All Articles Tagged - EURUSD

Technical Analysis – EURUSD indecisive near February’s high

Posted on May 24, 2021 at 7:50 am GMT

EURUSD is indecisive around February’s peak of 1.2242 and a long-term restrictive line, a break of which is expected to open the way towards the top of a broader uptrend which started in March 2020. The RSI and the Stochastics could not resume upward direction during the previous couple of days, while the price itself has been trading around the upper Bollinger band, increasing the odds for a downside correction in the near term. That said, an ascending trendline has been protecting the market [..]

Weekly Comment – Taper rollercoaster ends badly for USD; can PCE inflation save it?

Posted on May 21, 2021 at 1:40 pm GMT

The Fed spooked markets when the April minutes signalled tapering discussions could begin soon. However, after digesting the information, investors were none the wiser and September remains the most likely date which the Fed will make its taper announcement. USD and Treasury yields have subsequently come crashing back down. Can next week’s PCE inflation data provide any boost? The highlights: Consumer confidence, durable goods orders and personal income & spending numbers are coming up next week, but the spotlight will [..]

US Open Note – Stocks, currencies in quiet trading as taper concerns take the back seat for now

Posted on May 21, 2021 at 1:09 pm GMT

European stocks could gather interest What is striking about economic data is that the stronger they become around multi-year highs, the smaller the need for stimulus, and consequently investors are less encouraged to drive stocks higher. But this narrative likely fits the US landscape better, where stock indices are more skewed towards expensive tech and other growth companies. In Europe, stocks continue to trade in a discount relative to their US counterparts, with the STOXX 600 index trading 16.7x forward earnings versus 21x for the S&P 500 according to Refinitiv estimates – despite the gap narrowing a [..]

Week Ahead – PCE inflation might turn heads as long march to June looms

Posted on May 21, 2021 at 12:20 pm GMT

Markets just got their first acknowledgement by the Fed that it may soon need to begin discussions on tapering. However, further clarification is unlikely to come before the next FOMC meeting in June so as we head into a quiet data week, trading might get even choppier than it has been recently as investors search for more clues on inflation. One such clue will be the latest PCE inflation numbers out of the United States. Otherwise, the only other highlight [..]

Daily Market Comment – Dollar licks wounds after rollercoaster week, tech stocks rebound

Posted on May 21, 2021 at 9:30 am GMT

Dollar skids towards 3-month lows as inflation and taper fears ease further Wall Street halts losing streak as lower yields lift tech stocks Commodities extend losses but gold holds near highs amid rotation out of crypto Dollar bruised by Fed taper false alarm Inflation and taper jitters subsided further on Friday following the mid-week scare when the Fed minutes revealed some worries about persisting high inflation and eagerness among some participants to begin the taper debate. However, markets have concluded [..]

US Open Note – Dollar flatlines after FOMC meeting minutes; equities mixed

Posted on May 20, 2021 at 1:16 pm GMT

Markets in no man’s land after FOMC meeting minutes Markets seem to be in no man’s land today. On the one hand, the reopening phase in developed countries and accommodative fiscal and monetary policies point to a bright future for the global economy. On the other hand, the patience among central banks against rising fears of above-target inflation threatens a delayed response and a bumpy economic recovery. Surprisingly, the FOMC minutes from April’s meeting attempted to shed some light on [..]

Daily Market Comment – Fed hints at taper discussion soon but dollar struggles to catch a bid

Posted on May 20, 2021 at 9:11 am GMT

Fed minutes drop first hint of starting to ‘think about thinking about’ tapering US dollar and yields jump, but not much, before easing slightly Wall Street dips but pares losses, equity markets mixed today Not so relaxed about inflation after all? The minutes of the Federal Reserve’s April policy meeting dropped the first taper bombshell on Wednesday as some policymakers raised the prospect of beginning discussions on reducing bond purchases soon. According to the minutes, some participants thought “it might [..]

Technical Analysis – EURUSD erases gains in short-term; uptrend line acts as support

Posted on May 20, 2021 at 6:05 am GMT

EURUSD had a positive start on Thursday, with the price remaining below the crucial level at 1.2180. The pair has also increased distance below its three-and-a-half-month high of 1.2245. Momentum signals are bearish as the RSI has reversed lower after failing to break above its 70 mark on Wednesday. Yet the latter is ready to enter the negative territory, while the MACD tumbled beneath its trigger line in the positive region. Should the price extend declines, the 40-period simple moving [..]

Another bounce in Eurozone PMIs could further fuel euro rally – Forex News Preview

Posted on May 19, 2021 at 3:01 pm GMT

After long winter shutdowns, virus-stricken Eurozone countries are finally emerging out of lockdown and the vaccination drive is accelerating. The further lifting of virus restrictions in May likely boosted economic activity across the region and this is expected to be reflected in the flash PMIs due on Friday (08:00 GMT). The euro is riding high on the back of the rosier economic outlook. But that’s not the only thing giving the single currency a leg up. The European Central Bank’s [..]

US Open Note – Stocks in the red as inflation debate continues; dollar recoups some ground

Posted on May 19, 2021 at 1:19 pm GMT

Fed meeting minutes eyed as inflation jitters resurface Inflation jitters and the latest infection pickups in Asia offset growth optimism in markets on Wednesday and revived fears that the Fed could start its tapering process and subsequently raise interest rates sooner than expected although the central bank has talked down the case several times, arguing that any spike in inflation will be temporary. Perhaps the Fed may once again put its assurances into words when it releases its minutes from [..]

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