All Articles Tagged - EURUSD

Week Ahead – Will ECB make a stand against rising yields?

Posted on March 5, 2021 at 12:52 pm GMT

With bond markets going berserk lately, investors will turn to the European Central Bank meeting on Thursday. Some senior policymakers have been vocal about ‘fighting’ this rise in yields, but immediate action seems unlikely. Meanwhile, the Bank of Canada will have to play down a solid economy when it meets on Wednesday. In the US, inflation data could be crucial for the Fed narrative, though all eyes will be on Capitol Hill, where Biden’s relief package is about to pass. [..]

Daily Market Comment – Dollar surges, stocks sink after Powell lets yields run loose

Posted on March 5, 2021 at 10:05 am GMT

Powell gives no hints about possible action to stem selloff in Treasuries Dollar soars to 3-month high, shares on Wall Street tank for third straight day OPEC+ extends output cuts in surprise move, oil scales early 2020 highs Treasury yields resume rally after Powell stays course Investors hoping for fresh clues from the Fed about how it plans to ride through the storm in bond markets were left disappointed on Thursday after Chair Jerome Powell offered no new insight. Speaking [..]

Fed’s silence on rising yields could reawaken the dollar – Special Report

Posted on March 4, 2021 at 12:03 pm GMT

Some central banks like the ECB hit the panic button when bond yields went berserk lately, but some others such as the Fed and the Bank of England appeared rather comfortable with the moves. If this divergence persists, rate differentials between these economies could widen further, spilling over into the FX arena. In this case, the euro and the yen might be in trouble, while the dollar and the pound could shine. ECB ready to fight? The global spike in [..]

Daily Market Comment – Yields creep up ahead of Powell; stocks slip, dollar firms

Posted on March 4, 2021 at 9:35 am GMT

Fragile risk sentiment as yields rise again, sending shares on Wall Street skidding Powell speech in focus as bond volatility sparks speculation of ‘Operation Twist’ Commodity currencies fend off stronger dollar but euro and pound struggle Rising yields causing headache for the Fed The rout in bond markets is far from over as the selloff that had subsided somewhat earlier in the week accelerated again on Wednesday, pushing global yields higher. The US 10-year yield came within a whisker of [..]

US Open Note – Markets in risk-on tone; Dollar still flies

Posted on March 3, 2021 at 2:05 pm GMT

Stocks and dollar in slightly positive tone; Fed announces Beige Book The market seems to be calmer today. European equities are holding onto gains, while US futures indicate a positive open. The US dollar index jumped to a one-month high of 91.39 yesterday, before retreating around 91.00. Dollar/yen continues the upside rally towards a fresh six-month high above 107.00. Stimulus negotiations are likely to go into overdrive this week as President Joe Biden’s $1.9 trillion Covid-19 relief bill goes to the US Senate. Also, the Fed announces its Beige Book report. Since [..]

Daily Market Comment – Dollar snaps gains as Fed doubles down on easy policy

Posted on March 3, 2021 at 10:00 am GMT

Dollar suffers sharp pullback as yields settle lower, Fed hints at unease about surge Economic optimism, bond market calm drive stocks, US futures higher Pound hoping for budget boost as $1.40 becomes elusive, euro tests $1.21 Bond market rout eases further, with a little help from the Fed The panic that roiled bond markets last week continued to recede on Wednesday as central bankers from Europe, Australia and elsewhere warned against sudden spikes in bond yields, which have had a [..]

US Open Note – Dollar’s fight back continues as bond market remains in focus

Posted on March 2, 2021 at 2:14 pm GMT

Wall Street could start the day in red; bond market in focus The futures tracking the S&P 500 and Nasdaq 100 are signaling a negative open today after their biggest advance in almost nine months, as investors cautiously monitored the bond market and progress on the next round of fiscal stimulus. Wall Street surged on Monday as bond markets calmed, while developments on Covid-19 vaccines and fiscal stimulus bolstered expectations of a swift economic recovery. The dollar gained on the back of the reflation trade. Dollar/yen [..]

Daily Market Comment – Dollar advances as stocks slip again, yields hold steady

Posted on March 2, 2021 at 10:02 am GMT

Calmer bond markets lift Wall Street, but global stocks dip on China’s bubble warning Dollar approaches one-month high as ECB, RBA and RBNZ push back on rising yields Oil prices fall for third straight day on higher supply worries, gold struggles Bubble warning pressures stocks Risk appetite waned slightly on Tuesday as the relative stability in bond markets was overshadowed by warnings of a “bubble problem in foreign financial markets” by a top Chinese financial regulator. The comments revived fears [..]

US Open Note – US Treasury yields tick higher; dollar around 107.00

Posted on March 1, 2021 at 2:10 pm GMT

US dollar back to notable gains A strong upside move in the US dollar and in US bond yields are the major themes of the day. The question is if this recovery is being driven by risk-off impulses or from expectation of Fed tightening. The US dollar index is approaching the 91.00 level, while dollar/yen is in the process to complete the fifth straight positive day around 107.00. The futures of the S&P 500, Nasdaq 100 and Dow Jones were pointing to a slight positive open after negative sessions. On [..]

Daily Market Comment – Stocks edge up, dollar eases as bond markets stabilize

Posted on March 1, 2021 at 9:42 am GMT

Yields fall back as selloff in government bonds cools, but is the panic over? Stocks get off to firm start as vaccine and stimulus hopes still at play Risky currencies pare losses as dollar recedes from highs, gold bounces off lows Calm returns to bond markets, but maybe not for long Long-dated Treasury yields started the new month well off their one-year highs from last week as a bit of calm was restored in battered bond markets. The 10-year yield [..]

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