All Articles Tagged - EURGBP

US Open Note – Dollar knocks down riskier currencies; House stimulus vote looming

Posted on February 26, 2021 at 2:15 pm GMT

Central banks react after yield rally It was a turbulent week for markets as the rapid rise in global bond yields triggered profit taking on stocks and harmed traditional safe-haven currencies, with the S&P 500 and Nasdaq set to close the week with considerable losses, though hold within the neutral-positive territory in monthly terms. Although investors got assurances from the Fed and other central banks that any tightening in monetary policy was long in the future, the yield rally over [..]

US Open Note – Bond yields shine at fresh highs as US futures struggle; euro bulls gear up

Posted on February 25, 2021 at 2:11 pm GMT

Bond yields shrug of Powell’s comments; US future point to the downside Nothing could stop bond yields from rising on Thursday, not even the Fed chief Powell, who once again told lawmakers of the House of Representatives on Wednesday that a persistent rapid inflation break above 2.0% will not be the case for the next three years. While his remarks assured investors, who were front-running the Fed, that the current ultra-lose monetary policy is here to stay, the US 10-year [..]

US Open Note – Investors give up on traditional safe havens; pound pulls from 1.4235 peak

Posted on February 24, 2021 at 2:08 pm GMT

Stocks heal slightly after Tuesday’s plunge The vaccine euphoria coupled with reopening guidelines and stimulus pledges from several countries continued to lead market sentiment on Wednesday, boosting the appetite for risk-on trades. Fed chief Powell characterized the bond rally as “a statement of confidence” during his virtual semi-annual testimony in the Senate on Tuesday, and once again, reaffirmed that the current accommodative monetary policy will remain in play as long as it is needed, leaving the 10-year Treasury yield elevated [..]

Technical Analysis – EURGBP plunges to 1-year low around 0.85

Posted on February 24, 2021 at 8:34 am GMT

EURGBP plummeted to a new one-year low at 0.8538, holding well below the simple moving averages (SMAs) in the daily timeframe. The aggressive selling interest started after the touch of the 0.9230 resistance, with the technical indicators confirming this structure. The RSI and the stochastic are moving in the oversold regions, while the MACD is losing ground beneath its trigger and zero lines. A successful break below the 0.8545 support could send the market towards the next 0.8280 obstacle, taken [..]

US Open Note – Dollar up, stocks sharply lower ahead of Powell’s testimony

Posted on February 23, 2021 at 2:10 pm GMT

Waiting for Powell to respond to inflation expectations Rising inflation expectations and the rally in bond yields will be examined during Powell’s semi-annual testimony before the Senate at 15:00 GMT as markets will be eagerly waiting for the Fed chief to update his views regarding price growth, economic expansion and the outlook for monetary policy. Although Powell may prefer to play it safe, reiterating that downside economic risks continue to linger in the background and that it is too early [..]

US Open Note – Riskier currencies cheer on dollar weakness as stocks heal

Posted on February 19, 2021 at 2:16 pm GMT

From optimism to doubts A surprising pickup in US weekly jobless claims proved on Thursday how easily market sentiment can switch from hopes of a speedy recovery to doubts of a robust expansion, triggering a pullback on Wall Street. Although weaker growth prospects tend to hurt bond yields, the US 10-year Treasury yield managed to rebound in the aftermath as the jobs data urged the need for Biden’s $1.9 trillion stimulus package, and therefore signalled an even bigger bond issuance. [..]

US Open Note – Stock bears dig deeper; pound jumps to fresh highs

Posted on February 18, 2021 at 2:12 pm GMT

The calm after the rally Investors will have to wait for the next Fed policy meeting and for progress in Biden’s $1.9 trillion stimulus plans before they adjust their rising inflationary expectations. For now, the FOMC meeting minutes, which were released late on Wednesday, have ensured markets it will take some time before inflation and the unemployment rate push the Fed to remove some stimulus. Hence, US Treasury yields, which were last trading around 1.30%, may take the back seat after a [..]

Technical Analysis – EURGBP faces hardened support; bearish tone tested

Posted on February 17, 2021 at 9:07 am GMT

EURGBP is confronting the firm support foundation of 0.8670-0.8690 after deteriorating below the Ichimoku cloud and the simple moving averages (SMAs), more than a month ago. The bearish Ichimoku lines are feeding negative price action, while the falling 50- and 100-day SMAs are nurturing the descent. Moreover, the short-term oscillators are demonstrating persisting downwards momentum. The MACD, some distance below zero, is slipping under its red trigger line, while the RSI is sliding past the 30 level into oversold regions. [..]

US Open Note – Yen gets hammered; Boris looks to exit lockdown

Posted on February 15, 2021 at 2:26 pm GMT

It’s a risk-on day It’s a bright day for markets as upbeat Q4 GDP growth figures out of Japan coupled with falling global infection cases bolstered hopes that the economic recovery could gain steam in the year ahead. Following the strong bounce in Asian indices, which sent the Nikkei 225 up to 30,000 for the first time in three decades, European equities received a slice of interest too. The German DAX 30 was flirting with its recent record highs, while the Euro STOXX 600 was [..]

Daily Market Comment – Stocks hit fresh records as dollar pulls back, oil breaks $60

Posted on February 15, 2021 at 10:02 am GMT

Global stocks surge to fresh highs as no end to euphoria, but quieter day expected Dollar jolts back down, pound and aussie roar ahead on vaccine boost WTI oil smashes above $60 a barrel to new post-pandemic high No stopping the bulls The stimulus and vaccine-led euphoria continued to bolster sentiment on Monday even as US markets are shut for Presidents’ Day and China is still celebrating the Lunar New Year. Asian markets closed sharply higher, led by Japan’s Nikkei [..]

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