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The FxPro Analyst Team

FxPro Forex Analysis: USDJPY and CADJPY Analysis – April 24, 2018

The Japanese Yen has been weakening following a dovish statement from the Bank of Japan Governor, Hurohiko Kuroda. In an interview, Kuroda said Japan will consider removing its loose monetary policy as soon as inflation meets the 2% target. However, Japan’s latest inflation reading was 0.5% for the 12 months leading to March. Kuroda added, “in order to reach 2% inflation target, I think the Bank of Japan must continue very strong accommodative monetary policy for some time”. Early this year, ...

The FxPro Analyst Team

FxPro Forex Analysis: GBPJPY and NZDUSD Analysis – April 24, 2018

The GBPJPY pair has dropped back, after breaking the supporting trend line at the 152.100 level last week. The fall lower has found support at the 200-period MA at 150.655 and, today, price has retraced higher to resistance at the 50-period MA at 151.807. A break above this area would retarget the trend line at the 152.850 level and then the area of resistance between 153.651 and 154.000. A break higher above there would look to reach the 165.000 level. Support can be seen at the moving ...

The FxPro Analyst Team

German IFO Business Climate to Include Service Sector from Today

At 08:00 GMT, German IFO – Current Assessment (Apr) is expected to come in at 106.0 from 125.9 previously. IFO – Expectations (Apr) is expected to be 99.5 from 104.4 prior. IFO – Business Climate (Apr) is expected at 102.7 v 114.7 previously. This index will rebase today from the year 2005 to a base year of 2015. This means last month’s Business Climate reading of 114.7 will change to 103.2. This is to include the service sector for the first time, which makes up nearly 60% of GDP. The data is ...

The FxPro Analyst Team

FxPro Forex Analysis: Australian CPI Dampens Chances of RBA Rate Hike

NZDUSD bucked the trend overnight, as most other currencies managed to retrace some of their declines against the USD. The pair hit fresh lows around the 0.71125 mark after it gapped lower through the 0.72000 level over the weekend. The strength in the USD is continuing to make its mark, but after large moves, a retracement could be on the cards. US Treasuries declined a little overnight, halting the slide in FX. WTI has moved back higher after declining early yesterday in response to US Rig ...

The FxPro Analyst Team

FxPro Forex Analysis: S&P500 and NASDAQ100 Analysis – April 23, 2018

U.S. stocks closed lower on Friday, with the selloff eroding much of the week's gains. Equities were pressured by a decline in Apple, after cautious analyst reports cast doubts about iPhone sales. Moreover, the yield on the 10-year US Treasury is rising and is close to 3%, a level which has previously caused a bearish equity market reaction. Rising bond yields offer alternatives for funds looking to allocate cash and improve performance, so can be negative for equities. On a positive note, ...

The FxPro Analyst Team

FxPro Forex Analysis: EURUSD and EURGBP Analysis – April 23, 2018

The EURUSD pair has fallen lower after losing trend line and moving average support. The price dropped to a low on Friday of 1.22490. Below this level, there is support at 1.22400 and the 1.22000 area. A loss of those levels would target 1.21640 and 1.21111 in extension. There is major trend line support at 1.20250. The resistance levels above the current price level are found at 1.23000 initially, with the red trend line positioned at 1.23100. The 1.23223 level marks out the start of an area ...

The FxPro Analyst Team

European Data Expected to Show Further Weakness Today

At 07:30 GMT, German Markit Manufacturing PMI (Apr) is expected to come in at 57.5 from 58.2 previously. Markit Services PMI (Apr) is expected at 53.7 v 53.9 previously. Markit PMI Composite (Apr) is expected to be 54.8 from 55.1 prior. The expectation is for a slip in these data points, confirming that the December reading was a short-term high. For Manufacturing, it was the highest since before the financial crisis and for service, it was the highest since June 2011. This weakness is a worry ...

The FxPro Analyst Team

FxPro Forex Analysis: North and South Korea to Meet on Friday for Historic Talks

The Koreas will hold historic talks on Friday, aimed at formally ending hostilities between them and closing a chapter of their combined history. North Korea pledged to suspend missile and nuclear tests effective immediately, while South Korea has lifted border propaganda broadcasts. USDJPY has moved up to the 107.800 level, with resistance above at 108.000 and a breakout on further good news targeting 109.000. Risk-on is expected to continue in the markets after major indices declined on ...

The FxPro Analyst Team

FxPro Forex Analysis: USDCAD and GBPCAD Analysis – April 20, 2018

On Wednesday, the Bank of Canada (BOC) left its benchmark interest rate steady at 1.25%, adopting a wait and see policy. The BOC said it did not know when they would hike rates to counter inflation. Today, Canadian CPI and Retail Sales data are released and may prove significant in determining the direction for the Canadian Dollar (CAD). The BOC has stated that they are happy for inflation to be close to 2%, and the expectation is for 1.5% year-on-year core CPI. A weak inflation reading could ...