Never miss a story from Justin McQueen

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Justin McQueen

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

MARKET DEVELOPMENT –CAD Soars, Oil Spikes on Drone Attack, USD Challenges 200DMA

DailyFX Q2 2019 FX Trading Forecasts

USD: Global central bank easing is on its way as the Fed confirms shift towards lowering interest rates. Consequently, the USD is underperforming across the board to test the 200DMA (96.61) once again as the decline in US yields erode support for the Dollar. However, an extension of losses could be exacerbated on a break below 96.50. (full analysis)

GBP: Despite the recent hawkish rhetoric from the BoE rate setters Haldane and Saunders, the BoE ultimately joined the rest of the world in citing a cautious approach to monetary policy at today’s meeting. The central bank had cut their Q2 GDP forecast to 0% from 0.2%, while also stating that inflation could be lower their 2% target later in the year. However, while GBP saw a modest pullback from its recent gains, the outlook for BoE policy has not changed in that they will remain on the side-lines until Brexit clarity is found.

CAD: The Loonie is soaring this morning, extending on yesterday’s gains inspired by not only a dovish Fed but the higher than expected inflation report. Alongside this, oil prices have spiked higher on yet another apparent escalation in the Middle East after Iran had downed a US drone that had reportedly been in Iranian airspace. As such, Brent crude futures rose as much as 3% to hover around $63.50.

NOK: Norges Bank confirmed it is the last hawk standing in the G10 having raised rates to 1.25% as expected, while also stating that they will most likely raise the rate again in September. Consequently, the NOK is the outperformer in the FX space, surging near 2% against the greenback.

CAD Soars, Oil Spikes on Drone Attack, USD Challenges 200DMA - US Market Open

Source: DailyFX, Thomson Reuters

IG Client Sentiment

CAD Soars, Oil Spikes on Drone Attack, USD Challenges 200DMA - US Market Open

How to use IG Client Sentiment to Improve Your Trading

WHAT’S DRIVING MARKETS TODAY

  1. Gold Price Soars to Five-Year High, Silver Smashes Through Resistance” by Nick Cawley, Market Analyst
  2. USD Price Analysis: Risk of Deeper Losses as Fed Confirms U-Turn” by Justin McQueen, Market Analyst
  3. Dow Jones, S&P 500, and Nasdaq 100 Technical Outlook as Highs Near” by Paul Robinson, Currency Strategist
  4. Using FX To Effectively Trade Global Market Themes at IG” by Tyler Yell, CMT , Forex Trading Instructor

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX