- The Euro extends its weekly recovery against the US Dollar. Stocks in Europe trade in a mixed tone so far on Thursday. EUR/USD adds to Wednesday's advance beyond the 1.0500 hurdle.
- The USD Index (DXY) appears under pressure in the sub-107.00 zone. The Construction PMI in Germany weakens in September. The usual weekly Claims and Fedspeak take centre stage across the ocean.
- The Euro (EUR) shows signs of continuing its recovery against the US Dollar (USD) as the week progresses, causing EUR/USD to remain above the key level of 1.0500 so far on Thursday.
- At the same time, the Greenback manages to reverse its initial decline towards the 106.50 area, as indicated by the USD Index (DXY). This reversal occurs amidst alternating momentum in riskier assets and a generalized downward bias in US bond yields across various maturity periods.
- Psychology, discipline and capital management are the three factors that make victory possible.
- The USD Index (DXY) appears under pressure in the sub-107.00 zone. The Construction PMI in Germany weakens in September. The usual weekly Claims and Fedspeak take centre stage across the ocean.
- The Euro (EUR) shows signs of continuing its recovery against the US Dollar (USD) as the week progresses, causing EUR/USD to remain above the key level of 1.0500 so far on Thursday.
- At the same time, the Greenback manages to reverse its initial decline towards the 106.50 area, as indicated by the USD Index (DXY). This reversal occurs amidst alternating momentum in riskier assets and a generalized downward bias in US bond yields across various maturity periods.
- Psychology, discipline and capital management are the three factors that make victory possible.
Comment:
- On the monetary policy front, investors anticipate the Federal Reserve (Fed) to raise interest rates by 25 bps before the end of the year. Simultaneously, market speculation about the European Central Bank (ECB) halting policy adjustments continues, despite inflation levels beyond the bank's target and rising worries of a future recession or stagflation in the region.
Comment:
US weekly Initial Jobless Claims came in below the market expectation last week.
Comment:
Expectations of a final interest-rate hike by the US Federal Reserve (Fed) this quarter were reinforced after US job openings unexpectedly rose by the most in over two years to 9.610 million in August. The JOLTS Job Openings data pointed to a persistently tight labor market in the United States that could provide the Fed some leeway for more tightening.
Comment:
EUR/USD catches a firm lift post-US NFP release, climbing 1.12% from the day's bottom.
Trade active
Comment:
Broad-market flows have gone firmly risk-on following a bumper NFP reading for the USD.
Comment:
About the interest rate outlook, San Francisco Fed Bank President Mary Daly said that another rate hike may not be needed if the labor market slows, inflation remains around 4% and financial conditions remain tight.
Trade active
Trade active
Comment:
The Euro looks markedly offered against the US Dollar. Stocks in Europe open the week with marked losses. EUR/USD retreats to the 1.0520 zone on USD buying.
The USD Index (DXY) reverses recent weakness and tests 106.30
The USD Index (DXY) reverses recent weakness and tests 106.30
Trade active