EURUSD

Technical Analysis – EURUSD trades around 2-month peak; turns bias to bullish

Posted on May 28, 2020 at 7:38 am GMT

EURUSD has been rising over the last two weeks, challenging a fresh almost two-month high at 1.1034. The bullish picture in the short-term is further supported by the MACD, which is edging higher and above its red trigger line, while the stochastic is heading towards the overbought zone with weaker momentum than before. The 20- and 40-period simple moving averages (SMAs) posted a bullish crossover, indicating more gains in the foreseeable future. The next resistance area to have in mind [..]

Eurozone ESI and inflation unlikely to distract euro ahead of ECB decision – Forex News Preview

Posted on May 27, 2020 at 10:16 am GMT

The Economic Sentiment Indicator (ESI) and preliminary inflation readings will be the data highlights in the Eurozone this week. The ESI is out on Thursday and the flash inflation estimate will follow on Friday; both are due at 09:00 GMT. The two reports are expected to paint contrasting pictures as the ESI should tick higher – in line with other business surveys – as the lockdowns are relaxed, while the price data may sound alarm bells about the deflationary impact [..]

Deluge of US data unlikely to excite dollar, but risk tones might – Forex News Preview

Posted on May 27, 2020 at 9:29 am GMT

In America, there’s a flood of data coming up towards the end of the week. Durable goods orders and the weekly jobless claims are due at 12:30 GMT on Thursday, while Friday brings consumption and income numbers ahead of a speech by Fed chief Powell (15:00 GMT). For the dollar though, none of these is likely to have much of an impact. Instead, the reserve currency may be driven mainly by how risk sentiment evolves. Overall, it’s difficult to envision [..]

Daily Market Comment – Caution sets in after Trump signals Hong Kong action

Posted on May 27, 2020 at 8:41 am GMT

Dollar firms as Trump hints at end-of-week response against China over Hong Kong But stocks mixed as US-China tensions fail to dent recovery optimism EU divisions resurface, put a brake on euro’s advances US preps Hong Kong sanctions: only Asia takes note Asian stocks were under pressure on Wednesday as US President Donald Trump gave his clearest signal yet that his administration is planning a response to China’s tightening of its grip on Hong Kong. In a White House press [..]

Daily Market Comment – Recovery hopes pull stocks higher as US-China row put aside

Posted on May 26, 2020 at 8:38 am GMT

Growth optimism drives equities higher as outlook brightens on lockdown easing Dollar slips on risk-on mood, pound and aussie shine But gold supported by lingering US-China tensions Stocks buoyed by economic reopening Global equities extended yesterday’s strong gains with Asian indices adding between 1-3% on Tuesday and European and US futures surging by 2%. The recovery theme continues to support risk assets as more businesses around the world are given the green light to reopen, fuelling hopes of a sustainable [..]

Daily Market Comment – No panic but Hong Kong tensions keep markets on edge

Posted on May 25, 2020 at 8:59 am GMT

US threatens sanctions on China over Hong Kong security bill as tensions simmer But optimism from reopening of economies keeps risk aversion in check Euro and pound on the backfoot again as policy easing and political risks weigh US anger at China mounts; new cold war looming? US-China relations continued to sink to new lows as the US Senate rushed through legislation that would place tougher trading rules on Chinese-listed companies on American stock exchanges and after the White House [..]

Technical Analysis – EURUSD loses battle with 1.0890 and leaves sellers in charge within range

Posted on May 25, 2020 at 8:14 am GMT

EURUSD was again unable to close above the 1.0980 hurdle last week despite touching the 200-day simple average (SMA), with the price pulling back into the 1.0800 territory on Monday. The price is now located in the crossroads of the 20- and 50-day SMAs, around 1.0870, and should the lines fail to buffer the latest downfall, the door could initially open for the 61.8% Fibonacci of the up leg from 1.0635 to 1.1495, at 1.0830, and then for the crucial support [..]

Week Ahead – US-China feud to stay under spotlight as data takes a backseat

Posted on May 22, 2020 at 12:04 pm GMT

Virus recovery hopes have gotten a boost after preliminary PMI readings for May rebounded more strongly than expected, underscoring the market optimism. But with economic releases set to quieten down in the coming week, Washington’s increasingly hostile language against China threatens to upset the dubious risk-on theme. Any panic-driven sell-off in risk assets could be accentuated from another anticipated plunge in personal consumption and durable goods orders in the US, which will be the main data highlights of the next [..]

Daily Market Comment – Hong Kong leads global markets lower as tensions spike

Posted on May 22, 2020 at 9:22 am GMT

Risk aversion deepens as China announces new security laws in Hong Kong Dollar and yen edge higher, global stocks sell off on fears of US retaliation Range breakouts rejected across multiple charts – S&P 500, euro, aussie, loonie Hong Kong sparks worries of new chapter in US-China tensions Global risk appetite crumbled on Friday, after China announced plans to establish an ‘enforcement mechanism’ for ‘safeguarding national security’ in Hong Kong. The news came hot on the heels of legislation to [..]

Can the EU recovery fund change the euro’s fortunes? – Special Report

Posted on May 21, 2020 at 3:23 pm GMT

The euro finally found its footing this week, bolstered by a Franco-German plan for a European recovery fund worth half a trillion euros to assist the economies most devastated by the crisis. Although the proposal is a step in the right direction for establishing some debt-sharing mechanism that ultimately sets the stage for Eurobonds, its size is quite small and it will face fierce opposition from Northern European countries. Hence, while it diminishes some risks and could keep the euro [..]

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