All Articles Tagged - EURGBP

Technical Analysis – EURGBP tiptoes around bottom base; bearish bias holds

Posted on March 11, 2021 at 4:07 pm GMT

EURGBP is currently crawling across the floor of 0.8538-0.8557, the latter being a 1-year low on February 24, where the pair rejected the level. The gliding simple moving averages (SMAs) are dictating the bearish picture, while the flattening Ichimoku lines are reflecting the dry-up in negative momentum, echoing the price’s struggles to dive deeper. The short-term oscillators are reflecting conflicting signals in directional sentiment. The MACD, in the negative region, is improving above its red trigger line, while the RSI [..]

Daily Market Comment – Dollar stands tall, equities struggle amid tech exodus

Posted on March 9, 2021 at 9:38 am GMT

Dollar and sterling reign supreme in rising yield environment Stock markets calm overall, but tech sector gets purged However, yields fall back on Tuesday, cooling dollar while lifting stocks and gold Epic rotation within markets continues While the overall stock market did not retreat much yesterday, that masks the seismic rotation happening under the hood, away from tech shares with bloated valuations and towards value and cyclical plays that might shine as the global economy re-opens. It is not every [..]

US Open Note – Dollar bulls outperform as Wall Street prepares for another bumpy day

Posted on March 8, 2021 at 2:18 pm GMT

US futures could face another red day; European stocks recover Upbeat data releases continued to feed expectations of inflamed prices, and therefore an earlier monetary tightening on Monday, despite central banks using verbal intervention last week to play down any adjustment in their ultra-loose accommodative policy for the next couple of years. The US 10-year Treasury yield pared earlier losses on Monday to rise as high as 1.6130%, signaling that the downside pressure on Wall Street may stay in play [..]

US Open Note – Dollar pushes up after strong NFP report

Posted on March 5, 2021 at 2:03 pm GMT

NFP report drives dollar even higher It’s NFP day and markets just got an update on the speed and direction of the country’s labor-market recovery. The US economy added 379k jobs compared to market expectation of a 182k rise and 49k before, while the unemployment rate fell to 6.2% from 6.3% in the preceding month, amid easing business restrictions, falling coronavirus infection rates, a fast vaccine rollout and continued support from the government. Markets are still focusing on the imminent $1.9trln of stimulus package and an ultra-dovish Fed. The spike [..]

Week Ahead – Will ECB make a stand against rising yields?

Posted on March 5, 2021 at 12:52 pm GMT

With bond markets going berserk lately, investors will turn to the European Central Bank meeting on Thursday. Some senior policymakers have been vocal about ‘fighting’ this rise in yields, but immediate action seems unlikely. Meanwhile, the Bank of Canada will have to play down a solid economy when it meets on Wednesday. In the US, inflation data could be crucial for the Fed narrative, though all eyes will be on Capitol Hill, where Biden’s relief package is about to pass. [..]

Fed’s silence on rising yields could reawaken the dollar – Special Report

Posted on March 4, 2021 at 12:03 pm GMT

Some central banks like the ECB hit the panic button when bond yields went berserk lately, but some others such as the Fed and the Bank of England appeared rather comfortable with the moves. If this divergence persists, rate differentials between these economies could widen further, spilling over into the FX arena. In this case, the euro and the yen might be in trouble, while the dollar and the pound could shine. ECB ready to fight? The global spike in [..]

Technical Analysis – EURGBP tiptoes sideways as bearish tone lingers

Posted on March 3, 2021 at 11:20 am GMT

EURGBP is consolidating, creeping along the somewhat softened downward slope of the 50-period simple moving average (SMA) around 0.8641. The directionless Ichimoku lines have neared each other and are currently reflecting feeble directional momentum. Despite recent improvements off a foothold at a 1-year low level of 0.8538, the SMAs continue to defend the bearish bias, which began around the end of last year. The short-term oscillators are suggesting directional momentum has relatively dried up but are leaning more to the [..]

What does the UK Budget hold for sterling? – Forex News Preview

Posted on March 2, 2021 at 2:36 pm GMT

The Chancellor of the Exchequer will unveil the latest UK Budget on Wednesday at 12:30 GMT. It will likely include another massive round of spending to safeguard jobs and boost the recovery. Rumors suggest taxes on corporations might be raised as well to repair the hole in public finances, but it’s probably too early for that. As for sterling, with the UK reaping the benefits of early vaccinations, the overall picture seems positive, especially against the growth-starved euro. Balancing the [..]

US Open Note – Dollar’s fight back continues as bond market remains in focus

Posted on March 2, 2021 at 2:14 pm GMT

Wall Street could start the day in red; bond market in focus The futures tracking the S&P 500 and Nasdaq 100 are signaling a negative open today after their biggest advance in almost nine months, as investors cautiously monitored the bond market and progress on the next round of fiscal stimulus. Wall Street surged on Monday as bond markets calmed, while developments on Covid-19 vaccines and fiscal stimulus bolstered expectations of a swift economic recovery. The dollar gained on the back of the reflation trade. Dollar/yen [..]

US Open Note – US Treasury yields tick higher; dollar around 107.00

Posted on March 1, 2021 at 2:10 pm GMT

US dollar back to notable gains A strong upside move in the US dollar and in US bond yields are the major themes of the day. The question is if this recovery is being driven by risk-off impulses or from expectation of Fed tightening. The US dollar index is approaching the 91.00 level, while dollar/yen is in the process to complete the fifth straight positive day around 107.00. The futures of the S&P 500, Nasdaq 100 and Dow Jones were pointing to a slight positive open after negative sessions. On [..]

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