All Articles Tagged - GBPUSD

US Open Note – Dollar back to gains despite calm day; euro steady

Posted on February 8, 2021 at 2:05 pm GMT

Dollar posts some gains; US stocks at record highs In a quiet day, the major theme is the inflation expectations in the US that continue to rise. Treasury Secretary Yellen is asking for a larger stimulus package to bring the economy back to full employment. The dollar seems ready to resume its recovery. The US dollar index is moving marginally up, while dollar/yen is approaching the 105.70 level again, hitting the 200-day simple moving average (SMA). In the stock market, an index tracking global bourses met [..]

US Open Note – Dollar pauses its rally after NFP; oil still up

Posted on February 5, 2021 at 2:05 pm GMT

Dollar steady after NFP report The US dollar lost some ground after the publication of the non-farm payrolls report but is still steady today around 105.50 against the yen, as there’s a good argument that the numbers make a big stimulus package more likely. The US dollar index is moving lower, while US stocks are recording new highs. The US economy added 49K jobs in January, compared to market expectations of a 50K rise and -227K previously, while the unemployment rate declined to 6.3% from 6.7% in the preceding month. US President Joe [..]

Technical Analysis – GBPUSD restores positive tone; bullish in near-term

Posted on February 5, 2021 at 1:58 pm GMT

GBPUSD is recovering above the 50-period simple moving average (SMA) at 1.3686 after the price was violently catapulted from beneath the 200-period SMA at 1.3607. In the broader picture, the price sustains a solid upwards force above the tentative trend line, drawn from the 1.2854 low in November last year. Nonetheless, the directionless Ichimoku lines are reflecting a slightly slowed tempo in the ascent, which struggled to overcome the 1.3745-1.3758 resistance ceiling at the end of January, while the upwards [..]

Week Ahead – Can the dollar and stocks keep climbing together?

Posted on February 5, 2021 at 12:50 pm GMT

It will be a quiet week, without any central bank meetings and only a handful of data releases. Some remarks by the Fed chief could attract attention, but the overall focus will remain on Congress, where the new relief package is finally taking form. The question for markets is whether the narrative of US economic exceptionalism can continue to push both the dollar and equity markets higher, and whether the dollar is slowly losing its safe haven status, becoming more [..]

Daily Market Comment – Vaccine-led rally back on, dollar stands tall

Posted on February 5, 2021 at 10:09 am GMT

Rising hopes that vaccinations will soon bring an end to lockdowns fuel global equities Dollar eases slightly but USD bulls may have already reawakened; NFP eyed Pound jumps after BoE says negative rates not imminent, euro steadies Stocks gripped by normalization hopes Progress in the global vaccination campaign and expectations of more easy money are powering world stock markets to fresh highs on hopes that a return to normality is nearing. A significant drop in new Covid infections in most [..]

Which central banks have the biggest footprint in FX? – Special report

Posted on February 4, 2021 at 2:47 pm GMT

With the dollar turning into a safe haven during the pandemic, risk appetite has become one of the most crucial elements for the FX market. The other main variable is interest rate differentials. In this piece we examine how much firepower each central bank has unleashed and what that implies for currencies. The Fed has been quite aggressive in this crisis, but Japan is the undisputed leader overall. Looking ahead, the ECB could deliver even more, whereas the Fed may [..]

US Open Note – Dollar keeps heading higher; pound back to gains after BoE decision

Posted on February 4, 2021 at 1:48 pm GMT

Pound return to gains after BoE decision; Eurozone retail sales come up The key driver of the day is the Bank of England (BoE) interest rate decision. The pound jumped higher, returning above 1.3650 versus the US dollar, as the BoE left its bank rate unchanged at a record low of 0.1% and its bond-buying program unaltered during its meeting. The crucial point is that the BoE said that its actions should not be taken as a signal that negative rates are coming and that has seen a push back [..]

Daily Market Comment – Dollar gains more ground on stimulus hopes but stocks softer

Posted on February 4, 2021 at 9:56 am GMT

Dollar at fresh 2-month high as US yields rise further on stimulus expectations But Wall Street turns more cautious, Asian stocks wobble on Chinese liquidity worries Pound skids ahead of Bank of England decision, euro can’t catch a break Dollar strengthens further on rosy US outlook Rising optimism about the US economic outlook lifted the greenback to a fresh 2-month top on Thursday as investors bet that the American economy will outperform on the back of the Biden administration’s pledge [..]

Will the Bank of England embrace negative rates? – Forex News Preview

Posted on February 3, 2021 at 2:54 pm GMT

The Bank of England is due to announce its first policy decision of 2021 on Thursday at 12:00 GMT. No change in policy is expected but updated economic forecasts will be published alongside the statement. However, much of the focus will be on the Bank’s findings of its review into the effectiveness of a negative interest rate policy. The United Kingdom has been one of the worst-hit countries from the Covid-19 pandemic, both economically and in terms of infections and [..]

Daily Market Comment – Dollar, stocks rise in tandem as Democrats push ahead with stimulus

Posted on February 3, 2021 at 10:05 am GMT

Democrats move to fast-track Biden’s stimulus package through Congress Wall Street surges for second day on earnings beats, brighter outlook US yield curve steepens, lifting the greenback; euro gets left behind Stimulus and vaccine hopes buoy markets Optimism about a stronger economic outlook and an ebb in the pandemic continued to gather pace on Wednesday, erasing last week’s jitters that sent stocks plunging and the dollar soaring. Equities have since made a powerful comeback, but the US currency has only [..]

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