US futures rose in overnight trading after US lawmakers agreed, in principle, on funding border security. This was a culmination of weeks of negotiations in which the lawmakers wanted to avoid another government shutdown on Saturday. Even with the progress, there is a possibility that Donald Trump will reject the proposals. He has asked for $5.7 billion in border security. However, the current deal is in the range of $1.3 billion and $2 billion. This is less than half of what the President needs.
The US dollar rallied to the highest level this year. Today, the dollar index is in the ninth straight day of gains. The index measures the performance of the USD with that of a basket of currencies like the euro, yen, and sterling. The reason for this is that while the Fed has halted further rate hikes, the US economy is doing better than that of its peers. The European Union’s economy is weakening while that of Japan is not strong either. The UK economy, on the other hand, is going through challenges of slow growth, which is compounded by the uncertainties brought about by Brexit.
Asia-Pacific stocks rose as investors grew optimistic about the current round of talks between the US and China. US officials are currently in Beijing, negotiating a deal as the March 1 deadline nears. In China, the Shanghai Composite and Hang Seng rose by 0.75% and 0.20% while in Japan, the Nikkei rose by 2.60%. In Australia and New Zealand, the ASX 200 and DJ New Zealand index rose by 0.35% and 1% respectively.
EUR/USD
In the US session yesterday, the EUR/USD pair declined sharply, crossing the important support of 1.1290. The pair reached an intraday low of 1.1265, which was the lowest level since November last year. On the four-hour chart, the price is still below the 25 and 50-day EMA while the momentum indicator remains below the 100 level. The RSI is trading along the oversold level of 70. Therefore, while the pair could continue moving lower, there is a likelihood that it will make a short-term reversal.
GBP/USD
The GBP/USD pair continued the downward trend as traders waited for more guidance on Brexit. The pair is now trading at 1.2845, which is the lowest level since January 23. On the hourly chart, the price is below the 14-day and 28-day EMA while the RSI has moved closer to the oversold level. The Parabolic SAR points to more downward movements. There is a possibility that the pair will continue moving lower today.
USD/JPY
The USD/JPY pair continued the upward trend started in December. The pair reached a high of 110.65, which is the highest level since December 28. On the hourly chart, the pair is above the 14-day and 28-day EMAs while the RSI has moved to almost the 70 level. The momentum indicator has moved above the 100 level. The pair will likely maintain the upward trajectory.
General Risk Warning for FX & CFD Trading. FX & CFDs are leveraged products. Trading in FX & CFDs related to foreign exchange, commodities, financial indices and other underlying variables, carry a high level of risk and can result in the loss of all of your investment. As such, FX & CFDs may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with FX & CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to FX or CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever.
Recommended Content
Editors’ Picks
EUR/USD stays below 1.0800 after upbeat US data
EUR/USD stays under bearish pressure and trades slightly below 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold clings to strong daily gains above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.