Category: Economic Indicators
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Weekly EUR/USD Outlook for October 14, 2024 – Rate Differentials & ECB Policy Set the Stage
Geopolitical tensions that persist globally do not appear to be disrupting financial markets, which are reaching new all-time highs in equities and showing less concern about an economic recession, at least in the United States, despite the resurgence of inflation. This week, the ECB is expected to cut interest rates, while EUR/USD seems to be…
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Weekly EUR/USD Outlook for October 7, 2024 – Middle Eastern Conflict Bolsters Dollar as Inflation Declines in Europe
Geopolitical Tensions Lift Oil Prices, Strong U.S. Jobs Data Challenges Fed Rate Cuts Markets remain tense amid the wave of Middle Eastern war tensions. Israel’s attack on Lebanon and Iran’s retaliatory response on Israeli soil threaten to expand the conflict. However, markets have found some comfort in China’s decisive actions to combat the stagnation of…
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Weekly Eur/Usd Outlook for September 30, 2024 – Euro Holds as U.S. Rate Cuts Loom
Global bond yields continue to compress, signaling that markets expect more accommodative policies from central banks. While Europe seems headed for recession, China is reviving its monetary and fiscal tools in an effort to escape an increasingly entrenched deflationary crisis.
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Weekly EUR/USD Outlook – September 23, 2024 – Fed’s Surprise Rate Cut
Fed’s Aggressive Rate Cuts Spark Debate as Economic Uncertainty Grows In alignment with bond market expectations, the Fed acted swiftly with a substantial 50 basis point rate cut, possibly aiming to make up for lost ground in August. The market now anticipates two additional 25 basis point cuts in the year’s final two meetings, scheduled…
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Weekly EurUsd Outlook for September 16, 2024 – Central Banks Take the Stage Amid Key Resistance Levels
The dollar holds steady, and the euro fails to advance. This sums up a week in which the ECB fulfilled its promise to cut interest rates, while U.S. inflation, at 2.5%, set the stage for a similar move by the Fed in what will be the final meeting before the much-anticipated presidential elections in November.
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Weekly EurUsd Outlook for September 2, 2024 – Dollar Resilience Amid Fed Rate Cut Expectations
The resilience of the dollar seems to be the dominant theme as August comes to a close, with the Fed making it clear that rate cuts will occur before the November presidential elections. The greenback has held its ground, avoiding a breach of key technical levels against both the euro and the yen. Meanwhile, in…
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Weekly EurUsd Outlook for August 26, 2024 – Dollar Freefall Amid Powell’s Rate Cut Signal
Markets are in sync with Powell and the Fed, as Jackson Hole saw the announcement that the time for rate cuts has arrived. The U.S. economy is slowing down, job creation is falling short of estimates, and inflation is gently retreating. A similar situation is unfolding in Europe, but it was enough for the stock…
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Weekly EurUsd Outlook for August 12, 2024 – Fed Holds Steady Amid Market Volatility
Market Volatility Rises Amid Geopolitical Tensions and Fed Speculation Markets remain highly volatile across both bond and equity sectors. Geopolitical tensions, combined with shifts in speculative carry trade positions and uncertainty surrounding upcoming U.S. macroeconomic data, are driving a cautious approach. The market appears to have moved too aggressively in predicting a 125 basis point…
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Weekly EurUsd Outlook for August 5, 2024 – Markets Anticipate Fed & ECB Rate Cuts Amid Economic Uncertainty
Fed Defers Rate Decision to September Amid Rising Employment Concerns The Federal Reserve has kept interest rates unchanged as expected, deferring any decisions to September, contingent on upcoming data confirming the rising inflation trend seen so far. Consequently, the market has responded by further lowering long-term interest rates, convinced that there will be multiple rate…
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Weekly EurUsd Outlook for July 29, 2024 – Rising Volatility and Political Shifts Shape Market Trends
After Biden’s withdrawal from the race for the White House, the electoral contest will be Harris versus Trump until November. Meanwhile, markets are in turmoil due to lackluster quarterly data, the Chinese crisis, and the strengthening yen. All these factors have increased market volatility, but not for EurUsd.