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Wednesday, 27 May 01:48 (GMT -05:00)

Foreign exchange market

Brexit Won't Affect British Pound Just Yet, NordFX Experts Say

The balance of powers in the international currency market (also known as forex) influences many contemporary tendencies in the entire world. At the same time, traders and investors rely on accurate forex forecasts to earn money. That is why we keep on publishing those weekly consensus forecasts, courtesy of NordFX.
In particular, the local expert team has come up with another forecast based on the time-tested approach, which boils down to studying tons of related sources, expert opinions, as well as predictions made based on technical and graphical analysis.
When estimating the possible directions in which EUR/USD can move, when should definitely take into account several major events planned for the trading week, including macroeconomic reports, public speeches made by politicians and economists. On Tuesday, the Fed's Chairman is to hold a speech in the U.S. Congress. If the Fed isn't going to raise the interest rates, the pressure on the U.S. Dollar may increase. If that's the case, the EUR/USd exchange rate may increase all the way up to the pivot point of the mid-term sloping channel at 1.1400, with a possible move further up to 1.1500. However, this scenario is backed by 30% of the experts. The remaining 70% have the opposite point of view. They assume that a weaker Eurozone economy coupled with the chaos around the Brexit will eventually give the U.S. Dollar the uper hand, which will trigger a move down to 1.1215-1.1240.
In this case, the key events to pay attention to are Theresa May's speech on Monday and Tuesday's Brexit voting in the British parliament. The parliament may reject the prime minister's offer once again, and after that Theresa May will have to make a tough decision. In particular, she may try to delay the Brexit or agree to quit the EU without a major agreement. Judging by the market sentiment, most investors are inclined to think that the British prime minister will eventually manage to win some time before quitting the EU for good. Anyways, 40% of the experts belive that the British Pound will succeed in standing the ground around 1.3000. Another 35% of them think that the pound will make it all the way up to 1.3200. The remaining 25% think the currency pair may go all the way down to 1.2770-1.2830. At the same time, it's interesting to note that a more expensive crude oil may back the pound's rally since crude oil and GBP are directly correlated and move pretty synchronously against USD.
At the end of the past trading week, the Japanese Yen froze while waiting for move stimuli to push it to another exchange rate against the U.S. Dollar. Recently, the currency pair has been driven mostly by the worsening macroeconomic stats in the USA coupled with a possible recession in Germany, the trade war between Beijing and Washington as well as the biggest slowdown in the Chinese GDP growth over the last three decades. All of that altogether is the reason for growing pessimism among the international investors who are trying to estimate the near-term prospects fo the global economy in general and the Japanese economy in particular.

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At first sight, it seems that the mentioned factors have been playing against the U.S. Dollar and therefore should play in favor of the Japanese Yen as one of the safe-haven assets out there. At the same time, market players are interested in riskier assets with higher profitability. According to EPFR, since the beginning of 2019, international investors have invested some 16 billion dollars in ETFs related to emerging economies. Given the specifics of the current situation, around 70% of the experts have voted for a further downtrend fo the Japanese Yen, which implies a rally of the USDJPY up to 111.50, with a chance to get another 100 points up. It's interesting to note, that most D1 indicators back this scenario. The remaining 30% stick to the opposite idea - a move down to 109.60-110.00 for USDJPY.
Since the long-awaited launch of JMP Coin by J.P.Morgan, the international community has been waiting for similar moves from Facebook and Amazon, as well as a range of other major players in the international market. However, those companies still haven't disclosed an information about the their own coins. At the same time, the SEC and the CFTC, as some of the major financial regulators out there, will have to make a lot of decisions, including unpopular ones, to clean up the mess in the entire market. When it comes to the trends for the week, the experts are divided into several groups again. 40% of them anticipate a Bitcoin rally up to $4,200-4,400, with a further jump up to $4,485, the highest level since November 2018. BTC/USD moving inside the 3,900-4,100 range is the most likely scenario for 35% of the experts. The remaining 25% of the experts count on Bitcoin getting back into the 3,500-3,800 area.


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Forex and Cryptocurrencies Forecasts. End of May 2020.

Right before the start of the last trading week of May, NordFX experts came up with another set of market predictions for the forex and cryptocurrency markets. Their predictions are based on the consensus forecast compiled from various market forecasts made by various market experts as well as the result of technical analysis. The period is May 25th - 29th. So, this is what those predictions look like:
Publication date: 24 May 01:41 PM

Only 4 Of All Existing Billionaires Made Their Fortunes With Cryptocurrencies

Publication date: 25 April 11:54 AM

Bitcoin Grows. EOS May Lead The Market Thanks To Blockchain

Bitcoin gained a good momentum along with the rest of the cryptocurrency market after good news from China. However, EOS may become the locomotive of the movement.

Publication date: 22 April 01:54 AM

DNB's Open For CBDC

De Nederlandsche Bank (DNB), the central bank of the Netherlands, is reported to be open for the CBDC of the ECB. CBDC stands for central bank digital currency. This was officially backed by a 45-page report released on April 21st. With that being said, DNB is ready to play one of the key roles in adopting digital currencies by the global banking system.

Publication date: 22 April 12:47 AM

Bad Economic Figures From USA. Wall Street Reacts.

This time, we are dealing with a peculiar situation. In particular, now that we are facing truly bad figures, the market reaches to them not the way we expected. When it comes to fighting the COVID-19 pandemic, there's almost no positive progress. That's is why international investors are now trying to find some good news in the economic field. Can we actually see some improvements?

Publication date: 02 April 04:04 AM

Dollar Regains Strength, NordFX Reports

Right before the start of another trading, NordFX experts came up with another set of market predictions for the forex and cryptocurrency markets. Their predictions are based on the consensus forecast compiled from various market forecasts made by various market experts as well as the result of technical analysis. The period is March 30th - April 3rd. So, this is what those predictions look like:

Publication date: 01 April 02:15 PM

Binance and Cryptocurrency Exchange

These days, Binance is a a giant in the world of cryptocurrency exchange. It wont' be an exaggeration to say that this is a Microsoft or a Mercedes in the world of cryptocurrencies. This is a major brand and a symbol of security for those investing in Bitcoin and other digital currencies.

Publication date: 29 March 11:24 PM

Dollar Becomes Safe-Haven Asset Amid COVID-19 Pandemic

Publication date: 22 March 07:48 AM

Fed Cuts Interest Rates. What Does It Mean For Bitcoin?

Publication date: 17 March 12:14 AM

Fed Cuts Interest Rates Again Amid COVID-19 Pandemic

The U.S. Federal Reserve, which can be considered the world's most influencial central bank, has been really serious about the COVID-19 pandemic going on around the world. For the first time in the history of the Federal Reserve, the central bank has done it twice within a couple of weeks. This time, the key interest rate was cut by 100 basis points, which brought it very close to zero. To be more specific, during the recent urgent FOMC meeting that took place on Sunday, March 15th, the FOMC members almost unanimously decided to cut the interest rated from 1,00-1,25% all the way down to 0,00--,25%.

Publication date: 16 March 07:57 AM