All Articles Tagged - EURUSD

US Open Note – Dollar up, stocks sharply lower ahead of Powell’s testimony

Posted on February 23, 2021 at 2:10 pm GMT

Waiting for Powell to respond to inflation expectations Rising inflation expectations and the rally in bond yields will be examined during Powell’s semi-annual testimony before the Senate at 15:00 GMT as markets will be eagerly waiting for the Fed chief to update his views regarding price growth, economic expansion and the outlook for monetary policy. Although Powell may prefer to play it safe, reiterating that downside economic risks continue to linger in the background and that it is too early [..]

Daily Market Comment – Dollar and tech shares suffer ahead of Powell’s testimony

Posted on February 23, 2021 at 9:47 am GMT

· Tech stocks slump as higher yields bite, but FX and commodities calm · Dollar lags despite equity selloff, highlighting recent shift in dynamics · All eyes on Chairman Powell’s testimony today, and RBNZ decision afterward Nasdaq gets smoked as value outshines tech It was a particularly strange session on Monday, with many of the familiar relationships between asset classes breaking down thanks to the pandemonium in bonds. US stock markets retreated for a fifth consecutive day, with the Nasdaq [..]

US Open Note – Wall Street could open with tears as bond yields weigh

Posted on February 22, 2021 at 2:16 pm GMT

Euro holds resilient above 1.2100; European stocks set for a negative close World shares kicked the week off on a negative note as the endless rally in bond yields made equity valuations look more stretched than they already are. Discussions about reopening plans in Europe created optimism that the vaccine rollout, although delayed, could put the region on a positive path, with investors turning somewhat sensitive to data releases for any early sign. Hence, the upside surprise in the German [..]

Daily Market Comment – Stocks under fire, dollar breathes as bond yields soar

Posted on February 22, 2021 at 9:41 am GMT

Relentless grind higher in bond yields bites stocks, stabilizes dollar Dollar becoming the US currency again, instead of a safe haven? Yen crumbles despite risk-off mood, sterling shines, gold adapts Bond market ruins the party in equities The non-stop rally in global bond yields has started to infect other asset classes, bringing the party in stock markets to a halt and breathing some life back into the devastated US dollar. There hasn’t been any major news, so this repricing appears to be [..]

Technical Analysis – EURUSD edges sideways but upside risks persist

Posted on February 22, 2021 at 8:59 am GMT

EURUSD is consolidating beneath the capping 50-day simple moving average (SMA), after the pullback from the multi-year top of 1.2349 bounced off the 100-day SMA. The slowing upward pace of the 50-day SMA is promoting sideways price action, while the rising 100- and 200-day SMAs are preserving the upwards structure. The positively tilted short-term oscillators are also defending the bullish momentum. The MACD, a tad above its red trigger line, is flirting with the zero threshold, while the RSI is [..]

US Open Note – Riskier currencies cheer on dollar weakness as stocks heal

Posted on February 19, 2021 at 2:16 pm GMT

From optimism to doubts A surprising pickup in US weekly jobless claims proved on Thursday how easily market sentiment can switch from hopes of a speedy recovery to doubts of a robust expansion, triggering a pullback on Wall Street. Although weaker growth prospects tend to hurt bond yields, the US 10-year Treasury yield managed to rebound in the aftermath as the jobs data urged the need for Biden’s $1.9 trillion stimulus package, and therefore signalled an even bigger bond issuance. [..]

Week Ahead – Dollar realigns with US fundamentals, RBNZ meets

Posted on February 19, 2021 at 1:02 pm GMT

There’s been a striking change in the dynamics of the FX market lately, with the US dollar no longer trading exclusively as a safe haven and instead reacting to American economic data. Investors have their eyes on the Fed, even if it is too early to price in a proper QE withdrawal. The main event in the coming week is the RBNZ meeting, where the central bank could strike a more cheerful tone. Fed Chairman Powell also testifies before Congress. [..]

Daily Market Comment – Higher yields start to bite but dollar mired in recovery doubts

Posted on February 19, 2021 at 9:59 am GMT

Long-term Treasury yields climb again, dampening the mood in equity markets Stocks and gold slide, but dollar stumbles over poor jobless claims figures Pound hits $1.40, unbruised by big retail sales miss; aussie soars Surge in global bond yields spooks markets Global bond yields are creeping higher again after a brief reprieve mid-week. The record issuance of government bonds and expectations of even greater borrowing to fight the pandemic have sparked a bond selloff as the reflation trade gets into [..]

Technical Analysis – EURUSD points higher above 1.2000; lacks direction

Posted on February 18, 2021 at 10:10 am GMT

EURUSD is on course for a bullish period after the bounce off the 1.2022 support, entering the Ichimoku cloud. The RSI is sloping upwards in the negative territory, while the stochastics posted a bullish crossover within the %K and the %D lines, heading north. Should the pair manage to strengthen its positive momentum, the next resistance could come around the 1.2080 barrier. A break above this level would drive the market until the 20- and 40-period simple moving averages (SMAs) at 1.2095 and 1.2110 [..]

Daily Market Comment – Fed minutes take pressure off soaring yields but stocks slip

Posted on February 18, 2021 at 9:30 am GMT

US yields pull back as Fed says it will take “some time” to achieve its goals Stocks mostly down but Dow Jones rises amid rotation out of tech shares Dollar holds onto gains after huge jump in US retail sales Fed minutes restore some calm in bond markets Treasury yields fell back from one-year highs on Thursday as worries about higher inflation and Fed tightening subsided somewhat. The Federal Reserve played down the growing threat of inflation making a comeback [..]

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