All Articles Tagged - GBPUSD

US Open Note – Dollar steadies; pound skyrockets after elections

Posted on May 10, 2021 at 12:29 pm GMT

US steadier after slump from soft NFP report Today is a quiet day, with the US dollar moving slightly higher after the poor US jobs reports on Friday, which indicated that the Fed will have to keep accommodative policy for longer. The greenback is likely to remain soft until there is a notable turnaround in US yields. The US dollar index is hovering slightly above the 90.10 barrier, having on Friday created the sharpest decline in five months. Euro/dollar is looking neutral after it reached a new ten-week high of 1.2176 and gold is developing around three-month [..]

Daily Market Comment – NFP disappointment hammers dollar, sends stocks flying

Posted on May 10, 2021 at 8:41 am GMT

· Soft US employment report eases fears around stimulus rollback · Dollar sinks in the aftermath, equities cruise to new record highs · Pound smiles after Scottish election results, gold sparkles NFP disappointment derails Fed tapering speculation A very disappointing US jobs report sent markets into a tailspin on Friday, as investors recalibrated their portfolios to reflect a longer period of support from fiscal and monetary authorities. Nonfarm payrolls clocked in at only 266k in April, falling miles short of [..]

Weekly Comment – NFP miss crushes USD; can a CPI jump limit the damage?

Posted on May 7, 2021 at 1:42 pm GMT

USD’s attempt to halt its downtrend suffered a major blow after Friday’s massive miss in the nonfarm payrolls estimate. There is still hope for a near-term rebound, however, as inflation and retail sales numbers are coming up next week. EUR has shot above $1.21 after the NFP report but GBP is more cautious. What to watch: The Bank of England surprised markets by announcing it will reduce its weekly bond purchases, although it is keeping its QE size unchanged. GBP [..]

US Open Note – Dollar in tears after huge NFP miss; gold, euro soar

Posted on May 7, 2021 at 1:26 pm GMT

Nonfarm payrolls arrive significantly lower; Fed in focus The US jobs report was the highlight of the day, but the numbers did not come in as investors wished, with US nonfarm payrolls hugely missing the forecast of 978k to clock in at 266k and the unemployment rate disappointingly edging up to 6.1% versus 5.8% expected. March’s employment growth was also notably revised down, raising some doubts about how the hiring process is developing under the reopening phase and a booming [..]

Week Ahead – US and UK data to lead quiet week as dollar can’t make up its mind

Posted on May 7, 2021 at 12:14 pm GMT

After plenty of excitement from central banks and top-tier economic releases in the past couple of weeks, things will take a backseat over the next seven days. The slower news pulse could give way to some sideways action in currency markets as the US dollar fights off selling pressure. A more cautious mood on Wall Street could assist dollar bulls as stocks tend to perform poorly in May. There could be a further boost for the greenback coming in the [..]

Technical Analysis – GBPUSD develops within symmetrical triangle above 1.39

Posted on May 7, 2021 at 8:44 am GMT

GBPUSD has been developing within a symmetrical triangle following the upside movement from the seven-week low of 1.3670 in the 4-hour chart. The RSI is gaining momentum in the positive territory, however, the MACD oscillator is moving sideways near the zero level. The 20- and 40-period simple moving averages (SMA) are flattening slightly below the current market price, while the steady 200-period SMA could potentially act as a strong support to sharp downside corrections. In the case that bulls take the upper hand and send the market above the descending [..]

Daily Market Comment – Dollar anxious ahead of nonfarm payrolls, equities roar

Posted on May 7, 2021 at 8:12 am GMT

· Dollar at week’s lows ahead of blockbuster US jobs report · Stocks stage a late rally, but it’s a dash to quality · Pound undecided after BoE adjusts QE, gold breaks out Nonfarm payrolls: How much is too much? The spotlight today will fall on the US employment report for April. Nonfarm payrolls are expected to clock in at 978k, with forecasts ranging from 2.1 million to 656k. This period captures the grand reopening of many US states as [..]

US Open Note – Pound temporarily spikes on BoE policy announcement; dollar powerless

Posted on May 6, 2021 at 1:20 pm GMT

Eurozone retail sales accelerate, but caution still needed Developed markets are caught in the middle of the vaccination rollouts and monetary and fiscal stimulus the euphoria and the uncertainties surrounding the immune responses, virus variants, lockdown measures and a premature monetary tightening. In a nutshell, hopes currently are for consumers and businesses to benefit from the massive stimulus as the reopening phase wraps up in several key economies, and indeed the data seem to be reflecting this optimism, with eurozone retail sales for March [..]

Daily Market Comment – Equities and dollar cool after ISM data, showtime for BoE

Posted on May 6, 2021 at 8:30 am GMT

· Euro/dollar trapped near $1.20 region, stocks drift after ISM survey · Huge day ahead for British pound, with BoE meeting and local elections · Markets quiet overall as investors mark time until nonfarm payrolls Searching for a narrative Global markets continue to trade without a concrete theme. The economic crisis is slowly fading into the rear-view mirror as the phenomenal government spending impulse meets successful vaccination programs, and central banks remain committed to keeping the financial system flush with [..]

US Open Note – Stocks recoup lost ground, dollar retreats, gold steadies and oil climbs

Posted on May 5, 2021 at 2:27 pm GMT

Stocks recover and dollar bounces back As a slight return in risk assets seeps into markets and major US indices regain their buoyancy, the forex environment seems to be subdued. The Nasdaq is reclaiming yesterdays’ lost ground but at a slower pace than the S&P 500, while the Dow Jones is holding back at its all-time highs. The blow to markets footing was apparent in the US indices’ Tuesday tumble, corresponding to US Treasury Secretary Yellen’s erroneous choice of words [..]

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