2020-09-01 • Updated
The Chinese yuan gained after the better-than-expected data. Today early at the morning China’s Caixin Manufacturing PMI came out 53.1, beating estimates of 52.6. The optimistic numbers have proved that the world’s second largest economy is steadily recovering from the virus slump. Notably, the pair has already been falling for the 6th week in a row, therefore the report has just added tailwinds to the yuan.
Moreover, the massive sell-off of the USD pushed the pair to the downside as well. The Federal Reserve made a surprisingly dovish statement on Thursday last week. The Fed will allow the inflation and employment to run above normal levels, leaving rates low for longer. The new approach has made the low-yielding greenback unfavorable for investors. Most analysts anticipate further decline of the US dollar.
It’s impossible to ignore the US-China complicated relationship. There was some sign of improvement after the report of the successful phone call between two countries last week. China and the USA have promised to obey the phase-1 trade agreement, that encouraged investors. Nevertheless, there is still some uncertainty ahead of the election of the US president in November, which may significantly affect Sino-American relations.
The 200-week moving average at 6.8100 has turned out the strong support for USD/CNH. The pair has immediately bounced off after a slight touch of this level. However, if it manages to break through it again, the way to the next support of 6.7500 will be open. In the opposite scenario, the move above the high of August 27 at 6.8900 will drive the price to the high of August 21 at 6.9250.
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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