be no expected rate hike from the BoC in the medium term, and this has somewhat caused the Canadian dollar to retreat further. Meanwhile, the dollar rose amid expectations of a March rate hike, and these factors has caused the currency pair to go over 1.3300 points where it is currently situated.

For this week, Canada will be releasing its unemployment rate data as well as its trade balance data, while US will be releasing its NFP data, all of which are expected to inject more volatility into the USD. The USD/CAD pair could possibly move towards 1.3500 and further, with corrections viewed as long-term sell opportunities.

EUR/USD Fundamental Analysis: March 7, 2017

The EUR/USD pair is currently unable to go beyond its barrier and has been resigned to making small steps backwards and forwards within its given barrier and still has no definite direction. The pair is expected to continue its ranging and consolidation movements until such time that the EUR/USD pair faces major issues towards the end of this week. A lot of economic and political factors are now wielding their influences over the pair, and the market believes that it might take a few days before the market finally focuses back on the fundamental factors of the EUR/USD pair.

The previous session saw the EUR/USD pair briefly climb towards the 1.0640 barrier and looked poised to go further upwards. However, towards the end of the session it was announced that one of the main contenders in the French national elections has decided to back out, thereby making it a lot easier for French candidate Le Pen to possibly win the said elections. Le Pen is considered as one of the most controversial candidates in the elections as she is a known critic of the EUR concept, and this announcement has caused the euro to fall back towards 1.0550 points. However, the resiliency of the euro has stopped the currency pair from creating further damage and is now floating at just over 1.0580. The market believes that the currency pair would continue to range and consolidate within the 1.0550-1.0650 barrier.

There are no major news releases coming from both the EU and the US for today and this is why the EUR/USD pair will most likely continue its ranging and consolidation movements for the rest of the trading day.

GBP/USD Fundamental Analysis: March 7, 2017

The GBP/USD pair, just like the majority of currency pairs, spent the previous trading session in a ranging and consolidating manner. The main reason for this activity of most currency pairs is that these pairs are preparing themselves for the onslaught of volatility which could occur towards the end of the week, and this has caused the GBP/USD pair to get ensconced within a tight trading barrier for the rest of the previous trading session.

There were no major economic and political events which influenced the movement of the GBP/USD pair and this is why the currency pair was unable to go past the 1.2250-1.2300 barrier, with neither the bulls nor the bears managing to take control of the currency pair. However, the pair is expected to remain under pressure as the various Brexit-related concerns surrounding the UK continue to affect the stance of the currency pair. The sterling pound is also finding it very hard to recover from its recent losses since the bears almost always resort to selling off the sterling pound once a bounce appears in the direction of the pair.

There are no major economic data coming from both the UK and the US today, and this is why the GBP/USD pair is expected to continue its ranging and consolidation with no definite sense of direction. The currency pair will continue to remain within its current tight trading barrier with a bearish undertone.

March 7, 2017

Brexit Supporters Push May to Examine EFTA Comeback

UK Prime Minister Theresa May is recently being urged by a panel of Brexit-supporting lawmakers to consider bringing the country back into the European Free Trade Association, a four-country organization which UK left way back in 1972 as a means of a starter to its trade negotiations which immediately follows the Brexit process. UK was one of the founding members of the said organization in 1960 but eventually left the EFTA in order for the country to become part of the European Union. Rejoining the EFTA could mean that the UK would be able to make use of the several free trade agreements created within the said organization.

March 7, 2017

Australia's Interest Rate Remained on Hold

Australia kept its interest rates steady on Tuesday, March 7, because the property prices of Sydney continued to increase its risk which exceeded a much lowered inflation rate. The Governor of Reserve Bank of Australia Philip Lowe concluded together with his board to remain the cash rate at 1.5 percent after a positive growth and optimistic performance in trading for the last three months of 2016.

According to the poll led by Bloomberg, the decision were already projected by all 29 economists.

Moreover, the housing demand in Sydney remained stable since buyers settled a property in the city which further ratcheted up debt records.

The central bank decided to maintain its policy despite of an extremely high house prices which partially stirred by the increasing population size coupled with the absence of family dwellings constructions.

Furthermore, the country’s economy rose by 1.1 percent in Q4 versus the past three months and the 2.4 percent gained from a year ago.

March 7, 2017

European stocks pulled down by German data

The European stocks dropped for three days in a row on Tuesday pulled by the decline in shares of Deutsche bank after asking for as much as $8.5 billion cash call. It’s shares declined close to 3 percent as a fresh low for the year.

Worsen by low corporate earnings report and industrial demand in Germany feel by 7.4 percent, the highest fall over the past 8 years, amid the global financial crisis that caused the investors to lose confidence setting the market in a lacklustre environment.

The U.S. futures began to fall slightly during the Wall Street ESc1 DJc1 as investors await for the possible next rate hike that is still uncertain but they are getting ready for it.

EUR/USD Fundamental Analysis: March 8, 2017

The EUR/USD pair continued with its ranging and consolidation movement for the second consecutive day, with this current trend expected to continue for the subsequent trading session as well. There are no major economic news releases happening within the international market which might influence the movement of the EUR/USD pair, and this is why the market has been incessantly seeing this ranging and consolidation.

However, this particular movement coming from the currency pair is also part of the pair’s preparation for the onslaught of important economic data which are expected to be released in the middle of this week, especially since these economic data would most likely induce a lot of unprecedented volatility in the EUR/USD pair. So until these data gets released in the market, it is highly likely that the currency pair would continue consolidating. The USD experienced some minor corrections throughout the course of yesterday’s trading session, and this has become evident in the state of the EUR/USD pair after the currency pair dropped slightly in value and is now trading at just over 1.0550 points. The pair is expected to maintain its hold on this particular barrier as more buys are expected to come in at this region. This could also cause the currency pair to move towards 1.0600 points and will continue consolidating for the rest of the trading session.

There are no major news releases expected from the European Union for today but the US will be releasing its ADP employment data later today. This employment data is usually touted as a precursor to the NFP report and although its importance is now being overlooked, it still serves as a necessary gauge on how the the NFP report would eventually pan out. Any fluctuations in this particular data are most likely to show in the NFP report as well.

GBP/USD Fundamental Analysis: March 8, 2017

The GBP/USD pair continues to trade very weakly during the previous trading session. This could be initially attributed to the strengthening of the USD which was reflected across the board, but what has really affected the pound here is the fundamentals underlying the UK economy, as well as various uncertainties which is constantly putting pressure on the value of the GBP/USD pair.

Once the Article 50 gets invoked, the Brexit process is pretty much locked in, and this means that there would be several negotiations between EU and UK leaders immediately after the invocation. UK leaders are expected to be stricter with regards to EU trade access since the majority of them would like the UK to realize the several benefits that it would lose once the country finally becomes a separate nation from the European Union. This uncertainty as well as the tediousness of the Brexit process is likely to take its toll on the GBP/USD pair and this is starting to become more evident as the currency pair continues its weak trading stance, with the currency pair just hovering over 1.2200 points.

The UK will be releasing its yearly budget release today, and the country is expected to paint a pretty picture of their economy in order to boost public sentiment. This might give temporary resolve for the sterling pound but would eventually fizzle out as the fundamentals continue to put downward pressure on the state of the GBP/USD pair.

March 8, 2017
Pharma Stocks Drop as Trump Posts Drug Prices Tweet
Pharmaceutical stocks plummeted on Tuesday after Donald Trump plunged back into the drug pricing debacle after the US President tweeted a pledge to minimize the costs of medicinal products for US citizens. As stated in a tweet sent at 9:00 A.M., New York Time, Trump stated that his administration is currently working on a system which will enhance competition in the pharmaceutical industry. Analysts are saying that it is highly curious that Trump’s tweet comes immediately after the House healthcare reform bill, which is indicative of the administration’s efforts on drug and pharmaceutical pricing.