EURUSD

Week Ahead – Vaccine hopes torment yen, all eyes on Congress

Posted on August 14, 2020 at 11:48 am GMT

It’s a relatively quiet week, with the main highlights being the Eurozone’s PMIs and the latest FOMC minutes. In the political arena, American and Chinese negotiators will meet over the weekend to review the ‘phase one’ trade deal. For markets though, the most crucial drivers will be whether US lawmakers can break the deadlock in the stimulus negotiations, and whether enthusiasm around a vaccine will keep pushing global yields higher, crushing the yen. Will markets have to scream first, before [..]

Daily Market Comment – Dollar firms, stocks muted amid stalled stimulus talks, soft China data

Posted on August 14, 2020 at 9:00 am GMT

Hopes fade for a quick stimulus deal in the US as Congress leaves town Weaker-than-expected Chinese data adds to recovery worries Dollar pulled from lows as subdued tone weighs on stocks Stalemate on Capitol Hill A deal on a new coronavirus relief package looked increasingly out of reach as US Senators left Washington for the summer recess, pushing the likely timing of an agreement to September when both houses return. A last-ditch attempt on Wednesday to resume talks went nowhere [..]

Technical Analysis – EURUSD uptrend edges sideways; upside risks remain

Posted on August 13, 2020 at 10:24 am GMT

EURUSD appears to have consolidated its advancements between 1.1695 and 1.1915, despite existing positive signals. In the meantime, the price is engaging the Ichimoku clouds upper band at 1.1842, while the 50-period simple moving average (SMA), the cloud and Ichimoku lines, sponsor a horizontal bias. Nonetheless, the short-term oscillators and the bullish tone of the 50- and 100-period SMAs, promote further improvements. The strengthening MACD has risen above its red signal line and the zero mark, while the RSI is [..]

Daily Market Comment – Dollar slips as no stimulus deal in sight yet; Gold pares losses

Posted on August 13, 2020 at 8:34 am GMT

US Treasury yields fall back as Washington no closer to reaching stimulus deal Dollar retreats, helping gold recover some losses; stocks subdued US data, China trade talks on markets’ radar for the next few days Talks on virus relief bill stumble again The Trump administration and Democrats appear no closer to finding a compromise deal on a new virus relief package as the latest efforts to kick start the negotiations prove fruitless. Talks between the two sides have been at [..]

US retail sales may dim hopes of a quick recovery – Forex News Preview

Posted on August 12, 2020 at 12:55 pm GMT

US retail sales for the month of July will hit the markets on Friday at 12:30 GMT and expectations are for a sharp slowdown from June’s remarkable growth. While a weaker data set is highly expected, traders may pay attention to the size of damage that the virus caused on consumption. The outcome may provide some policy direction, driving the dollar accordingly. US retail sales to sharply decelerate in July Following May’s historical monthly expansion of 18.2%, US retail sales [..]

Daily Market Comment – Vaccine fever shakes markets, RBNZ shoots kiwi down

Posted on August 12, 2020 at 9:17 am GMT

Vaccine news catapult global yields higher, push stocks lower Gold falls without a parachute – has it peaked? Dollar inches higher amidst the turbulence, but Fed speakers are a risk RBNZ expands QE and opens door to negative rates, kiwi stumbles Putin says Russia has developed the first vaccine President Vladimir Putin unleashed mayhem in financial markets on Tuesday, after he announced to the world that Russia has developed the first successful coronavirus vaccine. Global bond yields erupted higher [..]

Daily Market Comment – US stocks flirt with record highs, gold retraces

Posted on August 11, 2020 at 8:57 am GMT

S&P 500 cruises towards all-time high as Trump floats capital gains tax cut Markets also take heart from ‘soft’ Chinese retaliation against US Gold pulls back as dollar and bond yields recover RBNZ meets overnight, might ‘talk down’ the kiwi more forcefully Wall Street sets its sights on new records Financial markets seem to have concluded that better days lie ahead for the global economy, with most asset classes trading in a buoyant manner this week. The S&P 500 is [..]

Daily Market Comment – Dollar gets a second wind after US payrolls, can it last?

Posted on August 10, 2020 at 10:44 am GMT

Decent US jobs report triggers a short squeeze in the dollar Is the reversing trend in European/American virus cases going to show up in euro/dollar? Trump signs executive orders to bypass Congress and provide more stimulus Muted market reaction to this – does it imply less stimulus overall? Dollar shorts get squeezed after payrolls The world’s reserve currency got a second wind on Friday, recovering some lost ground after a decent US employment report saw traders cover or trim some [..]

Technical Analysis – USDJPY fails to improve positive picture

Posted on August 10, 2020 at 8:46 am GMT

USDJPY is testing the 100-period simple moving average (SMA) in the 4-hour chart and the upper boundary of the Bollinger band, remaining around the 106.00 handle. The RSI indicator is pointing slightly up in the positive territory, while the stochastic oscillator is in process to post the bullish crossover within the %K and %D lines below the 80 level. A successful jump above the 106.07 resistance could open the way for the 50.0% Fibonacci retracement level of the down leg [..]

Technical Analysis – EURUSD returns lower after touching 27-month high above 1.1900

Posted on August 10, 2020 at 6:19 am GMT

EURUSD had been in a strong bullish rally until it reached a new 27-month high of 1.1915 on Thursday, that caused the pair to correct down below the 1.1800 round number. The technical indicators are losing momentum as the MACD completed a bearish crossover with its trigger line, while the RSI is hovering near the 70 level, failing to improve any positive actions. The 20- and 40-day simple moving averages (SMAs) are still heading upwards. Immediate support for further downside [..]

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