Daily Market Analysis From Forexmart

Discussion in 'Forex - Currencies Forums' started by Andrea ForexMart, Aug 23, 2017.

  1. KostiaForexMart

    KostiaForexMart Senior Investor

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    EUR/USD. February 17, 2020 – Euro remains in the area of two-year lows

    The sentiment on global sites remains moderately optimistic amid the lack of negative news on the topic of coronavirus. The growth rate of new cases of diseases decreased again after the jump caused by the use of a new method for diagnosing the virus. As a result, the EUR/USD pair is trading at 1.0840, remaining in the area of two-year lows.

    Today's news background is calm, and in the week you should pay attention to the macroeconomic data block for January. PMI business activity indices in the European Union and the USA will be published on Friday. If statistics show deterioration, risky assets may again be under pressure.

    Today, the pair will be trading primarily in a sideways manner near 1.0840.
     
  2. KostiaForexMart

    KostiaForexMart Senior Investor

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    EUR/USD. February 18, 2020 – Euro is under pressure after the release of data from Germany

    Risky assets again came under pressure after Apple announced that it would not be able to fulfill its revenue plan in Q1 due to existing problems with shipments from China in the context of the coronavirus epidemic. An additional influence on investor sentiment was provided by reports that the US plans to limit technology exports to China to restrain Chinese technological development.

    The pair EUR/USD remains in weak positions near 1.0830. In the daytime, German ZEW economic expectations and sentiment indices were published. The indicator unexpectedly dropped from 26.7 points to 8.7 points. Analysts had predicted a decline in the index only to around 21.5. Such statistics will put pressure on the euro during the day and may send the pair below 1.08.
     
  3. KostiaForexMart

    KostiaForexMart Senior Investor

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    USD/CAD. February 19, 2020 – Looney grows in anticipation of inflation data

    Today, the USD/CAD pair is showing a decline after strong growth the day before. The instrument continues to move within the trading range of 1.32-1.33, reacting to the publication of macroeconomic data from the US and Canada.

    Yesterday, the US dollar managed to grow to 1.3280 after the release of data on business activity in the manufacturing sector of the Federal Reserve Bank of New York: in February the index rose from 4.8 to 12.9 points. Statistics from Canada, on the contrary, reflected a decline in production sales in December by 0.7% m/m after a decline of 1% m/m last month.

    However, today Canadian dollar began to grow in anticipation of data on the consumer price index of Canada, which will be published today in the evening. Experts expect annual inflation to rise to 2.3% in January against growth to 2.2% in December. If the forecast is confirmed, the likelihood that the Bank of Canada will decide to mitigate monetary policy will decrease significantly, and the Canadian dollar will receive an incentive for further growth.
     
  4. KostiaForexMart

    KostiaForexMart Senior Investor

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    EUR/USD. February 20, 2020 – Euro sideways at 1.08

    The euro is moving horizontally at the level 1.0800. Market dynamics remain calm in the absence of negative news on the topic of coronavirus. The US dollar is still strong reacting to comments from the Fed on the stability of the US economy.

    Thursday is not rich in significant events, the pair will continue to fluctuate slightly near the level of 1.08. Tomorrow you should pay attention to the publication of PMI indices in the EU and the US. If the indices turn out to be worse than expected, this could reduce the risk appetite on global markets at the end of the week.
     
  5. KostiaForexMart

    KostiaForexMart Senior Investor

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    EUR/USD. February 21, 2020 – Dollar continues to strengthen

    Negative sentiment at global sites has been rising again due to a sharp increase in the number of coronavirus infected in South Korea. At the same time, the markets continue to trend towards the strengthening of the US dollar, which is growing in tandem with the main currency competitors.

    Yesterday, the Philadelphia Fed index of business activity was published, which rose sharply to 36.7 points. Positive regional data give reason to expect an increase in the ISM business activity index for the United States as a whole, which supports the dollar.

    Statistics on business activity in Europe were published today. The index of business activity in the manufacturing sector (PMI) in Germany increased from the level of 45.3 to 47.8 points. Experts predicted a decline to 44.8. The IHS Markit composite purchasing managers' index (PMI) in France also rose – to 51.9 points in February from 51.1 in January. Analysts predicted a value of 51.0 points.

    However, these statistics provided the euro only temporary support – the pair managed to rise slightly above the 1.08 level, but the growth was quickly replaced by a decline. During the day, the euro will continue to fall to an area below 1.08.
     
  6. KostiaForexMart

    KostiaForexMart Senior Investor

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    EUR/USD. February 25, 2020 – Euro under pressure amid the spread of coronavirus in Italy

    Sentiments at global sites are again deteriorating amid a sharp increase in the number of coronavirus cases outside of China. Northern Italy became the new epicenter of the outbreak, where more than 200 cases of the disease are currently recorded. This situation puts pressure on the European currency, since the further spread of the disease can lead to a significant decrease in the GDP of European countries in the future.

    The pair EUR/USD continues to move in the range of 1.08-1.09. The current euro quote is 1.0830. Yesterday, the currency rose significantly after the German business climate index IFO was released: the indicator unexpectedly rose to 96.1 points, while analysts expected a decline to 95.3.

    Today we should pay attention to the speech of Richard Clarida from the Fed – the politician intends to highlight the impact of coronavirus on the US economy and to clarify the further course of movement of the monetary policy of the Fed.
     
  7. KostiaForexMart

    KostiaForexMart Senior Investor

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    EUR/USD. February 26, 2020 – Euro declines from 1.09

    Negative sentiment continues to dominate global markets as investors fear the coronavirus epidemic could escalate into a global pandemic. As you know, the number of cases outside of China continues to grow steadily.

    Yesterday, US President Donald Trump announced that the vaccine against the virus would be ready soon, and also announced the upcoming cut in taxes on the middle class in the United States, but this news did not support the dollar. The current quotation of the pair is 1.0870.

    The euro has been strengthening for several days. Currency is supported by technical factors: most carry trade operations in emerging markets are funded by the euro, which is strengthened when investors withdraw from risky assets.

    However, the coronavirus continues to spread throughout Europe, which puts European currency at risk. During the day, we expect a decrease in the euro from the level of 1.09.
     
  8. KostiaForexMart

    KostiaForexMart Senior Investor

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    EUR/USD. February 27, 2020 – Euro skyrocketed to 1.0950

    The euro today shows a significant increase, up to 1.0950. Currency is supported by technical factors: most carry trade operations in emerging markets are funded by the euro, which is strengthened when investors withdraw from risky assets. And risk appetite at global sites continues to decline amid further growth in the spread of coronavirus outside of China.

    However, the growth of the euro is unlikely to be long-term, since the US dollar is still strong, and macroeconomic data from the US continue to signal the stability of the US economy. Sales of new homes in the US in January rose to 764 thousand against 708 thousand a month earlier. The price of a new house also increased – by 14% in January.

    Today, you should pay attention to the speeches by the ECB President Christine Lagarde and Evans from the Federal Reserve Bank of Chicago, as well as the release of statistics on US GDP for the fourth quarter of 2019. The indicator is expected at 2.1%.
     
  9. KostiaForexMart

    KostiaForexMart Senior Investor

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    USD/CAD. February 28, 2020 – Canadian dollar updates lows

    The Canadian dollar is showing a strong fall at the end of the week. The current quotation of the USD/CAD pair is 1.3465. The main pressure on the loonie rate is provided by the situation in the oil market, where Brent quotes fell below the level of $50 per barrel. Prices fell to a minimum of two years, as investors fear that the coronavirus epidemic could be the biggest shock to the economy since the 2008 crisis.

    Next week, the Bank of Canada will hold a meeting at which the regulator may surprise market participants with a lower rate, despite the main forecast assuming that the rate remains at 1.75%. The Central Bank's Monetary Policy Committee is gradually lowering its confidence regarding the weak influence of coronavirus on the country's economy.

    Today, attention should be paid to the publication of quarterly and monthly reports on GDP. Analysts expect a significant slowdown in growth in the IV quarter, so the Canadian dollar may continue to fall to 1.35.
     
  10. KostiaForexMart

    KostiaForexMart Senior Investor

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    EUR/USD. March 2, 2020 – Euro reaches 1.11

    Investors' appetite for risky assets on global markets is moderately recovering after the world's leading central banks announced their readiness to maintain economic activity in the face of the risks associated with the spread of coronavirus.

    On Friday, the US Federal Reserve announced that the regulator intends to use monetary policy instruments to maintain the country's economy. Market participants expect that the key rate in the US will be reduced immediately by 50 bp. already at the March meeting. The readiness to take large-scale measures on the eve was also expressed by the Central Bank of Japan.

    Thus, the EUR/USD pair continues to grow, almost closely approaching the level of 1.1100. However, the European currency is still under pressure from the further spread of the coronavirus throughout Europe. Therefore, the pair may show a slight decrease from level 67,00.
     

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