All Articles Tagged - EURUSD

What does the current yield curve inversion tell us about future asset performance? – Special Report

Posted on February 15, 2023 at 2:52 pm GMT

Economists and market participants enjoy identifying indicators that, according to their analysis, reveal the future economic performance. Among the plethora of such indicators, the inverted 2-year/10-year (2s10s) US yield curve holds a special place in their hearts as it has predicted the most recent recessions. At the moment, the 2s10s US curve trades at an extremely inverted level that has been seen only twice in the past 40 years. What were the economic conditions that led up to this inversion [..]

Daily Market Comment – Dollar on the front foot after inflation data

Posted on February 15, 2023 at 9:23 am GMT

Rental and food prices fuel US CPI Dollar gains as investors add to Fed hike bets Eurozone employment hits new record ECB President Lagarde steps onto the rostrum Investors raise implied Fed rate path on accelerating monthly CPI The dollar traded mixed against the other major currencies on Tuesday, but today it is outperforming all of them as yesterday’s US CPI data allowed investors to maintain the view that interest rates in the US may need to rise higher than [..]

Technical Analysis – EURUSD stays within range despite upbeat US CPI

Posted on February 14, 2023 at 4:02 pm GMT

EURUSD drifted instantly up to 1.0800 in the wake of a relatively stronger-than-expected US CPI inflation data before giving up some ground. The 20-day exponential moving average (EMA) and the constraining ascending line from November 21 remain a major resistance territory at 1.0770, a break of which is expected to bolster upside pressures towards the important 1.0940 barricade, if the 1.0840 handle proves easy to pierce through. From a technical perspective, the market is still lacking buying confidence. Despite its later [..]

Daily Market Comment – Stocks pinned down by CPI angst, yen skids as BoJ boost fades

Posted on February 13, 2023 at 10:17 am GMT

Stocks, yields and US rate futures fall in line with Fed’s ‘higher for longer’ message Worries about upside surprise in US CPI report weighs on mood, dollar firms Yen reverses gains as contender for BoJ chief dents hawkish expectations Markets on edge ahead of US inflation data Money markets are continuing to price in a higher terminal rate for the Fed on Monday following the robust payrolls and ISM data, as anxiety builds of a possible upside surprise in this [..]

Technical Analysis – EURUSD pauses its southern move slightly below 1.0700

Posted on February 13, 2023 at 8:00 am GMT

EURUSD is flirting with the 1.0670 support level, falling below the medium-term upward sloping channel and the short-term simple moving averages (SMAs). The MACD oscillator is weakening below its trigger line and near the zero level, while the RSI is moving sideways below the neutral threshold of 50. If price action remains above 1.0670 (immediate support), there is scope to test the 50- and then the 20-day SMAs at 1.0710 and 1.0815 respectively. Clearing these key levels would see additional gains [..]

Traders on the edge of their seats in anticipation of the US CPIs – Forex News Preview

Posted on February 10, 2023 at 2:09 pm GMT

With market participants revising up their implied path for the Fed funds target rate after the astounding US employment report for January, the dollar is set to eke out gains for the second straight week. That said, the next test for the currency may come in the form of the January CPI data, due to be released on Tuesday at 13:30 GMT. How may the greenback react to another notable slowdown? Dollar stages a comeback after NFPs and ISM PMI [..]

Week Ahead – US inflation and BoJ Governor nomination in focus

Posted on February 10, 2023 at 12:30 pm GMT

An action-packed week lies ahead for FX traders. The dollar staged a recovery lately as markets priced in a higher peak for Fed rates, but whether this comeback has scope to continue will depend on the upcoming US inflation report. Over in Japan, the nation will enter a new chapter with the nomination of its next central bank chief, putting the spotlight on the yen. Yen jumps on BoJ bets The moment of truth for the yen is finally here. [..]

Technical Analysis – EURUSD struggles to surpass 200-period SMA

Posted on February 9, 2023 at 10:26 am GMT

EURUSD is flirting with the 200-period simple moving average (SMA) near the 1.0765 resistance in the 4-hour chart, failing to improve the recent bullish bias. As regards the market momentum, some optimism seems to be building over an upside correction as the RSI is moving near the neutral threshold of 50, while the stochastic is heading towards the overbought region. In the event the bulls take control, the 1.0800 resistance level could come next ahead of the 50-period SMA at [..]

Daily Market Comment – Dollar traders place hopes on jobless claims

Posted on February 9, 2023 at 9:16 am GMT

After Powell, investors listen to more Fed members But implied path on interest rates stays unchanged Jobless claims and next week’s CPI data are the dollar’s next tests Wall Street indices close in the red Fed bets stay untouched after parade of Fed speakers The US dollar stabilized against most of the other major currencies yesterday, pausing the Powell-related slide. However, that was only for a while as today the US currency is back under pressure. Although there were no [..]

Is the dollar staging a comeback? – Special Report

Posted on February 8, 2023 at 3:11 pm GMT

Following last week’s robust US data, the dollar surged against all its major counterparts, gaining the most against the risk-linked currencies aussie and kiwi. Investors revised up their expectations with regards to the Fed’s future course of action, admitting for the first time that they were probably wrong in pricing in a lower peak in interest rates and around 50bps worth of rate cuts later this year. Does this mean that the US dollar is staging a solid comeback? Dollar [..]

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