All Articles Tagged - GBPUSD

US Open Note – Ugly retail sales data question Fed tightening; dollar plummets to fresh lows

Posted on January 14, 2022 at 2:25 pm GMT

Stocks to close the week in the red; banking earnings beat estimates Fed policymakers keep throwing cold water on stock markets, highlighting that a faster pace of higher interest rates will be required to cool inflation from March onwards, as persisting pandemic-led supply bottlenecks might create additional price pressures in the coming months.The Fed’s No.2 official Lael Brainard and the Chicago Fed President Charles Evans were the last on the call on Thursday, with tech stocks driving the Nasdaq 100 [..]

Daily Market Comment – Stocks falter again as hawkish Fed frightens markets, dollar rout deepens

Posted on January 14, 2022 at 10:42 am GMT

Wall Street headed for weekly losses as Fed and inflation worries weigh Fed officials set sights on March for liftoff, hawkish soundbites unnerve investors But dollar still sliding as terminal rate not seen going up much Fed rate hike talk takes toll on the markets Equity markets were back in the red on Friday after Wall Street’s rebound faltered on Thursday amid increasingly hawkish language from the Fed, a troubling inflation outlook and no let-up in the spread of Omicron. [..]

Technical Analysis – GBPUSD climb remains intact amid lingering bullish forces

Posted on January 14, 2022 at 8:49 am GMT

GBPUSD has staged a spectacular uptrend movement from late December amid strengthening positive momentum. Moreover, the pair’s successive higher highs together with the recent golden cross, where the 50-period simple moving average (SMA) has crossed above the 200-period SMA, reinforce the case for a sustained bullish outlook. Short-term momentum indicators reflect a mixed picture as the RSI is found above its 50 neutral mark. However, despite being above zero, the MACD is located below its red signal line, indicating that [..]

US Open Note – Dollar speeds down a slippery slope; stocks steady

Posted on January 13, 2022 at 2:20 pm GMT

Dollar extends inflation decline; initial jobless claims tick higher The latest CPI inflation report out of the United States was not a big surprise on Wednesday. Despite a minor pickup in the core measure, the annual headline gauge came in line with expectations at 7.0% – the highest since 1982. However, investors sold the dollar as three rate hikes by the Fed are already fully priced in to launch potentially after bond tapering ends in March, while a fourth one [..]

Daily Market Comment – Dollar skids despite US inflation jump, euro cracks above range

Posted on January 13, 2022 at 10:39 am GMT

US dollar is pummelled as strong CPI fails to galvanize the bulls More Fed officials flag March rate hike but yields go nowhere Wall Street extends rebound but earnings may hold the key to more gains US inflation hits 7%, markets take it in their stride It was another disconcerting inflation report out of the United States on Wednesday as headline CPI edged up to 7.0% in December – the highest since 1982. But the figure was in line with [..]

Technical Analysis – GBPUSD raises bullish flag after channel breakout

Posted on January 12, 2022 at 2:56 pm GMT

GBPUSD advanced above the seven-month-old bearish channel, bolstering hopes that the rally from the 2021 low of 1.3160 could be something more than temporary. It is common for the price to make a pullback after a channel breakout, especially when the RSI and the Stochastics are hovering within overbought waters. However, if the channel’s broken resistance line manages to balance downside pressures around 1.3600, the next target would be the 200-day simple moving average (SMA) at 1.3740. A violation at [..]

Daily Market Comment – Powell hawkish, but not hawkish enough to scare Wall Street

Posted on January 12, 2022 at 10:19 am GMT

Powell signals rate hikes and balance sheet runoff but yields hold steady Nasdaq extends recovery, global stocks also rally Dollar steadier after tumble as focus shifts to US CPI data Powell gets serious about taming inflation The Fed took another significant step towards policy normalization this week, as Jerome Powell repeated the message of his colleagues, flagging higher interest rates and a smaller balance sheet in his confirmation hearing on Capitol Hill for a second term as Fed Chair. With [..]

Daily Market Comment – Sentiment up after Wall Street stages late comeback

Posted on January 11, 2022 at 10:12 am GMT

Nasdaq out of correction territory following late-session rally Asia mixed amid China lockdowns, but European stocks and US futures up Powell testimony eyed as March rate hike speculation intensifies Dip buyers return to save the day Equities were on a steadier footing on Tuesday as the selloff on Wall Street appeared to be cooling off following a miserable start to the New Year for the tech behemoths. The tech-dominated Nasdaq Composite briefly flirted with correction territory on Monday, plunging by [..]

Technical Analysis – GBPUSD hopes for bullish development above channel

Posted on January 11, 2022 at 8:35 am GMT

GBPUSD is currently positioned at a crucial make-or-break point, testing the top line of the seven-month-old bearish channel slightly below the 1.3600 psychological level. A decisive close above that threshold could bring new buyers into the market, with the price likely heading straight up to the 200-day simple moving average (SMA) at 1.3740 in the aftermath, while not far above, an extension beyond the 1.3835 – 1.3900 resistance zone would finally clear the way towards the key 1.4000 mark. The market has yet to [..]

US Open Note – Stocks under pressure on faster stimulus withdrawal signals

Posted on January 10, 2022 at 2:30 pm GMT

Global bond yields hit fresh highs; stocks retreat The Fed’s new message, which sparked fears that inflation could be tough to contain, and hence could require faster-than-expected rate hikes during the year, continued to weigh on market sentiment on Monday, elevating global bond yields to fresh highs. A couple of Fed policymakers have already urged the need to move towards normalization ahead of Powell’s testimony before the Senate Banking committee on Tuesday, making four rate hikes an increasingly likely scenario [..]

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