All Articles Tagged - GBPUSD

US Open Note – Falling dollar breathes life into the euro; Wall Street in the red

Posted on April 29, 2022 at 1:50 pm GMT

3Dollar loses steam but is still the king The king dollar cooled off against a basket of six major currencies in the last trading day of April, having previously rapidly advanced to a two-decade high of 103.93 on the back of persisting calls for higher interest rates in the US and Ukraine-related economic risks in Europe. Still, a fourth consecutive weekly gain is more than secured for the greenback ahead of a busy week of central bank meetings and data [..]

Week Ahead – Fed and BoE rate hikes on the horizon; will RBA join in?

Posted on April 29, 2022 at 12:37 pm GMT

The Federal Reserve and Bank of England are both expected to raise interest rates in the upcoming week, though the former will likely do so by a larger increment. However, it’s much more of a puzzle what the Reserve Bank of Australia will do as pressure is mounting on the central bank to get the rate hike ball rolling in May rather than in June. It will also be a busy week for jobs data as apart from the all-important [..]

Technical Analysis – GBPUSD regains some footing above $1.25 after nosedive

Posted on April 29, 2022 at 12:24 pm GMT

GBPUSD has steadied around 1.2550 and is attempting a rebound after plunging to a 22-month low of 1.2410 on Thursday. The RSI has reversed higher but has yet to exit the oversold zone, while the MACD histogram remains deep in negative territory below its red signal line, underlining the ongoing bearish risks in the near term. If today’s bounce back gathers additional steam, the bulls could next target the 200% Fibonacci extension of the March upleg at 1.2701. The 161.8% [..]

Technical Analysis – GBPUSD bearish, July 2020 lows under pressure

Posted on April 27, 2022 at 3:30 pm GMT

GBPUSD has snowballed to a 21-month low within the 1.2479-1.2517 support zone, which took form back in July 2020. The dipping simple moving averages (SMAs) are sponsoring the bearish trend in the pair. Currently, the falling Ichimoku lines indicate that negative forces are active, while the short-term oscillators are transmitting the lack of positive momentum. The MACD, deep in the negative area, is falling beneath its descending red trigger line, while the RSI is hovering in oversold territory. The stochastic [..]

US Open Note – No mercy for the euro; BoJ policy decision, Meta earnings next in focus

Posted on April 27, 2022 at 2:15 pm GMT

Euro plummets as Russian gas issues resurface There was no mercy for the depressed euro during the late European trading hours on Wednesday. The already squeezed common currency sank to the lowest point since April 2017 against the US dollar, remaining the worst performer across the board as Russia’s state-owned multinational gas supplier Gazprom completely halted supplies to NATO members Poland and Bulgaria because of non-payments in roubles. Of course, the EU’s powerhouse Germany, which gets 40% of its gas [..]

US Open Note – Market sentiment soft and dollar two steps ahead

Posted on April 26, 2022 at 1:47 pm GMT

Dollar remains sturdy despite retreat in US yields The key US stock indices have failed to retain their yesterday’s bounce and are aiming lower again as the resilient greenback manages to stay buoyant despite the fresh dwindling in US treasury yields. The US 10-year yield has eased to 2.77%, the 5-year yield to 2.80% and the 2-year yield to 2.56%. Even though markets have priced in an aggressive Fed and upcoming rate hike action for the United States, it seems [..]

Daily Market Comment – Safe havens jump, stocks tank as China and inflation fears intensify

Posted on April 25, 2022 at 9:40 am GMT

Dollar stretches bull run, yen and bonds rise too as China races to contain Covid outbreak Aussie leads the FX losers, Macron victory limits euro’s losses Stocks and oil plunge, no safe-haven boost for gold China struggles with zero-Covid policy A worsening outbreak of Covid-19 in China dragged risk assets lower at the start of the new trading week as stocks extended Friday’s losses while the US dollar scaled a fresh two-year high against a basket of currencies. Restrictions in [..]

Daily Market Comment – Powell reignites dollar bulls, sinks Wall Street

Posted on April 22, 2022 at 9:41 am GMT

Dollar regains the upper hand after Powell makes another hawkish shift Pound plummets on cautious Bailey, euro resumes downfall too Equites get knocked back as central bankers’ inflation alert pushes yields to new highs Powell backs 50-bps rate hike, dollar likes it Fed Chair Jerome Powell stole the limelight at the IMF’s spring meetings yesterday, as he reinforced expectations that the Federal Reserve will hike rates by 50 basis points when it meets in early May. Powell admitted that the [..]

US Open Note – Euro cheers on rate hike talk; stocks in the green as well

Posted on April 21, 2022 at 1:30 pm GMT

ECB’s rate hike talk intensifies It seems the European Central Bank (ECB) is prepping for the new reality of higher interest rates to fight inflation even though geopolitical developments around Ukraine keep clouding the Eurozone’s economic outlook. ECB’s Spanish Vice President Luis de Guindos endorsed yesterday’s hawkish talk from Latvian ECB governing council member Mārtiņš Kazāks, confidently approving the end of the regular APP bond purchases in July, while stating that from today’s perspective a rate hike in July, September and even [..]

Daily Market Comment – Euro perks up, fends off steadier dollar amid growing ECB rate hike talk

Posted on April 21, 2022 at 8:46 am GMT

Euro extends gains as ECB policymakers increasingly in favour of raising rates soon Dollar mixed despite higher Treasury yields; yen settles around 128 per dollar US and European stock futures edge up after Tesla earnings beat, China slips ECB rate hike chatter buoys euro The euro is gaining traction on Thursday, extending this week’s rebound to flirt with the $1.09 level, as investors ratchet up their bets that the European Central Bank is getting closer to hiking rates soon. Several [..]

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