EURUSD

Daily Market Comment – Virus resurgence haunts stocks but dollar edges lower

Posted on June 29, 2020 at 8:30 am GMT

Markets start week in risk-off mode as virus surge halts reopening plans in the US Stocks slip, but less cautious mood in FX markets as dollar and yen pull back Pound bounces off lows as Brexit talks enter intensive phase Virus fears keep Wall Street on the back foot Worries that the world could be in the midst of a second Covid-19 outbreak continued to weigh heavily on market sentiment as the second quarter almost draws to a close. Stocks [..]

Technical Analysis – EURUSD’s downside correction may be temporary

Posted on June 29, 2020 at 7:24 am GMT

EURUSD seems to be trading within a downward-sloping channel on the daily chart which seems to be part of a bullish flag formation created after the steep rally to 1.1421. The pattern is a positive signal that the downside correction in the price is temporary and the market could soon resume its upward direction once the bulls smash the upper surface of the channel. The fact that the 50- and 200-day simple moving averages have (SMAs) have positively crossed each other after three [..]

Week Ahead – NFP in focus as US virus cases spike, recovery in doubt

Posted on June 26, 2020 at 12:10 pm GMT

As the risk rally fizzles out amid rising concerns about a second wave of virus infections in the United States, the all-important jobs report has the capacity to either calm or scare jittery markets. With very few other top tier releases on the agenda next week, it’s hard to see anything other than the virus story driving investor sentiment. Special attention will be on the escalation of Covid-19 cases in the US and whether any states begin to reverse some [..]

Daily Market Comment – Stocks jump into the green, but dollar doesn’t play along

Posted on June 26, 2020 at 8:40 am GMT

Investors ignore a litany of bad news, push stocks higher on deregulation hopes But FX retains a more cautious tone, dollar holds onto gains as US cases hit new record Texas and Florida “pause” their re-opening plans Rebalancing flows heading into quarter end could bite markets Stocks and dollar focus on different narratives The epic market battle between stimulus-driven bulls and virus-fearing bears seems set to end in a draw this week, as worries of a rapid resurgence in virus [..]

Emerging from lockdown: A V-Shaped recovery or false optimism? – Special Report

Posted on June 25, 2020 at 11:16 am GMT

Looking at how risk assets have been performing over the past three months, it’s hard to tell there’s a global pandemic going on. To put it into more context, if someone had been living on a desert island during this time, they would be forgiven for thinking that the world is in the midst of an economic boom when glancing at stock markets. But although there’s been no shortage of crisis response measures since the coronavirus outbreak erupted, how rational [..]

Daily Market Comment – Markets lose altitude as virus fears escalate

Posted on June 25, 2020 at 10:59 am GMT

Reality bites stock markets as US virus spike accelerates, dollar recovers Threats of new US tariffs against EU and dire IMF forecasts not helping mood Fed balance sheet reduction may be playing a role too Daily virus numbers will continue to dictate sentiment Acceleration in infections hampers recovery prospects Risk aversion gripped global markets once again on Wednesday after several American states reported another worrisome spike in virus cases and hospitalizations, pouring cold water on the cheerful narrative of a [..]

Technical Analysis – EURUSD poised for more downside if the trendline gives way

Posted on June 25, 2020 at 8:49 am GMT

EURUSD has been charting lower lows and lower highs after peaking at 1.1421 and near a long-term ascending trendline stretched from the 2019 bottom, signaling that the recent bearish wave in the four-hour chart may continue. The weakening RSI, which has crossed below its 50 neutral mark, and the fact that the price has slipped below the middle Bollinger band (20-period simple moving average), is also endorsing the negative view. Yet, whether the bears can dominate may depend on the [..]

Daily Market Comment – Gold flies to new highs, RBNZ talks kiwi down

Posted on June 24, 2020 at 8:53 am GMT

Dollar retreats after encouraging PMIs turbocharge euro Gold capitalizes on weaker dollar, reaches heights last seen in 2012 Stocks inch higher led by tech, despite US virus spike and rising bankruptcies RBNZ expresses discomfort with exchange rate, kiwi obliges Gold takes advantage of softer dollar Global markets continue to be torn between conflicting narratives, as signs that the world economy has entered the recovery stage – with a little help from a tsunami of stimulus – clash with a worrisome [..]

Daily Market Comment – White House sends markets spinning, European PMIs bolster euro

Posted on June 23, 2020 at 10:30 am GMT

Conflicting statements from White House on China send currencies and stocks for a wild ride But markets back to square one as dust settles, still in a good mood overall Nasdaq closes at new record as US virus cases ease back down European PMIs show France back in expansion, boost euro Navarro channels his inner China hawk, then walks it back Global markets went for a wild ride overnight, after White House trade advisor Peter Navarro – probably the administration’s [..]

Daily Market Comment – Investors grapple with the virus blues

Posted on June 22, 2020 at 10:50 am GMT

Markets struggle for direction as second wave worries intensify WHO reports record increase in global cases, Apple re-closes some US stores Gold spikes higher but FX and stocks still not overly concerned Looking ahead, the battle between stimulus-fueled optimism vs second wave concerns will drive sentiment Emotional rollercoaster continues With the correlation between FX and stock markets going through the roof in recent months as the dollar reclaimed its safe-haven throne, risk sentiment has become the dominant force in the [..]

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