EURUSD

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US Open Note – Dollar charts best week of 2021; stocks, commodities under pressure

Posted on June 18, 2021 at 1:18 pm GMT

Dollar keeps FOMC power  The US dollar, the world’s reserve currency, is heading for its best weekly trade in nine months buoyed by the FOMC’s hawkish turn, which bolstered the outlook for the US economy and put European currencies and commodities on the back seat. US stocks fall but tech sector holds resilient Global stock indices also retreated in fear of higher interest rates for US businesses in the next few years and on concerns other central banks could also [..]

Week Ahead – Fired up dollar looks to PCE inflation; flash PMIs and BoE eyed too

Posted on June 18, 2021 at 12:28 pm GMT

After the Fed’s abrupt but not totally unexpected hawkish turn, the supercharged US dollar will be hoping for another shot in the arm from next week’s PCE inflation data. Meanwhile, the flash PMI readings for June will be making the rounds in all the major markets. The forward-looking PMI surveys could further bolster tapering speculation – not just for the United States but elsewhere too – as economies around the world reopen with the help of ramped up vaccinations. In [..]

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Weekly Comment – USD rampages after Fed, Bank of England coming up

Posted on June 18, 2021 at 11:48 am GMT

The USD stormed higher this week after the Fed signalled that the days of cheap money are coming to an end. That triggered a massive unwind of the entire ‘inflation trade’, with gold getting hammered alongside every other commodity. The coming week will bring a barrage of economic data along with a Bank of England meeting. Highlights ahead: · The main event will be the BoE decision on Thursday. Not much is expected, but there is a possibility the Bank [..]

Daily Market Comment – Nasdaq hits new record as markets say inflation is dead

Posted on June 18, 2021 at 8:51 am GMT

· Tech stocks power higher as markets bet Fed will tame inflation · Dollar keeps rampaging, gold heads for massive weekly losses · Pound struggles after soft data, quadruple witching coming up Inflation-linked trades fall apart Bets for raging inflation in the coming years are being unwound at a stunning pace, sparking all sorts of havoc in the markets. It all comes back to the Fed, which signaled that the days of infinite liquidity are drawing to an end and [..]

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US Open Note – FOMC hangover supports dollar as euro and gold dig lower; BoJ rate decision ahead

Posted on June 17, 2021 at 1:23 pm GMT

FOMC triggers much awaited volatility After a period of calmness, the upward revision in the FOMC rate projections displayed in the long-awaited dot plot came to shake the waters late on Wednesday, reviving the rally in global bond yields and of course amplifying the buying confidence in the dollar. In fact, investors had pretty much acknowledged that the monetary policy in the US will be a one-way path to tightening in the coming years even before the hawkish announcement. However, [..]

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Technical Analysis – EURUSD in broken pieces after FOMC damage

Posted on June 17, 2021 at 9:36 am GMT

EURUSD was one of the biggest victims of the hawkish FOMC policy announcement, with the price collapsing by more than 1.30% below May’s lows in the aftermath and extending its freefall lower to 1.1940 on Friday. An upside reversal would not be a big surprise in the near term in the four-hour chart given the RSI’s deep downfall inside the oversold area. The Stochastics also look set for a bullish cross in the oversold territory, though neither of those indicators have showed [..]

Daily Market Comment – Fed bombshell turbocharges dollar, sinks gold and stocks

Posted on June 17, 2021 at 9:19 am GMT

· Fed shocks markets by forecasting much faster rate increases · Dollar storms higher, stocks retreat, gold cracks · Blockbuster data trim losses in aussie and kiwi, focus turns to BoJ FOMC signals two rate hikes in 2023 The Fed sent shock waves through financial markets yesterday after it signalled that rates will likely rise faster than previously expected and that a decision to wind down asset purchases may be just around the corner. The dot plot of interest rate [..]

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US Open Note – Markets asleep but ready to decode inflation and FOMC for clues

Posted on June 16, 2021 at 1:40 pm GMT

Stocks ease a bit from highs and dollar remains composed The US major indices are treading water beneath yesterday’s fresh highs, with the Dow Jones Industrial index still lagging behind. Risk appetite seems to be immune to echoes of tapering, and market sentiment remains steady ahead of the upcoming FOMC decision, while US 10-year yields (1.47%) have temporarily eased concerns around inflation pressures. The dollar index is static around the 90.50 mark with the euro ranging around $1.2120 and the [..]

Daily Market Comment – Fed to evade taper talk, but watch the dots

Posted on June 16, 2021 at 8:42 am GMT

· Fed likely to steer clear of any discussion about exiting cheap money · But it might pencil in a rate hike for 2023, lifting the dollar a little · Stocks cool after US retail sales disappoint, crude oil off to the races Too early to talk tapering Global markets will have their gaze locked on the Federal Reserve today, which concludes its meeting at 18:00 GMT. No policy changes are on the cards, so all the action will come [..]

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US Open Note – Stocks keep modest advance, dollar mostly muted    

Posted on June 15, 2021 at 2:23 pm GMT

Stocks tick up, Retail Sales and PPI data mixed US major indices are perky, with the S&P 500 index and the Nasdaq 100 tiptoeing to new highs and with the Dow Jones industrial index lagging slightly. Improved market mood and falling yields are not providing any assistance to the greenback. The US 10-year yield has pulled back to 1.44%. The dollar index is in the vicinity of its intra-day high of 90.60, and has recaptured minor strength across its forex [..]

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