Tag: Forex

Some of the world’s currencies are accepted for most international transactions. The most popular currencies are accepted for most international transactions are the U.S. dollar, the euro, and the yen. However, the U.S. dollar is the most popular.

And in the foreign exchange market 90 of forex trading involves the U.S. dollar. Thus, when assessing the relative strength of the most popular currencies in the world, it’s always against the U.S. dollar, using the dailytime frame chart.

The “major” forex currency pairs are the major countries that are paired with the U.S. dollar (the nicknames of the majors are in parenthesis).

AUD/USD – Australia dollar (Aussie) vs. the U.S. dollar

EUR/USD – Euro vs. the U.S. dollar

GBP/USD – British pound (Sterling or Cable) vs. the U.S. dollar

NZD/USD – New Zealand dollar (Kiwi) vs. the U.S. dollar

USD/CAD – U.S. dollar vs. the Canadian dollar (Loonie)

USD/CHF – U.S. dollar vs. the Swiss franc (Swissie)

USD/JPY – U.S. dollar vs. the Japanese yen (the Yen)

Based on the moving averages and the last daily closing price, relative to the moving averages,

the currency relative strength relative to the US dollar is the following:

Two Weeks Ago

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Two years ago, England voted to leave the EU. Today, U.K. Prime Minister Theresa May asked Parliament to approve the withdrawal agreement with the European Union.  In March, U.K. Prime Minister Theresa May asked Parliament to approve the withdrawal agreement with the European Union. The withdrawal agreement was rejected by 432 votes to 202. The 230 vote defeat is thought to be the largest in U.K. political history.  Because she couldn’t get the job done, she resigned.

Now it’s newly elected leader of the Conservative party Boris Johnson takes over as the Prime Minister with the goal of executing Brexit.

Johnson, who won the race to the lead country on Tuesday, previously said the U.K. must leave the European Union by Oct. 31 “do or die, come what may.”

“Being a prime minister, things can change, and so maybe we also think about a little bit of an extension to the Brexit negotiation,” Dominic Schnider, head for commodities and Asia Pacific foreign exchange at UBS Global Wealth Management, told CNBC’s “Squawk Box.”

Should Johnson soften his perspective on Brexit, there will be consequences for the British pound, Schnider projected.

“If the market realizes that the hard Brexit probability starts to shrink, I think the pound can come back. So we’re probably going to trade north of $1.30, $1.35, somewhere there,” Schnider said.

Source

The reason the British Pound has been beaten up the last couple of years is due to the uncertainty of Brexit and if Brexit happens, the ramifications it will have on England’s economy.  However, if Brexit doesn’t happen, Dominic Schnider is right, the Pound should rise.  However, in order for it to rise to his target of $1.30, $1.35, the first major test would be the major support/resistance at 1.27000.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Boris Johnson took over from Theresa May as Prime Minister and it appears markets will be wanting fresh information as to Johnson’s intended Brexit policy before pushing an already heavily-discounted currency any lower.

Indeed, a number of analysts are telling us the current recovery in Sterling is actually technical in nature, without any real substantive underpinning, we therefore wonder just how high the recovery can actually go.

“We think this is simply a short covering bounce in an otherwise pronounced downtrend,” adds Bregar. “UK politics will feature some pomp and circumstance today as Theresa May resigns to the Queen and Boris Johnson is formally asked by her majesty to form a new government. Next up for GBP traders will be Boris Johnson’s new cabinet minister selections.”

Source

The Franc safe haven status outweighs the negative interest rates given the stability of the Swiss government and its financial system. Thus, when the global markets turn down, the Swiss franc tends to appreciate.

Monthly Chart (Curve Time Frame) – monthly supply is at 1.47000 and monthly demand is at 1.22000.

Weekly Chart (Trend Time Frame) – the trend is sideways with a downside bias.

Daily Chart (Entry Time Frame) – although price is in higher time frame demand, the chart suggests price can move lower and to short price at the daily demand at 1.23900.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Swiss National Bank President Thomas Jordan is facing a new wall of pressure that could force him to push the world’s lowest central bank interest rate even lower.

The franc is already at the strongest in two years, and likely to move higher as the European Central Bank outlines plans for loosening. A dramatic shift toward parity could even prompt surprise action by Jordan before the next scheduled meeting in September. That’s something he’s not been afraid to do before, notably in 2015 with the shock decision to scrap the cap on the franc.

Source

The interests rate that the Swiss is pay in a minus 0.75%.  This means that you actually lose money if you deposit money in their banks.  However, the Franc safe haven status outweighs the negative interest rates given the stability of the Swiss government and its financial system.   Thus, when the global markets turn down, the Swiss franc tends to appreciate.

Which is why I’m still bullish the Swiss Franc, despite potential continued cuts in their interest rates because other central banks around the world are cutting interest rates, so it all relative and the global markets are slowing and eventually will turn.

It won’t be easy for the EUR/CHF to get to parity (1.000) as there are many level where buyers are waiting to battle the sellers, but I think the war will be eventually won by the seller.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Some of the world’s currencies are accepted for most international transactions. The most popular currencies are accepted for most international transactions are the U.S. dollar, the euro, and the yen. However, the U.S. dollar is the most popular.

And in the foreign exchange market 90 of forex trading involves the U.S. dollar. Thus, when assessing the relative strength of the most popular currencies in the world, it’s always against the U.S. dollar, using the dailytime frame chart.

The “major” forex currency pairs are the major countries that are paired with the U.S. dollar (the nicknames of the majors are in parenthesis).

AUD/USD – Australia dollar (Aussie) vs. the U.S. dollar

EUR/USD – Euro vs. the U.S. dollar

GBP/USD – British pound (Sterling or Cable) vs. the U.S. dollar

NZD/USD – New Zealand dollar (Kiwi) vs. the U.S. dollar

USD/CAD – U.S. dollar vs. the Canadian dollar (Loonie)

USD/CHF – U.S. dollar vs. the Swiss franc (Swissie)

USD/JPY – U.S. dollar vs. the Japanese yen (the Yen)

Based on the moving averages and the last daily closing price, relative to the moving averages,

the currency relative strength relative to the US dollar is the following:

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

Brexit is an abbreviation for “British exit,” referring to the U.K.’s decision in a June 23, 2016 referendum to leave the European Union (EU). The process of Britain staying or not staying in the EU has caused a lot of uncertainty, which in turn has caused the British Pound to continue to drop in price.

Canada reported retail sales for May and reported an unexpected decline in sales as consumers cut back on purchases of groceries, alcohol and clothing. Sales fell 0.1% vs 0.3% increase. This past week, GBP/CAD has pulled back, but on this news, GBP/CAD spiked higher.

Monthly Chart (Curve Time Frame) – monthly supply is at 1.90000 and monthly demand is at 1.58000.

Weekly Chart (Trend Time Frame) – the trend is down.

Daily Chart (Entry Time Frame) – the chart suggests to short price at the daily supply at 1.64000.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

One doesn’t have to be British to know the drama that’s been going on in England the last two years due to Brexit. 

Even Richard Branson got into the mix stating that if England leaves the EU it would devastate his company and the British Pound.  Richard believes if England leaves the EU, the British Pound is going to parity against the US dollar. 

Let me throw a curve ball at you, what if the US and China never reach a trade deal?  On Wednesday China urged the Trump administration to “make up its mind” about reaching a trade deal with Beijing and warning that additional tariffs could send negotiations further off track.

Not only will that hurt the British Pound, but the entire EU.  Because the Japanese Yen is considered a safe haven currency, in times of geopolitical or financial turmoil, the Japanese Yen tends to gain against its peers.

The chart suggests to continue to short GBP/JPY at the daily supply at 135.75.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.