Category: Global
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Weekly EUR/USD Outlook for May 20, 2024 – Inflation Weighs on the Dollar
U.S. Inflation Moderates, Boosting Euro Against Dollar Inflation is aiding the euro, which is approaching resistance levels that, if breached, could trigger a rally for the single currency. We’ll delve into this more in our regular technical analysis section on EUR/USD. As expected, the key market mover this week was the U.S. April inflation data.…
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EurUsd Weekly Outlook for May 13, 2024 – Eyeing Rate Cuts in Europe
A week not abundant with macroeconomic insights as we await American inflation data. The market is settling on the idea that the Federal Reserve will start cutting rates from September onwards. The partial asynchrony with the Eurozone, where the cost of borrowing is expected to begin decreasing from June, has favored a return of EurUsd…
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Weekly Outlook for EurUsd as of May 6, 2024 – Dollar’s Defense Tested Amidst Economic Uncertainty
As predicted, the Fed keeps rates unchanged at 5.5%, while simultaneously slowing down the pace of reducing the central bank’s balance sheet. The economy continues to run at full throttle, coupled with low unemployment, which prevents inflation from decreasing as expected, forcing the Fed to maintain a restrictive monetary policy. The dollar remains strong but…
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Weekly EurUsd Outlook, April 29, 2024 – Europe Poised to Capitalize as U.S. Growth Slows
Interest Rate Strategies Amid Economic Shifts Markets have a fairly clear idea of what should happen with interest rates. The ECB might cut rates once or twice in 2024, with the first move expected in June, while the Fed might only adjust monetary policy by late 2024 if inflation slightly recedes from current levels and…
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EurUsd Weekly Outlook, April 22, 2024 – Diverging Monetary Paths and the Test at 1.05
The monetary policies of the Federal Reserve and the European Central Bank are heading in opposite directions. Jerome Powell has adopted a more hawkish stance than Christine Lagarde, pushing up U.S. interest rates and bolstering the dollar, which is further favored by an increasingly tense geopolitical climate. The widening gap between the growth and expected…
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Weekly EurUsd Outlook for April 15, 2024 – U.S. Inflation Climbs, ECB Holds Rates
March U.S Inflation Fuels Economic Uncertainty Amid ECB Caution March’s eagerly awaited U.S. inflation data showed a significant rise, particularly in petroleum products, setting the stage for an increase in the headline CPI to 3.5%. The core rate, stripped of volatile components, exceeded expectations at 3.7%. Recent remarks from central bankers, focusing largely on unexpectedly…
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EurUsd Weekly Outlook, April 8, 2024 – Crosscurrents of Global Monetary Policies
Powell plays the firefighter and urges caution on rate cuts. The American economy continues to produce encouraging data, including on the employment front, causing stock markets to halt their gains while bond yields rise. The dollar attempts an assault on the euro, where inflation is increasingly contracting, but without success. The EurUsd supports hold steady…
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Weekly EurUsd Outlook for April 1, 2024 – Navigating Uncertainty with Interest Rates and Currency Pressures
In a week scarce on data, Powell toned down the dovish remarks that emerged from the last FOMC meeting, indicating that if inflation does not decrease, rates will remain high for longer. This was confirmed by the Fed Chair, who suggested that it is unlikely we will see interest rates return to pre-pandemic levels. The…
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EurUsd Weekly Outlook, March 25, 2024 – The Fed Fuels Market Fire
According to the Fed, there seem to be no major issues in managing inflation, even in a context of upwardly revised economic growth that still promises demand-side pressures. Powell believes there’s no need to tighten further, with the Dot Plots indicating three rate cuts for the current year. The dollar is holding its ground, confirming…
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Weekly EUR/USD Outlook for March 11, 2024 – Navigating Rate Cuts and Economic Signals
Powell, speaking before Congress, confirmed what the markets wanted to hear. Rates will decrease over the course of 2024, although the pace will depend on inflation and its resilience. Meanwhile, the ECB keeps rates unchanged in the March meeting, and the euro strengthens above the key support levels of 1.08.