All Articles Tagged - EURUSD

Daily Market Comment – US inflation under the microscope

Posted on November 10, 2021 at 9:38 am GMT

All eyes on US inflation today, dollar’s fortunes hang in the balance Stocks pull back after massive rally, bond market in gloomy mood Oil prices jump, iron ore slumps, gold rallies but not impressively Another inflation shock? The spotlight today will fall on the latest US inflation report, which could unleash turmoil in the markets if there are any surprises. The annual CPI rate is expected to have soared to 5.8% in October, a pace not seen in three decades. [..]

Technical Analysis – EURUSD flirts with 40-SMA after the decline from 200-SMA

Posted on November 10, 2021 at 8:22 am GMT

EURUSD has found strong resistance at the 200-period simple moving average (SMA) around 1.1600, holding beneath the Ichimoku cloud and above the short-term SMAs. However, the RSI is ticking marginally up in the positive region, while the MACD is standing above its zero line, suggesting that the rebound off the 16-month low of 1.1513 is still in place. A successful climb above the 200-period SMA could take the market towards the 1.1615 resistance. Even higher, the top of 1.1690 may [..]

Dollar braces for US inflation report – Forex News Preview

Posted on November 9, 2021 at 3:17 pm GMT

The latest US inflation data will be released at 13:30 GMT Wednesday. Forecasts point to another sharp acceleration, which could unleash turmoil in the markets as the transitory narrative melts away. As for the dollar, the outlook remains positive with the American economy out-recovering most of the world and Congress bringing more spending to the party. Firing up The US economy is in pretty good shape, considering the chaos in global supply chains. Consumption has remained resilient, lost jobs are [..]

US Open Note – Dollar still holds in negative territory after US PPI

Posted on November 9, 2021 at 2:16 pm GMT

Calm day with US core PPI Across the board, this week’s data has been strong but not so important. The market has instead been focused on central banks, with both the US Federal Reserve and the Bank of England meeting last week. The FOMC voted to taper immediately in November, with a $15bn reduction per month in purchases, which implies asset purchases would end completely by June 2022. Markets are continuing to price in a Fed lift-off that occurs sooner than the Fed desires. Even though many Federal [..]

Daily Market Comment – Stocks living the dream, yen shines as yields retreat

Posted on November 9, 2021 at 9:50 am GMT

US stocks remain at record highs, enabled by falling real yields Dollar a touch softer amid rumors Brainard could replace Powell Yen and gold enjoy more gains, sterling recovers despite risks Euphoria in the air Can anything stop the runaway train that is the US stock market? The S&P 500 closed at another record high on Monday, bringing its total gains for the year to a stunning 27%. Infrastructure spending, assurances from Fed officials that they won’t slam on the [..]

US Open Note – Dollar eases at the beginning of the week

Posted on November 8, 2021 at 2:01 pm GMT

FX arena remains calm As the new week gets underway, the outlook for the dollar is slightly negative. Having initially climbed on Friday, the dollar index later declined from the 94.62 high and has since remained negative. The euro, which has remained heavy following last week’s unsuccessful drop below the $1.1525 level, is still moving near $1.1570 with weak momentum. On Friday, the pound challenged the support near $1.3410, where it was unable to break through. A clean break below would set up a test of the December 2020 low of $1.3135, which would be a significant step forward. [..]

Technical Analysis – EURUSD buyers’ efforts may be in vain, bias negative

Posted on November 8, 2021 at 10:02 am GMT

EURUSD buyers have re-emerged again around the previous low of October 12 at 1.1523 and are trying to recoup lost ground. Despite these positive efforts, the pair is maintaining a strong bearish demeanour, something also being reflected in the falling simple moving averages (SMAs). The Ichimoku lines are demonstrating the price’s recent unclear direction but are indicating that positive impetus is somewhat lacking. The short-term oscillators are conveying the recent pick up in positive momentum, but this remains shaky. The [..]

Daily Market Comment – Strong jobs report can’t lift dollar, but equities shoot up

Posted on November 8, 2021 at 9:27 am GMT

Dollar unable to capitalize on solid US employment report But stock markets push higher, powered by decline in yields Gold shines as well, focus now turns to litany of Fed speakers Strong NFP not enough to boost dollar The US employment report for October was pretty solid. Nonfarm payrolls overcame forecasts, the previous month’s number was revised higher, the unemployment rate fell another two ticks to reach 4.6%, and wage growth accelerated. Yet investors were not impressed. Treasury yields fell [..]

US Open Note – Nonfarm payrolls don’t impress dollar; Canadian jobs data mixed

Posted on November 5, 2021 at 2:41 pm GMT

Central banks keep faith in transitory inflation Central banks showed sympathy to people’s fears of high inflation the past two weeks but clearly rejected the strong rate hike pricing in markets for the next year, clarifying that they will remain faithful to their initial assessment of temporary inflation, and hence, keep borrowing costs steady, even if the transitory phase lasts a bit longer. Investors did not completely digest the recent dovish talk on interest rates and perhaps higher rates will [..]

Week Ahead – Another US inflation shock?

Posted on November 5, 2021 at 11:37 am GMT

It is a relatively calm week without any central bank meetings and just a handful of data points. The only event that could spark fireworks is the latest edition of US inflation, which will probably fire up further. If price pressures continue to broaden out into different sectors too, this could set off another cascade of worries around faster Fed rate increases and reignite the dollar’s rally. Not so transitory Will inflation fade away by itself? This question has tormented [..]

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