All Articles Tagged - GBPUSD

Daily Market Comment – Dollar and tech shares suffer ahead of Powell’s testimony

Posted on February 23, 2021 at 9:47 am GMT

· Tech stocks slump as higher yields bite, but FX and commodities calm · Dollar lags despite equity selloff, highlighting recent shift in dynamics · All eyes on Chairman Powell’s testimony today, and RBNZ decision afterward Nasdaq gets smoked as value outshines tech It was a particularly strange session on Monday, with many of the familiar relationships between asset classes breaking down thanks to the pandemonium in bonds. US stock markets retreated for a fifth consecutive day, with the Nasdaq [..]

Technical Analysis – GBPUSD extends gains over 1.4000; upside pressures persist

Posted on February 23, 2021 at 8:44 am GMT

GBPUSD is trailing the upper Bollinger band hiking to a new 34-month high of 1.4085. The pair is exhibiting a sturdy positive tone, something also reflected in the short-term oscillators. The price is steadily progressing above the climbing simple moving averages (SMAs), which are conveying a predominant bullish demeanour. The MACD, in the positive zone, is rising above its red trigger line, while the RSI is preserving its push into the overbought territory. Furthermore, the stochastic oscillator is persisting above the [..]

US Open Note – Wall Street could open with tears as bond yields weigh

Posted on February 22, 2021 at 2:16 pm GMT

Euro holds resilient above 1.2100; European stocks set for a negative close World shares kicked the week off on a negative note as the endless rally in bond yields made equity valuations look more stretched than they already are. Discussions about reopening plans in Europe created optimism that the vaccine rollout, although delayed, could put the region on a positive path, with investors turning somewhat sensitive to data releases for any early sign. Hence, the upside surprise in the German [..]

Daily Market Comment – Stocks under fire, dollar breathes as bond yields soar

Posted on February 22, 2021 at 9:41 am GMT

Relentless grind higher in bond yields bites stocks, stabilizes dollar Dollar becoming the US currency again, instead of a safe haven? Yen crumbles despite risk-off mood, sterling shines, gold adapts Bond market ruins the party in equities The non-stop rally in global bond yields has started to infect other asset classes, bringing the party in stock markets to a halt and breathing some life back into the devastated US dollar. There hasn’t been any major news, so this repricing appears to be [..]

US Open Note – Riskier currencies cheer on dollar weakness as stocks heal

Posted on February 19, 2021 at 2:16 pm GMT

From optimism to doubts A surprising pickup in US weekly jobless claims proved on Thursday how easily market sentiment can switch from hopes of a speedy recovery to doubts of a robust expansion, triggering a pullback on Wall Street. Although weaker growth prospects tend to hurt bond yields, the US 10-year Treasury yield managed to rebound in the aftermath as the jobs data urged the need for Biden’s $1.9 trillion stimulus package, and therefore signalled an even bigger bond issuance. [..]

Week Ahead – Dollar realigns with US fundamentals, RBNZ meets

Posted on February 19, 2021 at 1:02 pm GMT

There’s been a striking change in the dynamics of the FX market lately, with the US dollar no longer trading exclusively as a safe haven and instead reacting to American economic data. Investors have their eyes on the Fed, even if it is too early to price in a proper QE withdrawal. The main event in the coming week is the RBNZ meeting, where the central bank could strike a more cheerful tone. Fed Chairman Powell also testifies before Congress. [..]

Daily Market Comment – Higher yields start to bite but dollar mired in recovery doubts

Posted on February 19, 2021 at 9:59 am GMT

Long-term Treasury yields climb again, dampening the mood in equity markets Stocks and gold slide, but dollar stumbles over poor jobless claims figures Pound hits $1.40, unbruised by big retail sales miss; aussie soars Surge in global bond yields spooks markets Global bond yields are creeping higher again after a brief reprieve mid-week. The record issuance of government bonds and expectations of even greater borrowing to fight the pandemic have sparked a bond selloff as the reflation trade gets into [..]

Technical Analysis – GBPUSD bulls may have to harden above 1.3995

Posted on February 19, 2021 at 8:47 am GMT

GBPUSD settled into a tight range of 1.3960 – 1.3980 in the four-hour chart following the quick bounce on the 50-period simple moving average (SMA), which faded at a fresh 33-month high of 1.3985 on Thursday. The ongoing narrow sideways move brings to mind a bullish rectangle pattern in a lower timeframe (1-hour chart), foreseeing the continuation of the bullish trend. That said, we cannot rule out a delayed upside breakout as the price is in breathing distance underneath the 1.3995 barrier [..]

US Open Note – Stock bears dig deeper; pound jumps to fresh highs

Posted on February 18, 2021 at 2:12 pm GMT

The calm after the rally Investors will have to wait for the next Fed policy meeting and for progress in Biden’s $1.9 trillion stimulus plans before they adjust their rising inflationary expectations. For now, the FOMC meeting minutes, which were released late on Wednesday, have ensured markets it will take some time before inflation and the unemployment rate push the Fed to remove some stimulus. Hence, US Treasury yields, which were last trading around 1.30%, may take the back seat after a [..]

Daily Market Comment – Fed minutes take pressure off soaring yields but stocks slip

Posted on February 18, 2021 at 9:30 am GMT

US yields pull back as Fed says it will take “some time” to achieve its goals Stocks mostly down but Dow Jones rises amid rotation out of tech shares Dollar holds onto gains after huge jump in US retail sales Fed minutes restore some calm in bond markets Treasury yields fell back from one-year highs on Thursday as worries about higher inflation and Fed tightening subsided somewhat. The Federal Reserve played down the growing threat of inflation making a comeback [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

GBPUSD

XM Live Chat