All Articles Tagged - EURUSD

Week Ahead – US inflation in the spotlight again, UK GDP eyed too

Posted on February 4, 2022 at 12:22 pm GMT

The skidding US dollar will be looking to the January inflation readings out of the United States to reverse its decline as financial markets enter a somewhat quieter week. UK GDP growth numbers will be the other highlight as the pound’s rally lost steam after the Bank of England sent some mixed signals on the economy. The kiwi might find some love should the RBNZ’s own survey show inflation expectations are creeping higher in New Zealand. However, with earnings releases [..]

Daily Market Comment – ECB flips the hawkish switch, US jobs coming up

Posted on February 4, 2022 at 9:36 am GMT

Nonfarm payrolls likely to disappoint, might even turn negative ECB opens door for rate hikes and faster taper, euro soars BoE raises rates, announces balance sheet reduction Weak payrolls unlikely to keep dollar down The latest US employment report will be in the spotlight today. Nonfarm payrolls are forecast to have risen by 150k in January, but market participants are probably positioned for a much weaker print by now. Nonfarm payrolls are calculated from survey data that is collected in [..]

US Open Note – Euro in lively bullish party after ECB; BoE fails to boost pound after rate hike

Posted on February 3, 2022 at 2:27 pm GMT

Bank of England hikes rates Abandoning its communication fiasco of late last year, the Bank of England (BoE) delivered its first back-to-back rate increase in almost two decades, lifting interest rates by 25 basis points to 0.50% as widely expected. Consistent with its guidance, the committee also judged that it should cease reinvesting the maturing government bond purchases of its portfolio in a gradual and predictable manner, reiterating that it would initiate the process of selling (quantitative tightening) once the [..]

Technical Analysis – EURUSD falls below 1.1300 and 200-period SMA

Posted on February 3, 2022 at 10:56 am GMT

EURUSD is declining from the 200-period simple moving average (SMA), diving below the 1.1300 psychological level. Despite that, the price is holding above the short-term descending trend line. The RSI is heading south from the 70 level, while the MACD is trying to drop below its trigger line. Both suggest that the next move may be to the downside rather than the upside. Another step lower may reach a key support at the 20-period SMA at 1.1257 before meeting the 40-period SMA at [..]

Daily Market Comment – BoE and ECB decisions in the spotlight

Posted on February 3, 2022 at 9:58 am GMT

Bank of England to raise rates, pound will be driven by rate path European Central Bank could adopt a more optimistic tone Stock markets edge higher but Facebook shares tank BoE primed for action The Bank of England will most likely forge ahead with raising rates when it concludes its meeting today. Markets have fully priced in a quarter-point rate hike that would lift the Bank Rate to 0.5%, a level which policymakers previously indicated as the threshold to begin [..]

Technical Analysis – EURUSD rally snags at longer-term averages

Posted on February 2, 2022 at 2:57 pm GMT

EURUSD is struggling to close north of the coupled 200- and 100-period simple moving averages (SMAs) at 1.1314 and 1.1319 respectively, after a bounce in the pair that evolved from a near 20-month low of 1.1120. The longer-term SMAs are hinting that the broader prevailing bearish trend has subsided to a degree, something also being reflected in the softened descent of the 50-period SMA. The Ichimoku lines are indicating that bullish forces are leading, while the short-term oscillators are skewed [..]

Daily Market Comment – Improving risk appetite keeps dollar on the defensive

Posted on February 2, 2022 at 10:03 am GMT

Furious recovery in equity markets continues Dollar retreats, sterling shines ahead of BoE Oil awaits OPEC, more earnings and data eyed Optimism returns Equity markets seem to have shaken off the blues that dominated trading in January. With the resilience in corporate earnings confirming the real economy is still in good shape, investors are coming around to the view that markets can live with higher interest rates even if that means more frequent bouts of volatility. Wall Street advanced for [..]

Daily Market Comment – Euro gets some relief, stocks rip higher

Posted on February 1, 2022 at 9:52 am GMT

Euro bounces back as markets price in more ECB tightening Stock markets power higher, has the storm passed? Aussie unscathed by RBA, earnings season continues Euro recovers Market participants are raising their bets that the European Central Bank will hike interest rates this year. A quarter-point rate increase has been fully baked into money markets after data showed that German inflationary pressures are not cooling, despite recent covid restrictions and fading effects from an increase in sales taxes last year. [..]

US Open Note – Stocks to log a sharp monthly loss; Aussie picks up steam ahead of RBA

Posted on January 31, 2022 at 2:20 pm GMT

Stock indices consolidate January’s heavy losses; Eurozone bond yields spike January has been a rough month for global stock markets as more central banks prioritized their price objectives amid the inflation storm, with the Fed finally taking investors’ side and hinting at a faster pace of rate increases this year. Of course, US earnings releases have not demonstrated any panic so far even though companies keep facing supply constraints, but the reversal of easy-money policies in the near future is [..]

Daily Market Comment – Dollar rally takes a breather, stocks rescued by dip buyers

Posted on January 31, 2022 at 10:05 am GMT

Dollar takes a step back, awaits barrage of US economic data Stocks bounce back, yen retreats as nerves calm down Three major central bank meetings and tech earnings lie ahead Risk tone improves Market volatility has returned with a vengeance this month. A sharp repricing in the trajectory for interest rates has sent nervous investors scrambling to insulate their portfolios from any further damage, mostly by reducing leverage and moving higher along the quality spectrum. Money markets have fully priced [..]

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