All Articles Tagged - EURGBP

Technical Analysis – EURGBP resumes its decline after upside correction stalls

Posted on December 23, 2021 at 8:56 am GMT

EURGBP has been trending upwards in the medium-term, peaking at 0.8598 in early December. However, since then, the outlook has deteriorated as bearish forces took control, with the pair paring a significant part of its gains. This recent downside move is likely to continue as momentum indicators further reinforce the bearish immediate-term bias. Specifically, the MACD histogram is found below both zero and its red signal line, while the RSI is sloping downwards beneath its 50-neutral mark. Moreover, the price [..]

US Open Note – Stocks go downhill as omicron bears bite; dollar, euro resilient

Posted on December 20, 2021 at 2:23 pm GMT

Omicron plays with investors’ nerves as stimulus vanishes Stock markets were in a sea of red during mid-European trading hours as omicron concerns and tighter curbs in Europe reminded investors that the pandemic is far from over and Covid could still swamp global demand after two years of limbo. The pan-European STOXX 600 and the British FTSE 100 index followed their Asian counterparts deeply lower, with energy shares, basic materials, and consumer cyclicals driving the bulk of losses, plunging by [..]

US Open – Fed struck a more hawkish tone; BoE raises interest rates

Posted on December 16, 2021 at 2:02 pm GMT

Fed catches up with inflation; BoE raises interest rates On Wednesday, the Fed struck a more hawkish tone, doubling its tapering pace and signaling three rate hikes for 2022. However, the US dollar quickly erased early gains closing the day in red and only managing to outperform the Japanese yen. On Thursday, the 10-year US treasury yield ticked higher, while the US dollar fell against a basket of currencies, mirroring traders’ shift to riskier assets. Meanwhile, the BoE announced on Thursday [..]

US Open Note – Will the Fed’s policy decision rattle the markets?

Posted on December 15, 2021 at 2:39 pm GMT

FOMC decision in the spotlight Markets are on edge as the Federal Reserve’s final policy decision for 2021 will hit the markets today at 19:00 GMT. The 10-year US treasury yield ticked higher ahead of the event, while the US dollar remains relatively unchanged. The central bank is widely expected to announce its plan to dial back its bond-purchases program at a faster pace and signal at least two rate hikes for next year, which could boost Treasury yields and [..]

Technical Analysis – EURGBP buyers emerge at 0.85 mark, neutral bias dominates

Posted on December 15, 2021 at 7:45 am GMT

EURGBP has found footing again around the 0.8500 handle after the pullback from the two-month high of 0.8598. The two-week rally from 0.8384 was denied passage past the 0.8600 hurdle, and the pair has now reinstated its neutral tone. The slight upward incline in the simple moving averages (SMAs) is showing a tendency for the pair to maintain a positive bearing despite the recent downside correction. The Ichimoku lines are not demonstrating any commanding directional forces, while the short-term oscillators [..]

Weekly Comment – Central bank fiesta, flash PMI and inflation reports

Posted on December 10, 2021 at 12:38 pm GMT

Global markets took a breather from the Omicron panic this week as fears about the variant’s impact on global economic growth subsided. The upcoming week is probably the busiest of the year with interest rate decisions from America, the Eurozone, the United Kingdom, Switzerland and the Japanese central bank. Moreover, inflation data from the UK, Eurozone and Canada, together with updates on global economic activity from American, European and British purchasing managers indices will hit the markets. The Highlights: In [..]

Technical Analysis – EURGBP crosses above its 50-SMA, yet outlook remains bearish

Posted on December 8, 2021 at 8:40 am GMT

EURGBP came back swinging from its November lows, surpassing its 50-day simple moving average (SMA). However, despite the immediate-term positivity, the price is currently trading below its 200-day SMA and has recorded three consecutive lower lows, reflecting a cautiously bearish outlook. Short-term momentum indicators are supporting a positive bias for the pair as the RSI is found above its 50 neutral mark, while the MACD is located above zero and its red signal line. Should the price cross below its [..]

US Open Note – Omicron variant continues to cast a shadow over markets

Posted on December 2, 2021 at 2:28 pm GMT

Dollar edges lower ahead of US jobs report The US dollar was trading without a clear direction on Thursday, as the markets continue to digest Fed Chair Jerome Powell’s hawkish shift and recent Omicron variant developments. Further hawkish remarks from Cleveland Fed President Loretta Mester, who is an FOMC voter next year, were unable to boost the dollar. All eyes will fall on the upcoming jobs report set to be released on Friday. Positive data could encourage traders’ speculation over [..]

US Open Note – Powell’s hawkish transition unable to boost the dollar

Posted on December 1, 2021 at 2:26 pm GMT

Powell signals faster tapering Global markets were struck by Fed Chair Jerome Powell’s hawkish tone during his testimony before the Senate Banking Committee on Tuesday. Powell stated that inflation could no longer be characterized as transitory, indicating that his central bank will consider speeding up its tapering process during the upcoming FOMC meeting in December. Terminating the Quantitative Easing programme faster than planned could be interpreted as an early rate hike signal since the Fed has made clear that it [..]

Technical Analysis – EURGBP meets resistance at 50-SMA as bearish forces linger

Posted on November 29, 2021 at 9:23 am GMT

EURGBP meets resistance at its 50-day simple moving average (SMA) amid ongoing negative forces. Moreover, the price is currently trading well below its 200-day (SMA), reflecting a bearish outlook for the pair. Short-term momentum indicators are supporting a negative bias, as the RSI is found slightly below its 50 neutral mark. However, the MACD is located below zero but above its red signal line, indicating that the negative momentum might be fading. Should the bears remain in charge, initial support [..]

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