FXTM information and reviews
FXTM
93%
OctaFX information and reviews
OctaFX
91%
FXCC information and reviews
FXCC
90%
Libertex information and reviews
Libertex
89%
FxPro information and reviews
FxPro
88%
HotForex information and reviews
HotForex
87%

Bulls on the lookout for new upside drivers


19 August 2020

The euro notched up gains against the dollar, up 0.52% at 1.1931 on Tuesday, August 18. The EURUSD pair started to move higher in Asian trading and climbed as high as 1.1966. The pair shot up 60 bps after acting chairman of the Council of Economic Advisers, Tyler B. Goodspeed, said President Trump would continue to push for his economic stimulus bill. The US president refuses to make concessions to the Democrats and the ensuing gridlock has exerted an adverse impact on the fixed income market.

The US dollar index fell 0.58% to 92.32 after earlier touching 92.13, the lowest mark since May 2018. Meanwhile, the rally in tech stocks provided a positive backdrop for investors and propelled the S&P 500 and Nasdaq to new all-time highs.

Meanwhile, traders remained focused on Sino-US relations. The Trump administration on Monday announced a further tightening of measures aimed at restricting Huawei’s access to commercially available chips. Trump has previously warned that he is ready to prohibit other Chinese companies from operating in America by blacklisting them. Notably, Alibaba Group Holding Ltd. could be next in line.

After having peaked at 1.1966, the single currency later fell back to 1.1918. We attribute weakness in the euro to a $41 decline in the gold price to $1,976. The dollar, having lost its appeal, has made gold more expensive. At the same time, market participants were wide awake and quickly took profits on long positions. Buyers pared losses in gold, thus allowing EURUSD to stabilize at 1.1940.


Today’s macro agenda (GMT+3)  

At press time, the euro was trading at 1.1924, while major currencies were hovering in positive territory. Euro crosses are showing mixed dynamics. Traders are reluctant to buy into the dollar amid concerns about the growth prospects of the US economy as well as gridlock surrounding the new fiscal relief bill.

Today market participants will be focused on minutes from the Fed’s July meeting. The minutes should flag the regulator’s position on yield curve control. In addition, July inflation data is due out of the Eurozone.

Support for the EURUSD pair is at 1.1915. Gold is trading at $1,984, right on the trendline and balance line. A current assessment of the dynamics of major currencies shows signs of a downward correction. Yesterday the price bounced off the upper line of an ascending channel. In all likelihood, the bulls will once again attempt to muster a rally to 1.1965. If this resistance level is not overcome, we should expect a reversal at 1.1915 and a pullback to 1.1895.

#source

Share:


Related

US Dollar Index adds to recent losses and retests 95.40 ahead of data
US Dollar Index adds to recent losses and retests 95.40 ahead of data

DXY extends the decline to the 95.40 region on Thursday. US yields correct further lower from recent tops. Initial Claims, the Philly Fed Index are next in the US docket...

21 Jan 2022

EURUSD decided to wait
EURUSD decided to wait

EURUSD stopped growing; the statistics failed the "greenback". The major currency pair is rather neutral early in the week. The current quote for the instrument is 1.1426...

17 Jan 2022

The Euro skyrocketed to its 8-week highs
The Euro skyrocketed to its 8-week highs

EURUSD continued rising after the US reported on inflation. The major currency pair continues growing on Thursday. The current quote for the instrument is 1.1468...

14 Jan 2022

US Dollar Index appears supported near 95.50
US Dollar Index appears supported near 95.50

DXY looks depressed around the mid-95.00s midweek. US 10y yields remain capped by the 1.80% area. Inflation figures tracked by the CPI next of note in the docket...

12 Jan 2022

EUR/USD Keep Falling
EUR/USD Keep Falling

The major currency pair is falling after demonstrating some growth last week. The asset is mostly trading at 1.1330. Market players are still processing the FOMC Meeting...

11 Jan 2022

Hot inflation in eurozone could rescue the euro from strong NFP
Hot inflation in eurozone could rescue the euro from strong NFP

EUR/USD seems to have steadied around 1.1300 ahead of key data releases. According to FXStreet’s Eren Sengezer, the shared currency could find demand on a hot inflation report...

7 Jan 2022


XM information and reviews
XM
86%
FXCM information and reviews
FXCM
85%
AvaTrade information and reviews
AvaTrade
84%
LegacyFX information and reviews
LegacyFX
83%
FP Markets information and reviews
FP Markets
82%
Pepperstone information and reviews
Pepperstone
82%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.