All Articles Tagged - EURUSD

Technical Analysis – EURUSD finds a turning point but jitters remain

Posted on February 8, 2021 at 8:29 am GMT

EURUSD bulls dominated on Friday, helping the price to return to the 1.2000 zone after the strong rebound at the bottom of the Ichimoku Cloud, which took the form of a bullish engulfing candle – a signal that the positive momentum may continue in the near term. Some caution, however, should be warranted as the RSI continues to fluctuate within the bearish territory despite last week’s upside reversal, while the MACD has yet to cross above its red signal line. Trend signals [..]

US Open Note – Dollar pauses its rally after NFP; oil still up

Posted on February 5, 2021 at 2:05 pm GMT

Dollar steady after NFP report The US dollar lost some ground after the publication of the non-farm payrolls report but is still steady today around 105.50 against the yen, as there’s a good argument that the numbers make a big stimulus package more likely. The US dollar index is moving lower, while US stocks are recording new highs. The US economy added 49K jobs in January, compared to market expectations of a 50K rise and -227K previously, while the unemployment rate declined to 6.3% from 6.7% in the preceding month. US President Joe [..]

Week Ahead – Can the dollar and stocks keep climbing together?

Posted on February 5, 2021 at 12:50 pm GMT

It will be a quiet week, without any central bank meetings and only a handful of data releases. Some remarks by the Fed chief could attract attention, but the overall focus will remain on Congress, where the new relief package is finally taking form. The question for markets is whether the narrative of US economic exceptionalism can continue to push both the dollar and equity markets higher, and whether the dollar is slowly losing its safe haven status, becoming more [..]

Daily Market Comment – Vaccine-led rally back on, dollar stands tall

Posted on February 5, 2021 at 10:09 am GMT

Rising hopes that vaccinations will soon bring an end to lockdowns fuel global equities Dollar eases slightly but USD bulls may have already reawakened; NFP eyed Pound jumps after BoE says negative rates not imminent, euro steadies Stocks gripped by normalization hopes Progress in the global vaccination campaign and expectations of more easy money are powering world stock markets to fresh highs on hopes that a return to normality is nearing. A significant drop in new Covid infections in most [..]

Which central banks have the biggest footprint in FX? – Special report

Posted on February 4, 2021 at 2:47 pm GMT

With the dollar turning into a safe haven during the pandemic, risk appetite has become one of the most crucial elements for the FX market. The other main variable is interest rate differentials. In this piece we examine how much firepower each central bank has unleashed and what that implies for currencies. The Fed has been quite aggressive in this crisis, but Japan is the undisputed leader overall. Looking ahead, the ECB could deliver even more, whereas the Fed may [..]

US Open Note – Dollar keeps heading higher; pound back to gains after BoE decision

Posted on February 4, 2021 at 1:48 pm GMT

Pound return to gains after BoE decision; Eurozone retail sales come up The key driver of the day is the Bank of England (BoE) interest rate decision. The pound jumped higher, returning above 1.3650 versus the US dollar, as the BoE left its bank rate unchanged at a record low of 0.1% and its bond-buying program unaltered during its meeting. The crucial point is that the BoE said that its actions should not be taken as a signal that negative rates are coming and that has seen a push back [..]

Daily Market Comment – Dollar gains more ground on stimulus hopes but stocks softer

Posted on February 4, 2021 at 9:56 am GMT

Dollar at fresh 2-month high as US yields rise further on stimulus expectations But Wall Street turns more cautious, Asian stocks wobble on Chinese liquidity worries Pound skids ahead of Bank of England decision, euro can’t catch a break Dollar strengthens further on rosy US outlook Rising optimism about the US economic outlook lifted the greenback to a fresh 2-month top on Thursday as investors bet that the American economy will outperform on the back of the Biden administration’s pledge [..]

Technical Analysis – EURUSD unlocks 1.2000 creating 2-month low

Posted on February 4, 2021 at 7:29 am GMT

EURUSD is losing considerable ground after the pullback from the 1.2350 resistance, heading towards the 1.2000 psychological number. The short-term simple moving averages (SMAs) are endorsing the bearish structure, as do the Ichimoku lines. In terms of technical indicators, the RSI is pointing down and is approaching the 30 level, while the %K line of the stochastic oscillator posted a bearish cross with the %D line. A drop below the 1.2000 handle could take the price until the 1.1915 support [..]

Can nonfarm payrolls extend the dollar’s recovery? – Forex News Preview

Posted on February 3, 2021 at 2:42 pm GMT

The US employment report for January will hit the markets at 13:30 GMT Friday. Forecasts point to another soft report, which would confirm that the labor market recovery is plateauing. But that may not be as bad as it sounds for markets, as another disappointment could pressure the politicians to speed up the massive relief package they’ve promised. In this sense, the risks surrounding the dollar and equities from this dataset seem asymmetric and tilted to the upside. Slowing [..]

US Open Note – Dollar’s rally slows down; euro loses ground

Posted on February 3, 2021 at 2:15 pm GMT

US dollar advances marginally; ADP employment in surprise jump In the United States, a relief package of $1.9 trillion may be a good sign for the economy, providing significant stimulus without overwhelming the market with unnecessary bond issuance. The release of the ADP employment data will give some clues for the non-farm payrolls report on Friday. The report surprised as private payrolls increased by 174K in January, beating the estimates of an increase of 49K, and recovering from a downwardly revised 78K decline in the previous month. The dollar index is [..]

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