Greenback Recovery

The greenback recorded positive gains against most of its major competitors this past week. Other big movers have been the Yen and the Kiwi. Let’s see the week in review:

Monday, Feb. 5th

USD

The greenback was one of the currencies to record positive gains during the Monday morning London session. There weren’t any catalysts that spurred its gains though analyst claims that that the sell-off in global equities has led to the demand for the currency.

The pair of USD/JPY surged by 25 pips or +0.23% to 109.27, while USD/CHF also went up by 52 pips or +0.56% to 0.9378.

The ForexSignal Trading Team jumped on the strong greenback trend and sent a signal to buy the USDCHF. Here is the trade which stayed open from February 5-6. Our Trade Copier closed the trade with 46 pips in the bank although the trade continued strong for 130 pips maximum move!

GBP

After experiencing recovering from last week’s sell-off during the Asian session, the GBP slid back to its previous price.

For the most part of the trading session, the sterling was steady before getting swamped by sellers across the board towards the end of the session. There was no apparent catalyst for the downfall of the currency.

GBP/USD plunged by 96 pips or -0.69% to end the session at 1.3864, GBP/CAD also went down by 82 pips or -0.47% to 1.7409, GBP/NZD was down by 78 pips or -0.41% to finish the session at 1.9037

Tuesday, Feb 6th

USD

The Greenback which was on a bullish run on Monday seemed to have run out of steam on Tuesday during the U.S session.

USD/JPY surged to a session high of 109.65 before crashing down to then fell back to 109.12, EUR/USD, on the other hand, plunged down to a low of 1.2313 before recovering to the 1.2400 levels,

GBP/USD, on the other hand, found support at 1.3836 before it recovered to 1.3980.

NZD

The Kiwi was boosted by positive economic reports in the country, allowing the currency to stay ahead of its pack by the end of the session.
NZD/USD surged from a low of 0.7273 to a high of 0.7351, NZD/JPY also surged from 79.79 to a session high of 80.58, while the pair of EUR/NZD plunged to 1.6900,

Wednesday, Feb 7th

CHF

At the London session, the Swissy took a hit and lost ground against most of its competitors, analysts believe that this is because of the returning risk-on vibes in Europe.

USD/CHF went up by 56 pips or +0.61% to end the session at 0.9406, NZD/CHF also went up by 35 pips or +0.51% to trade at 0.6873, while AUD/CHF surged by 42 pips or +0.57%, to end the session at 0.7402.

USD, JPY

The USD was generally strong during the London session after it recorded mixed performances earlier. It, however, ended the session as the top performing currency after fighting off Loonie.
The catalyst for this movement wasn’t clear even though analysts attributed to the speech by Dallas Fed President. Kaplan made some hawkish comments during the speech but the USD was already on the rise way before then.

The greenback and the yen took advantage of the risk-off flows after equities and other higher-yielding assets failed to hold on to most of their intraday gains. The two currencies ended the session as the top performers.

Other Pairs

GBP/USD plunged by 48 pips or -0.35% to end the session at 1.3906, EUR/USD also went down by 39 pips or -0.33% to trade at 1.2341, while NZD/USD was down by 11 pips or -0.15% to trade at 0.7305

EUR/USD plunged from 1.2351 to end the session at 1.2280, GBP/USD ended the session trading at 1.3875, while USD/JPY surged to a session high of 109.70. EUR/JPY plunged to a session low of 133.82, while GBP/JPY also went down from 152.22 to a session low of 151.35,

Thursday, Feb 8

Our ForexSignal Trading Team sent a signal to sell the USDJPY on February 7th, which went against us for almost 60 pips and the trade was at one point within 10 pips from being stopped out. The market reversed and the trade turned around in time to hit all three of our Take/Profit targets! Our Trade Copier closed the trade at Target 2 with  35 pips in the bank.

Forex Events – Week of Feb 12th-16th

There are some major events slated for next week that will impact the forex market.

• Monday 12th 12:00 PM: The U.S federal Budget Balance will be released though no forecast has been made yet.
• Tuesday 13th 2:30 PM: some data will be released in the U.K and they include CPI (m/m), PPI Output (m/m), and the CPI (y/y).
• Tuesday 13th 4:00 PM: The U.S NFIB Small Business Optimism Index will be released at this time. The previous readings was 104.9
• Wednesday 14th 12:00 AM: The German quarterly GDP report will be released. In the previous quarter, an increase of 0.8% was recorded. Other data to be released include German CPI and the German Wholesale Price Index.
• Wednesday 14th 6:30 AM: Core CPI in the U.S will be released. In December, an increase of 0.3% was reported and it is expected to increase by just 0.2% for January. CPI, on the other hand, is expected to increase by 0.3% from the previous 0.1%.
• Friday 16th 6:30 AM: the housing starts report will be released and it is expected to be 1,210k, up from the previous 1,192k.