EURUSD

Daily Market Comment – Euro continues to suffer, pound jumps on fiscal hopes

Posted on February 14, 2020 at 2:00 pm GMT

‘King dollar’ reigns supreme as euro rolls over Pound jumps as UK Chancellor resigns, fueling expectations for fiscal boost Wall Street pares losses, closes near records as ‘all news is good news’ US retail sales the highlight today – crucial for Fed Euro/dollar drifts lower as European exodus accelerates Another day, another multi-year low for euro/dollar, which continues its astonishing collapse having fallen in eight of the last nine sessions. The virus outbreak eradicated any surviving hopes for a real [..]

Week Ahead – Flash February PMIs eyed as virus outbreak shows few signs of slowing

Posted on February 14, 2020 at 11:09 am GMT

The preliminary PMIs for February will take centre stage next week as they will provide the first insight into the possible impact of the coronavirus on the global economy. The flash releases in the Eurozone, Japan, the United Kingdom and the United States should reveal how businesses outside of China have been affected by the outbreak with the risk that runaway equity markets may be handed a tough reality check. In other data, Australian employment and Canadian and UK retail [..]

Daily Market Comment – Dollar capitalizes as euro crumbles; Risk aversion strikes back

Posted on February 13, 2020 at 9:51 am GMT

Euro/dollar and euro/franc sink to multi-year lows after weak data extinguish hopes of European recovery Pain train for euro may not be over, difficult to see what can turn this around Meanwhile, virus worries return to haunt stocks and commodity currencies as death toll jumps – yen shines Euro caves in under the weight of disappointing industrial data The world’s most traded currency pair continued its epic downfall yesterday, touching a low last seen in 2017 after a batch of [..]

Technical Analysis – EURUSD plummets to 22-month low; indicators suggest upside reversal

Posted on February 13, 2020 at 8:21 am GMT

EURUSD came under renewed selling pressure on Wednesday, plunging to a fresh 22-month low of 1.0864. The 20-day simple moving average (SMA) has remained beneath the 40-day SMA over the last week, suggesting the continuation of the downside trend. However, the technical indicators are increasing chances for a possible reversal as the %K line of the stochastic oscillator completed a bullish cross with the %D line in the oversold zone, while the RSI is sloping north below the 30 level. [..]

A familiar story as Germany on brink of recession again, euro on the slide – Forex News Preview

Posted on February 12, 2020 at 2:03 pm GMT

Germany will report its first estimate of fourth quarter GDP growth on Friday (0700 GMT) as concerns resurface about the health of Europe’s largest economy, with the coronavirus outbreak adding to German businesses’ woes. The sluggish performance of the Eurozone’s growth engine continues to weigh heavily on the single currency, which has plumbed to fresh year-to-date lows this week. Growth to remain lethargic The German economy expanded at its slowest annual pace in six years in 2019, growing by just [..]

Daily Market Comment – Stocks undeterred by Bernie win; RBNZ lifts kiwi

Posted on February 12, 2020 at 10:20 am GMT

US equities close at new highs as Powell confirms liquidity injections will continue Futures point to a higher open today as well, despite Bernie Sanders’ election victory Kiwi jumps as RBNZ abandons easing bias, signals an end to rate-cut cycle Wall Street sets more records, yen and gold retreat Financial markets continue to trade in a ‘risk-on’ manner as fears that the coronavirus will have a long-lasting impact on the global economy are gradually diminishing, thanks to a substantial slowdown [..]

Daily Market Comment – Wall Street hits new records, but beware of the Democratic primary

Posted on February 11, 2020 at 11:59 am GMT

Fading virus fears boost equities, but New Hampshire primary today poses risks Euro pummeled as markets price out prospect of a big German spending package Fed chief Powell testifies, ECB’s Lagarde and BoE’s Carney speak RBNZ rate decision coming up – a more dovish tone seems likely Stocks climb as virus fears fade, but how long until they ‘feel the Bern’? Concerns around the economic fallout of the coronavirus seem to be fading off the market’s radar, as the rate [..]

Dollar rides high ahead of Powell testimony and key data – Forex News Preview

Posted on February 10, 2020 at 4:19 pm GMT

It’s an action-packed week in the States, with Fed chief Jay Powell testifying before Congress on Tuesday (15:00 GMT) and Wednesday, before CPI inflation and retail sales numbers are released on Thursday and Friday respectively, both at 13:30 GMT. If Powell maintains a relatively sanguine tone, that might come as a ‘hawkish’ surprise for a market that’s pricing in one and a half rate cuts by year-end. Overall, the dollar could continue to reign as ‘king’ of the FX market, [..]

Daily Market Comment – ‘King dollar’ continues its reign after solid jobs data

Posted on February 10, 2020 at 10:16 am GMT

Dollar cruises higher after strong payrolls push back expected timing of Fed cuts Yet, stocks struggle for altitude, yen climbs as virus fears remain in play Aussie breaks 11-year low, but quickly bounces back The world’s reserve currency shined once again on Friday, after US payrolls for January exceeded estimates, prompting traders to push back the expected timing of the next Fed rate cut. Nonfarm payrolls rose by 225k, smashing the forecast for a 160k increase and signaling that the [..]

Technical Analysis – EURUSD drops to a 4-month low; enters oversold area

Posted on February 10, 2020 at 8:18 am GMT

EURUSD met strong resistance near the broken ascending trendline at the end of January and changed direction to the downside, violating its uptrend off 1.0878 and diving to a four-month low of 1.0940 early on Monday. From a technical perspective, the short-term bias remains negative since all indicators are still located in the bearish area. Yet, the odds for an upside correction are increasing as the RSI and the Stochastics approach oversold levels. Should an upside reversal happen, the bulls would try to close [..]

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