All Articles Tagged - EURUSD

Market Comment – Dollar benefits from hawkish Fed minutes

Posted on May 23, 2024 at 8:41 am GMT

Dollar rallies as both gold and bitcoin fall Early UK elections called after mixed UK CPI report EZ PMIs unlikely to stop the ECB from cutting rates in June Dollar rallies on the back of the minutes The Fed minutes showed a much more hawkish discussion at the May 1 meeting than originally portrayed by Chairman Powell. In particular, the comment about the willingness of various participants to tighten policy further should risks to the inflation outlook materialize, contradicts Powell’s [..]

Market Comment – Dollar under pressure as Fed speakers multiply

Posted on May 22, 2024 at 8:18 am GMT

FOMC minutes in the spotlight today Mixed UK CPI probably keeps the door closed to a June move RBNZ surprises with its hawkishness; kiwi benefits Nvidia reports after the US market close Dollar remains on the back foot The quieter data calendar has turned the market’s attention to the plethora of Fed speakers eager to express their opinions ahead of the next blackout period. Analyzing almost 35 public appearances by Fed speakers since May 1 reveals an overwhelming support for [..]

Commodities’ volatility jumps due to geopolitics – Volatility Watch

Posted on May 21, 2024 at 2:45 pm GMT

Euro/dollar volatility eases aggressively Volatility in gold and silver skyrockets US equities enjoy low volatility amidst weekly gains Euro/dollar volatility has dropped aggressively as the market is adjusting to a quieter data calendar that nevertheless includes a plethora of Fed speakers. Similarly, volatility in yen crosses remains moderate as market participants, especially in dollar/yen, appear unwilling to further provoke the BoJ and risk significant losses. On the contrary, volatility in the commodities space has gone through the roof. While oil price volatility has eased further despite the latest [..]

How will the Eurozone PMIs impact ECB expectations? – Preview

Posted on May 21, 2024 at 1:09 pm GMT

Eurozone economy has been improving in 2024 But investors still anticipate an ECB rate cut in June The flash PMIs could impact bets beyond that meeting The data comes out on Thursday at 08:00 GMT ECB signals confidence in lowering rates At their latest gathering, ECB officials decided to keep interest rates unchanged as expected but they sent clearer signals that they may start lowering them soon. At the press conference, President Lagarde said that the decline in inflation [..]

Fed rate expectations whipsawed by Fed speakers and the US CPI – Special Report

Posted on May 21, 2024 at 10:12 am GMT

It has been a rollercoaster period for Fed rate cut expectations Sticky US inflation is keeping the market on its toes Numerous Fed speakers this week; market sensitive to hawkish comments Dollar’s 2024 gains dented despite divergent monetary policy outlooks The year started with the market firmly believing that the Fed would deliver six rate cuts during 2024 on the back of an aggressive slowdown in inflation, which has not materialized up to now. Developments elsewhere, in particular the numerous geopolitical [..]

Market Comment – Fed uncertainty puts stocks on edge, dollar edges up

Posted on May 21, 2024 at 8:42 am GMT

Fed policymakers maintain caution ahead of minutes as risk appetite ebbs Commodities retreat from highs amid hawkish Fed, calm in Middle East Dollar inches higher, ether jumps 19% on spot ETF hopes Fed officials sing from same hymn sheet Expectations of two rate cuts by the Fed are in doubt again as investors pared back some of their bets following a string of hawkish commentary by Fed policymakers in the last 24 hours. Markets had priced in 50 basis points [..]

Market Comment – Rate cut optimism buoys equities, gold jumps on geopolitical risks

Posted on May 20, 2024 at 8:51 am GMT

Stocks remain on the front foot despite wavering rate cut bets Optimism prevails even as gold rallies on Middle East uncertainties Subdued dollar eyes Fed speakers, rising Japanese yields fail to lift yen Stocks extend post-CPI gains Equity markets remained buoyant at the start of the new trading week following last week’s somewhat cooler-than-expected inflation report out of the United States, as the data further extinguished any lingering fears about a possible Fed rate hike. Yet, the latest CPI readings [..]

Technical Analysis – EURUSD fails to surpass 1.0900

Posted on May 20, 2024 at 6:47 am GMT

EURUSD holds above medium-term downtrend line Oscillators indicate bearish structure EURUSD appears to be maintaining a horizontal trajectory in the very short-term, trapped between the 1.0895 resistance level and the 1.0814 support. A paused state of directional momentum is reflected in the technical oscillators. The stochastic posted a bearish crossover within its %K and %D lines in the overbought territory, while the RSI is failing to jump above the 70 level. To the upside, emanating pressure over the last couple of months [..]

Week Ahead – Flash PMIs, UK & Japan CPIs in focus; RBNZ to hold rates

Posted on May 17, 2024 at 10:20 am GMT

After cool US CPI, attention shifts to UK and Japanese inflation Flash PMIs will be watched too amid signs of a rebound in Europe Fed to stay in the spotlight as plethora of speakers, minutes on tap No fireworks expected from RBNZ policy decision Will CPI report bring BoC nearer to a rate cut? Inflation data will dominate the economic agenda once again in the coming week as CPI numbers are due in Canada, Japan and the United Kingdom. The [..]

Technical Analysis – EURUSD returns post-CPI gains as bears show up

Posted on May 15, 2024 at 2:38 pm GMT

EURUSD powers up after US CPI & retail sales data favor rate cuts But gains almost evaporate as overbought conditions emerge Buyers need a close above 1.0880 EURUSD sped up to a fresh one-month high of 1.0868 as a slightly softer-than-expected monthly CPI data and stagnant retail sales weighed on the US dollar. The spike in the price, however, proved short-lived, with the pair returning to its pre-CPI level near 1.0830 in the next hours. Technically, the pair hit a [..]

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