All Articles Tagged - EURUSD

US Open Note – Dollar rises further after retail sales; kiwi is notably up

Posted on July 16, 2021 at 1:02 pm GMT

Dollar continues to gain momentum as retail sales rise The US dollar is attempting to move higher against a basket of major currencies with US stock futures recovering some of yesterday’s losses. Dollar/yen is advancing above the 110.00 round number, surpassing the 40-day simple moving average (SMA) as retail sales for June gained 0.6% from the previous month, following a revised 1.7% drop in May and significantly outperforming market estimates of a 0.4% drop. Also, the Bank of Japan did not make any policy [..]

Week Ahead – ECB meeting poses another headache for euro

Posted on July 16, 2021 at 11:23 am GMT

The main event next week will be the ECB meeting, where the forward guidance will likely be changed to commit to negative rates for longer. That could cement the divergence with the Fed and other central banks that are moving towards higher rates. There’s also a volley of economic data while the earnings season gets rolling. What inflation? Another week, another scorching US inflation number that markets did not care much about. Most of the acceleration in inflation was concentrated [..]

Daily Market Comment – Dollar heads for weekly gains, only kiwi can keep up

Posted on July 16, 2021 at 9:23 am GMT

The US dollar is eyeing a strong close to the week; can retail sales ruin its chances? Other majors flounder, except for kiwi, as strong CPI reinforces RBNZ rate hike bets Stocks struggle despite ultra-dovish Powell amid fears growth momentum has peaked Safe havens thrive as outlook gets cloudier It’s been an action-packed and what should have been a positive week for risk assets, with the earnings season getting off to a good start, the Fed’s Powell maintaining his pledge [..]

US Open Note – Stocks sluggish at highs and dollar returns to yesterday’s levels

Posted on July 15, 2021 at 1:15 pm GMT

Stocks ease a tad ahead of Fed Chairman Powell’s upcoming comments The poker face of the Chairman of the Federal Reserve seems to still have markets convinced that inflation is transitory, after delivering rhetoric of a cautious but dovish nature yesterday in his remarks. Nonetheless, the Fed’s goal of stronger employment is clear as are their enduring asset purchases. That said, the FOMC debate around asset-purchases will intensify moving into the year as the US economy grows stronger. It remains [..]

Technical Analysis – EURUSD hovers in declining channel with flat momentum

Posted on July 15, 2021 at 8:50 am GMT

EURUSD has been travelling in a downward sloping channel since June 17, standing around the 20- and 40-period simple moving averages (SMAs). The RSI is moving horizontally around its mid-level; however, the MACD is still developing above its trigger line in the negative region. Following a successful decline below the SMAs, the 1.1767 barrier could provide immediate support before meeting the lower surface of the declining channel at 1.1737. Further down, the five-month low of 1.1700 could serve as a [..]

US Open Note – Greenback extends pullback before Powell’s testimony

Posted on July 14, 2021 at 1:02 pm GMT

Dollar declines ahead of Powell’s testimony Fed Chair Powell will today testify in front of the House, and tomorrow, he will testify in front of the Senate. Right now, his opinions are well-known and is expected to keep QE as open-ended as possible, but if the US data continues to heat up, the expectation is that something more conclusive will come at either the August Jackson Hole Symposium or the September 21-22 FOMC meeting. Fed Governor Daly stated yesterday that it is time to talk about tapering, and [..]

Daily Market Comment – US CPI spikes again, dollar rallies; kiwi surges too after RBNZ ends QE

Posted on July 14, 2021 at 8:59 am GMT

US inflation jumps again, sending stocks spinning and dollar and yields flying RBNZ shocks by halting bond purchases, kiwi soars as August rate hike eyed Powell testimony in the spotlight as Fed’s patience put to the test Markets settle down after another CPI shock Annual inflation in the United States hit a fresh 13-year high of 5.4% in June, surpassing the top estimates and casting doubt on the Fed’s narrative that this inflationary episode will be transitory. Month-on-month, both the [..]

US Open Note – Stocks dip from record highs and dollar soars after CPI beat

Posted on July 13, 2021 at 1:50 pm GMT

Markets digest key US inflation data Market composure and the subdued volatility in the forex arena quickly faded as today’s US CPI data beat expectations. US major indices dived from their tops as much stronger inflation figures jolted markets, causing jitters in the currency markets as well, shaping into dollar-driven volatility throughout the forex arena. It will be interesting to see the rhetoric in Fed Chairman Jerome Powell’s testimony in the coming days relating to the recovery, price pressures and [..]

Daily Market Comment – Wall Street hits record before earnings kickoff, dollar holds firm

Posted on July 13, 2021 at 9:14 am GMT

Earnings optimism drives US equities to fresh record highs ahead of bank results Risk appetite still shaky in FX markets, dollar and yen resist deeper selloff US inflation data and Powell testimony will be key in directing sentiment Wall Street rallies as reopening boost eyed It’s the start of the second quarter earnings season and optimism is running high that the reopening of the US economy will power corporate earnings to new peaks. The new season will properly kick off [..]

US Open Note – Dollar soars ahead of busy week; commodities ease

Posted on July 12, 2021 at 12:35 pm GMT

Dollar’s strong move drives euro lower Ahead of a busy week, the dollar is moving higher against a basket of currencies. Dollar/yen is holding above the 110.00 handle, developing within the short-term simple moving averages (SMAs), while US futures are mixed before the market opens. Euro/dollar is slipping below the 1.1850 level as ECB President Lagarde warned investors to expect new monetary stimulus guidelines in the next ten days and hinted that more measures to help the euro-area economy may [..]

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