All Articles Tagged - EURUSD

Week Ahead – US inflation might peak, will the dollar follow?

Posted on May 6, 2022 at 1:07 pm GMT

The Fed signaled that it will avoid shock-and-awe rate increases, putting more emphasis on avoiding a recession rather than vanquishing inflation. Another round of US inflation data is on tap next week and the Fed might finally get some good news, as the yearly CPI rate may have peaked. Is this the beginning of the end for the dollar’s supremacy? Maybe not. Inflation crest The message from the Federal Reserve this week was much softer than feared. Chairman Powell shut [..]

Daily Market Comment – Stock markets get smoked ahead of US payrolls

Posted on May 6, 2022 at 8:34 am GMT

Epic turnaround for stock markets, Nasdaq loses 5% as Fed dust settles Funds blowing up, deleveraging, or traders saying Powell must do more? Sterling sinks after BoE, US employment report the main event today Equity market mayhem What an epic turnaround for Wall Street. After stock markets rallied like there was no tomorrow in the aftermath of the Fed meeting, where policymakers decided to ‘go slow’ with rate increases, the wheels suddenly came off. The Nasdaq closed down by 5%, [..]

US Open Note – Pound crashes on dovish rate hike; Wall Street eyes bearish open

Posted on May 5, 2022 at 1:32 pm GMT

Pound crashes after BoE policy decision The Bank of England stuck to its March guidance, confirming expectations of a 25bps rate hike to 1.0% on Thursday although three out of nine board members surprisingly voted for a sharper 50bps increase. Its inflation projections for the current year moved up to 10% on the back of higher household energy prices and projected additional rises in October, while its growth estimate is now warning a dip slowdown over the next year as [..]

Daily Market Comment – Fed downplays aggressive hikes, BoE decision next

Posted on May 5, 2022 at 8:37 am GMT

Fed raises rates but overall message not as hawkish as markets expected Dollar takes a step back, stock markets and gold come back swinging Bank of England meeting today might play out in a similar manner Don’t fear the Fed As widely expected, the Federal Reserve raised interest rates by half a percentage point and announced that the balance sheet reduction process will commence in June. There was a lot of speculation ahead of the event that the Fed would [..]

Technical Analysis – EURUSD moves horizontally above 5-year low

Posted on May 4, 2022 at 1:39 pm GMT

EURUSD has been moving sideways since the soft rebound off the five-year low of 1.0470, unable to fully recover losses made at the end of the previous month. In the short-term, the market could maintain consolidation if the RSI keeps moving around the 30 level and the MACD oscillator fails to overcome its trigger line in the negative region. An extension to the upside and above the 1.0635 key level could meet the area between the 20-day simple moving average (SMA) [..]

US Open Note – Stock futures flicker green and dollar flat ahead of Fed meeting

Posted on May 4, 2022 at 1:18 pm GMT

Fed tone eyed to rekindle volatility, as US ISM Services PMI draw prior focus US stock futures have stopped the bleeding, looking composed, as market jitters keep volatility subdued ahead of today’s Federal Reserve decision. The dollar index is hovering around its March 2020 highs, flirting with the 103.00 level, underpinned by elevated US Treasury yields and lingering risk-off pressures. The 10-year yield is at 2.96%, the 5-year at 3.01% and the 2-year at 2.79%. The Fed is expected to [..]

Daily Market Comment – Can the Federal Reserve exceed market expectations?

Posted on May 4, 2022 at 8:38 am GMT

Fed set to raise interest rates by a half point and shrink balance sheet Market reaction will depend mostly on Powell’s tone – sell the news? FX market quiet, stocks lick their wounds, oil smiles at new sanctions Fed will struggle to exceed market pricing The Federal Reserve is almost certain to raise interest rates by half a percentage point today and outline plans for shrinking its gigantic balance sheet in an attempt to rein in inflationary forces. Markets have [..]

Fed to speed up rate hikes, but how far will Powell go? – Forex News Preview

Posted on May 3, 2022 at 3:11 pm GMT

The Fed is almost certain to raise interest rates by half a percentage point and begin shrinking its enormous balance sheet when it concludes its meeting at 18:00 GMT Wednesday. Then on Friday, the employment report for April will hit the markets and is expected to reaffirm the strength of the US economy. Overall, the dollar will likely remain king until the economic outlook for Europe, China, and Japan begins to improve. Fed gets its wish Fed officials have been [..]

US Open Note – US Stock futures steadier, dollar ticks slightly lower

Posted on May 3, 2022 at 2:37 pm GMT

US Treasury yields support greenback, JOLTS data eyed This is nonfarm payrolls week, and we also have central banks meeting to deliver their rate hike decisions. Today, the Federal Open Market Committee (FOMC) began its two-day meeting on interest rate policy, which will be submitted on Thursday. US stock futures have recouped earlier weakness on the back of investor jitters ahead of the Federal Reserve’s policy decision. In the presence of hot inflation and a hawkish Fed, US treasury yields remain elevated [..]

Daily Market Comment – Dollar shines, gold slides as real yields turn positive

Posted on May 3, 2022 at 9:07 am GMT

Real yields turn positive ahead of Fed, boosting dollar but bruising gold Stock markets stage comeback, battered tech shares lead the charge RBA raises interest rates, aussie jumps despite Chinese slowdown Real yields matter The Fed’s wish to tighten financial conditions has come true just in time for tomorrow’s policy meeting. In a sharp move, ten-year US real yields clawed their way into positive territory yesterday, resurrecting bonds as an asset class and dealing a devastating blow to the long-standing [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

EURUSD

XM Live Chat