All Articles Tagged - EURUSD

FX year ahead 2021: Too much dollar pessimism?

Posted on December 22, 2020 at 6:48 pm GMT

It has been year of absolute chaos, but hopefully 2021 will be much calmer as the global economy heals its wounds. The overwhelming consensus in the FX arena is for the US dollar to sink further as the reflation trade dominates, lifting all other boats. The ‘catch’ is that much of this weakness may be baked in already. The story for the euro is not attractive either. While dollar weakness could dominate early on and push euro/dollar a little higher, [..]

Daily Market Comment – Market panic vanishes amid signs of Brexit progress

Posted on December 22, 2020 at 9:33 am GMT

Sharp selloff turns into sharp rebound as UK waters down fishery demands US stocks and sterling stage epic comeback, close only a blip lower Similar story for the dollar, surrenders most virus-mutation gains Vaccines and liquidity are still the name of the game What selloff? US equities and sterling roar back Just when you think US stocks can bleed, dip-buyers return with a vengeance. The week kicked off with a substantial correction, the S&P 500 falling almost 2% amid worries [..]

Daily Market Comment – New virus strain hits equities, sinks sterling, boosts gold

Posted on December 21, 2020 at 9:45 am GMT

Stocks retreat, sterling tanks as new virus strain spreading in UK wreaks havoc US Congress reaches stimulus deal, but news unable to counter the gloom Dollar and gold capitalize on the nerves, crude oil and commodity FX hit hard Bleeding may continue as traders lock profits, but bigger picture unchanged Sterling tanks as health crisis compounds Brexit crisis A new strain of covid-19 that is far more infectious is spreading like wildfire across the UK, forcing local authorities to ‘cancel [..]

Technical Analysis – EURUSD posts negative gap after reaching 32-month high

Posted on December 21, 2020 at 7:12 am GMT

EURUSD surged to a 32-month high on Thursday, extending its bullish rally from the 1.1611 support level. Today, the market opened with a negative gap, retreating from the multi-month high. The positive picture in the medium term is further supported by the MACD, which is rising above its trigger line, however, the RSI is suggesting a possible pullback as the index is sloping south in the overbought territory. In trend indicators, the simple moving averages (SMAs) are following the price [..]

Week Ahead – Stimulus is coming to town

Posted on December 18, 2020 at 12:51 pm GMT

It is a very quiet week in terms of events, as trading winds down for the holiday season. This implies that liquidity may be in short supply, setting the stage for some explosive moves if there is any breakthrough in the Brexit crusade or the US stimulus saga. Overall, markets are set to end a crazy year on an incredibly optimistic note, with a little help from central banks showering investors with cheap money. The ‘party’ could continue into next [..]

Technical Analysis – EURUSD’s ascent revived; bullish signals dominate

Posted on December 17, 2020 at 10:08 am GMT

EURUSD is prodding at the 1.2245 border, attempting to extend the upwards drive. The climbing simple moving averages (SMAs) are conveying a positive demeanour, promoting further advances in the pair. The short-term oscillators are displaying growing positive momentum. The MACD, in the positive region, is climbing above its red trigger line, while the upwards creeping RSI is nearing the 70 level. Moreover, the stochastic %K line is moving higher above its %D line in overbought territory and has yet to [..]

Daily Market Comment – Dollar whipsaws on Fed’s dovish guidance, upbeat forecasts

Posted on December 17, 2020 at 9:56 am GMT

Fed commits to current pace of QE until it sees “substantial further progress” Dollar jumps on modest tweak, rosy outlook before being pummelled by dovish Powell Pound continues to soar on Brexit deal optimism, euro climbs new highs too Aussie and kiwi on a roll as strong data, US stimulus hopes maintain bullish momentum Fed disappoints before Powell has to reassure The Federal Reserve pledged on Wednesday to keep buying bonds at the existing pace of $120 billion per month [..]

Daily Market Comment – Two deals in the making and a Fed dilemma

Posted on December 16, 2020 at 10:10 am GMT

US congressional leaders close in on a stimulus deal as talks continue Brexit chatter lifts pound amid rumours a trade deal is within grasp Dollar on the backfoot ahead of least predictable Fed meeting of the year Hopes rise for a deal in Congress Hopes are running high on Capitol Hill that a stimulus deal can be reached after reported progress on Tuesday. US political leaders are set to meet again later today as they inch closer to agreeing on [..]

Eurozone flash PMIs may keep outlook blurry, but the euro may not care – Forex News Preview

Posted on December 15, 2020 at 4:06 pm GMT

Eurozone preliminary PMI readings for December will be the only highlight in the bloc’s calendar this week on Wednesday at 09:00 GMT, with forecasts pointing to a moderate improvement in business activities. While markets are thirsty for some good news, the euro may keep ignoring data releases and tighter Covid restrictions as a negative GDP print in the fourth quarter is inevitable. The last troubling chapter of Covid-19 story Although virus infections have slowed pace in many euro area countries [..]

Fed likely to skip QE boost, may adjust composition and forward guidance – Forex News Preview

Posted on December 15, 2020 at 2:37 pm GMT

The Federal Open Market Committee (FOMC) begins its two-day policy meeting on Tuesday, with a decision expected on Wednesday at 19:00 GMT. Federal Reserve Chair Jerome Powell will give his last post-meeting press briefing of the year 30 minutes later. After a tumultuous year that saw an unprecedented amount of central bank intervention globally, Powell may draw 2020 to a close with one final dose of stimulus to steer the bumpy US recovery through stormy waters. But with investors betting [..]

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