Daily Technical & Fundamental Analysis

Euro to US dollar rate weakens on Tuesday after previous upturn
26 March, 2019 15:19

Euro to US dollar rate weakens on Tuesday after previous upturn

The euro-to-US dollar exchange rate has reversed on Tuesday after yesterday's strengthening. As a result, the rate stands near $1.1300 for now. The euro somewhat improved vs the greenback at the start of the week making use of the economic reports from Germany which showed better PMI for the first time over the past six months.

Oil price slackens but uptrend still possible
25 March, 2019 16:46

Oil price slackens but uptrend still possible

Oil prices have kept sliding this week. Brent quotes slumped from $68.7/bbl hit lately to some $66.53/bbl. This decline is a clear sign for the profit-taking after the leap, but it also does not offset possible further upturn. The weakening is said to be caused by strong resistance faced at $68.6 that was observed in November 2018. The current decline is quite obvious and can continue driven by the risks around unpredictable Brexit and US-China talks.

Brexit: Will Theresa May eventually have luck in Parliament?
18 March, 2019 17:30

Brexit: Will Theresa May eventually have luck in Parliament?

The last week was highly unstable for the pound sterling. The British currency followed mixed trends over the week. At the same time, the market bet on the current week as it was essential for the Brexit process. The UK MPs have made it clear lately that they would not accept no-deal Brexit and would not revise the departure date, but also rejected plans for the second referendum.

Pound sterling remains highly volatile after hitting last-year peaks
15 March, 2019 17:10

Pound sterling remains highly volatile after hitting last-year peaks

The pound sterling has been moving up and down lately, while now it maintains heavy volatility ahead of the UK's departure from the EU slated for March 29. Investors are waiting for the voting on the delay of EU leaving, which can entail certain risks for the pound. Strategic investors have faced challenges as this situation does not let them plan further actions in the market. Another important issue is to understand whether the UK manage to retain the status of a safe place for business after the political turmoil. Further pound movements are unclear in this situation, though one of the scenarios is that investors can start selling pound on the market reports while waiting for the voting results, following the EU decision on the delay.

Euro about to face new challenges
13 March, 2019 17:49

Euro about to face new challenges

The potential problems of the euro or even a collapse of the euro-area financial system have been urgent topics since the PIGS crisis and Greece debt problems. Moreover, the famous populist Marine Le Pen planned to shelve the euro and return French franc, declaring a default on sovereign debt. It seems that the euro can face new problems.

Oil prices maintain dynamic balance despite heavy pressure
12 March, 2019 16:43

Oil prices maintain dynamic balance despite heavy pressure

The oil market has seen substantial price strengthening lately. Oil quotes have gained almost 4% per bbl since last Friday. With this rise, the prices are coming closer to the upper end of the consolidation space. According to the market, the upturn was related to the media reports that Saudi Arabia will ship less oil than clients' ordered in April, with the output in the Kingdom to be well below 10 million bbl per day. Active discussion of the possible consequences of the power cutoff in Venezuela has become another driver of the concerns in the oil market recently...Despite strong reasons for both upward and downward movements, oil prices maintain positions near $66/bbl in terms of Brent oil for about a month already.

Global developments affect major currencies
01 March, 2019 18:08

Global developments affect major currencies

The rates of the major currencies to the US dollar are affected by global geopolitical tensions and investors’ unwillingness to risk at the moment. Deterioration in the US-China trade negotiations, an early end of US-North Korean second summit and the Brexit uncertainty are among the geopolitical risks that make investors cautious. The volatile market sentiments and a probable slowdown in global economic growth undermine investors’ confidence, affecting the rates of major currencies.

Negative sentiments arise among investors after early termination of US-North Korea talks
01 March, 2019 17:47

Negative sentiments arise among investors after early termination of US-North Korea talks

The financial markets have been characterized by negative sentiments just after the US-North Korea summit was broken down and thus the parties failed to sign an agreement. The last trading week of February brought massive events to the markets, while investors studied fundamentals that impact global markets. The main scenario for 2019 sill suggests restrained US dollar strengthening and unchanged interest rate in the USA as well as slower global economic upturn. The first month of spring is expected to be highly volatile.

Brexit delay prospects fuel sterling pound upturn
27 February, 2019 15:49

Brexit delay prospects fuel sterling pound upturn

Bullish investors are getting more confident as for the sterling pound growth amid the news that UK PM Theresa May may postpone the Brexit from March 29 to a later date. The development will ease uncertainty around the issue as well as concerns that the UK may exit the EU without any agreement in March. Nevertheless, the delay brings the risk that the UK will end up in limbo. Although the pound may keep on increasing amid expectations of the delay, its mid- and long-term prospects are still dimmed.  The US dollar in its turn has been slack lately.

Chinese stock exchanges get bullish on Donald Trump message
26 February, 2019 14:49

Chinese stock exchanges get bullish on Donald Trump message

On Sunday, US President Donald Trump announced he would postpone the increase in import duties on Chinese commodities which was scheduled to come into force on March 1. He cited notable progress in negotiations with China on a number of important issues. These developments supported stock markets in mainland China the most.

US President Donald Trump calls upon oil cartel to slow down
26 February, 2019 14:29

US President Donald Trump calls upon oil cartel to slow down

Oil prices have gained some 35% on the active strengthening over the past few months. Brent oil prices have soared practically to $68/bbl over the past two months. The increase observed over the past two months was driven by the US sanctions against Venezuela which hosts increasing reserves of unsold oil along with tighter measures against Iran. However, the market believes that the key reason behind the upturn was production reduction by OPEC members.

Sterling starts week with consolidation
25 February, 2019 16:43

Sterling starts week with consolidation

The sterling rate has shown quite moderate moves against the US dollar Monday morning. Today the market participants remain focused on the Brexit development, especially given that the deadline for the divorce is getting closer every day. The EU negotiator Michel Barnier believes that there is no sense to reschedule the Brexit date. As he noted, the decision must be made and it is high time that both parties finally to take over the responsibility.