All Articles Tagged - EURUSD

US Open Note – Dollar speeds down a slippery slope; stocks steady

Posted on January 13, 2022 at 2:20 pm GMT

Dollar extends inflation decline; initial jobless claims tick higher The latest CPI inflation report out of the United States was not a big surprise on Wednesday. Despite a minor pickup in the core measure, the annual headline gauge came in line with expectations at 7.0% – the highest since 1982. However, investors sold the dollar as three rate hikes by the Fed are already fully priced in to launch potentially after bond tapering ends in March, while a fourth one [..]

Daily Market Comment – Dollar skids despite US inflation jump, euro cracks above range

Posted on January 13, 2022 at 10:39 am GMT

US dollar is pummelled as strong CPI fails to galvanize the bulls More Fed officials flag March rate hike but yields go nowhere Wall Street extends rebound but earnings may hold the key to more gains US inflation hits 7%, markets take it in their stride It was another disconcerting inflation report out of the United States on Wednesday as headline CPI edged up to 7.0% in December – the highest since 1982. But the figure was in line with [..]

Daily Market Comment – Powell hawkish, but not hawkish enough to scare Wall Street

Posted on January 12, 2022 at 10:19 am GMT

Powell signals rate hikes and balance sheet runoff but yields hold steady Nasdaq extends recovery, global stocks also rally Dollar steadier after tumble as focus shifts to US CPI data Powell gets serious about taming inflation The Fed took another significant step towards policy normalization this week, as Jerome Powell repeated the message of his colleagues, flagging higher interest rates and a smaller balance sheet in his confirmation hearing on Capitol Hill for a second term as Fed Chair. With [..]

US inflation in focus as traders price faster Fed hikes – Forex News Preview

Posted on January 11, 2022 at 3:40 pm GMT

The latest US inflation data will be published on Wednesday at 13:30 GMT, ahead of the retail sales report on Friday. Consumer prices are expected to have risen at the fastest clip in 40 years, which could seal the deal for a Fed rate hike in March. That said, there is scope for disappointment in the spending numbers, so it could be a rollercoaster ride for the dollar. Fed gets rolling The US economy is firing on all cylinders. Consumption [..]

Technical Analysis – EURUSD directionless below 1.1370 but still supported

Posted on January 11, 2022 at 3:20 pm GMT

EURUSD remains directionless in the short-term window, moving back and forth between the key 1.1370 resistance and the ascending trendline. The 50-day simple moving average (SMA) and the lower boundary of the Ichimoku cloud are also a key constraint within the same region. Although the support around the lower trendline increases the odds for a bullish breakout, the RSI and the MACD seem indecisive about what the next move in the price could be, with the former hovering around its [..]

US Open Note – Stocks set for opening gains; Powell’s testimony in focus

Posted on January 11, 2022 at 1:42 pm GMT

Powell testimony in focus; Bundesbank’s new chief warns on inflation Markets are anticipating Fed Chair Jerome Powell’s renomination hearing in Congress later today, waiting to find out his current views on inflation ahead of the CPI data release on Wednesday. In his prepared remarks, Powell vowed to bring down inflation and warned markets that the ongoing post-pandemic expansion might look different from what they have witnessed before. Earlier today, ECB President Christine Lagarde gave a speech at the ceremony marking the [..]

Daily Market Comment – Sentiment up after Wall Street stages late comeback

Posted on January 11, 2022 at 10:12 am GMT

Nasdaq out of correction territory following late-session rally Asia mixed amid China lockdowns, but European stocks and US futures up Powell testimony eyed as March rate hike speculation intensifies Dip buyers return to save the day Equities were on a steadier footing on Tuesday as the selloff on Wall Street appeared to be cooling off following a miserable start to the New Year for the tech behemoths. The tech-dominated Nasdaq Composite briefly flirted with correction territory on Monday, plunging by [..]

US Open Note – Stocks under pressure on faster stimulus withdrawal signals

Posted on January 10, 2022 at 2:30 pm GMT

Global bond yields hit fresh highs; stocks retreat The Fed’s new message, which sparked fears that inflation could be tough to contain, and hence could require faster-than-expected rate hikes during the year, continued to weigh on market sentiment on Monday, elevating global bond yields to fresh highs. A couple of Fed policymakers have already urged the need to move towards normalization ahead of Powell’s testimony before the Senate Banking committee on Tuesday, making four rate hikes an increasingly likely scenario [..]

Daily Market Comment – US jobs report fuels bets for faster Fed hikes

Posted on January 10, 2022 at 10:30 am GMT

Traders bet on faster Fed rate increases after solid jobs report Yields spike higher but the dollar cannot capitalize – euro flows? Stock markets take another hit as valuation rotation continues Hot labor market The US jobs market is approaching full employment conditions with impressive speed. Even though nonfarm payrolls fell short of expectations in December, with the economy adding 199k jobs instead of the anticipated 400k, the rest of the report was very encouraging. The unemployment rate fell to [..]

Technical Analysis – EURUSD indecisive but some patience could be exercised

Posted on January 10, 2022 at 8:19 am GMT

EURUSD resumed its negative momentum during Monday’s early European trading hours after barely closing above the restrictive 50-day simple moving average (SMA) on Friday at 1.1359. As long as the ascending trendline is building the soft upward trajectory in the short-term picture, the focus will remain on the upside. That said, the momentum indicators have not clarified strong bullish signals yet, suggesting that traders could keep behaving carefully for a bit longer. Particularly, the RSI continues to fluctuate around its 50 neutral mark, [..]

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