EURUSD

Technical Analysis – EURUSD trades near 1.0800; neutral mode sustains

Posted on May 7, 2020 at 7:15 am GMT

EURUSD was trading not too far from the bearish cross within the 20- and 40-period simple moving averages (SMAs) near 1.0800 in the 4-hour chart, creating a negative movement in the consolidation mode. But momentum indicators suggest some negative moves for the pair to decline further. The near-term bias is looking neutral-to-bearish as the MACD is flatlining below the trigger and zero lines, while the stochastics are pointing south and the %K and %D lines remain negatively aligned. Also, the red Tenkan-sen [..]

Worst nonfarm payrolls ever? – Forex News Preview

Posted on May 6, 2020 at 1:10 pm GMT

The US employment report for April will hit the markets at 12:30 GMT on Friday and will reveal just how much economic damage the pandemic has inflicted on the American economy. Forecasts point to a breath-taking 21.8 million job losses, which would push the unemployment rate up to a staggering 16%. As for the dollar, economic data have little impact nowadays, so its near-term direction may depend on risk appetite. Overall, it’s still difficult to envision any real weakness in [..]

Daily Market Comment – German ultimatum sinks euro, yen capitalizes

Posted on May 6, 2020 at 10:57 am GMT

Euro crumbles after German courts challenge ECB stimulus Outlook still bleak, this is the last thing the fragile Eurozone needs Stocks trim gains on Fed gloom and Congressional ‘pause’, yen climbs Today: ADP data will give a taste of what’s on Friday’s NFP menu Euro falls apart as Germany challenges ECB The single currency came under heavy fire yesterday, after Germany’s top court ruled that the ECB’s asset purchases were unconstitutional. The judges gave the European Central Bank three months [..]

Daily Market Comment – Wall Street snaps back, but FX not convinced

Posted on May 5, 2020 at 11:04 am GMT

US stocks bounce back on medical headlines, rising oil prices, tech strength But FX market signals caution – yen and dollar hold strong, gold too Are investors piling into tech because of re-opening fears and US-China tensions? Euro suffers after German court decision on ECB asset purchases Stock markets storm higher Wall Street continues to defy economic gravity, with all three major US stock indices recouping early losses on Monday to close higher, brushing aside the simmering tensions between Washington [..]

Daily Market Comment – Specter of trade war returns to haunt stocks

Posted on May 4, 2020 at 9:15 am GMT

US stocks drop on Amazon earnings, fall further as US-China tensions flare up Finally discounting the long-term impact on consumption, psychology, and (de)globalization? Yen and dollar shine as risk aversion returns, aussie and kiwi suffer US-China tensions reintroduce stocks to gravity The stimulus-fueled bear rally in global stocks seems to be running on fumes, with optimism evaporating after some distressing remarks by Amazon cast doubt on the sustainability of this heavily concentrated market, and the US-China trade war came back [..]

Technical Analysis – EURUSD returns below 1.0980 despite respectful rally

Posted on May 4, 2020 at 7:57 am GMT

EURUSD found buyers last week and turned up to re-challenge its recent swing highs. The bullish pressure, however, proved insufficient, with the price failing again to close above 1.0980 despite spiking to 1.1016 on Friday. On Monday, the pair started the session in the red and below the 50-day simple moving average (SMA), while also piercing the 1.0950 barrier underneath, which is the 38.2% Fibonacci of the upleg from 1.0635 to 1.1145. Should the bears finally dominate below that level, [..]

Daily Market Comment – Trump reignites China feud; Stocks fall on data, ECB and earnings blows

Posted on May 1, 2020 at 8:50 am GMT

Markets go into risk averse mood as Trump threatens China with new tariffs Dire data, ECB inaction and mixed earnings further dent risk sentiment Liquidity thin due to May Day holiday; ISM manufacturing PMI coming up Trump’s tough on China rhetoric is back, spooks markets US President Donald Trump raised the prospect of fresh tariffs on China on Thursday as his administration seeks ways to retaliate against China’s handling of the COVID-19 outbreak. The virus has cost more than 60,000 [..]

Week Ahead – Nonfarm payrolls: The market’s trial by fire?

Posted on April 30, 2020 at 2:17 pm GMT

The serenity that has encompassed global markets lately will be put to the test next week, when America’s nonfarm payrolls data reveal how much destruction the pandemic has left in its wake. The Bank of England and the Reserve Bank of Australia are unlikely to deliver anything new at their meetings, though both will likely maintain a very dovish tone. Overall, the recent flood of liquidity and stimulus has helped stabilize markets, but ultimately, the V-shaped recovery that is now [..]

Daily Market Comment – Stocks jump on virus drug hopes; Fed’s blank cheque pressures dollar

Posted on April 30, 2020 at 8:21 am GMT

Global stocks extend gains on potential treatment for coronavirus and dovish Fed But Trump’s China blame-game caps gains Powell signals more stimulus may be needed, puts dollar on backfoot ECB next on the agenda; will it pump more stimulus? Remdesivir boosts stocks again despite question marks Positive results from two clinical trials on the effectiveness of Gilead’s remdesivir drug once again raised hopes that the deadly coronavirus that has plunged the global economy into its worst crisis can be defeated. [..]

Daily Market Comment – Dollar edges down ahead of Fed; aussie’s bull run continues

Posted on April 29, 2020 at 8:35 am GMT

Dollar drifts lower in mostly risk-on mood ahead of Fed statement Virus success powers aussie to 7-week high, euro perks up too Oil steadies, stocks move higher in lacklustre trading Dollar pressured amid lockdown easing, eyes Fed meeting The mood of cautious optimism continues to prevail in the markets on Wednesday as several countries have begun or are preparing to ease their lockdown measures. Hopes that shuttered businesses will soon be able to reopen their doors has sparked a relief [..]

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