All Articles Tagged - EURGBP

Daily Market Comment – Cautious Fed and tame inflation unable to lift markets

Posted on February 11, 2021 at 9:30 am GMT

Stocks virtually flat despite promises of endless Fed liquidity FX quiet too as traders search for the next big theme US jobless claims and Disney earnings top the agenda today Is the stimulus narrative losing its bang? It was a quiet session across global markets, with most equity indices closing virtually unchanged near record altitudes and the prominent currency pairs trading in narrow ranges. Sometimes though, the lack of action itself speaks volumes. Investors had their gaze locked on the [..]

Technical Analysis – EURGBP edges sideways around 9-month low

Posted on February 10, 2021 at 3:51 pm GMT

EURGBP is consolidating around depths not reached in nine months, capped by the 50-period simple moving average (SMA). The Ichimoku lines are reflecting the pause in negative momentum, while the downward sloping SMAs are defending the short-term bearish demeanour in the pair. A glimpse at the short-term oscillators suggests that a pickup in negative sentiment could play out. The MACD, below zero, is slightly above its red trigger line but is looking set to dip back below it, while the [..]

UK GDP unlikely to bruise the roaring pound – Forex News Preview

Posted on February 10, 2021 at 1:42 pm GMT

British economic growth numbers for Q4 will hit the markets early on Friday, at 07:00 GMT. The forecast is not inspiring, but still, even a disappointment is unlikely to inflict much damage on the high-flying British pound. Everyone already knows this quarter was dismal as the economy was locked down, and investors are instead focusing on the future, which seems bright as the UK is leading the developed world in the vaccination race. The risks surrounding euro/sterling in particular seem [..]

US Open Note – Dollar back to gains despite calm day; euro steady

Posted on February 8, 2021 at 2:05 pm GMT

Dollar posts some gains; US stocks at record highs In a quiet day, the major theme is the inflation expectations in the US that continue to rise. Treasury Secretary Yellen is asking for a larger stimulus package to bring the economy back to full employment. The dollar seems ready to resume its recovery. The US dollar index is moving marginally up, while dollar/yen is approaching the 105.70 level again, hitting the 200-day simple moving average (SMA). In the stock market, an index tracking global bourses met [..]

US Open Note – Dollar pauses its rally after NFP; oil still up

Posted on February 5, 2021 at 2:05 pm GMT

Dollar steady after NFP report The US dollar lost some ground after the publication of the non-farm payrolls report but is still steady today around 105.50 against the yen, as there’s a good argument that the numbers make a big stimulus package more likely. The US dollar index is moving lower, while US stocks are recording new highs. The US economy added 49K jobs in January, compared to market expectations of a 50K rise and -227K previously, while the unemployment rate declined to 6.3% from 6.7% in the preceding month. US President Joe [..]

Which central banks have the biggest footprint in FX? – Special report

Posted on February 4, 2021 at 2:47 pm GMT

With the dollar turning into a safe haven during the pandemic, risk appetite has become one of the most crucial elements for the FX market. The other main variable is interest rate differentials. In this piece we examine how much firepower each central bank has unleashed and what that implies for currencies. The Fed has been quite aggressive in this crisis, but Japan is the undisputed leader overall. Looking ahead, the ECB could deliver even more, whereas the Fed may [..]

US Open Note – Dollar keeps heading higher; pound back to gains after BoE decision

Posted on February 4, 2021 at 1:48 pm GMT

Pound return to gains after BoE decision; Eurozone retail sales come up The key driver of the day is the Bank of England (BoE) interest rate decision. The pound jumped higher, returning above 1.3650 versus the US dollar, as the BoE left its bank rate unchanged at a record low of 0.1% and its bond-buying program unaltered during its meeting. The crucial point is that the BoE said that its actions should not be taken as a signal that negative rates are coming and that has seen a push back [..]

Will the Bank of England embrace negative rates? – Forex News Preview

Posted on February 3, 2021 at 2:54 pm GMT

The Bank of England is due to announce its first policy decision of 2021 on Thursday at 12:00 GMT. No change in policy is expected but updated economic forecasts will be published alongside the statement. However, much of the focus will be on the Bank’s findings of its review into the effectiveness of a negative interest rate policy. The United Kingdom has been one of the worst-hit countries from the Covid-19 pandemic, both economically and in terms of infections and [..]

Daily Market Comment – Dollar, stocks rise in tandem as Democrats push ahead with stimulus

Posted on February 3, 2021 at 10:05 am GMT

Democrats move to fast-track Biden’s stimulus package through Congress Wall Street surges for second day on earnings beats, brighter outlook US yield curve steepens, lifting the greenback; euro gets left behind Stimulus and vaccine hopes buoy markets Optimism about a stronger economic outlook and an ebb in the pandemic continued to gather pace on Wednesday, erasing last week’s jitters that sent stocks plunging and the dollar soaring. Equities have since made a powerful comeback, but the US currency has only [..]

Technical Analysis – EURGBP looks to escape from 8-month lows

Posted on February 3, 2021 at 8:29 am GMT

EURGBP is seeking shelter around the 0.8800 round-level and near eight-month lows after breaching the tough lower boundary of its seven-month-old range. Although the RSI and the MACD remain comfortably below their neutral levels, discouraging a meaningful rally, they cannot exclude the case of a rebound as the RSI seems to have found a bottom just above its 30 oversold level and the MACD is stabilizing around its red signal line. On the upside, however, there are several obstacles which could cancel any upside correction. The [..]

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