All Articles Tagged - EURUSD

US Open Note – Inflation risks and the rate conundrum, dollar hangs in there

Posted on October 18, 2021 at 1:57 pm GMT

Risk evaporates but US Industrial production disappoints Market sentiment softened and the dollar remained subdued on the first trading day of week. Expectations that the Fed is preparing to taper is keeping the reserve currency afloat as well as pushing up the 10-year yield close to 1.62%. Inflation risks seem to be pushing central banks to take action, as markets are pricing in interest rate hikes in the later parts of 2022. US industrial production in September was much weaker, [..]

Technical Analysis – EURUSD bearish course endures as upside forces fade

Posted on October 18, 2021 at 9:18 am GMT

EURUSD’s recent positive impetus off a 14-month low of 1.1523 is faltering in the vicinity of the 1.1600 handle. The diving simple moving averages (SMAs) are defending the short-term bearish trend in the pair. The Ichimoku lines are indicating that negative momentum is picking up again. Furthermore, the pair is struggling to make strong headways past the 1.1600 barrier, something also being reflected in the short-term oscillators. The MACD, some distance below zero, has pushed over its red trigger line, [..]

Daily Market Comment – Inflation and growth worries take heat off stocks rebound, dollar firms

Posted on October 18, 2021 at 8:58 am GMT

China GDP misses estimates, New Zealand CPI surges, reviving stagflation fears Stocks back in the red as doubts resurface but hopes on earnings keep optimism alive Bond yields edge up again as oil keeps climbing Kiwi erases earlier gains from rate hike bets as dollar bulls regain control China growth disappoints, dents risk appetite Economic growth in the world’s second largest economy slowed more than expected in the third quarter as China reported that GDP rose by 4.9% from a [..]

US Open Note – Yen still plunges; oil heads towards $82.00

Posted on October 15, 2021 at 1:07 pm GMT

Dollar index on mute today; US retail sales surprised The dollar index is hovering around 94.00 today, following two red days; however, dollar/yen is heading sharply higher towards a fresh three-year high around 114.20 due to a weakened Japanese yen. US retail sales unexpectedly rose 0.7% for September versus an upwardly revised 0.9% the prior month. A dovish Bank of Japan and growing 2-year U.S.-Japan rate differentials continue to be important factors. US futures are suggesting another positive day, after strong earnings releases. The single currency [..]

Week Ahead – Inflation, supply chain fears to persist as China GDP, flash PMIs eyed

Posted on October 15, 2021 at 12:44 pm GMT

Inflation data will grab the headlines for another week as more countries publish CPI numbers. But concerns about global growth will also preoccupy investors’ minds as China reports its GDP estimate for the third quarter and flash PMI figures for October are released. With the major central banks preparing to pull back their pandemic-era stimulus just as supply constraints are adding to businesses’ pain, there is heightened sensitivity in the markets about the growing threat of persistently high inflation. Will [..]

Weekly Comment – Risk appetite returns but China GDP could revive slowdown fears

Posted on October 15, 2021 at 12:03 pm GMT

Stocks staged a mid-week comeback after fears about surging inflation and worsening supply shortages had pummelled risk assets. But easing concerns have put a stop to the spike in government bond yields, with USD also pulling back. However, those fears could quickly return as a raft of inflation and PMI data are on the way and China reports its GDP numbers. The highlights: China’s economy will be in the spotlight on Monday as GDP figures are expected to show growth [..]

Daily Market Comment – Wall Street roars back, yen blasted as optimism returns

Posted on October 15, 2021 at 9:04 am GMT

Riskier plays come back swinging as supply worries take a back seat Stocks and commodity currencies power higher, yen gets hammered Dollar heads for weekly losses ahead of US retail sales Riskier assets storm back Investors forgot about the mayhem in supply chains and energy markets on Thursday and instead increased their exposure to riskier plays, as a combination of encouraging US economic data and corporate earnings from the big banks cheered up the mood. Initial jobless claims in America [..]

What’s next as stagflation risks torment markets? – Special Report

Posted on October 14, 2021 at 3:31 pm GMT

The global economy is fighting a battle on multiple fronts. From paralyzed supply chains to an energy crisis that threatens Europe and Asia to a painful deleveraging in the Chinese real estate sector, there is a clear risk that growth slows down but inflation stays hot. This could spell some more trouble for stock markets as corporate profit margins get squeezed, while the winner might be the US dollar, which is shielded from the power crunch thanks to America’s energy [..]

Could retail sales increase pressure on the US dollar? – Forex News Preview

Posted on October 14, 2021 at 3:05 pm GMT

September’s US retail sales will shed some light on how household spending is responding to the global inflationary situation on Friday at 12:30 GMT. Forecasts suggest a rapid slowdown from August readings, with the dollar likely giving up some ground in the aftermath if downside pressures prove more severe, signalling a fading economic recovery. Eyes on consumption as inflation soars As disrupted supply chains raise the odds for persistent inflation worldwide, it would be interesting to see how household spending is [..]

US Open Note – Stocks buoyant, dollar flashes green and commodities resilient

Posted on October 14, 2021 at 1:55 pm GMT

Market sentiment intact after cheery jobless claims and miss in US PPI Sentiment remains upbeat as US stock futures are extending their recent buoyancy after a drop in longer-term yields. The Fed’s meeting minutes published yesterday echoed the recent hawkish rhetoric, signalling that the taper timeline is likely to begin before the end of the year and fuelling expectations of an earlier rate hike. However, investors are now eyeing a lower terminal rate as a result of earlier action by [..]

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