All Articles Tagged - EURUSD

US Open – Wall Street eyes new record highs

Posted on December 27, 2021 at 1:53 pm GMT

Dollar climbs; Pound continues its advance The US dollar ticked higher on Monday against a basket of currencies, while the 10-year Treasury yield remained relatively unchanged. The perceived risk-on mood which dominated the markets over the past week continues to weigh on the Japanese yen, which incurred significant losses today against the greenback. Furthermore, commodity based currencies such as the loonie, the aussie and the kiwi are struggling with the latter declining the most versus the euro and the dollar. Last week, the British [..]

Daily Market Comment – Cautious mood in holiday-thinned trade

Posted on December 27, 2021 at 10:03 am GMT

Asia drifts lower despite China support but European shares eye gains Rising virus cases put investors on edge as doubts re-emerge about Omicron impact Commodities pressured, dollar firms, pound advances Subdued start to final week of 2021 Markets were struggling for direction on Monday in what is the last trading week of the year. The optimism that the Omicron variant will not cause a major setback to the post-pandemic economic progress has been brought into question by the latest surge [..]

Technical Analysis – EURUSD’s 6-month decline oscillates around 1.13 mark

Posted on December 27, 2021 at 9:29 am GMT

EURUSD is slightly above the mid-Bollinger band and appears set to continue its one-month consolidation in the vicinity of the 1.1300 handle. That said, downside risks remain, something also being mirrored in the falling simple moving averages (SMAs), which are defending the bearish bearing. The short-term oscillators are indicating that negative momentum has softened. The MACD is rising above its red trigger line closing in on the zero mark, while the RSI is toying with the 50 neutral threshold, showing [..]

Week Ahead – Markets wind down, mind the liquidity gap

Posted on December 23, 2021 at 3:56 pm GMT

As the year draws to a close, liquidity could be in short supply next week. This means that sharp market moves are possible without any news behind them. The economic calendar is pretty light, so the spotlight will remain on Omicron developments and President Biden’s spending promises. Brief look at 2022 We have already published our expectations for the FX market in 2022, which you can view here. In short, the three main forces that will drive currencies are changes [..]

FX year ahead 2022: Brace for volatility – Special Report

Posted on December 22, 2021 at 12:02 pm GMT

It has been an exceptional year for the US dollar, which defied all the doom and gloom predictions to gain more than 10% against the Japanese yen. The resurgence of inflation has turned the tables with many central banks hitting the brakes, and this theme will likely persist into 2022. The dollar could continue to perform well as the Fed tightens and global growth cools, although inflation is a wild card. Politics will also return to the spotlight, with the [..]

Daily Market Comment – Omicron relief kicks in, riskier trades recover

Posted on December 22, 2021 at 9:53 am GMT

Optimism returns as US prepares to approve covid-fighting pills Biden also promises to get a spending deal done next year Stocks and oil prices cheer, FX market remains hostage to risk tone Good news at last After a dismal start to the week, financial markets are back in a cheerful mood. All it took to turn the tide was some encouraging news around public health and promises of more stimulus spending. Risk appetite returned after reports that US regulators are [..]

US Open Note – Stocks return to green zone as covid fears wane

Posted on December 21, 2021 at 2:06 pm GMT

Risk-on appetite returns but covid headache to be continued Omicron fears took a back seat on Tuesday, letting global stock indices, risk-sensitive currencies, and energy prices recoup some lost ground. Of course, the pandemic will remain the key driver for market sentiment for longer, at least into the new year, navigating inflation pressures, and therefore, monetary tightening plans accordingly. But for now the recent bearish correction is reminiscent of the short-lived downfall, which stock markets faced in the same period [..]

Technical Analysis – EURUSD’s three-week zigzag persists

Posted on December 21, 2021 at 1:28 pm GMT

EURUSD has been trading sideways over the last three weeks, keeping its footing around the 1.1280 level, which is where the 20-day simple moving average (SMA) is located. Trend signals remain slightly daunting as the price continues to trade around the 16-month low of 1.1185. As regards the market momentum, some optimism seems to be building over an upside correction as the RSI has paused its downtrend, while the MACD is rising above its trigger line in the negative region. [..]

Daily Market Comment – Nerves calm down but risks still loom

Posted on December 21, 2021 at 9:57 am GMT

Mood improves, helped by signs that Biden’s fiscal agenda isn’t dead Dollar pulls back, sterling recovers in a relatively quiet FX market Stocks and oil prices bounce back, Turkish lira stages epic comeback Risk sentiment stabilizes Global markets started the week on a soft note amid worries that the lightning-fast spread of Omicron would curtail economic growth at a time when central bank liquidity is evaporating and government spending is being rolled back. Thin trading volumes because of the holiday [..]

US Open Note – Stocks go downhill as omicron bears bite; dollar, euro resilient

Posted on December 20, 2021 at 2:23 pm GMT

Omicron plays with investors’ nerves as stimulus vanishes Stock markets were in a sea of red during mid-European trading hours as omicron concerns and tighter curbs in Europe reminded investors that the pandemic is far from over and Covid could still swamp global demand after two years of limbo. The pan-European STOXX 600 and the British FTSE 100 index followed their Asian counterparts deeply lower, with energy shares, basic materials, and consumer cyclicals driving the bulk of losses, plunging by [..]

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