All Articles Tagged - EURUSD

Technical Analysis – EURUSD marks neutral week, but hopes for progress still alive

Posted on January 7, 2022 at 3:40 pm GMT

EURUSD continues to face firm support along the short-term ascending trendline, but a close above the 1.1300 level has been a struggle this week. The momentum indicators reflect a neutral-to-bullish bias as the RSI is looking to return above its 50 neutral mark and the MACD is gradually strengthening above its red signal line to enter the positive area. Above 1.1300, the 50-day simple moving average (SMA) at 1.1350 and the key resistance at 1.1370 could be the next challenge for the [..]

Weekly Comment – US inflation and Fed’s Chair testimony in the spotlight

Posted on January 7, 2022 at 2:34 pm GMT

Stocks staged a mid-week selloff in the aftermath of the FOMC minutes release, which revealed policymakers’ discussions for faster rate hikes and policy normalization in terms of balance sheet reduction. In the upcoming week, Fed Chair Jerome Powell’s testimony and US inflation take center stage, together with US retail sales and Chinese inflation data. Highlights: In America, three FOMC voting members are due to speak next week, while Fed Chair Jerome Powell is expected to testify before the Congress on [..]

Week Ahead – US inflation report to decide dollar’s fate

Posted on January 7, 2022 at 2:29 pm GMT

The new year has kicked off with a sharp spike in yields, which has turbocharged the US dollar but demolished the Japanese yen. Whether this trend persists will depend on next week’s US inflation report, as that could decide whether the Fed will begin its rate hike cycle in March already. Peak US inflation soon? The US economy is in pretty good shape. The labor market will likely return to full employment this year, consumption is booming, the Atlanta Fed [..]

Daily Market Comment – US dollar braces for nonfarm payrolls test

Posted on January 7, 2022 at 10:01 am GMT

US employment report today could be crucial for markets FX and stocks quiet, but spike in yields hurts gold Oil powers higher as supply disruptions get priced in Conflicting signs for US jobs The main event today will be the US employment report for December, which could be huge for the dollar and equities as rate traders are currently pricing in an 80% chance for the Fed to begin its hiking cycle in March. Nonfarm payrolls are forecast to have [..]

Eurozone inflation to ease slightly; bad news for the euro? – Forex News Preview

Posted on January 5, 2022 at 2:36 pm GMT

The flash inflation estimates for December will hit the market on Friday at 10:00 GMT. The headline rate is anticipated to edge lower, but remain extremely elevated. Upcoming data are not expected to offer the much needed positive relief for the euro, which had its worst year against the US dollar since 2015, as the European Central Bank (ECB) is unlikely to speed up its normalization plans. Eurozone inflation is running hot Inflationary pressures in the Eurozone have been spiraling, [..]

US Open Note – Dollar eases ahead of FOMC minutes

Posted on January 5, 2022 at 1:27 pm GMT

Investors are expecting the release of the FOMC minutes and, more crucially, the release of non-farm payrolls in the US later this week. Following a robust surge in government bond yields, the yen has remained the currency with the worst performance for the time being. The pound has managed to outperform the euro. Although the dollar is the second strongest currency, it is still stuck in a range, except against the yen. FX market view and FOMC minutes expectation The dollar is weakening ahead of the ADP employment [..]

Daily Market Comment – Sterling shines as yields rally, stocks mixed

Posted on January 5, 2022 at 9:52 am GMT

Global spike in yields boosts sterling and US dollar, crushes yen Stock markets mixed as traders rotate towards ‘cheaper’ sectors Fed minutes and ADP jobs report coming up today Sterling leads the pack Every asset class has been dancing to the tune of rising bond yields this week. The bond market is essentially saying that some central banks will raise interest rates with force to combat inflation and that the Omicron outbreak is not enough to derail those plans, or [..]

US Open Note – Dollar hits five-year high against yen; OPEC next on the radar

Posted on January 4, 2022 at 1:45 pm GMT

Omicron virus does not affect economic recovery Despite concerns about the extremely contagious omicron virus subtype, investors are focusing on the economic recovery from the pandemic and central bank’s plans for stimulus reduction at this time. In the FX market, the focus today is on dollar/yen, which surged to a new five-year high of 116.33 as risk-on sentiment pressed safe-haven currencies such as the yen. It may be difficult for sellers to reverse the trend. The BOJ will stay the most dovish, so the weak [..]

Daily Market Comment – Stocks march higher, yen blasted as traders take on risk

Posted on January 4, 2022 at 9:55 am GMT

Investors load up on riskier assets, dump safe havens as new year begins US stocks hit new records, dollar follows yields higher, yen gets hammered OPEC meeting and ISM manufacturing survey coming up today Funds position for new year A sense of optimism dominated on the first trading day of the year. Money managers loaded up their books with riskier assets such as equities and dumped defensive plays like bonds, positioning themselves for another stellar year in financial markets. With [..]

Daily Market Comment – Dollar and stocks advance as new year kicks off

Posted on January 3, 2022 at 10:20 am GMT

Dollar begins year on front foot, equities hover near highs Omicron, inflation, central banks, and politics in the spotlight Quiet day ahead but rest of the week seems promising Dollar advances in thin markets Happy new year to everyone. The quiet tone that characterized trading last week has carried over, with limited moves in most assets to kick off the new year. Liquidity is still in short supply as several investment hubs in Asia and Europe remain shut for holidays. [..]

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