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Devata Tseng

USD Bounces From 6-1/2-Month Low, Eyes on FOMC Minutes

The Trump administration has presented its 2018 budget plan to Congress last evening. The budget plan calls to slash $3.6 trillion in government spending over the next decade, mainly reducing the funding for healthcare and social benefits (such as Medicaid, SNAP, pensions for government staff) and Environmental Protection Agency funds. The cuts are to be used for funding to boost economic growth and to reduce the US deficit. Nevertheless, it will result in numerous needy American citizens ...

Devata Tseng

GBP/USD Bears Test Uptrend Line Support Post Manchester Terror Attack

GBP/USD has been trading above the downside uptrend line support since mid-March. Cable rallied around 3.5% since Theresa May announced a snap general election on April 18 as markets have largely priced in a Tory victory. GBP/USD hit a high of 1.3047 on May 18, last seen on September 29, breaking a significant resistance level at 1.3000. However, the bullish momentum has waned since Monday, because of the drop in the approval rating for the Conservative Party caused by Theresa May’s plans to ...

Devata Tseng

How will FOMC Minutes Affect USD Post Slump on Trump’s Scandal ?

Recently Trump’s leak scandal has been leading the USD move instead of economic performance. Last week USD had its biggest weekly fall since the US presidential election because of the scandal. The markets are concerned it will result in Trump’s plans not being able to be executed and worsen the economic slowdown. In addition, North Korea launched its second ballistic missile towards Japan on Sunday further lifting regional tension. The dollar index hit a new post presidential low of 96.68 on ...

Devata Tseng

USD/JPY Hovers Above Significant Support Post Trump’s Scandal

Last week USD had its biggest weekly fall since the US presidential election, caused by Trump’s Russia leak scandal. This week markets’ risk-off sentiment has been slightly eased. On May 18th USD/JPY hit a low of 110.22, last seen on April 25th. Notably, the downtrend has held above the significant support line at 110.00. Bulls have further recovered to the the next psychological resistance level at 111.00, indicating bullish momentum has been increasing. The daily Stochastic Oscillator is ...

Devata Tseng

Conservative’s Approval Rating Drops Ahead of General Election

The dollar index hit a new post presidential election low of 96.95 on Friday May 19th. EUR/USD hit a high of 1.1211 a level not seen since November 9th of last year. On Monday morning, during the European session, the dollar index experienced a moderate rebound, touching 97.29, as the market is aware of a strong support level at 97.00. GBP/USD hit a high of 1.3047 on May 18, last seen September 29, breaking a significant resistance at 1.3000. On Monday morning, during the early European ...

Devata Tseng

EUR/USD Bulls Approach Major Resistance at 1.1200

EUR/USD has remained bullish and has rallied notably around 2.7% since May 15, helped by the recent slump in the USD. EUR/USD saw a correction on May 18, as a result of the rebound of USD. During Friday’s early European session EUR/USD rallied again and approached the significant psychological resistance level at 1.1200. Bullish momentum remains strong with the short term moving averages edging higher. If the 1.1200 resistance level is broken, we can expect that EUR/USD will move higher. ...

Devata Tseng

Markets Priced In OPEC Output Cut Extension

There are two upcoming events that are expected to impact the price of Oil; firstly, the Iran presidential election will be held today (May 19th) and secondly, the OPEC meeting will be held on May 25 in Vienna. The result of the Iran presidential election and the associated geo-political risks will likely affect its oil production. Overall, the execution of OPEC’s output cut agreement has been sound. However, some OPEC member states exempted from the agreement, such as Iran, Libya, and Nigeria, ...

Devata Tseng

NZD/USD Tests Downtrend Line Resistance

NZD/USD has seen a substantial 6.22% retracement since February 7. Since the end of April, the downtrend has held above a significant support line at 0.6800, suggesting the bearish momentum has been waning. The price further broke the next psychological level at 0.6900 on Wednesday, as a result of the weakening of USD caused by Trump’s Russia leak scandal. On the daily chart, NZD/USD bulls are currently testing the mid-term major downtrend line resistance. If the trend line is broken, we can ...

Devata Tseng

Trump Faces Biggest Political Crisis Since Taking Office

The Department of Justice has appointed former FBI head Robert Mueller to investigate whether Russia intervened during the 2016 presidential election. Recent reports from the US are indicating that the probability that Trump’s presidency will end this year is around 29% following the Russia leak scandal. Trump is now facing his biggest political crisis since taking office. Opinion polls, conducted by Politico and Morning Consult, that were released on Wednesday showed that Trump’s approval ...