EURUSD

Daily Market Comment – Nasdaq snaps losing streak; ECB to walk a fine line

Posted on September 10, 2020 at 8:45 am GMT

Equity slump eases as tech stocks bounce back; but is the rout over? Euro perks up ahead of ECB decision as dovish expectations fade a little Pound steadies but backlash over Johnson’s Brexit plan intensifies Nasdaq has best day since April Wall Street ended its three-day losing streak on Wednesday, with all three major indices going some way in recouping the previous sessions’ heavy losses. The Nasdaq Composite and Nasdaq-100 soared by 2.7% and 3.0% respectively, enjoying their biggest one-day [..]

US inflation data: Keeping the Fed in check – Forex News Preview

Posted on September 9, 2020 at 3:04 pm GMT

The latest CPI numbers out of the US will hit the markets at 12:30 GMT Friday, and forecasts suggest inflation picked up some steam. If that is the case, then market expectations for any Fed easing at next week’s policy meeting might fade entirely, helping euro/dollar to extend its correction lower – especially now that the ECB is actively talking down the euro. In the bigger picture, whether the stock market sell-off continues will be crucial too. ECB: The dollar’s [..]

Strong euro, Fed’s inflation shift may compel ECB to take dovish line – Forex News Preview

Posted on September 8, 2020 at 2:02 pm GMT

The European Central Bank will conclude its two-day policy meeting on Thursday, with the announcement due at 11:45 GMT, to be followed by President Lagarde’s press conference at 12:30 GMT. Up until recently, the September meeting was seen as nothing more than an update by the Bank on its pandemic response. But the euro’s flirtation with $1.20 and the Federal Reserve’s adoption of a looser inflation target, not to mention signs that the Eurozone recovery may be stalling, have likely [..]

Daily Market Comment – Pound hammered as no-deal Brexit fears return

Posted on September 8, 2020 at 8:49 am GMT

Brexit comes back to haunt the pound as Johnson raises the stakes Euro sticks to tight range ahead of Thursday’s ECB decision Stocks regain positive footing but dollar up as Trump talks China decoupling Pound slumps after Johnson threatens no deal Only five weeks left to reach a deal and Britain and the European Union are too busy posturing than negotiating, with Boris Johnson’s latest rhetoric once again raising the prospect of a no-deal Brexit. As the talks to agree [..]

Daily Market Comment – Wall Street tumble, job woes put dollar on defensive

Posted on September 7, 2020 at 8:57 am GMT

Dollar edges up as US tech losses deepen, jobs recovery slows Brexit threatens pound rally as Johnson raises his game in EU talks Chinese exports surge keeps risk sentiment afloat as US tensions weigh Tech rally suffers major setback Global equity markets attempted to shrug off Wall Street’s rare selloff last week as Asian shares ended Monday mixed, while Europe’s major bourses opened sharply higher. The somewhat questionable risk-on tone was underscored by better-than-expected trade figures out of China, which [..]

Technical Analysis – EURUSD loses steam after spike to 29-month peak above 1.20

Posted on September 7, 2020 at 8:14 am GMT

EURUSD is edging lower after the spike towards the 29-month high of 1.2009 on September 1. The four consecutive red days drove the market below the 20-period simple moving average (SMA) and the technical indicators are confirming a bearish retracement. The MACD continues to hold below the trigger line in the positive zone, while the RSI is ready to touch the neutral threshold of 50. The next target to the downside is the 1.1755 support level, which overlaps with the [..]

Daily Market Comment – Wall Street rediscovers gravity ahead of US jobs report

Posted on September 4, 2020 at 1:25 pm GMT

Stock markets tank as investors dump their tech darlings Yet, there is no sense of panic in the market, especially among currencies US jobs report today might decide if this correction still has some mileage in it Risk aversion makes a rare appearance After cruising higher without any significant corrections for three months now, the US equity market finally suffered a meaningful setback on Thursday. The S&P 500 lost 3.5% and the Nasdaq was down 5% as investors dumped tech [..]

Week Ahead – ECB meets amid deflation and euro headaches; BoC to stand pat

Posted on September 4, 2020 at 11:07 am GMT

Policy meetings by the European Central Bank and the Bank of Canada will heat up the September central banks schedule in the coming days, adding some excitement to an otherwise uneventful week. Neither central bank is expected to announce any new measures so the focus will be on what policymakers say about the recovery and the outlook. The ECB, in particular, will be one to watch as deflation worries are mounting and a stronger euro could jeopardise an already weakening [..]

Technical Analysis – EURUSD plunges below 1.1800; holds in upward channel

Posted on September 3, 2020 at 7:12 am GMT

EURUSD has lost its positive momentum after the pullback on the two-and-a-half-year high of 1.2010 on September 1, and it has been trading in an upward sloping channel over the last month. In the short-term, the market could retain the selling interest as the RSI is holding well below its 50 neutral mark and the MACD has dropped below its zero and trigger lines. The bearish movement, though, could stay in place given that prices continue to fluctuate below the Ichimoku cloud and the short-term moving averages (SMAs) in the [..]

Nonfarm payrolls: An asymmetric event? – Forex News Preview

Posted on September 2, 2020 at 2:03 pm GMT

The US employment report for August will be released at 12:30 GMT Friday, and forecasts suggest the economy continued to recover jobs at a healthy clip. For markets though, this data set might present an asymmetric risk, with a negative surprise likely affecting the dollar and equities more than a positive one. In the bigger picture, this data is unlikely to change the ‘dollar-hating, stock-loving’ trend currently at play. Dollar falls from grace There is absolutely no love for the [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.