All Articles Tagged - EURUSD

US Open Note – Will the explosion in yields hurt the US housing market

Posted on April 19, 2022 at 1:23 pm GMT

Dollar remains buoyant due to aggressive rate hike rhetoric It is apparent that the Federal Reserve is unpacking one of the most aggressive policy tightening schedules to starve inflation, which has been running at its fastest pace in 40 years and try to cool an overheating economy. Double-rate hikes expected in the next couple of meetings and a Fed funds rate around 3.00% by next year, may brew a cocktail that could wobble the US housing market, in terms of [..]

European PMIs: Is a recession coming for the euro? – Forex News Preview

Posted on April 19, 2022 at 1:02 pm GMT

The Eurozone economy is losing power. A recession has become a real possibility and the upcoming PMI business surveys on Friday will tell investors exactly how high that risk is. The French TV debate between Macron and Le Pen on Wednesday could also be crucial for the euro, which remains under heavy pressure. Losing steam The invasion of Ukraine was a game-changer for the European economy. Energy and food prices went berserk in the aftermath, raising the cost of living [..]

Daily Market Comment – Sinking Japanese yen keeps the US dollar king

Posted on April 19, 2022 at 8:20 am GMT

Yen losses accelerate – will verbal intervention be enough? With euro also in the gutter, dollar cements status as FX king Stocks trade sideways ahead of crucial earnings releases Yen approaches danger zone The losses in the yen have snowballed into an avalanche, with the currency getting buried under the weight of monetary policy divergence and Japan’s reliance on imported energy. Dollar/yen sliced its way above 128 and seems to be headed towards the 130 region, which is the line [..]

US Open Note – Stocks flicker green, higher yields feed dollar resilience

Posted on April 18, 2022 at 1:37 pm GMT

Fed underpins yields, today’s highlight: RBNZ Governor Orr The week starts off with a bunch of countries observing Easter Monday, and mixed March retail sales out of China, leaving the week’s main market drivers linked to speeches from heads of central banks, Canadian and New Zealand inflation data, and various countries’ retail sales and PMI data on Friday. Elevated price pressures and a hawkish Fed are adding fuel to the US yield fire. Markets are pricing in an additional 211.5 [..]

Daily Market Comment – Yen losses snowball as yields forge higher

Posted on April 18, 2022 at 9:15 am GMT

Yen continues to sink despite BoJ’s soft verbal intervention Stocks trade heavy as yields soar, China GDP offers no relief Gold flies in the face of negative macro trends – who’s loading up? Yen demolition The Japanese yen has been blown to smithereens. Central banks around the world are raising interest rates to combat spiraling inflation, yet the Bank of Japan refuses to play this game. That’s because there’s no inflation to fight – the annual CPI rate in Japan [..]

Technical Analysis – EURUSD pokes at 2-year base, bias remains bearish

Posted on April 18, 2022 at 8:33 am GMT

EURUSD is taunting the 1.0726-1.0774 key support border after recently taking a fresh jab at it. The descending simple moving averages (SMAs) are defending the near 11-month downtrend from the 1.2266 high. Furthermore, the Ichimoku lines are indicating a pause in downward forces, while the short-term oscillators are suggesting a commanding negative bearing in the pair. The MACD has remained beneath its red trigger line, while the RSI is sliding towards the 30 oversold mark, both sponsoring more negative momentum [..]

Week Ahead – European PMIs, French debate, and Chinese GDP on tap

Posted on April 15, 2022 at 10:58 am GMT

There are no central bank meetings in the coming week but there’s a ton of data releases to spice things up. The show will kick off with China’s GDP numbers, which will reveal the initial damage from the lockdowns. Meanwhile in Europe, traders will scan the latest PMI surveys to estimate the probability of recession, while keeping one eye on the TV debate between Macron and Le Pen. Chinese slowdown China’s economic growth likely suffered a substantial hit from the [..]

Daily Market Comment – Euro gets knocked down by ECB, dollar edges up in thin holiday trade

Posted on April 15, 2022 at 9:14 am GMT

ECB leaves forward guidance unchanged, euro gets hung out to dry Stocks struggle, dollar resumes uptrend amid lack of fresh drivers during Easter weekend Oil heads higher on reports EU will phase out Russian imports Euro sinks to 2-year low after ECB inaction The European Central Bank kept worries of burgeoning inflation aside on Thursday as it reiterated its previous forward guidance that asset purchases will end at some point in the third quarter, while providing no precise timeline of [..]

US Open Note – ECB confirms intention to cease bond purchases; US retail sales come out

Posted on April 14, 2022 at 1:05 pm GMT

ECB left interest rates unchanged; euro back near $1.0870 The European Central Bank left interest rates unchanged as expected. Policymakers stated that new data confirmed their view that net asset purchases will be completed in the third quarter. During the April 2022 meeting, the central bank also emphasized that any interest rate adjustments will take place sometime after the completion of the asset purchase program and will be gradual in nature. In the meantime, the main interest rates were held [..]

Daily Market Comment – US yields rally cools, dollar slips, stocks bounce back

Posted on April 14, 2022 at 9:07 am GMT

Treasury yields ease back as Fed’s Waller fuels hopes of inflation peaking Dollar skids, Wall Street rallies despite mixed earnings Euro edges up ahead of ECB decision, loonie buoyed by BoC hike Yields retreat, shrug off record rise in US producer prices US Treasury yields are heading lower for the third day on Thursday, with the 10-year yield slipping below 2.70%, as the recent heightened expectations that the Federal Reserve will hike rates very aggressively eased somewhat. A slightly softer-than-expected [..]

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