All Articles Tagged - EURUSD

US Open Note – Stocks brush with highs, dollar flickers green and yields dip

Posted on June 11, 2021 at 1:51 pm GMT

Stocks and dollar climb a tad but market appetite appears muted Major US indices are holding near their highs with the S&P 500 index nudging up towards yesterday’s intra-day record high as the vibe in markets remains subdued, looking unresponsive to inflation and saturated talk around early tapering. Echoes from yesterday’s ECB meeting and the stronger US inflation results for May (Core CPI at 0.7% m/m and 3.8% y/y) seem to have fallen on deaf ears as a relatively [..]

Week Ahead – Fed to steer away from taper signals

Posted on June 11, 2021 at 10:33 am GMT

It’s a busy summer week, with three central bank meetings and a ton of crucial data. The spotlight will be on the Fed, which is unlikely to signal that it’s considering an exit strategy from cheap money. That’s the ultimate path, but it’s too early. Any real dollar strength is a story for late summer. Meanwhile, policy meetings in Japan and Switzerland could confirm that those economies will be the last to raise rates again, leaving the yen and franc [..]

Daily Market Comment – Stocks at record, dollar unfazed after US CPI hits 5%

Posted on June 11, 2021 at 9:22 am GMT

US inflation surges again, but markets more convinced than ever that it’s transitory ECB maintains dovish course, yet euro oscillates sideways S&P 500 notches another record close as Wall Street set for weekly gains Another big CPI beat, but no fuss this time Consumer prices in the United States soared by 5.0% in May, beating forecasts of 4.7%, as the lockdown base effect and a number of one-off factors pushed annual inflation to the highest since 2008. Large hikes in [..]

US Open Note – US CPI surprise driving dollar higher; Lagarde comments hurt euro

Posted on June 10, 2021 at 1:10 pm GMT

US CPI spike higher than expected Consumer prices in the United States were closely watched today for any clues about a tapering timeline. The headline CPI rose by 5% year-on-year for May, driving the dollar higher. This figure is the highest number since August 2008 amid low base effects from last year. The annual core CPI accelerated to 3.8% from 3.0% while the monthly rate ticked slightly down to 0.7% versus 0.9% previously. The Fed is anticipated to take baby steps towards slowing its bond purchases and the [..]

Daily Market Comment – All quiet before ECB and US CPI; dollar resists slump in yields

Posted on June 10, 2021 at 9:14 am GMT

Inertia sets in as ECB decision, US inflation seen key in determining the summer tone Treasury yields tumble again but dollar steady, stocks sluggish Euro and pound on the backfoot as EU-UK tensions simmer ECB and US CPI ahead: calm before the storm? Trading got off to another lacklustre start on Thursday, with major currencies and equities subdued and the volatility confined to the bond market. However, the unusual lull is unlikely to last much longer as the European Central [..]

Technical Analysis – EURUSD eases below 1.22; 200-period SMA acts as strong support

Posted on June 10, 2021 at 8:46 am GMT

EURUSD is easing in the near-term, creating lower lows and lower highs after the pullback off the five-month high of 1.2240. The MACD oscillator is moving with weak momentum around its zero level; however, the RSI is pointing slightly up in the negative territory. In trend indicators, the price is hovering within the blue Kijun-sen line and the 20- and 40-period simple moving averages (SMAs). If the price dives below the 200-day SMA, which stands near 1.2143, it could take the market towards the [..]

US Open Note – Dollar struggles ahead of key data; BoC awaited

Posted on June 9, 2021 at 12:56 pm GMT

Dollar waiting for tomorrow’s US CPI data The US dollar is weaker somewhat today, and Treasury yields were lower as traders wait for the US inflation announcement on Thursday as it may affect the timeline for Federal Reserve discussions on tapering bond purchases and may be a key catalyst for the bond market. Dollar/yen is continuing its selling interest, hovering near 109.37, while the US dollar index is experiencing some losses as well. S&P 500 and Nasdaq futures are signaling a positive open; however, Dow Jones futures are suggesting a negative open. Euro and pound take some positive steps The [..]

Daily Market Comment – Bond yields take a dive, prop up equities, but FX sidelined

Posted on June 9, 2021 at 9:22 am GMT

Bond yields plunge unexpectedly, signalling easing inflation anxiety US stocks near records but ECB, US CPI awaited for fresh drivers Dollar steady, loonie edges up ahead of BoC US yield curve flattens: sign of confidence or trouble? Government bond yields took an unexpected dive on Tuesday as a combination of strong auction demand, safe-haven flows and easing inflation worries boosted the bond market. The yield on 10-year US Treasuries slumped to a one-month low, hitting 1.513%. The 30-year yield also [..]

US Open Note – Stocks laid back as dollar flickers some life despite dip in yields

Posted on June 8, 2021 at 2:41 pm GMT

Risk appetite vanishes; inflation and taper talk jitters persist Although the market outlook is largely optimistic, economies are emanating a lethargic vibe and seem to be searching for an assisting jolt to rekindle risk appetite. Investors may be looking aimlessly to the ECB and the Fed to provide markets with immediate booster jabs. Nonetheless, investors’ radars remain set around taper talks and price pressures and for sure the ECB’s and the Fed’s rhetoric around these issues will be cautious and [..]

ECB meeting: No hawkish bits yet – Forex News Preview

Posted on June 8, 2021 at 9:58 am GMT

The European Central Bank will wrap up its meeting at 11:45 GMT Thursday and President Lagarde will have a tricky communications exercise on her hands. She will have to admit the economy is doing better, but sounding too optimistic could add more fuel to the euro’s undesirable rally. Overall, a lot of good news is priced in here and the longer-term risks seem tilted towards a lower euro/dollar as the ECB/Fed policy divergence becomes clearer. One eye on the euro [..]

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