David Song

1 week ago | forex.com | James Stanley |David Song |Fawad Razaqzada

Tomorrow brings a rate decision from the European Central Bank with the wide expectation for a 25 bp cut. Despite that expectation EUR/USD has been breaking out over the past two months, setting a fresh three-year high just last Friday. The weekly EUR/USD chart is overbought and sellers had an open door to run a pullback at the start of this week – but they could not get below the 1.1275 Fibonacci level and bulls have since used that price as a springboard from higher-low support.

1 week ago | forex.com | Fawad Razaqzada |David Song |David Scutt

The USD/JPY eased lower as US stock markets wobbled. Technology sector took a hit thanks to sharp falls in Nvidia, AMD and ASML. While trade tensions flared up again, sentiment was not significantly bearish thanks to news, courtesy of Bloomberg, that China may be open to fresh talks — provided President Trump reins in his more hawkish aides and shows respect. It remains to be seen whether talks between the two sides will start soon and whether a trade agreement will be struck.

1 week ago | forex.com | Matt Weller CFA |Matt Simpson |David Song |David Scutt

Canadian Dollar and Bank of Canada Key Points Canadian CPI came in well below expectations this morning at 2.3% y/y in March. The data slightly favors a BOC hold this week in my view, though a proactive 25bps rate cut cannot be ruled out. There is some early evidence that USD/CAD may be carving out a near-term bottom heading into tomorrow’s BOC meeting.

1 week ago | forex.com | James Stanley |Fawad Razaqzada |David Song

It’s been a big move in equities over the past couple of weeks and the question now is whether sellers use this bounce to fade the rip or whether buyers continue to push. In the webinar, I went in-depth on several macro markets and in this write-up, I touch on a few of the high points. To access this webinar in real-time, click here for registration information. While last week opened with cries of a ‘possible black Monday,’ a week later the premise of such seems non-sensical.

2 weeks ago | forex.com | James Stanley |Fawad Razaqzada |David Scutt |David Song

USD/JPY has shown some extreme volatility this week as it’s been multiple bounces between 145 support and 148 resistance. With U.S. inflation come in below expectations and potential for more U.S. rate cuts on the way, there could be additional motive for carry trades to unwind, and as we saw last year, that could be a de-leveraging event across global risk assets.