All Articles Tagged - EURUSD

Daily Market Comment – BoE sinks pound, roils bond markets; All eyes now on NFP

Posted on November 5, 2021 at 9:57 am GMT

BoE shocks markets by not raising rates as expected, pound crashes below $1.35 Bond yields slump globally as central banks push back on investors’ rate hike pricings Dollar stands tall, Wall Street at a record ahead of October payrolls report BoE: the unreliable boyfriend strikes again The messaging was clear, or so everyone thought. Repeated signalling by Bank of England Governor Andrew Bailey that the Bank will need to act to keep a lid on surging inflation had led markets [..]

US Open Note – BoE rate surprise squeezes pound to monthly lows; oil rallies ahead of OPEC

Posted on November 4, 2021 at 2:40 pm GMT

BoE: Barking without bite Investors have been running ahead of central banks’ plans lately, growing confident that interest rates would rise earlier than previously anticipated as global inflation shows no signs of abating. In the UK though, the strong market pricing for a 15 bps rate hike had been somewhat reasonable. Policymakers, including Governor Andrew Bailey, had been constantly calling for a tighter monetary policy after showing willingness to raise interest rates before the bond tapering phase starts, citing the [..]

Technical Analysis – EURUSD buyers re-emerge near 15-month low levels

Posted on November 4, 2021 at 1:50 pm GMT

EURUSD has been edging relatively sideways for nearly a month now, but the price action seems to be adhering to the trajectory of a medium-term restrictive trend line, which is pulled from the 1.2254 peak. The converging simple moving averages (SMAs) are confirming the trendless market. Moreover, the Ichimoku lines are presently not indicating a reliable price direction, while the short-term oscillators are conveying mixed messages in momentum. The MACD, which has dipped marginally beneath its red trigger line along [..]

Daily Market Comment – Fed’s dovish taper lifts stocks but yields stay elevated, boost dollar

Posted on November 4, 2021 at 9:56 am GMT

Fed kicks off tapering but markets calm as Powell promises to be “patient” on rates ECB also pushes back on rate hikes, but dollar wins FX race Focus is now on Bank of England as pound slips again Restart of Iran nuclear talks keeps pressure on oil ahead of OPEC decision Powell delivers smooth taper The Federal Reserve announced the long-awaited tapering of its emergency stimulus on Wednesday, confirming plans to reduce its asset purchases by $15 billion a month, [..]

Will nonfarm payrolls reignite the dollar’s uptrend? – Forex News Preview

Posted on November 4, 2021 at 8:15 am GMT

With the Fed meeting out of the way, the spotlight now falls on the next edition of nonfarm payrolls at 12:30 GMT Friday. It seems to have been a strong month for the jobs market, which continues to make progress towards full employment. Another solid employment report could solidify market pricing for the Fed to raise rates next summer and by extension, reactivate the dollar’s uptrend. Slowdown, but don’t panic The American economy hit a speed bump in the third [..]

Technical Analysis – EURUSD loses momentum beneath downtrend line and 1.1600

Posted on November 3, 2021 at 3:23 pm GMT

EURUSD rose over the 1.1700 mark last week, but it was quickly rebuffed near the 40-day SMA, sending the price plummeting to a 15-month low of 1.1523. Technically, after falling below the 50 level, the RSI is trying to recover and the MACD is expected to cross above its red signal line in the negative region in the short term. In order for the bears to take over, the multi-month low of 1.1523 must break. The price is likely to fall to [..]

US Open Note – Dollar and forex arena steady ahead of FOMC decision

Posted on November 3, 2021 at 1:08 pm GMT

ADP non-farm employment, US ISM Services PMI and Fed take centre stage Today’s key highlight is the FOMC decision scheduled for 18:00 GMT, which is expected to reveal that the Fed will begin reducing the asset purchases of its monthly $120bn bond program. That said, the FOMC press conference is likely to be saturated with rhetoric centred around the speed of tapering, inflation and the timeline of rate hikes once tapering fully concludes. Any surprise rhetoric could fuel volatility in [..]

Daily Market Comment – Dollar holds firm but yields slip ahead of Fed decision

Posted on November 3, 2021 at 10:14 am GMT

Bond yields pressured amid risk of Fed following RBA in pushing back on early rate hike Softer start for stocks after Wall Street notches up another record close Aussie and kiwi recoup losses but pound mired in BoE uncertainty Oil skids on inventories build-up, mounting pressure on OPEC Bond markets choppy as Fed awaited for liftoff clues Markets are gearing for the Fed’s long-anticipated taper announcement on Wednesday when the world’s most important central bank will formally call time on [..]

US Open Note – Stocks near highs, dollar stabilizes, New Zealand employment data due

Posted on November 2, 2021 at 2:44 pm GMT

FOMC and NFP draw focus; RBA sends dovish signals; eurozone data soften US stocks are trading near their all-time highs and the dollar index looks largely unchanged at present as the FOMC meeting is set to get under way today, with the Fed announcing its decision tomorrow. A tapering announcement is already priced in. After yesterday’s stronger-than-expected US ISM manufacturing PMI, including the pricing component, the economy is showing strong expansionary signs and that it may end the year on [..]

Daily Market Comment – Fading energy worries revive optimism

Posted on November 2, 2021 at 9:58 am GMT

New records for Wall Street as cooling energy prices pull yields down RBA plays down early rate increases, torpedoes Australian dollar US dollar, British pound, and oil prices await crucial events New highs The US stock market continues to trade like a runaway freight train. All three major indices on Wall Street closed at new record highs to kick off the new month, basking in the glory of a solid earnings season and some signs that the worst of the [..]

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