USD/JPY Technical Analysis: January 17, 2018

There has been a choppy trading for the U.S. dollar during the Tuesday session, the day of returning to work for Americans. Looking at the hourly chart, a slight downward occurred. There are also some major levels and expect the presence of noise in the market.

The U.S. dollar swayed back and forth yesterday. The next trading level would be at 111 which is a bit resistive. If the market breaks higher, it will probably be at 112 which has been significant in the past. It seems that there will be downward pressure and push the market towards 110. Overall, there will be noise in the market that puts the global economic outlook at a better position and at the same time, there is general selling of the U.S. dollar.

Hence, there will be high volatility in the market, which will attract more traders. If the pair breaks lower than the significant level of 110, the market will probably move down towards 108 soon after. Moreover, there are a lot of areas to cover which will highlight every 100 pips. Amid the presence of noise, the market could bounce back which would become an important pullback.

UK Inflation Rate Fell to 3% in December

The inflation rate of Britain edged lower for the first time in six months in December, which was driven by the price of airfares and games and toys. The rate went down to 3 percent versus 3.1 percent in November, this is the fastest decline over five years. While the core measure of consumer price growth also decreased to 2.5 percent five-month low.

The British pound lost its strength on the back of the data publication and currently trades at  $1.3772 as of 10:37, lower by 0.2 percent on the day. The numbers can be regarded to be the inflection point for the inflation due to impact from Sterling depreciation after the dwindling of 2016 Brexit referendum. The Bank of England along with the economists showed some projections for the possible downturn in 2018 and others predicted that the economy will be at the 2.4 percent level at the end of this year.

The drop recorded in December was mainly influenced by the technical adjustments of airfares within the inflation basket. However, the Office for National Statistics remains uncertain whether this move signaled for the beginning of a longer-term reduction in the rate. On the same month, services inflation plunged to 2.5 percent, which is the lowest in nine months.

The slackening inflation had a positive effect on households, especially those with low incomes as prices continued to rise. Economists polled by Bloomberg foresee some growth improvement in the currently weak household consumption by 2019. But, it will continue to sit below its recent average in both years. While predictions for headline inflations seems cool, but the  Bank of England policymakers focused more on the changes in domestic price pressures caused by low unemployment and contraction of supplies. In November 2017, the BoE approved for an interest rate hike for the first time after 10 years and spoken about the further rate hike in the subsequent years.

According to experts, the upward pressure on inflation partially comes from the sluggish productivity growth which hit the British economy since the Great Recession. On the other hand, policymaker Silvana Tenreyro had a positive outlook during her speech on Monday. Tenreyro stated that the economy will grow in the medium term which could reverse the forecast for interest rates.

Australian Confidence Index Surged Again

Based on the ANZ-Roy Morgan survey, the consumer confidence of Australia increased more than four-year high during the first week of the year. While the majority of Australians are enjoying the holidays, the question arises whether or not the surge was actually influenced by the positive confidence levels or the advancement was only temporary.

As a matter of fact, upon the publication of the initial report for 2015, the ANZ mentioned last week that confidence levels suddenly rose after the Christmas-New Year period. This could also probably driven by the fact that Australians are certain about their respective finances as well as to the current condition of the economy. According to the poll held last week, the confidence levels had a strong boost again.

David Plank, ANZ Bank Head of Australian Economics, mentioned that the positive development in the previous week showed a better sentiment in connection with the present financial and economic status, along with the projections for household expenditures.

This helped negate small declines in the sentiment of finances during the year ahead, while the economy in the next five years is predicted to fall by 0.2% and 0.5% respectively, with partial reversal of strong profits according to report last week.

As the current finances subindex picked up, the final component in the survey also showed some optimism on its forecast for consumption with an increase of 3.4 percent.

GBP/USD Fundamental Analysis: January 16, 2018

There is a hint of bullishness in yesterday’s trading session of the pound since there is no fundamental news to affect the market aside from the bank of the holiday in the U.S. As a result, the pound bulls have become relax in trading. Most likely, this is one of the reasons why the pair has been steady in the past few days but failed to break the level of 1.38 amid the weakness of the dollar.

Other than that, it could possibly be because of a big news expected to come this week, particularly the inflation data and retail sales data. Traders and investors anticipate the data prior to positioning themselves to any direction. The incoming data from the U.K. came out stronger which brought choppiness to trading while others came in weak, which has brought further uncertainty to the Brexit negotiations and affect the U.K. economy.

Yet, the pound was able to take advantage of euro strengthening and the weakening of the dollar. Although, this may not last for a long time. More importantly, the pound is beginning to gain momentum to move higher regardless of its condition. Also, rate hikes from the U.K. are also becoming an issue after its one rate hike last year. The succeeding hikes are deemed to be more important and the central bank has to be certain on its support actions from last year to boost the U.K. economy and confidence of investors.

There is no major news from the U.S. for today but the U.S. is presumed to return to the market following their long weekend holiday. On the other end, the inflation from the U. K. is highly anticipated later this day as it will have a significant insight on the movement of the market and give a hint on which direction does the GBP/USD pair will go.

NZD/USD Technical Analysis: January 10, 2018

During the trading course on Tuesday, the New Zealand dollar appears to be choppy and mainly negative. The marketplace is characterized as wrist sensitive because the NZ dollar is generally influenced by “risk appetite” and commodity markets. Aside from that, there exist a dollar bias that further leads the market.

The 0.7150 mark looks like offering some kind of support for the NZD/USD currency pair, which appeared to be really strong lately. But the markets are consolidating which means that pullbacks are expected to attempt establishing momentum in order to resume the move to the upside. The longer-term charts imply consolidation between the 0.68 region on the bottom and 0.75 level above, which caused the market to resume further consolidation but the situation is regarded to be larger and longer term.

There is a tendency for the market to continue buying on the dips due to inability to reach the top of the consolidation zone after the rebound from the bottom. The Kiwi dollar would likely be slightly oversold, therefore, it is acceptable for some recovery and normality. Upon the breakdown, a significant support at the 0.71 handle should be expected which is previously a significant resistances and accompanied by a large gap since the past few weeks. Most likely, the American currency will continue to lose it strength.

Macron Signed Trade Deals with China

French President Emmanuel Macron had an official visit to China for the first, securing multi-million worth of euro business agreement and Chinese President Xi Jinping acknowledged future relations between France and China.

France was the first western country to seal diplomatic relations with the People’s Republic of China in 1964 and the visit made by Macron indicates high regard between the relationship of China and France. The French leader walked through the Forbidden City along with his wife Brigitte and some students from the French international school.

The talks of the two leaders were all about the “Belt and Road” initiative aimed to improve trade links with China towards central Asia, Europe, and southeast Asia. They also tackled about environmental issues during the visit and Macron stated in Chinese language to “Make our planet great again” in Chinese, as regards to the decision of Donald Trump to pull out the United States from the Paris agreement on climate change. Aside from advancing trade links, Macron tries to reduce the trade deficit of France with China worth €30 billion (35.8 billion USD) and to have a better access towards the Chinese market.

During the signing ceremony, both Presidents signed 50 trade deals which include the strategically key sectors of nuclear energy and aerospace. On the other hand, the aeroplane business Airbus is scheduled to seal a  multibillion-euro contract with China and Chinese e-commerce company JD.com disclosed their plans of selling French products to Chinese consumers amounted to €2 billion for the next couple of years.

GBP/USD Fundamental Analysis: January 9, 2018

The GBP/USD pair trades around a tight range yesterday considering the fact that consolidation period is already expected in the markets. The US dollar remained unchanged, as it traded initially for the week, the course showed mainly about trade positioning and the price action was monitored by the market participants which limits market’s actions.

The British economy is predicted to recover if the Brexit process will flow according to the plan. The economic data issued from the United Kingdom last week was choppy and should be regarded as an indication for negotiators about the importance of Brexit talks to go as planned r else it might bring adverse effect for the UK economy. This was avoided almost be everyone since uncertain UK economy is far from the goal of international leaders. With this, the leaders of Euro and the UK will be responsible for this and should outline some good trade agreement for both sides.

On the other hand, the United States are waiting for the incoming data because the figures sent last week was choppy and obscure. The market expects for a three-time rate hike this 2018, however, the new Fed Chair Jerome Powell will take over in February and it remains uncertain about his plans and the way he works. Hence, this could lead to some risks for the dollar and the American economy as well. The Federal Reserve and the upcoming data should coincide in order to drive away this concept, resulting in stability for the dollar which is essential for the world economy.

Generally, there are no fundamentals or economic data from the UK or the US for today but the ranging between the levels of 1.35 and 1.36 should resume in order to engage more participants, particularly the day traders.

ForexMart - Callback Service

We are more than ecstatic to attend to all your inquiries and needs. Upholding our firm commitment to be your reliable trading partner, ForexMart wants to help you in every step of your trading journey.

If you are having any trouble calling our customer service, you may get in touch with us using our callback service. The feature is primarily designed to address all client queries as fast as possible. With this service, you can request to get in touch with one of our managers at your most convenient time. Ask and we shall call you back.

All you need to do is to provide your contact details and indicate your preferred callback time by filling up the form. Our Sales Department will respond to all your concerns within 24 hours. For other questions, please do not hesitate to contact us.

The service is free of charge and can be used by all our clients. Here's to wishing you a successful trading!

EUR/USD Technical Analysis: January 3, 2018

The Euro against the U.S. dollar climbed higher testing the resistance levels because of the exceedingly strong results of the manufacturing PMI following hints of the ECB meeting to end the quantitative easing in 2018. The European Central Bank has adjusted to the situation but with a steady inflation and progressive growth propelled the euro at a much higher rate.

The EUR/USD pair reached close to the September high at 1.2092 but was unsuccessful in breaking this rate. A strong euro has put pressure on the European stocks putting corporations into the lesser advantage against their competitors. The support level is found close to the 10-day Moving Average at 1.1920. The MACD histogram has been positive as it is printed in black with an upward sloping trajectory which could lead to a much higher Forex rate. The RSI indicator also gives an increasing positive momentum although the current rate is at 71. This is much higher than the overbought level of 70, which hints the possibility for a correction.

Bank of Spain Seen Growth in Spanish Economy

According to the central bank of Spain, robust export could possibly help increase the country’s economy by 0.8 percent quarterly rate over the past three months of 2017 amid the unfavorable consequences brought by the Catalan political crisis.

The Spanish economy is expected to grow by 3.1 percent this year, however, the government has to revise the outlook for 2018 by 2.3 percent versus the initial estimate of 2.6 percent due to risks generated from the already separated regional government of Catalan that urge of its
independence last October.

On Wednesday, the central bank further mentioned that buoyant exports generally created for the economic fallout in wealthy Catalonia. The projections and official data are scheduled to be released next month by the National Statistics Institute.

Currently, Spain is one of the fastest-growing economies of the European Union after emerging from the collapse in late 2013.

GBP/USD Fundamental Analysis: December 27, 2017

It was a holiday in the majority of the places in Europe, including the U.K. that makes it not surprising if the pound persisted to consolidate and traded within a tight range for the most part of trading yesterday.  The GBP/USD pair falls within a tight range since there is few major economic news.

It will not be surprising to have lesser volatility and liquidity this holiday season. At the same time, there is not much placing of trades and more on profit-taking in the past week, which can be seen mostly in the smaller market such as bitcoin. Although, it was not that obvious for pound despite there is a bigger market that is why grabbing the opportunity of any selling of this pair prior to holidays is relevant.

Come the second week of January, both liquidity and volatility will most likely gain momentum. Until then, traders should get ready for choppiness within a range near the end of the year. The market has reopened following a long weekend yet, there is still fewer traders this week since most still wanted to extend their vacation until New Year. Hence, consolidation of the pair within a tight range will persist in the next few days.

When it comes to data the Conference board’s Consumer confidence data from the U.S. is anticipated to be released today but this would not bring much volatility in the market. There is no major economic news from the U.K. Thus, there will be low trading and slow movement in the market for the rest of the day.

EUR/USD Fundamental Analysis: December 26, 2017

The euro against the U.S. dollar started with a tight trading week in a facile environment in consideration of the current market situation. Majority of traders are on a vacation this Christmas holiday season and the New Year whereas most of them would not working. This would result to lower volatility and liquidity that would limit the range of trading for this week.

There is also not much economic data on the calendar with fewer fundamentals in the next days to come. The steady dollar was supported by the tax reform bill, which was recently passed by the Senate and signed by the U.S. President. This would benefit m0st of the companies with lots of tax benefits which is as much as important to Trump and his team. At the same time, this is foreseen to improve the labor market and boost the economy in the succeeding years.

Hence, the dollar gained a short-term boost from the bill which will most likely be in effect for this week. The euro is being traded in a right range with minor consolidation in the past few months. Although, the fundamental new was not enough to successfully break the trading range.
It is yet to be discovered where the trend will range and if it is sufficient to sustain the pair within its range until January.

For today, there is not much economic news that is anticipated to be released from the eurozone or from the U.S. It is holidays in most part of Europe, which could result to tight trading range and consolidation throughout the day.

Deposit Insurance

We want nothing but the best for all our clients – and that includes prioritizing your funds and interests.

ForexMart is a member of the Investor Compensation Fund, a fund conceived by the Section 17 of the Investment Services and Activities and Regulated Markets Law of 2007, which states every Cypriot investment firm must be part of the Fund. Its main objective is to secure claims of the covered clients in the event the company in question fails to perform its obligations, specifically:

Return the funds owed or belong to the covered client.
Turn over the financial instruments to the customer entrusted to the member firm.

The fund will pay the compensation for the affected client, subject to the existing legal and contractual terms. However, individuals with ongoing criminal proceedings are prohibited from making claims, as per Prevention and Suspension of the Legislation of Proceeds from Criminal Activities Law of 2007.

Compensation payable to the covered client will depend on the prevailing rules and company's books. It is computed by adding all the total established claims of the client against the firm, stemming from all the services rendered by the entity. As of present, the amount paid to the covered clients is €20,000.

BoE will Keep the Normal Rates After Brexit

The Bank of England allows the financial institutions in the country to proceed with their selling transactions in the United Kingdom without the need for expensive subsidiaries after Brexit, despite the divorce deal between London and Brussels becomes unsuccessful as reported by the BBC.

The decision of the central bank will be publicized at 1300 GMT on Wednesday. These would ease problems to be faced by the European banks as they offer wholesale services in London that follows New York as the world’s financial capital.

Concerns regarding their requests for business hours, the BoE haven’t responded out of it. There are unidentified reports saying that the government and sound sources that the decision is supported.

The proposal of BoE would affirm for goodwill from Britain in Brexit talks that seek to maintain London as the financial center and manage more banks. 

There are more than 100 branches of lenders that operate in London which is headquartered in London. In the present, banks in Britain functions under EU “passporting” rules, which will end in March 2019 when Britain leaves the bloc.

Try the New Copy Trade System!

ForexMart continuously aims to improve its work and provide clients with the wide range of services for online trading on the Forex currency market.

We are pleased to offer you to use the new copy trade system. This service allows you to trade, copying positions and trading strategies of the most successful traders in real time. Account monitoring gives the opportunity to monitor the daily update of trading indicators, that allows you to control the process yourself.

Our company offers to consider the accounts of three ForexMart top-traders. Choose the most appropriate trading style and subscribe to copy the deals in just one click!

The new service is ideal for beginners, as well as for traders who do not have a lot of time.  This type of trading does not require in-depth knowledge in Forex trading and allows you to save significant time. You just need to subscribe to one of the three offered strategies and the orders will be automatically copied and displayed on your account. The service is provided free of charge.

Stay tuned and watch the news. ForexMart always tries to make your trade even easier and more profitable!

GBP/USD Fundamental Analysis: December 20, 2017

The GBP/USD currency pair was able to move ahead of the American dollar, as the USD lower in price amid smooth approval process of the tax bill. The passage was projected to support the dollar to increase, however, the effect was completely different. The market’s reaction remains uncertain not until the bill is already passed through in one of the US Houses and waiting for the Senate approval. However, there could be some delay due to procedural problems which could possibly place some pressure on the greenbacks that could further lead to uncertainty. As expected, the tax reform bill will be enacted by the Senate on a very tight margin and further requires the President’s signature to seal in the law. The whole scenario would likely be completed within this week, hence, the volatility in the USD should keep going until it happens.

The Brexit process does not have much improvement over this week and it is predicted to continue until New Year. Definitely, there will be some strong development in the process since the leaders on both sides clearly stated about the completion of a deal which may take a matter of time prior accomplishing the agreement. This notion seems to provide support for the pound in the past couple of weeks.

Ultimately, BOE Governor Mark Carney will have his speech but the impact to the market is predicted to be minimal. The market trend for today would likely be led by the USD and tax bill legislation. It is believed that the greens should gain more strength in the short and medium term in order to maintain the GBPUSD active.

EUR/USD Technical Analysis: December 13, 2017

The EURUSD edged downwards as the German investor confidence came in weaker than predicted results, along with the robust figures of American inflation data that reinforced the US dollar and put pressure on the single European currency. Small business confidence in the United States also showed secured position combined with strong  U.S. chain store sales.

Originally, the euro-dollar pair trailed lower on Tuesday and drove upwards to test the resistance at 1.1819 area near the 10-day moving average. The support of the pair touched the 1.1675 region around the ascending trend line. While prices generate a topping formation and market participant anticipates for the Fed decision as the central bank is highly expected to increase interest rates in the US by 25 basis points. The momentum became negative and the MACD indicator created a crossover sell signal. The moving average convergence divergence further prints in the red with a descending trajectory which implies for a lower exchange of rate.

France GDP Expected to Grow, says BoF

The economy of France is projected to increase at a steady pace in October to December based on the poll led by the Bank of France. The gross domestic product of the country is predicted to rise by 0.5 percent in Q4, which remains steady from the second estimate published in November. The French economy grew by 0.5 percent in the third quarter.

The data from the survey today indicates that the industrial production resumed growing until November. The business leaders mentioned that output is planned to increase at a consistent pace this month. Moreover, the manufacturing confidence index also sustained its score at 106 last month, versus the forecasted increase of 107. On the other hand, the service sector activity heightened in the previous month. Business executives expect for a slight increase in activity for this month. The services confidence index further showed a steady stance at 102 in November, as the construction activity had a sharp rise in the same month. The sentiment index in construction gained slightly from 103 to 104, which was the highest recorded since December 2007. According to forecast, the activity may grow at a hardly slower momentum in December.

GBP/USD Fundamental Analysis: December 6, 2017

The pound dollar pair resumed declining as the greenbacks remain unchanged. The market is generally preferred a wait-and-see mode since this last month of the year. However, the case of the British pound would likely show higher volatility due to the emergence of political turmoil within and over the United Kingdom. This further caused the GBP to weaken which was seen in the past couple of days.

During the previous entire week, the sterling is crowned to be the strongest currency among its rivals because of the agreement prospect concluded in the Brexit negotiations that helped the bid to keep under the British currency. Moreover, the pound climbs higher to the 1.35 mark and seems that the Cable pair plans to ascend to the 1.38 level upon the release of the contract details within this week or the next. There are expectations that everyone will end the year with satisfaction after the details were announced.

Nevertheless, the opposition of the DUP party towards the Irish borders interrupted the deal that erased hopes for the current week. This deterred the plans of UK Prime Minister Theresa May that delayed her domestic and international plans. It may also imply a tough decision to conduct any deal in the short-term for this apparently put pressure on the pound, while the pair slumped again to the 1.34 mark amid the current trading course.


Ultimately, there are no major economic releases from Britain as the spotlight is turned to the USD and the ADP employment report scheduled later today. On the other hand, UK services PMI data showed some weakness yesterday that further contributed pressure on the GBP. In case that the ADP figures came in positive, then the pair is expected to soften in the near-term.

EUR/USD Fundamental Analysis: December 4, 2017

The euro paired against the U.S. dollar declined since the dollar is starting to strengthen in the past day. The dollar was the highlight in the past week. This will be applicable for the data which will be released from the U.S. due to political issues.

Tax reform will be pushed through by the Senate which would be beneficial for the greenback. The dollar will continue to climb higher as long as the process goes on accordingly. This is what has been happening since Friday. On the other hand, the issue concerning Flynn adds more pressure to the dollar which will put it in a negative stand.

These changes will most likely be the highlight in the news when it comes to the dollar and focuses the week. The dollar will move steadily during the short-term as the end of the week approaches. The rate hike is also anticipated to push through from the Fed for this month. Even though the dollar will rally for a brief period of time, these factors placed the dollars at a good bidding.

There will be no major news from the eurozone or the U.S. for today. However, the dollar will remain strong for the day because of the reasons mentioned above. This keeps the euro under pressure that could result in consolidation and ranges around the level of 1.19 during the day.