All Articles Tagged - EURUSD

Inflation is driving up rate hike bets globally, so why does the dollar remain king? – Special Report

Posted on January 20, 2022 at 10:50 am GMT

It is now universally accepted that the pandemic-induced surge in inflation is no longer looking very transitory and central banks around the world are starting to hit the panic button. The US Federal Reserve is not only talking about rate hikes but wants to begin quantitative tightening soon. The Bank of England and Reserve Bank of New Zealand have already lifted rates at least once. Even the ultra-dovish European Central Bank is keeping its options open in terms of possibly [..]

Daily Market Comment – Nasdaq enters correction territory

Posted on January 20, 2022 at 10:06 am GMT

Wall Street ends lower again but China rate cut calms nerves US yields pull back, knocking the wind out of the dollar Gold hits two-month high, ECB minutes and Netflix earnings eyed Mood improves, slightly It has been a stormy week for global financial markets, with riskier assets such as equities taking a beating at the hands of rising interest rates. The Nasdaq closed another session sharply lower to officially enter correction territory, which is defined as a drawdown of [..]

US Open Note – Stocks fail to recover, dollar remains resilient

Posted on January 19, 2022 at 1:24 pm GMT

Elevated yields favour dollar, Canadian inflation in spotlight The primary market focus remains centred around the Fed and how it will tackle inflation, with market participants juggling the premise of how many rate hikes will unfold this year. Expectations almost ‘guarantee’ three hikes but the dollar’s recent gains have been fuelled by rising Treasury yields, which have supported the dollar index around the 95.60 mark. US stock futures are somewhat finding their feet after the correction, while the 10-year Treasury [..]

Daily Market Comment – Equities under fire, dollar shines as yields soar

Posted on January 19, 2022 at 9:45 am GMT

Stocks remain under pressure as traders position for Fed hikes Dollar outperforms, yen benefits from risk aversion, euro hammered Oil prices keep going, Canadian inflation stats in the spotlight All about the Fed Bets that the Fed will take a sledgehammer to crush inflationary pressures continue to escalate. More than four rate increases are now priced in for this year, which means traders have started to entertain the idea of either a fifth increase or a ‘double’ hike of 50 [..]

Technical Analysis – EURUSD surrenders recent gains to slip below 1.14

Posted on January 18, 2022 at 3:15 pm GMT

EURUSD has slipped back into the territory of the recent trading range, relinquishing all the pair’s progress, which recorded a two-month high at 1.1482. The gradual ascent in the simple moving averages (SMAs) is sponsoring a positive trend in the pair even though sellers have gained the upper hand. That said, the Ichimoku lines are suggesting negative forces are growing, while the short-term oscillator’s bearish tilt is increasing. The MACD, south of its red trigger line, has pierced beneath the [..]

Daily Market Comment – Stocks roll over, dollar steady, oil storms higher

Posted on January 18, 2022 at 9:49 am GMT

Markets fully price in four Fed rate hikes for this year, lifting yields Stocks under pressure, dollar recovers, gold surprisingly resilient Oil hits new highs, yen retreats after BoJ does nothing Fed worries hit stocks It has been a stormy couple of weeks for financial markets, with almost every asset class getting rocked by expectations that the Fed will need to normalize monetary policy more aggressively to cool inflation. The US labor market is so tight that wage growth has [..]

Daily Market Comment – Fed bets boost dollar, China cuts rates

Posted on January 17, 2022 at 10:03 am GMT

Dollar stabilizes as markets price in faster Fed rate hikes In contrast, China cuts interest rates to power up growth US markets will stay closed today, focus turns to BoJ meeting Dollar unscathed by retail sales miss Markets are growing increasingly confident that the Fed will raise interest rates four times this year to bring inflation under control. Even though the latest edition of US retail sales on Friday disappointed in a massive way, taking an axe to GDP growth [..]

Technical Analysis – EURUSD hovers beyond long-term descending line; weak bullish bias

Posted on January 17, 2022 at 8:10 am GMT

EURUSD is returning around the 1.1400 level and is flirting with the long-term descending trend line in the Ichimoku cloud. Also, the price is still hovering underneath the 23.6% Fibonacci retracement level of the down leg from 1.2348 to 1.1185 at 1.1460 and is trying to overcome the latest highs of the preceding week. According to technical indicators, the MACD oscillator is holding above its trigger and zero lines, while the RSI is pointing slightly up in the positive region. [..]

US Open Note – Ugly retail sales data question Fed tightening; dollar plummets to fresh lows

Posted on January 14, 2022 at 2:25 pm GMT

Stocks to close the week in the red; banking earnings beat estimates Fed policymakers keep throwing cold water on stock markets, highlighting that a faster pace of higher interest rates will be required to cool inflation from March onwards, as persisting pandemic-led supply bottlenecks might create additional price pressures in the coming months.The Fed’s No.2 official Lael Brainard and the Chicago Fed President Charles Evans were the last on the call on Thursday, with tech stocks driving the Nasdaq 100 [..]

Daily Market Comment – Stocks falter again as hawkish Fed frightens markets, dollar rout deepens

Posted on January 14, 2022 at 10:42 am GMT

Wall Street headed for weekly losses as Fed and inflation worries weigh Fed officials set sights on March for liftoff, hawkish soundbites unnerve investors But dollar still sliding as terminal rate not seen going up much Fed rate hike talk takes toll on the markets Equity markets were back in the red on Friday after Wall Street’s rebound faltered on Thursday amid increasingly hawkish language from the Fed, a troubling inflation outlook and no let-up in the spread of Omicron. [..]

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