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Devata Tseng

US ADP and Canadian GDP will be the Key for Today

USDCAD On the daily chart, USDCAD has rallied since Yellen’s hawkish speech last Friday, and broke the significant resistance level at 1.3000. Yet USDCAD is currently trading around the next major resistance level at 1.3100, where the significant uptrend line resistance situates, suggesting heavy selling pressure at this price zone. In addition, the daily and 4 hourly KD indicators are both at a high level, be aware of a pullback. Keep an eye on the US ADP Employment Change for August, to be ...

FxProUpdates

Deciding on the dollar

We enter the last trading day of August, a month that has been dominated by growing debate as to whether the Fed should increase interest rates at their September meeting. This could be decided by the Employment Report, released Friday. But for the moment, the market has been moving more towards that possibility. This is most prevalent on USDJPY, given that there has also been debate on the other side as to the possibility of the BoJ implementing more easing measures in the coming weeks. Just ...

Devata Tseng

Has Yellen’s Dollar Bounce Gone Too Far

The Dollar Index (DXY) Janet Yellen’s hawkish statement in Jackson Hole last Friday on 26th August has led to a dramatic move in the dollar. The dollar index reached the biggest intra-day rally of 1.48% since 24th June, the dollar strengthened across the board. On the daily chart of the dollar index (DXY), the major resistances of 94.73 and 95.00 were both broken by a long bullish candle on Friday. It further broke the next resistance of the 38.2% Fibonacci retracement level at 95.40 and hit a ...

Devata Tseng

Dollar Strengthens as Yellen Turns Hawkish

Janet Yellen’s statement in Jackson Hole last Friday has led to a dramatic move in the dollar. The dollar index reached the biggest intra-day rally of 1.48% since 24th June. The dollar surged as Yellen said ‘the economy is nearing the Fed's goals of full employment and stable prices. In light of the continued solid performance of the labour market and our outlook for economic activity and inflation. I believe the case for an increase in the federal funds rate has strengthened in recent months.’ ...

Devata Tseng

Dollar Strength Depends on Interest Rate Clues

The Dollar Index (DXY) Today, Fed Chairman Janet Yellen will make a speech at 14:00 GMT. In addition, the US Q2 GDP Growth second estimate (QoQ) annualized figure, and Goods Trade Balance for July, to be released at 12:30 GMT. The dollar index (DXY) rallied yesterday, helped by the positive Durable and Core Durable Goods Orders figures. It tested the major resistance at 94.73 then pulled back. This morning it tested the support level at 94.50 then bounced off. It is currently trading around the ...

Devata Tseng

Will Yellen Remain Dovish ?

Today, Fed Chairman Janet Yellen will make a speech at 14:00 GMT. In addition, the US Q2 GDP Growth second estimate (QoQ) annualized figure, and Goods Trade Balance for July, to be released at 12:30 GMT. The advance estimate of the US Q2 GDP (QoQ) released on 29th July was 1.2%, less than half of the expectations of 2.6%. The dollar index fell 1.41%, which has been the biggest intra-day fall in two and a half months. The Goods Trade deficit rose to -$63.30 bln in June, from -$60.59 bln in May. ...

Devata Tseng

Dollar will be the Key this Week

The Dollar Index Future (DXY) The dollar has rallied from 23rd to 24th Aug helped by the highest level of New Home Sales figure since Oct 2007. On the 4 hourly chart, the dollar index future (DXY) broke the upside major downtrend line resistance at 94.53 on 24th Aug by a long bullish candle. It has been testing the next major resistance level at 94.73 since then. Keep an eye on the upcoming US economic figures. With positive readings, DXY will likely break the resistance at 94.73. The next ...

Devata Tseng

Market Looking to Data and Yellen for Clues

Fed Chairman Janet Yellen, will make a speech at 14:00 GMT on Friday 26th August, which will influence the market sentiment and the strength of the dollar. Today we get a series of economic figures out of the US. Initial Jobless Claims (the week ended 19th Aug), Durable Goods Orders (MoM) for July, and Core Durable Goods Orders (MoM) for July, to be released at 12:30 GMT. Services PMI and Composite PMI, at 13:45 GMT. Since FOMC’s dovish statement on last Wed 17th Aug, the New York Fed President ...

Devata Tseng

GBPUSD Tests Downtrend Resistance

GBPUSD Sterling broke the major resistances at 1.3200 and 1.3230 this morning as a result of the earlier weakening of the dollar. The price further tested the next resistances at 1.3250 then pulled back as the dollar is turning strong, weighing on GBPUSD. It is currently oscillating around the level at 1.3230. On the daily chart, GBPUSD is near the downtrend line major resistance level at 1.3250. In addition, the daily time frame KD is above 80, suggesting a retracement. The Brexit may not be ...