Sunday, May 10, 2015

Forex Market Review for 5.8.2015

The forex market witnessed a host of activities, data and developments on Friday, with Sterling emerging as the leading performer. The GBP/USD pair is hovering around 1.5500 levels at the moment, following the conclusion of elections in the United Kingdom. 

An increasing number of traders are showing interest in purchasing the Pound today as the election results are indicating towards the fact that Conservative Party will emerge as the clear winner in the UK. The Sterling has advanced sharply today, growing by over 1.5 percent, even though the currency has shed some gains and hit the 1.5524 levels. As the day, progresses, traders will be eyeing the United Kingdom’s trade balance data as well as the United States Non-farm Payroll figures that is expected to be around two hundred and twenty five thousand. 

On the other hand, the EUR/USD pair is trading in the negative zone in the Asian trading session currently. The EUR/USD pair is trading lower by 37 percent at 1.1224 levels after having bounced back from lower levels of 1.1198 levels. A number of traders are selling the pair even as the USD gained strength in the forex market after the United States jobs related claims put further pressure on the pair. In addition to this, the declining German bond production figures weighed down the currency further. Most of the investors are now keeping a close watch on the German industrial production figures, even as the soon to be announced United States NFP data is likely to have a major impact on the major currencies. 

Meanwhile, the GBP/JPY pair has dropped to lower levels at 180.93 in the Asian market, after sterling strengthened its position in the forex market. At present the pair is trading 1.85 percent higher around 185.95 levels. The currency gained strength in view of the fact that the Conservative party is almost close to winning elections in the United Kingdom. According to the latest estimates, the Conservative Party is expected to win as many as three hundred and twenty five seats, which is almost seven percent higher than the Labour party. 

In the meantime, Yen has lost its strength in comparison to the USD, which has also impacted the GBP/JPY pair. The market, however, is waiting for the announcement of the final election results, which will be out very soon. On the other hand, the GBP/USD pair is trading at 1.5399 levels at present, after having gone as high as 1.5428 and dropping to lower levels of 1.5371. As a result the Pound has consolidated its position in the market based on the existing sentiments. 

Meanwhile, the Reserve Bank of Australia has released its Monetary Policy wherein it has reduced growth as well as inflation related projections. The bank however continues to remain tight-lipped about interest rates. Following the above announcements, the AUD/USD pair is trading at 0.7875 levels at present, after having touched higher levels of 0.7928 and lower levels at 0.7869. The outlook for the pair is bearish at the moment and is likely to remain the same in the coming future.

In the meantime, the traders and analysts are looking forward to what the United States Nonfarm Payrolls data has in store for them. The Federal Open Market Committee, on the other hand, has announced that the market can expect the committee to hike the rate of interest in 2016. The Committee is hoping that the market situations would improve further and is also expecting the United States to record a growth of 3 percent in the second quarter. As far as the situation in the Greece is concerned, the experts are of the opinion that any discussion around Greece’s debt situation will extend beyond Monday.