Daily Market News – February 26th, 2016

Daily Market News – February 26th, 2016


Hello and welcome to HiwayFX market news for February 26th, 2016. On Friday, the EUR/USD pair traded on green area, by reaching during the Asian session the level of 1.1068. Currently, the pair consolidates near 1.1050 by adding 0.3%. The Euro got benefits from weakness of the American dollar on forex market. The dollar struggled to make much headway overall due to doubts over whether the Fed will raise rates at all this year. During the day, we expect high volatility due to publication the economy data from the US Gross Domestic Product at 1:30 p.m. The resistance levels for the euro are 1.1070 and 1.1138. The support levels for the EUR/USD are following 1.1036 and 1.0957. On Wednesday, the British pound tumbled below the level of 1.3880, for the first time since March 2009 on heightened fears of a possible British exit from the European Union. During the last two days, the pound has been managing its losses. Currently, the GBP/USD pair trades near the level of 1.3982, by adding 0.2%. “A vote for Brexit would hit the pound hard,” said Nick Kounis, head of macro research at ABN Amro Bank NV in Amsterdam. He was one of the survey respondents and sees the pound falling to below $1.20 within a week of an exit vote. “British Pound would be hurt by the negative implications for growth and hence interest rates but also because of capital outflows and concerns about the financing of the current-account deficit.” As Bloomberg reports , “Reaching the lowest level versus the dollar since 1985 would mean surpassing 2009’s low of $1.3503 and see it tumble to levels unvisited since Prime Minister Margaret Thatcher crushed the unions in Britain’s miners’ strike and London was aflame with race riots and hosted the U.K. leg of the “Live Aid” concert. The pound may tumble immediately after a vote to quit the EU, but would probably recover some of its losses, said Peter Dixon, a London-based economist at Commerzbank AG. He sees sterling above $1.25 and up to $1.30 a week after a vote to leave and between $1.35 and $1.40 three months afterward.” The resistance levels for the pound are 1.4016 and 1.4060. The support levels for the GBP/USD are following 1.3950 and 1.3870. On Wednesday, Gold surged to $1250 an ounce, by adding over 2%. During the last two days, Gold traded in the range $1220-$1240. Currently, Gold trades near the level of $1238 an ounce. “Gold is rising on the back of weak risk appetite, but what stands out today is that the market is rising even though the dollar is higher as well” Jens Pedersen, senior analyst at Danske Bank, said when the greenback was firm. “We’ve definitely reached a new range above $1,200 due to re-pricing risks of Fed rate hikes,” Pedersen said. He added that further sustained gains may be capped until the path for monetary policy is clearer. The resistance levels for bulls are following $1240 and $1255. The support levels for Gold are $1234 and $1229. To get more trading ideas, like us on Facebook, Follow us on Twitter and Pinterest and subscribe to our YouTube channel. For more information on all the key financial news around the world, please visit our website www.hiwayfx.com. Thank you and have a good trading day.

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