All Articles Tagged - GBPUSD

US Open Note – Kiwi shines after RBNZ’s hawkish stance; Dollar remains below 109 yen

Posted on May 26, 2021 at 1:00 pm GMT

RBNZ less dovish message drives kiwi up Kiwi is the best performing currency today versus the US dollar, surpassing the 0.7300 handle and recording a fresh three-month high. The Reserve Bank of New Zealand (RBNZ) projected a rate hike by September 2022, taking the economy closer to an exit from the pandemic situation. The bank signalled a less dovish message in May, while leaving monetary policy steady, as it revised up its forecasts for inflation higher but lowered them for unemployment. In other commodity [..]

Daily Market Comment – Kiwi jumps as RBNZ flags stimulus exit; ECB hints not there yet, euro slips

Posted on May 26, 2021 at 9:18 am GMT

RBNZ signals 2022 rate hike, kiwi surges, but ECB plays down taper talk, knocking euro US yields edge up from lows after Fed’s Clarida suggests taper debate could begin soon “Talking about talking about” tapering doesn’t faze gold as price hits $1,900/oz RBNZ plans its exit strategy, kiwi jumps 1% The Reserve Bank of New Zealand took its first step to exit the pandemic-era stimulus on Wednesday, projecting a rate hike by September 2022 and an end to its large-scale [..]

US Open Note – Stocks improve, dollar on back foot as yields dip again

Posted on May 25, 2021 at 1:49 pm GMT

Stocks creep up as dollar heads toward 5-month lows; Fed echoes no alarm Markets seem to be emanating a slight improvement in risk sentiment as major US indices are extending yesterday’s rally at a somewhat slower pace. The fresh dip in the US 10-year yield, currently at 1.58%, is not providing any assistance for the dollar to regain some of its market dominance. As rates are not going anywhere soon as the inflation narrative continues to be downplayed, the dollar [..]

Technical Analysis – GBPUSD forms a double top at 35-month high

Posted on May 25, 2021 at 1:05 pm GMT

GBPUSD posted a double top at the 35-month high of 1.4235, holding above the long-term ascending trend line. The MACD is flirting with the trigger line for a potential downside retracement in the positive region, while the RSI is turning slightly up above the 50 level. The 20- and 40-day simple moving averages (SMAs) are creating a bullish crossover and the 200-day SMA is keeping the upside move. Immediate resistance could be faced at the 1.4235 resistance, which is acting [..]

Daily Market Comment – Stocks climb, yields slide as Fed sticks to transitory narrative

Posted on May 25, 2021 at 9:21 am GMT

Bond yields drop again, growth stocks rally after Fed soothes inflation fears China’s crackdown on commodity speculators also eases inflation worries Dollar slumps to near 5-month low, euro surges above $1.2250 Fed relaxed on inflation risks, markets like it Fed speakers came out in droves on Monday to reinforce the central bank’s position on the flare-up in inflation that’s driven markets into speculation overdrive about the timing of when all the stimulus will be withdrawn. Rising concerns that a lot [..]

US Open Note – Dollar mixed in the absence of data

Posted on May 24, 2021 at 12:47 pm GMT

Dollar waits for PCE inflation; euro jumps above $1.22 This week is a quiet period in terms of data as the US core PCE on Friday will be in the spotlight. The US dollar posted some marginal gains in the beginning of this session, but lost steam after finding strong resistance near the 109.00 round number versus the Japanese yen. The lack of major releases is not helping the greenback to turn up until there are more strong US data and Treasury yields stop their decline. The US [..]

Daily Market Comment – Inflation uncertainty makes for cautious start to week

Posted on May 24, 2021 at 9:28 am GMT

Dollar and stocks firmer, look to Fed speakers and data for momentum, inflation clues Euro softer after Lagarde comments, pound slips too Metal prices fall again after China warning, aussie struggles Inflation vs recovery theme Lingering fears of an upsurge in inflation weighed on sentiment at the start of this week’s trading amid a somewhat quieter day with several European markets closed for a public holiday. The clashing themes of the growing inflation threat and the strengthening global recovery have [..]

Weekly Comment – Taper rollercoaster ends badly for USD; can PCE inflation save it?

Posted on May 21, 2021 at 1:40 pm GMT

The Fed spooked markets when the April minutes signalled tapering discussions could begin soon. However, after digesting the information, investors were none the wiser and September remains the most likely date which the Fed will make its taper announcement. USD and Treasury yields have subsequently come crashing back down. Can next week’s PCE inflation data provide any boost? The highlights: Consumer confidence, durable goods orders and personal income & spending numbers are coming up next week, but the spotlight will [..]

US Open Note – Stocks, currencies in quiet trading as taper concerns take the back seat for now

Posted on May 21, 2021 at 1:09 pm GMT

European stocks could gather interest What is striking about economic data is that the stronger they become around multi-year highs, the smaller the need for stimulus, and consequently investors are less encouraged to drive stocks higher. But this narrative likely fits the US landscape better, where stock indices are more skewed towards expensive tech and other growth companies. In Europe, stocks continue to trade in a discount relative to their US counterparts, with the STOXX 600 index trading 16.7x forward earnings versus 21x for the S&P 500 according to Refinitiv estimates – despite the gap narrowing a [..]

Week Ahead – PCE inflation might turn heads as long march to June looms

Posted on May 21, 2021 at 12:20 pm GMT

Markets just got their first acknowledgement by the Fed that it may soon need to begin discussions on tapering. However, further clarification is unlikely to come before the next FOMC meeting in June so as we head into a quiet data week, trading might get even choppier than it has been recently as investors search for more clues on inflation. One such clue will be the latest PCE inflation numbers out of the United States. Otherwise, the only other highlight [..]

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