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EURUSD retraces to trendline from 1.1483 top

The EURUSD pair traded lower on Thursday, January 20, down by 0.27 to 1.1312. The main reason for the decline from 1.1358 to 1.1303 was a selloff in US equities and a downturn in stock indices. Investors have been selling USTs in anticipation of higher interest rates. This boosts bond yields and puts pressure on tech stocks. The Nasdaq Composite on Thursday fell 1.3 to 14,154.02, the DJIA slid 0.89 to 34,715.39, and the SP 500 closed 1.44 lower at 4,482.73. Todays macro agenda GMT3 1600 UK BoE MPC member Catherine Mann speech 1630 Canada retail sales November 1800 Eurozone consumer confidence January 1800 US CB leading index December 2100 US Baker Hughes weekly oil rig count Current outlook By the time of writing, major currencies showed mixed dynamics. The Australian dollar 0.38 and the New Zealand dollar 0.37 have seen the steepest losses. Falling stock indices exert an adverse impact on risksensitive assets. The CBOE Volatility Index VIX reached 25.59. The critical level is 30, after which panic selling of shares sets in. If market participants start to buy back into falling equities, the odds of major currencies avoiding sharp pullbacks will increase. Price action found support at 1.3010, rebounding to the 55day SMA balance line and is trading near the trendline from 1.1483. Morning gains were underpinned by euro cross pairs, which are on the rise after yesterday39;s downturn. Meanwhile, the prospects of Fed rate hikes amid jittery sentiment on US markets are having a…

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