All Articles Tagged - EURUSD

Eurozone inflation to heat up again, can it add more fuel to the euro’s rally? – Forex News Preview

Posted on May 30, 2022 at 11:11 am GMT

The Eurozone’s flash estimates for May inflation are scheduled to be released on Tuesday (09:00 GMT) as the European Central Bank ponders how quickly to exit negative rates. The June 9 policy meeting is fast approaching and with some Governing Council members arguing for a 50 basis point rate hike, the data could influence how speedily the ECB moves to normalize policy. It could also be important for the euro, which has rebounded impressively against the US dollar but may [..]

Technical Analysis – EURUSD tests March boundary; bias encouraging

Posted on May 30, 2022 at 9:46 am GMT

EURUSD opened with low volatility on Monday, remaining muted marginally below the 50-day simple moving average (SMA) and the 1.0768 key resistance level for the fifth consecutive session after securing two bullish weeks. Despite the ongoing restrictions on the upside, the latest bounce on the former boundary of 1.0640 keeps buying interest alive. The momentum indicators are sending positive vibes as well; the MACD is trying to expand in the positive area for the first time since February, while the [..]

Daily Market Comment – Stock market relief keeps US dollar pinned down

Posted on May 30, 2022 at 8:57 am GMT

Dollar retreats, risk-sensitive currencies recover as mood brightens Stock markets stage massive comeback, crude oil keeps rising Quiet session today with US on holiday, but busy week ahead Dollar cools off The conversation in financial markets has changed dramatically in the past few weeks. Whispers of recession have replaced inflation as public enemy number one, thanks to a growing pile of evidence that economic growth is losing power. Cracks have started to show in the US housing market as soaring [..]

US Open Note – Wall Street pushes back, will positive sentiment last?

Posted on May 27, 2022 at 1:45 pm GMT

Dollar soft as markets digest pause in Fed tightening, PCE Price index eyed The assumption that the US central bank would remain hawkish through 2022 in relation to rate hikes to starve hot inflation has now matured into a more vigilant approach, with the Federal reserve still keeping tabs on recession risks and stagflation fears. The decline in US Treasury yields recently and the cautious rhetoric from the Fed that they may tone down their aggressive hiking pace, plus this [..]

Week Ahead – Nonfarm payrolls on tap, has the dollar topped?

Posted on May 27, 2022 at 11:09 am GMT

The latest US employment report will be in the spotlight next week for any signs that recession worries have started to impact hiring. The dollar has lost some of its power lately and this dataset could determine whether we are in the early stages of a trend reversal. Inflation numbers from Europe will be another crucial variable for that equation. Elsewhere, the Bank of Canada is set to raise interest rates. Hiring freeze The risk of recession is front and [..]

Daily Market Comment – Dollar slips further ahead of PCE inflation as equity rebound gathers steam

Posted on May 27, 2022 at 9:21 am GMT

Wall Street poised to snap losing streak as Fed bets ease, China tech earnings help Dollar drops to fresh one-month low; can PCE inflation revive it? Sunak’s support package shores up pound, euro heads for strong weekly gains Stock markets end week on stronger footing Despite a few wobbles, the recovery that got underway on Wall Street at the start of the week has gone from strength to strength and the major US indices are on track to break their [..]

US Open Note – Risk appetite improves with FOMC optimism

Posted on May 26, 2022 at 1:34 pm GMT

Dollar hovers as yields stabilize with US GDP figures Yesterday’s minutes from the Federal Reserve’s May meeting reiterated two 50 basis point raises in June and July but also highlighted the possibility that the Fed may then stall hikes if the effects on the economy of these increases have managed to calm inflationary pressures. The question is will inflation have eased enough by then for the Fed to lower its rate trajectory? The minutes hinted that if post-hike inflation remains [..]

Daily Market Comment – Some cheer for markets after no hawkish surprises in Fed minutes

Posted on May 26, 2022 at 9:25 am GMT

Wall Street rallies after Fed minutes but elated mood fades quickly Fears about stagflation and China slowdown continue to haunt investors Dollar holds steady, pound looks forward to Sunak’s new cost of living plan Fed minutes ease overtightening angst Markets were choppy but relatively steady on Thursday as Wall Street futures kept climbing in and out of negative territory and the US dollar was having another mixed session. The mild risk-on tone is riding on the back of yesterday’s rebound [..]

Technical Analysis – EURUSD short-term rally intact; broader picture bearish

Posted on May 25, 2022 at 2:40 pm GMT

EURUSD has started to generate positive traction off its mid-Bollinger band, which has converged with the 200-period simple moving average (SMA) around 1.0639. The pair’s two-week rally from 1.0349 is showing signs of upside reinforcement around the mid-Bollinger band despite the pullback from the 1.0756-1.0800 resistance section, which stretches back to the lows from the first half of May 2020 and is defending the broader negative outlook. For now, the short-term oscillators are somewhat contradicting in terms of directional momentum. [..]

Daily Market Comment – Dollar bounces off 1-month low, stocks recover too as Fed minutes eyed

Posted on May 25, 2022 at 8:55 am GMT

Soft US data drags yields and dollar lower as Fed’s Bostic calls for rate hike pause Nasdaq edges up after slump in tech stocks; Fed minutes awaited for more direction Kiwi jumps after RBNZ’s surprise hawkish tilt, euro dips on mixed ECB messages Fed rate hike path trimmed back after weak US data Signs that consumer demand in the United States is being pressured from the increase in the cost of living and that supply shortages are getting worse were [..]

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