All Articles Tagged - EURUSD

Technical Analysis – EURUSD faces restrictions within the cloud; bias neutral

Posted on March 1, 2021 at 8:49 am GMT

EURUSD did not find enough buyers to successfully breach the surface of the Ichimoku cloud and the restrictive line stretched from August despite moving beyond them to peak at 1.2242 last week. Encouragingly, however, sellers were not strong enough either to create a lower low below the cloud, keeping the upward direction from February’s bottom valid and supported near a tentative short ascending trendline. Currently, the RSI and the MACD provide little hope for improvement as the former has crossed [..]

US Open Note – Dollar knocks down riskier currencies; House stimulus vote looming

Posted on February 26, 2021 at 2:15 pm GMT

Central banks react after yield rally It was a turbulent week for markets as the rapid rise in global bond yields triggered profit taking on stocks and harmed traditional safe-haven currencies, with the S&P 500 and Nasdaq set to close the week with considerable losses, though hold within the neutral-positive territory in monthly terms. Although investors got assurances from the Fed and other central banks that any tightening in monetary policy was long in the future, the yield rally over [..]

Week Ahead – NFP to guide yields, RBA could be a yawn, pound turns to UK budget for boost

Posted on February 26, 2021 at 2:03 pm GMT

As a new month starts, investors will have their eyes locked on the latest nonfarm payrolls numbers out of the United States amid an accelerating selloff in bond markets. The Reserve Bank of Australia’s policy meeting will be the only central bank gathering of the week but is unlikely to provide much excitement. Canadian Q4 GDP figures are also on the agenda but the upcoming output meeting by OPEC+ might matter more for the oil-dependent loonie. It will be somewhat [..]

Daily Market Comment – Bond market meltdown devastates stocks, resurrects dollar

Posted on February 26, 2021 at 9:26 am GMT

Carnage in bonds sends US yields flying, equities in a world of pain Dollar comes back from the dead, commodity FX and pound lose altitude Just a disastrous bond auction or a harbinger of bigger moves? Near-disaster in bonds infects everything else What started out as a relatively calm session evolved into a near-apocalypse in the bond market on Thursday, sending shockwaves across every other asset class. Investors are dumping government bonds at a stunning pace, pushing the yields on [..]

US Open Note – Bond yields shine at fresh highs as US futures struggle; euro bulls gear up

Posted on February 25, 2021 at 2:11 pm GMT

Bond yields shrug of Powell’s comments; US future point to the downside Nothing could stop bond yields from rising on Thursday, not even the Fed chief Powell, who once again told lawmakers of the House of Representatives on Wednesday that a persistent rapid inflation break above 2.0% will not be the case for the next three years. While his remarks assured investors, who were front-running the Fed, that the current ultra-lose monetary policy is here to stay, the US 10-year [..]

With Powell out the way, dollar turns to data barrage – Forex News Preview

Posted on February 25, 2021 at 12:33 pm GMT

The testimonies by Fed chief Powell before Congress confirmed the central bank won’t overreact to any inflation episode but didn’t reveal anything new. The spotlight now falls on the next batch of US data at 13:30 GMT Friday. The dollar has stopped behaving entirely as a safe haven and has started to realign with US fundamentals, so every data point matters. Rising yields unable to lift dollar The mechanics governing the dollar are changing. After the crisis hit the greenback [..]

Daily Market Comment – Stocks lick wounds, dollar retreats as Fed restores calm

Posted on February 25, 2021 at 9:43 am GMT

Stocks claw back losses amid Fed reassurances and vaccine news Commodity currencies continue to rampage, yen and franc in agony Pound loses some steam after Chancellor warns of tax increases Fed tranquilizer gun restores calm All that was needed to restore order in financial markets were some soothing words from the Fed’s top brass and some encouraging vaccine news. Wall Street came back to life after the Fed chief and vice-chief reassured investors that they won’t overreact to any inflation [..]

Technical Analysis – EURUSD flirts with the neckline of head and shoulders pattern

Posted on February 25, 2021 at 7:16 am GMT

EURUSD is close to breaking the 1.2180 barrier, which is acting as a strong neckline of an inverse head and shoulder pattern in the 4-hour chart. Any advances above this obstacle could take the price even higher as the formation is a reversal sign. The RSI indicator is pointing upwards after the rebound on the 50 level, while the MACD is trying to surpass the trigger line. On the upside, the price could attempt to overcome the 1.2180-1.2190 area and retest the [..]

Global yields catch up with US Treasuries; has the dollar’s rebound been thwarted? – Special Report

Posted on February 24, 2021 at 2:54 pm GMT

A battle of the yields is underway as the returns on long-dated government bonds recover to pre-pandemic levels, undermining the allure of riskier assets such as stocks. The rally in bond yields is being led by US Treasuries, as the American economy shines the brightest in the Western sphere. However, while the US dollar got an unexpected leg up from the early stages of the surge in Treasury yields, the strengthening vaccine-led optimism is now spreading to other parts of [..]

US Open Note – Investors give up on traditional safe havens; pound pulls from 1.4235 peak

Posted on February 24, 2021 at 2:08 pm GMT

Stocks heal slightly after Tuesday’s plunge The vaccine euphoria coupled with reopening guidelines and stimulus pledges from several countries continued to lead market sentiment on Wednesday, boosting the appetite for risk-on trades. Fed chief Powell characterized the bond rally as “a statement of confidence” during his virtual semi-annual testimony in the Senate on Tuesday, and once again, reaffirmed that the current accommodative monetary policy will remain in play as long as it is needed, leaving the 10-year Treasury yield elevated [..]

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