For EUR/GBP, the close below 0.8450 on Friday is technically significant. Economists at Société Générale are pointing towards persistence of downward momentum with next support seen at 0.8385. EUR/GBP to edge lower towards projections of 0.8385 “Holding below 0.8550, EUR/GBP could head lower towards projections of 0.8385.” “Lower band of the consolidation zone since 2016 …
The US dollar has been transitioning from a weaker to stronger state this year. In the view of economists at HSBC, the USD will likely remain resilient, amid slowing global growth and the Fed’s forward guidance on rate hikes. The USD’s modest strength looks set to persist in 2022 “Yet, there is clearly some concern …
• EUR/USD starts the week on the back footing. • Risk-on sentiment dented after mixed Chinese data. • US Industrial Production figures next on tap in the docket. The European currency remains under pressure and now drags EUR/USD to the 1.1570 region at the beginning of the week. EUR/USD remains capped above 1.1600 EUR/USD …
Mirroring the likely path of a post-COVID-19 economic recovery, traders are gradually filtering back to their desks after a long holiday weekend. With volumes running far lower than usual and many major markets still closed, we’re cautious about reading too much into current prices, but the latest developments in the oil market cannot be ignored. …
The day after Easter has historically been a slow day in world market trading as many countries are still off for the Holiday. However, the US markets are open. On a normal trading day, markets are typically quiet near the 3:00pm ET New York fix. However, on a day such as today, when many participants …
While parts of Europe are tentatively dipping their toes into a lighter form of a lockdown, with Austria planing to reopen businesses from next week and Denmark restarting schools, the pandemic is claiming a much higher toll in the US. Given that the US is a little bit behind Europe on the virus spread curve, …
How many times have you heard the saying “Don’t Fight the Fed”? Over the course of the last month, the Fed has taken very aggressive actions to help fight off the economic effects of the coronavirus. Some of which include: Cutting rates by 100bps in March to near 0% Launching Quantitative Easing (QE4) worth $700 …
Amidst the profound disruptions wrought by the global COVID-19 pandemic, it’s reassuring to see an example of a market reaction that “makes sense.” That brings us to this morning’s Federal Reserve announcement of an unprecedented new program to provide $2.3 trillion in new loans, including purchases of investment-grade and high-yield bonds in the secondary market. …
Tomorrow, much of the world is on Holiday, celebrating Good Friday. Many stock and bond markets around the world will be closed, such as the US, UK, Germany, France, Spain, Italy, Australia, and Canada. Therefore, one may expect that with many market players taking the day off, that the FX markets should be quiet. That …
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