{"id":113694,"date":"2017-09-28T06:27:31","date_gmt":"2017-09-28T10:27:31","guid":{"rendered":"http:\/\/countingpips.com\/?p=113694"},"modified":"2017-09-28T06:27:31","modified_gmt":"2017-09-28T10:27:31","slug":"forex-market-review-280917","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/09\/forex-market-review-280917\/","title":{"rendered":"Forex market review: (28\/09\/17)"},"content":{"rendered":"<div id=\"inves-678478937\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">September 28, 2017<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By Veselin Petkov, Alpari<\/strong><\/p>\n<div class=\"reviews-item__content\">\n<p>The Bank of Canada has indicated that it needs a more flexible, data-dependent monetary policy in the times to come, according to\u00a0<a href=\"http:\/\/www.bankofcanada.ca\/2017\/09\/monetary-policy-data-dependent-given-unknowns-inflation-outlook\/\">remarks<\/a>\u00a0yesterday from the bank\u2019s head; Steven Poloz. Poloz stressed that they wouldn\u2019t be thinking about interest rates mechanically, but rather that their outlook will depend on a number of statistical economic factors such as inflation, wage growth, business investment, consumer spending and debt, and so on. The Bank of Canada has hiked interest rates twice this year; once on the 12<sup>th<\/sup>\u00a0of July when rates went up from 0.50% to 0.75%, and again on the 6<sup>th<\/sup>\u00a0of September when they went up to 1.00%.<\/p>\n<p>It\u2019s important to note that the head of the Canadian regulator expects economic growth to slow down in the second half of the year compared to the first (Canada\u2019s GDP growth in the second quarter reached 4.5% year on year), so there\u2019s no guarantee of another rate hike from the BoC in the near future. Experts from the Canadian commercial bank Scotiabank expect one more rate hike this year followed by another two in 2018.<\/p>\n<p>Yesterday, the Reserve Bank of New Zealand\u2019s meeting on monetary policy concluded with the bank\u2019s official cash rate being maintained at its current level of 1.75%; as was expected. An official\u00a0<a href=\"https:\/\/www.rbnz.govt.nz\/news\/2017\/09\/official-cash-rate-unchanged-at-1-75-percent\">statement<\/a>\u00a0from the regulator said that economic growth in the country would remain stable in the near future thanks to a loose monetary policy, increased migration to the country, increased exports, and fiscal stimulus measures passed in 2017. Still, the RBNZ continues to believe that the Kiwi dollar is overvalued.<\/p>\n<p><strong>Day\u2019s news (GMT+3):<\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>09:00 Germany: Gfk consumer confidence survey (Oct).<\/li>\n<li>09:35 Japan: BoJ governor Kuroda\u2019s speech.<\/li>\n<li>15:30 USA: goods trade balance (Aug).<\/li>\n<li>16:30 USA: GDP annualised (Q2).<\/li>\n<li>17:15 USA: Fed\u2019s Stanley Fischer speech.<\/li>\n<\/ul>\n<p>Finalised GDP figures for the US in the second quarter of 2017 are due to be published today. As far as I can see, this data has already been factored in by the market and won\u2019t be a trend-setter for the dollar. In the short term, however, its publication could create some volatility on currency markets.<\/p>\n<p><strong>EUR\/USD<\/strong><\/p><div id=\"inves-3859226012\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>On the 4-hour timeframe (H4), the EURUSD pair is testing the key base of the upwards trend:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/FX%20market%2028.09.2017%20chart%201_59cca18e70d7a_59ccbac80f054.png\" alt=\"\" \/><\/p>\n<p>On the 30-minute timeframe (M30), the EURUSD pair has broken through the resistance line of the downwards trend:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/FX%20market%2028.09.2017%20chart%202_59cca19fee475_59ccbad995a50.png\" alt=\"\" \/><\/p>\n<p>At the moment, I can\u2019t see any buy or sell signals. At the time of writing, the EURUSD pair is trading at 1.1743.<\/p>\n<p><strong>GBP\/USD<\/strong><\/p>\n<p>On the hourly timeframe (H1), the GBPUSD pair is attempting a breakout of the range:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/FX%20market%2028.09.2017%20chart%203_59cca1b238fce_59ccbaea38bb9.png\" alt=\"\" \/><\/p>\n<p>On the 30-minute (M30) timeframe, the pair is continuing to move in a downwards trend:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/FX%20market%2028.09.2017%20chart%204_59cca1c459f7a_59ccbaf9111f8.png\" alt=\"\" \/><\/p>\n<p>Although it\u2019s possible that, in the event that the trend line gets tested and the downwards trend reaffirmed; a very weak sell signal could appear, I\u2019m going to hold off on opening a positions for now.<\/p>\n<p>At the time of writing, the GBPUSD pair is trading at 1.3385.<\/p>\n<p><em>One of my reasons for not trading on the GBPUSD pair for now is that I currently have long positions open on the USDCHF and USDJPY pairs, as well as a short position on gold. For the sake of diversity, I don\u2019t want to have a lot of open positions favouring the dollar on various currency pairs.<\/em><\/p>\n<p><strong>USD\/CHF<\/strong><\/p>\n<p>The USDCHF pair\u2019s long term growth prospects have increased. On the daily timeframe (D1), yesterday\u2019s candlestick closed above the upper line of the downwards trend:<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/FX%20market%2028.09.2017%20chart%205_59cca1d37a708_59ccbb068e804.png\" alt=\"\" \/><\/p>\n<p>We can clearly see on the chart that yesterday marked the first real breakout attempt of the trend line. So, I\u2019m keeping my long position on the USDCHF pair open with a Stop Loss at 0.9390 and Take Profit at 0.9940 \u2013 0.9960.<\/p>\n<p>At the time of writing, the USDCHF pair is trading at 0.9751.<\/p>\n<div class=\"s_invisible_yes\">Source: &#8220;<a href=\"https:\/\/alpari.com\/en\/hidden_copyright\/\" rel=\"nofollow\">Forex market review: (28\/09\/17)<\/a>&#8220;<\/div>\n<\/div>\n<div><\/div>\n<div><\/div>\n<div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Veselin Petkov, Alpari The Bank of Canada has indicated that it needs a more flexible, data-dependent monetary policy in the times to come, according to\u00a0remarks\u00a0yesterday from the bank\u2019s head; Steven Poloz. Poloz stressed that they wouldn\u2019t be thinking about interest rates mechanically, but rather that their outlook will depend on a number of statistical [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-113694","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/113694","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=113694"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/113694\/revisions"}],"predecessor-version":[{"id":113695,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/113694\/revisions\/113695"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=113694"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=113694"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=113694"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}