FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
Markets.com information and reviews
FxPro information and reviews

USD Hold Bid as equities slip again

9 September 2021

ECB Preview: If it was just the usual hawkish crowd arguing for a scaling back of asset purchase volumes, it may be easy to dismiss, but in the minutes to the last meeting there was already a hint of things to come when council members argued that strengthening the dovish guidance on rates would take the pressure off other policy instruments – i.e. QE. In a Reuters interview in August, chief economist Lane, hardly known for his particularly hawkish credentials, admitted that the ECB will have to “assess at the September meeting the appropriate calibration for the final quarter of the year, taking into account the movement in market interest rates and the inflation outlook”. Given that VP Guindos has repeatedly flagged the possibility of further upward revisions to the growth outlook, a taper announcement today seems pretty likely.

However, as Lane stressed, “in the grand scheme of things, this is a local adjustment” and “purchases in the second and third quarters were significantly higher than in the first, but even in the first quarter, compared to historical norms, purchases were pretty high.” So a drop back in PEPP purchases closer to levels seen in Q1 and at the same time, a very dovish guidance on the rate outlook from Lagarde is on the cards, which would wrap the taper in a dovish package. 

European Open –  The December 10-year Bund future is up 7 ticks, slightly outperforming Treasury futures. Eurozone bonds managed to find some buyers yesterday, but yields have been trending higher going into today’s ECB meeting, which is expected to see the ECB dropping the reference to “significantly higher” purchases than in Q1 to signal a slight taper from next month. Lagarde will wrap that in very dovish guidance on rates, however, and a commitment to step up purchases again if necessary, which should help to limit the impact of the announcement and bonds could benefit in the end. DAX and FTSE 100 futures are still down -0.6% and -0.8% respectively ahead of the ECB and U.S. futures are also in the red, as investors in Asia in particular fret about the impact of virus developments on the global recovery. FX markets are also showing signs of risk aversion, with Dollar, Yen and CHF the main winners. EURUSD down to 1.1820 from 1.1850 yesterday, GBP struggled and Cable dipped to 1.3725, after the government tax hikes, but back to 1.3775 now. USDJPY rallied to 110.40 but has since dipped to test 110.05. 

Today – ECB & Ms. Lagarde Press conference, US Weekly Claims, EIA Oil Inventories, BOC’s Macklem, Fed’s Daly, Evans, Bowman & Williams.

Biggest Mover @ (06:30 GMT) CADCHF (-0.42%)  From a breach 0f 0.73 on Tuesday and 0.7275 support yesterday, to test 0.7230, the pair is back down again today.   Faster MA’s aligned lower, MACD signal line & histogram below 0 line and moving lower. RSI 33 moving lower. H1 ATR 0.00071, Daily ATR 0.00605.



The Euro is holding the fort
The Euro is holding the fort

EURUSD remains strong in anticipation of the US statistics. The major currency pair is trying to keep its positive momentum. The current quote for the instrument is 1.1604...

15 Oct 2021

Dollar weakness supported risk appetite
Dollar weakness supported risk appetite

The euro rose on Wednesday as the dollar fell after the publication of U.S. inflation data. U.S. consumer prices rose in September as Americans paid more for food...

14 Oct 2021

Have the bulls got what it takes to push Euro to higher ground?
Have the bulls got what it takes to push Euro to higher ground?

The Euro on the H4 time frame was in a bearish trend until 6 October, when a lower bottom was reached at 1.15292. Bulls found the price attractive there and demand...

11 Oct 2021

The Euro managed to strengthen
The Euro managed to strengthen

EURUSD is rising a little bit on Monday afternoon; investors are hoping for a calm trading session. Early in another October week, the major currency pair is slowly growing...

11 Oct 2021

Euro Effectively Recovering
Euro Effectively Recovering

Early in a week, the major currency pair is growing; the asset is trading at 1.1585 and may gain even more weight. The greenback dropped a bit after the USA reported...

11 Oct 2021

EURUSD is trading at 1.1551
EURUSD is trading at 1.1551

EURUSD is moving below Ichimoku Cloud, thus indicating a descending tendency. The markets could indicate that the price may test Tenkan-Sen and Kijun-Sen...

7 Oct 2021

Editors' Picks

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta Markets

© 2006-2021 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.