All Articles Tagged - EURUSD

Week Ahead – ECB rate hike hangs in the balance; US CPI could edge up again

Posted on September 8, 2023 at 9:01 am GMT

The European Central Bank is headed for a crunch rate decision next week amid rising recession risks and the job on inflation not yet done. It’s going to be a big week for the US dollar as well, as the CPI and retail sales reports are due before the Fed’s September meeting. There’s a barrage of UK data that will keep the pound on its toes before the next Bank of England decision, while the market mood will also be [..]

Market Comment – ISM non-mfg PMI highlights resilience of US economy

Posted on September 7, 2023 at 8:17 am GMT

US service sector unexpectedly gathers momentum ECB officials keep a hike for next week on the table BoE Gov. Bailey says they are ‘much nearer’ to rate peak Wall Street slides as ISM PMI stokes inflation worries Dollar receives boost from ISM non-mfg PMI The US dollar ended Wednesday virtually unchanged against most of the other major currencies, gaining decent ground only against the pound and the franc. The greenback got a strong boost after the ISM non-manufacturing PMI unexpectedly [..]

Will the US dollar realign with its strong fundamentals? – Special report

Posted on September 6, 2023 at 2:16 pm GMT

It is crystal clear that the United States has the superior economy at this stage of the cycle, especially when compared to Europe or China. And yet, this economic strength has not translated into a full-scale US dollar rally. What’s the missing ingredient for that to change? Growth differentials There’s been a striking divergence in the performance of major economies this year. The United States is currently the bright spot. Economic growth seems to have accelerated over the summer and [..]

Technical Analysis – EURUSD surrenders line of defense

Posted on September 6, 2023 at 1:02 pm GMT

EURUSD could not crawl above its 200-day exponential moving average (EMA) on Tuesday and the 1.0800 level, plunging to a three-month low of 1.0705 instead. The line had been a critical support territory during 2023 and the price breakout below it puts the market at risk of a new bearish cycle. Weaker sessions are likely based on the RSI and MACD. However, the Stochastic oscillator seems to be looking for an upside reversal near its 20 oversold level, flagging a rebound [..]

Has euro/dollar entered a bearish trend or is it in a correction? – Special Report

Posted on September 6, 2023 at 12:17 pm GMT

With economic numbers out of the Eurozone heightening recession concerns, and US data keep pointing to a superior US economy, the euro/dollar pair has been in a sliding mode recently. ECB seen holding its fire next week At the last ECB meeting, policymakers raised interest rates by a quarter point, but they did not commit to further moves, with President Lagarde replying with a “decisive maybe” when asked whether they are planning to hike again in September. The fact that [..]

Market Comment – Falling yen draws intervention warning, ISM non-mfg PMI in focus

Posted on September 6, 2023 at 8:19 am GMT

Yen hits 10-month low, triggers intervention warning Dollar traders turn attention to ISM non-mfg PMI Equities pull back, but stay in an uptrend mode BoC expected to stand pat, focus to turn on guidance Japanese official warns as dollar/yen gets closer to 148 The US dollar traded higher against all the other major currencies on Tuesday, perhaps as increasing concerns about the performance of the Chinese economy after the disappointing Caixin services PMI resulted in a flight to safety. The [..]

Market Comment – Yen suffers another blow as yields fire up

Posted on September 5, 2023 at 8:40 am GMT

Dollar shines, yen slides as US bond yields power higher China optimism melts away after disappointing PMI data Aussie dollar crumbles, gold tests crucial support zone Dollar/yen follows yields higher The US dollar resumed its march higher on Tuesday, receiving fuel from interest rate differentials and safe haven flows. Bond market players have started to push US yields higher once again, enhancing the dollar’s interest rate advantage, while some disappointing business surveys from China pushed investors into the safety of [..]

Market Comment – Dollar gains after US jobs data, China stimulus lifts oil

Posted on September 4, 2023 at 8:49 am GMT

Dollar climbs despite relatively soft US employment report China stimulus measures boost oil prices and Asian stocks Gold trades with resilience, undeterred by dollar and yields Dollar defies cooler US jobs data An unexpectedly soft US employment report could not hold down the US dollar on Friday. While nonfarm payrolls slightly exceeded forecasts in August, revisions showed that employment growth in July and June was much weaker than previously reported. Wage growth moderated as well, solidifying market expectations that the [..]

Technical Analysis – EURUSD falls below 200-day SMA, fresh lows in sight

Posted on September 4, 2023 at 7:56 am GMT

EURUSD has been in a steady decline after peaking at the 18-month high of 1.1275 on July 18, generating a series of lower highs and lower lows. Besides that, the pair has dived beneath its 200-day simple moving average (SMA), which is further deteriorating the technical outlook. The momentum indicators currently suggest that the bearish forces are in control. Specifically, the RSI is hovering well below its 50-neutral threshold, while the stochastics are descending close to their 20-oversold mark. Should the [..]

Week Ahead – RBA and BoC to kick-start key round of central bank meetings

Posted on September 1, 2023 at 10:06 am GMT

After a barrage of US data hurt the dollar this week, with investors having second thoughts as to whether another Fed hike may be needed, the US agenda will become lighter next week with the spotlight turning to the ISM non-manufacturing PMI. Elsewhere, the RBA and the BoC are holding their interest rate decisions, kick-starting a round of pivotal meetings by major central banks, which could well impact forthcoming directions of major currency pairs. Light US agenda, focus on ISM [..]

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