All Articles Tagged - EURUSD

Daily Market Comment – Bonds and dollar steady, stocks mixed ahead of Fed

Posted on March 17, 2021 at 9:42 am GMT

Fed decision awaited as 10-year Treasury yields hold above 1.60% Dollar flat, Wall Street futures slip as investors brace for Fed inaction EU’s vaccine shambles continue, euro battles to defend $1.19 level More jawboning expected as Fed to stay course Markets were in a calm mood on Wednesday, though sentiment erred on the side of caution as uncertainty around the FOMC decision kept investors on edge. The Federal Reserve is highly anticipated to hold rates and its stimulus programmes unchanged [..]

US Open Note – Dollar freezes in calm day; Vaccine rollout gets delayed

Posted on March 16, 2021 at 1:59 pm GMT

Dollar holds firm; S&P 500 flies to record high The market today is calm as investors are all waiting on the Fed tomorrow to commit to any firm moves. The FOMC is starting a two-day meeting that will end tomorrow and no change in policy is predicted, but the forward guidance for interest rates and asset purchases will be crucial. Stock futures are almost flat today and the bond market is virtually unchanged, so this looks like a market waiting for guidance from the Fed. European stocks/equities/markets are [..]

Daily Market Comment – Wall Street hits new records, FX market quiet

Posted on March 16, 2021 at 9:33 am GMT

Stock market winning streak continues as yields stabilize European nations suspend AstraZeneca vaccine, but euro undaunted US retail sales coming up as traders lay low ahead of FOMC meeting Stable yields give equities the green light The equity gravy train keeps on rolling. All the major indices on Wall Street aside from the Nasdaq hit another record high yesterday as bond yields stabilized and economic optimism ruled the day. The accelerated pace of vaccinations in America and the imminent spending [..]

Fed meeting: Keep a close eye on those dots – Forex News Preview

Posted on March 15, 2021 at 2:20 pm GMT

The Fed will conclude its latest meeting at 18:00 GMT Wednesday. Markets are pricing in a rate increase by late 2022, so all eyes will be on the ‘dot plot’ of rate projections to see if a hike in 2024 is still the central scenario for policymakers. With trillions in federal spending coming, some officials may bring forward their rate hike forecasts. This could lift the dollar initially, though Chairman Powell may push back on such expectations during his press [..]

Daily Market Comment – Dollar recovers, stocks stand their ground despite rising yields

Posted on March 15, 2021 at 9:48 am GMT

Dollar gets its mojo back as US yields march higher, loonie climbs too US stock markets close at record highs, resilient to rising yields Quiet start to a busy week, featuring Fed, BoE, and BoJ meetings Can’t hold stock markets down The narrative that rising bond yields are toxic for stocks came under heavy fire lately. American stock markets hit new record heights last week even as longer-dated Treasury yields moved to new cycle highs, demonstrating that a higher cost [..]

Technical Analysis – EURUSD eases slightly in ascending pattern

Posted on March 15, 2021 at 7:23 am GMT

EURUSD is falling around the 1.1920 level after the rebound off the lower band of the ascending channel. The RSI is pointing marginally down in the negative territory, while the stochastic is heading south from the overbought zone. A successful decline beneath the ascending channel could take the price towards the 1.1745 support ahead of the 38.2% Fibonacci retracement level of the up leg from 1.0635 to 1.2348 at 1.1695. Beneath these lines, the 1.1610 support and the 50.0% Fibonacci of [..]

Week Ahead – Will Fed & Co follow in ECB’s footsteps and signal QE shift?

Posted on March 12, 2021 at 1:56 pm GMT

The Federal Reserve will be meeting for the first time since yields exploded higher and the Biden stimulus bill became law. The Bank of England and Bank of Japan will announce their decisions too. Will the Fed and other central banks take their cues from the European Central Bank and respond to the bond market selloff by stepping up their purchases? The debate about whether higher yields warrant fresh policy action will likely dominate the market conversation, especially as there’s [..]

Daily Market Comment – Wall Street hits new records but euphoria fades as yields rise

Posted on March 12, 2021 at 9:42 am GMT

Threat of rising yields keeps animal spirits in check, revives dollar ECB promises to speed-up QE, but euro/dollar driven by other factors Yen suffers as rate differentials widen, Canadian jobs data coming up Stocks hit new records but cool down as yields climb The battle between growing economic optimism and concerns of monetary policy normalization continues to rage in financial markets. Investors are warming up to stocks amid hopes that all the federal spending will lead to an unprecedented boom [..]

US Open Note – Euro loses steam after ECB signals PEPP pace change; dollar on the back foot too

Posted on March 11, 2021 at 2:17 pm GMT

ECB meeting keeps peace in markets The European Central Bank kept the peace in the markets, leaving its benchmark interest rate at a record low of -0.5% and its asset purchases unchanged. While the decision itself was largely expected, its willingness to move its PEPP purchases at a faster pace caught some investors by surprise despite its previous verbal threats, pressuring the 10-year German Bund yield to an almost one-month low. Yet, the Bank reiterated that if favorable financial conditions [..]

Daily Market Comment – All eyes on ECB meeting as calmer tones prevail

Posted on March 11, 2021 at 9:15 am GMT

ECB unlikely to fight the spike in yields today, may boost euro a little Tame US inflation and solid bond auction calm yields, hurt dollar Dow Jones hits new record but tech lags as infrastructure comes into view Too early for ECB to fight rising yields? The main event today will be the European Central Bank policy decision at 12:45 GMT. The ECB views the latest spike in bond yields mostly as an American story that’s spilling over into Europe [..]

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