Daily Market Analysis by ForexMart

China’s economy Slowed Down in the Second Quarter

The economy of China could possibly weaken once again in the second quarter of 2017, slowed down by the slight tightening of the monetary policy of the government polled by China economists, Nikkei and Nikkei Quick News.

Most of the respondents mentioned that the property market failed to advance unlike before and pointed out that the economic decline will become more evident from July to the end of December.

As indicated in the survey, the average estimate of the economists for the gross domestic product of China will rose by 6.8% in Q2 this year, with marginal easing from the expansion on first quarter at 6.9%. The official figures are scheduled to be release on July 17.

GBP/USD Technical Analysis: July 7, 2017

The British currency went to a volatile session on Thursday and traded sideways, however, returned to the 1.2980 region and test the region 1.2930 another time.

The market also contained significant amount of support under the 1.29 mark and attempts to touch the 1.30 area eventually. This is an area that could offer massive resistance and extends towards 1.3050, but a cut through over that level enable the market to climb higher near the longer-term target at 1.3450

Remember that the Nonfarm Payroll is released every first friday of the month which is today, therefore, the US dollar is expected to have plenty movement in general. An ability to break down from this point, we shall see the 1.28 region to provide support. The area below there will affect the sterling pound.

The pullbacks could possibly have some value opportunities showing a strong uptrend. A break down beneath the 1.28 range will initiate buying the dips on the candles that looks supportive. This could be difficult enough to stay in a trend for a relative amount of time not until a cut over the massive resistance found at the 1.3050 region.

When this happens, winning positions could be improved to the upside. Otherwise, a breakdown under the 1.28 will urge to the market to look for 1.26.

EUR/USD Fundamental Analysis: July 7, 2017

The EUR/USD climb higher on the positive news for the single European currency and brought negative news for the US dollar, hence, this helped the pair to return towards the range of its highs where it previously existed.

The euro-dollar pair appeared to be very bullish as of this time while traders and euro bulls will cheer up due to the fact that a major portion of this is from the existing strength of the EUR. This not the same during the earlier times wherein the pair trailed upwards following the dollar’s weakness.

As mentioned in the earlier forecast, the bullish run will remain intact within this pair and it appeared that will take some time prior the euro recovery. This happened yesterday due to the release of ECB minutes which clearly indicates that officials talked about preserving the QE tapering. However, decided to hold back until the inflation data support this move. It further shows that the ECB is very serious in considering the tapering as this also wrought a large increase for the EUR. In case that it lacks steam to push the EURUSD higher, we could rely on the ADP employment report which presented lower than expected value of 158K versus projections of 185K.

As the ADP served as a precursor to the NFP scheduled to be released later this day, it further acts as a reminder for the dollar bulls that they are not yet far from that critical phase and that other challenges and struggle continues in the near-term. With this, the trend of sluggish US data resumed in the past couple of days. This questioned the Fed’s decision on ignoring the weak data after they implemented rate hike in the previous month. Ultimately, the focus is on the NFP along with the wages report and should be keenly monitored. Any hints of weakness in this report will only need some stimulant in order for the euro bulls to support the pair to 1.05 level.

NZD/USD Technical Analysis: July 07, 2017

The New Zealand dollar had a volatility trading session on Thursday. It declined in the beginning but was able to recover those losses. Hereinafter, the price further decline breaking the 0.7250 psychological level. A significant support was found under the 0.72 handle.

In the current condition, it seems that there will be choppiness moving to and fro due to the jobs data which will have a bigger impact on the risk appetite and the U.S. dollar in overall.

There is massive resistance found beyond the 0.73 level and if the market successfully breaks this region, the price could go down towards the 0.7350 region. The volatility persists to be high driven by the least liquidity of the New Zealand dollar of all the major currencies globally.

Trading in small positions is the ideal strategy for this pair but the presence of an impulsive candle in the daily timeframe leastwise or if not, in the weekly time frame to have a serious money flow.

It would not be easy to trade the NZD/USD pair in any size so traders should be observant or wait on the sidelines until a clear hint was seen before jumping in the market. Short-term scalping here and now is the best that the market could offer as the Reserve Bank of New Zealand maintain its neutral stand when it comes to its monetary policies.

GBP/JPY Technical Analysis: July 07, 2017

The British pound surged in the beginning of Thursday session. This was reversed as the 147 region was being resistive to halt the uptrend. Instead, a breakdown occurred at 146.50 level. There is also a massive support found seen in the past several sessions. Moreover, the Nonfarm Payroll data will be released today which will bring volatility to the market.

If a pullback occurred, the next major support level will be at 145 region which is presumed to gain more attention. A breakdown would be indicative of a negative outlook which could much lower towards the 144 level. On a brighter side, an uptrend is will still be possible and the selloff of the Japanese yen will continue.

The employment data will have a great impact on the USD/JPY pair as well as the GBP/JPY pair. If the results came out strongly that induced sellers to join the Japanese yen market which will eventually affect this pair.

If a fresh new high is achieved, the market could reach up to 150 handle. Although it may take some weeks to reach the said level amid a highly volatile environment and some issues in the market as a whole. However, if a breakdown occurred lower than the 145 level, buyers will dominate the market again as it reaches the 144 handle and down to the 142 level.

Report Claims UK Economy will Boost to £43bn by 2025

The financial industry of the United Kingdom would likely support an increase of £43bn in its economy in the year 2025 based on the study of the TheCityUK and PricewaterhouseCooper.

As indicated in a blueprint report issued on Thursday, the City Council coupled with professional services company deemed that progress can be obtained through various changes on the government and other regulations.

The UK finance sector is already aware to further challenging factors that could lead many international banks to withdraw their transactions from London after the British decision to the leave the European Union.

The reports indicate a role expansion for some national and regional financial centers of the countries outside London, together with a new visa program that allows only the most excellent and brightest among the industry to operate in Britain.

When adjustments were successfully done, the report provides an outlook of value on GDP which will rose an amount of £16bn to £43bn by 2025.

EUR/USD Fundamental Analysis: July 10, 2017

The EURUSD consolidated on Friday, the same time that NFP report was released which brought volatility towards the market. While the pair ended up in a tight range and does not have any indications for further moving in whatever direction in the near future.

The NFP data from the US showed that jobs increased more than the anticipated result and had a trend reversal on the sluggish employment statistics. This could possibly be the support for the dollar bulls since the average hourly earnings failed to surge based on expectations. This caused the price action to become choppy during the release of data and this continues until Friday. The data was mixed considering that growth in employment was balanced by the decline in earnings which further revealed a mixture picture of the economy.

The single European currency remained to trade in a strong manner, generally, because of the clear signs that the European Central Bank could probably deal with tapering in the near future.

This optimistic outlook of the euro area is absolutely different to the chaos that prevails in the United States since there is a delay in the passage of the new healthcare reform bill which will last for weeks.

It clearly indicates that the administration of Trump is going to face difficulty to imply major amendment and the policy paralysis has the tendency to impact the American economy in the long term.

Ultimately, we await the reaction of the market towards the mixed figures issued on Friday and know the scenario of the politics in the US. Besides, no economic news is scheduled for today, thus, consolidation is expected within the range top found at 1.1440.

EUR/USD Technical Analysis: July 10, 2017

The EURUSD traded sideways during Friday’s trading and experienced a session with high volatility since US job figures took a longer time than the anticipated. Nevertheless, as the session ends it appeared that the pair begins to demonstrate stronger stance once again while the weekly candle generates a hammer formation.

The market would likely make an attempt to reach the 1.15 region where a significant resistance was seen in the past 3 years. Ability to break above it and a daily or weekly close would indicate a bullish sign showing that the market is apt to resume to go near the 1.18 handle.

Having said that, the market is currently in the “buy on the dips” condition in the near-term.

In case that the 1.15 handle was able to be broken down, it will suggest a major signal that the downward trend has ended. On one side, buyers will consider the single European currency in the longer-term or maybe tries to push it up towards the higher levels.

This is a situation where the Fed is thinking about the increase in interest rates, however, the European Central Bank recently mentioned the tightening of monetary policy which is quite surprising. With this, the pair requires some rebalancing which we have been witnessed. Otherwise, a break down under the 1.1350 area will test the 1.13 level and a breakdown below that point will consider the 1.11 mark eventually.

The overall market seems equal and buyers are currently in the driver’s seat.

AUD/USD Technical Analysis: July 10, 2017

The main trend of the AUD/USD pair in the daily swing chart is moving in an uptrend. However, the momentum is pushing it to go lower. When the trade exceeds the .7712, this will shift the main trend to move up.

A trade at the .7571 level indicates the continuation of the downtrend and possibly towards the minor base at .7535 region. A breakdown to this level will shift the course of the minor trend to go down.

The main trend range between .7372 and .7712 with a retracement level at .7542 and .7502 as the next lower target. With the uptrend of the market, the buyers will most likely return to the test zone. For short-term, the range is between .7712 and .7571 with the retracement area at .7642 and .7658 which is the next upside target. Sellers might counter the trend belligerently and attempt to create a secondary lower top in the next test.

The closing during Friday was positioned at .7600, similar to the price movement this morning. The direction of the AUD/USD pair highly depends on the trader’s sentiment to the downtrend angle at .7592.

When the .7592 is held, this signifies the presence of buyers in the market and could further go up with the potential targets at .7632, .7642, .7632 and .7658 levels. On the other hand, when the .7592 level is kept steady, this indicates the presence of sellers. The target level when the price moves to the downside with the initial target at .7571 then .7542 to .7535 levels.

Traders should monitor the angle at .7592. The reaction of traders will determine if buyers will enter the market or sellers will put in a selling pressure instead.

GBP/USD Fundamental Analysis: July 10, 2017

The British pound against the U.S. dollar weakened on Friday last week because of below expectations manufacturing production data from the U.K. Although, the U.S. dollar has a higher value due to improved NFP data. This resulted in a faster correction of the pair which is necessary for the pair following several increases in the past few weeks. This has still reach highs of the range that lead to a correction.

The negative in the manufacturing data has put the pound bulls in dismay which was anticipated to continue the positive flow and attempt to lift the price range much higher to reflect that it soared to the upside. This has reversed the strong data from the U.K. over the past few months. There is also a tendency for the resignation of the U.K. prime minister May that indicates the political conflict has not been completely settled. This is not necessarily needed by U.K. as it proceeds with the negotiation with the Euro representatives over Brexit but they don’t have any other reasons to blame.

Better than anticipated outcome for the NFP data has alleviated concerns on negative data from the U.S. which was the trend in the past few months. However, traders are anxious on whether the Fed Reserve would raise its hikes amid the current situation. Nevertheless, the FOMC minutes indicated clearly that the next rate hike would be relative to the incoming data that makes that employment report to essential. The strong data pushed the price of the GBP/USD pair towards the 1.29 level which the former close of the week.

For today, the traders are expected to respond to the U.S. labor data on Friday on the first day of the week. It is anticipated to give off a bearish tone.

NZD/USD Technical Analysis: July 10, 2017

The New Zealand dollar declined during the week. The 0.7350 level gives a significant resistance level and if the market successfully breaks out then the price could further go towards the 0.75 handle. This opens the risk for a market roll over which was extended over time.

The central bank of New Zealand positions in a neutral stance which will weigh on the New Zealand dollar but if the risk appetite returns, then the kiwi will climb higher. Henceforth, the market will move higher if there are sufficient reasons to support this especially if it rallies in the stock market and the commodity market. If the price breaks over the 0.75 level and higher, this would push the price much higher towards the 0.7750 level.

A pullback from this region would open buying opportunities especially if the price declines lower than the 0.7250 level. This would be much more interesting if it reaches the 0.72 handle and the 0.70 level which are whole numbers.

The impulsiveness of the marker will propel the price to move higher. However, in the long-term chart, there was a lot of selling opportunity for the pair as how it was in the past.

Consequently, it needs more time to gain some momentum to break higher and pullback will not be unexpected. Despite the market being in the overbought area, it remains steadfast and further goes up to a much higher level when there is enough drive.

Launching of Czech Version of ForexMart

ForexMart team have upgraded the website by adding a Czech version using the country’s native language. We are glad to introduce the newest Czech translation on (Date), which could help Czech and Slovakian citizens to easily interpret and find important information about the company’s special offers, partnerships and pool of trading instruments.


Clients could simply select the Czech language (or any other required language) by clicking the Czech flag on the language selector found in the upper right of the site.

New section "Economical news"

We have added a new section "Economic news" on our site. Every day we will publish the main news in the field of economics and finance. In this news section you will always find interesting, actual and relevant information about important economic indicators, current exchange rates and much more. You can also learn the latest important events affecting the world and Russian economy.

Keep the track of the world events and stay tuned with ForexMart!

Launch of “Analytical Reviews” section

We are glad to inform you about the launch of “Analytical Reviews” section on our website. Since then you won’t have to look for financial analytics on third-party resources – you just need to visit the relevant section on the ForexMart website.

In this new analytical section it will be possible to find up-to-date information about popular currency pairs, trade ideas and recommendations, as well as analytical reviews, forecasts, charts and overall description of the current market situation.

We hope that this innovation makes your trade more convenient and pleasant. Stay tuned and remain abreast of the latest economic trends with ForexMart!

July 11, 2017

EU Leaders Urge Germany to Increase Expenditure

The economic leaders of the European Union held a meeting on Monday in Brussels, citing that euro countries with huge growth to heighten spending. This is an attempt to convince Germany to step up its public expenditure and to bolster its economic bloc.

Germany is anticipated to grow by 1.8 percent this 2017, as indicated in the estimate of the International Monetary Fund, while the trade surplus continued to rise.

The stable development of the German economy was linked with the same advancement in government expenditure with a 0.8 percent record on fiscal surplus in 2016.

A group of finance ministers was going to discuss at their monthly meeting about the fiscal stance of the EU in 2018 since some urged to influence the budgetary decisions of the 19 EU-member states.

The effort of the European Commission to make a slight development on fiscal policy for the entire euro area within this year was fulfilled by the German opposition, however, dropped afterward.

Prior the discussion on the 2018 policy, the Economics Commissioner Pierre Moscovici claimed that the logical basis of fiscal stimulus remains despite firm growth in the euro area.

July 11, 2017
Emerging Markets and Bonds Selloff Continues
The U.S. dollar against the Japanese yen reached a four-month high while both the bonds and the emerging market currencies are under pressure once again on Tuesday. There are looking for higher interest rates in expanding number of major economies.

There are higher expectations as the MSCI world index is steadily progressing as it rose for a third day although it declined after the Europe stock market dropped. This staggered as the bonds yields from euro zone continued its uptrend in March but halted on Monday as the market turned its attention to the monetary tightening of large economies globally.

The Federal Reserve aims to adjust the large collection of bonds to ease the financial crises where speeches were given on Wednesday while the both the ECB and BoE officials are scheduled to talk on Tuesday. They are divided on whether to proceed with a rate hike yet the overnight index swaps market are priced high and 80 percent probability for a second rate hike by the end of the year.

July 13, 2017

Swiss Bank Falcon Offers Bitcoin Asset Management

The Switzerland’s private financial institution Falcon now stores and trade bitcoins through their cash holdings as it was proffered an affiliation with cryptocurrency broker Bitcoin Suisse. They are deemed to be the primary in the private banking to provide blockchain asset management for clients in Swiss according to the global chief of Falcon.

The Zurich-based bank has dealt with a Malaysian corruption scandal and this expansion of services is part of their strategic “repositioning”. Their bitcoin services is being regulated by the Swiss Financial FINMA.

Even though more investors are still dubious in bitcoins, this reflects that the virtual currency is developing amid a slow-paced asset management environment but has the potential to contend for gold and state-issued money in value.

July 13, 2017

Bank of Korea Keep Rates at Record Low 1.25 pc


The South Korea’s central bank kept its base rate steady, for the 13th consecutive month on Thursday, with a record low of 1.25 percent. The decision was mainly anticipated since policy committee urge to expand the subdued personal consumption and hold the idea of tightening off the table at this moment.


The policy makers of the central bank of Korea retained its key rate KROCRT=ECI unchanged, stated by a media official without any additional details. Bank Governor, Lee Ju-yeol is scheduled to conduct a press con at 11:20 a.m. (0220 GMT).


Reuters polled 20 economists and all of them predicted that the BOK will stick to its position, underlining the sluggish stance on consumer expenditure coupled with the lackluster growth in employment taking some of the shine off constant profits from exports.

Most of the experts assumed that the bank will keep on hold until the year end and expects for some step to stabilize rates for 2018.


The consumer price inflation of the country had toned down from the 2.2 percent highs in March to 1.9 percent recorded in June, the result is marginally low against the 2 percent target of the bank.

EUR/USD Technical Analysis: July 13, 2017

The euro-dollar was able to clear the level 1.1488 followed by the strong data of the EMU production while the ECB Governing Council member, Ignazio Visco emphasized again that the European region should have a stronger expansionary policy.

The exchange rate had reversed its direction during the latter part of the session, then whipsawed after the testimony of Fed Chair Janet Yellen in front of Congress. The exchange rate further increased, however, failed to preserve its gains after an upward movement towards the 1.1489 region which is currently the resistance. The support of the pair can be found on the 10-day moving average at 1.1404 mark.

The momentum gained the neutral position while the MACD histogram is printed near the zero level and the index further prints in the black with a flat trajectory which indicates consolidation.

The rate consolidates continuously after the break out and hovered in the bull flag continuation pattern which is a respite that prompts higher.

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ForexMart App is Now Available on Mobile

You can now use the ForexMart application on mobile.

We are launching ForexMart application on 11 january. It can be downloaded from both App store for Apple and Play Store for Android users. This allows users to trade anytime and anywhere at their own convenience by just connecting to an Internet service provider.

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July 14, 2017

Yellen Assessed US Economy Growth Target

Fed Chair Janet Yellen said on Thursday that the 3 percent target of the current administration of Trump is “quite challenging” to cope with.

US President Donald Trump pledged during his campaign in 2016 to improve the economic growth by 4 percent, however, the officials trimmed it down to 3 percent and claimed that it might take some time to complete.

Moreover, Yellen mentioned that is "very disappointing," and gave a forewarning that the potential growth of the American economy is now lowered to 2 percent. The chairwoman was asked if it's still possible for the country to gain its three percent goal in the next five years and she answered, "I think it would be quite challenging."

She further stated that higher growth rate requires a great increase in productivity growth which is currently at 0.5 percent, hence, an extreme surge is needed to accelerate and at least few points are regarded as significant.

During the second day of her semi-annual testimony, she said to the Senate Banking Committee that the 3 percent expansion would be wonderful and she’d love to witness it.

The incumbent Chair of the Board is scheduled to end her term on February 3, 2018, if President Trump did not reappoint her for another 4-year term.

Yellen also underlined the things that hamper productivity growth which is related to the dilemma of company reports about looking for qualified laborer, emphasizing the urgency to focus on training worker and further education.

NZD/USD Technical Analysis: July 14, 2017

The New Zealand dollar against the U.S. dollar surged during the Thursday session attaining the 0.7350 level. It successfully broke slightly extended followed by a pullback as the resistance level wavers. However, signs of reversal called in buyers to try and hold over this trend.

If the market was able to sustain the 0.7350 level above, this opens more buying opportunity and attempt to push it towards the 0.75 handle in the upside. On the other hand, if the volatility persists in the overall trend, the market will target for the 0.73 support level.

The market will remain choppy regardless of the direction the market takes since the New Zealand dollar has lesser volumes compared to other major currencies worldwide. However, buying the dips could still be bargained. A daily close above the 0.7350 level would be a good move as of the moment. The 0.75 level remains significant in the long-term charts which determine the next target.

Traders should also monitor the commodity market which would have a great impact on the New Zealand dollar particularly to the agricultural sector. If the market breaks below the 0.7275 region, it could further go down towards the 0.72 level. Nevertheless, the market remains to be volatile but the buyers will jump in and take advantage of the situation to

EUR/USD Technical Analysis: July 14, 2017

As the EURUSD whipsawed on Thursday, the pair continued to move lower after the U.S. jobless claims report exceed expectations while U.S Producer Price Index came in stronger, as well.

The expected figures for European inflation were unable to buoy the euro which has a weak stance for the past two consecutive trading session.

The euro-dollar trailed downwards amid EU hours, however, rebounded during the North American session with an overwhelming inflation data. The exchange rate spent the day around the 10-day moving average found at the level 1.1401. It is bounded to test the support region near the upward sloping trend line next to 1.1315 mark.

The resistance highlighted the 1.1444 area near the highs in July. Meanwhile, the momentum became negative following the crossover sell signal generated by the moving average convergence divergence (MACD) histogram. It was triggered by the spread of the 12-day exponential moving average subtracted by the 26-day exponential moving average, that cross over below the 9-day exponential moving average.

AUD/USD Technical Analysis: July 19, 2017

The Australian currency rallied during Tuesday trading session on daytime and broke the 0.79 handle. The market broke out to the upside and appeared to go moving upwards.

After breaking the level above 0.7750, which is really bullish, the market would likely resume to trailed higher and eventually, the next target is found at 0.80 region.

Shorting the market is not ideal as the pullback still have a value. This is basically true since the gold market also rallied since the Aussie acts a proxy for the gold markets. It seems that value hunters will remain present in this market.

The level below 0.7750 is expected to be the floor in this market and staying at that point will be a buyer.

A pull back is needed to establish a stable momentum in order for the 0.80 region be best-selling, however, it may take some time to reach that zone.

It is recommended to buy pullbacks and the market could go to the upside when the break out will persist. A move over the 0.80 region enables buyer to enter the market and expand their positions