All Articles Tagged - EURGBP

US Open Note – Market sentiment muted and dollar holds firm

Posted on February 7, 2022 at 2:19 pm GMT

Markets prepare for ECB’s Lagarde as calmer tone overshadows prior rollercoaster week Moving past the previous heavy week of data and central bank meetings, the current week looks to be much quieter. The market mood is suggesting that the right boxes are getting ticked for the Fed to move ahead with tightening and a rate hike in March, especially after the huge win in the US labour market, where the US jobs report improved by 467k, more than triple the [..]

Weekly Comment – US inflation and GDP data from the UK in the spotlight

Posted on February 4, 2022 at 3:02 pm GMT

The European Central Bank made a hawkish shift after inflation in the monetary union surged to 5.1% in January. President Christine Lagarde refused to rule out interest rate hikes for 2022, bolstering the euro. In the upcoming week, US inflation and preliminary GDP data from the UK will take center stage, together with speeches from the governors of the BoE and BoC. Highlights: In America, inflation data for January will hit the markets on Thursday, with pricing pressures expected to [..]

Technical Analysis – EURGBP powers back; overall outlook remains bearish

Posted on February 4, 2022 at 1:55 pm GMT

EURGBP came back swinging from its two-year low in February, crossing above its 50-day simple moving average (SMA) as positive forces resurface. However, the pair is still trading below its 200-day SMA and has yet to break its series of successive lower lows, maintaining a cautiously bearish outlook. Moreover, the pair is trading above its upper Bollinger Band indicating that an immediate downside move should not be ruled out. Short-term momentum indicators are reflecting a positive bias as the RSI [..]

US Open Note – Euro in lively bullish party after ECB; BoE fails to boost pound after rate hike

Posted on February 3, 2022 at 2:27 pm GMT

Bank of England hikes rates Abandoning its communication fiasco of late last year, the Bank of England (BoE) delivered its first back-to-back rate increase in almost two decades, lifting interest rates by 25 basis points to 0.50% as widely expected. Consistent with its guidance, the committee also judged that it should cease reinvesting the maturing government bond purchases of its portfolio in a gradual and predictable manner, reiterating that it would initiate the process of selling (quantitative tightening) once the [..]

Technical Analysis – EURGBP consolidates but reserves bearish tilt

Posted on February 1, 2022 at 3:54 pm GMT

EURGBP has returned below its horizontally entwined 50- and 100-period simple moving averages (SMAs) following its fresh bounce at two-year low levels, which was curbed by the upper Bollinger band around 0.8359. The descending 200-period SMA is defending the bearish outlook, while the drifting 50- and 100-period SMAs are backing a sideways trend. In addition, the static Bollinger bands have yet to disperse and thus infer that volatility has dropped, which could be a sign that a bigger price move [..]

US Open Note – Market sentiment freezes, dollar largely unchanged

Posted on January 20, 2022 at 2:33 pm GMT

Markets digest US jobless claims and Philly manufacturing The US stock futures correction deepened as risk sentiment has remained negative, while the 10-year yield at 1.88% seems to be keeping the dollar buoyant. It appears the hawkish tone from the Fed has saturated markets and they have become less sensitive lately. The US economy is nearing full employment and today’s rise in jobless claims has managed to only nudge the dollar index slightly lower, stabilizing around the 95.40 level. The [..]

Technical Analysis – EURGBP buyers offset fresh dip, but downside risks remain

Posted on January 20, 2022 at 9:01 am GMT

EURGBP has adopted a softer negative trajectory since January 5, something also being reflected in the gentle slope of the 50-period simple moving average (SMA). Nonetheless, the longer-term SMAs continue to defend the bearish trend in the pair. The short-term oscillators are indicating a minor increase in positive momentum, which could prolong the consolidation in the pair from the beginning of the year. The MACD, not too far beneath the zero threshold, has overstepped the red trigger line, while the [..]

US Open Note – Stocks fail to recover, dollar remains resilient

Posted on January 19, 2022 at 1:24 pm GMT

Elevated yields favour dollar, Canadian inflation in spotlight The primary market focus remains centred around the Fed and how it will tackle inflation, with market participants juggling the premise of how many rate hikes will unfold this year. Expectations almost ‘guarantee’ three hikes but the dollar’s recent gains have been fuelled by rising Treasury yields, which have supported the dollar index around the 95.60 mark. US stock futures are somewhat finding their feet after the correction, while the 10-year Treasury [..]

Week Ahead – Bank of Japan meets, China releases GDP

Posted on January 14, 2022 at 12:52 pm GMT

The Bank of Japan will be in the spotlight next week. It will likely reaffirm that rates won’t rise for a long time, leaving the yen at the mercy of foreign central bank moves and risk appetite. The People’s Bank of China will also meet and could loosen policy to empower economic growth, although its actions are usually more important for stock markets rather than FX. BoJ – A hint of optimism The Japanese economy is turning a corner. A [..]

US Open Note – Dollar speeds down a slippery slope; stocks steady

Posted on January 13, 2022 at 2:20 pm GMT

Dollar extends inflation decline; initial jobless claims tick higher The latest CPI inflation report out of the United States was not a big surprise on Wednesday. Despite a minor pickup in the core measure, the annual headline gauge came in line with expectations at 7.0% – the highest since 1982. However, investors sold the dollar as three rate hikes by the Fed are already fully priced in to launch potentially after bond tapering ends in March, while a fourth one [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

EURGBP

XM Live Chat