All Articles Tagged - EURUSD

Daily Market Comment – Euro hammered ahead of French election, gold defies the odds

Posted on April 8, 2022 at 8:28 am GMT

Euro continues to sink, cannot capitalize on hawkish ECB signals Dollar prepares to close stellar week, equities claw their way back Gold defies the trading playbook – who is the mystery buyer? Wounded euro awaits French election The euro remains the sick man of the FX arena, plagued by war, sanctions, surging energy prices, a slowing economy, and most recently the resurgence of political risk. ECB officials struck a hawkish tone in the minutes of their latest meeting, playing down [..]

US Open Note – Dollar stands firm; ECB meeting minutes fail to move the euro

Posted on April 7, 2022 at 1:13 pm GMT

Dollar preserves FOMC boost; stocks weaker The US dollar kept its lead against a basket of major currencies on Thursday, trading almost at a one-year high. The world’s reserve currency is now set for a thriving weekly close as the FOMC meeting minutes reaffirmed the Fed’s recent sharp hawkish tone yesterday, revealing that the central bank will hit the stimulus brakes more aggressively in the coming months. In addition to a larger 50 bps rate hike, the central bank openly [..]

French election: What does it mean for the euro? – Special Report

Posted on April 7, 2022 at 12:06 pm GMT

The first round of the French presidential election will be held on April 10, ahead of the runoff two weeks later. Opinion polls have narrowed significantly in recent weeks and a victory for President Macron doesn’t look so certain anymore. For the euro, this election seems like an asymmetric downside risk. The rules Presidential elections in France consist of two stages. In the first round, candidates from all parties can participate. If one candidate manages to secure more than 50% [..]

Daily Market Comment – Fed minutes spark another round of market turmoil

Posted on April 7, 2022 at 8:41 am GMT

FOMC minutes echo desire to tighten swiftly, crushing tech stocks Dollar hovers near recent highs, yen still in the mud, oil retreats Euro under pressure ahead of ECB minutes, French election in sight Fed provides exit plan The minutes of the latest FOMC meeting poured gasoline on the bond market bonfire yesterday, slingshotting US yields even higher as traders braced for a full-speed normalization of monetary policy. Officials highlighted the prospect of raising interest rates in 50 basis point increments [..]

Technical Analysis – EURUSD halts decline near 1.0900 but outlook still gloomy

Posted on April 6, 2022 at 2:13 pm GMT

EURUSD stepped on the 1.0900 level despite a flash drop to a new one-month low of 1.0873 earlier on Wednesday, but its short-term outlook has been far from optimistic since the plunge below the 50-day simple moving average (SMA) last week. The RSI has dived back below its 50 neutral mark to chart a new lower low, while the MACD has resumed its negative momentum and is set to cross below its red signal line, both painting a gloomy picture for the [..]

US Open Note – King dollar awaits FOMC minutes; stocks in the doldrums

Posted on April 6, 2022 at 12:46 pm GMT

FOMC minutes under the spotlight Inflation jitters are weighing far more heavily on central banks’ thinking now, pressing policymakers to expedite their tightening plans further even if the war in Ukraine threatens to drag the global economy into a recession. The second most important FOMC board member, Lael Brainard, who is considered a dove, dropped her patient tone late on Tuesday, stating that the Fed could begin the balance sheet reduction at a faster pace than previously expected as soon [..]

ECB meeting minutes awaited as rate hike talk intensifies – Forex News Preview

Posted on April 6, 2022 at 8:59 am GMT

The euro is having a tough time as it remains heavily dependent on the risky Ukrainian war factor. Prospects for an economic recession are growing larger, but with inflation soaring at the same time, the European Central Bank (ECB) has recently talked more about higher interest rates. On Thursday at 12:30 GMT minutes from the March policy meeting could shed light on how keen the central bank is to switch to a tightening regime. The report, however, may not be surprising enough to [..]

Daily Market Comment – Fed warning turbocharges dollar, sinks equities

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

Fed’s second-in-command warns of “stronger action” to cool inflation Dollar marches higher, stock markets drop, but gold stays rangebound Cable tracks equities lower, FOMC minutes coming up next Fed turbulence The Federal Reserve injected a fresh dose of volatility into financial markets yesterday, after its second-in-command warned of aggressive policy action to rein in inflationary forces. Lael Brainard, who is waiting Senate confirmation to become Vice Chair and typically errs on the side of caution, put investors on red alert [..]

US Open Note – Market risk-off vibe portrays subtle volatility

Posted on April 5, 2022 at 1:45 pm GMT

Dollar benefits from rising yields; US ISM Services PMI eyed As things stand, the current driving impulses seem to be having an insignificant effect on markets heading into tomorrow’s FOMC minutes. The markets’ response remains muted also to the growing possibility that new economic sanctions on Russia from the West may be in the pipeline considering the fresh suspected atrocities in Ukraine, as they intend to isolate Moscow and hinder it from meeting its debt payments. Nonetheless, a subdued picture [..]

Daily Market Comment – Euro pinned down by threat of new sanctions

Posted on April 5, 2022 at 9:02 am GMT

Europe considers new sanctions against Moscow after atrocities Euro under pressure, oil prices recover despite China lockdowns Aussie shoots up after RBA, tech shares lead Wall Street higher Russian embargo? The prospect of another round of economic sanctions against Moscow is back on the table following reports of atrocities against civilians in Ukraine. The US Treasury has already made its move – cutting off the Russian government from using its ‘frozen’ US dollar reserves for making coupon payments on bonds. [..]

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