Tag Archives: EUR USD

Fed Minutes Show Some Participants Preferred Smaller Rate Cut

Minutes from the Federal Reserve’s emergency monetary policy meetings in March showed a few participants preferred a smaller interest rate cut to slashing rates by a full percentage point at the March 15th meeting. The minutes said some meeting participants favored cutting rates by 50 basis points, noting that such a decision would provide support to the economy in the face of coronavirus outbreak while preserving the Fed’s ability to lower rates again in the event the economic outlook deteriorated further. The participants also noted that cutting rates by 100 basis points less than two weeks after an emergency 50 basis point cut ran the risk of sending an overly negative signal about the economic outlook. Nonetheless, the Fed ultimately voted to slash rates by 100 basis points to a range of zero to 0.25 percent, pointing to the likely near-term decline in economic activity due to the coronavirus outbreak and the extremely large degree of uncertainty about the length and severity of the decline. Cleveland Fed President Loretta J. Mester voted against the action, preferring to reduce the target range for the federal funds rate to 0.5 to 0.75 percent. The minutes noted Mester was fully supportive of all…

Thirty-Year Bond Auction Attracts Slightly Above Average Demand

Finishing off this week’s announcements of the results of its long-term securities auctions, the Treasury Department revealed Wednesday that its auction of $17 billion worth of thirty-year bonds attracted slightly above average demand. The thirty-year bond auction drew a high yield of 1.325 percent and a bid-to-cover ratio of 2.35. Last month, the Treasury sold $16 billion worth of thirty-year bonds, drawing a high yield of 1.320 percent and a bid-to-cover ratio of 2.36. The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold. The ten previous thirty-year bond auctions had an average bid-to-cover ratio of 2.32. The Treasury revealed earlier this week that its auction of $40 billion worth of three-year notes attracted below average demand, while its auction of $25 billion worth of ten-year notes attracted average demand. The material has been provided by InstaForex Company – www.instaforex.com…

Poland Cuts Key Rate Further On Outlook For Sizable Economic Slump On Covid-19

Poland’s central bank cut its key interest rate for a second policy session in a row as policymakers expect economic activity to fall drastically in the short run due to the containment measures adopted to slow the spread of the coronavirus, or Covid-19, pandemic. The Monetary Policy Council decided to cut the key reference rate by 50 basis points to a fresh record low 0.50 percent, the National Bank of Poland said in a statement on Wednesday. The bank had slashed the rate by 50 basis points in an emergency meeting on March 17. The lombard rate was lowered to 1 percent from 1.50 percent, while the deposit rate was cut to zero. The rediscount rate was slashed to 0.55 percent from 1.05 percent. “In the short run, the scale of activity drop could be very sizable,” the NBP said. “This will be accompanied by a deteriorating situation in the labour market and a fall of disposable income of households.” Policymakers expect the economic activity to gradually recover further ahead, supported by fiscal measures introduced in the country and many other countries as well as strong macroeconomic fundamentals of the Polish economy. They expect inflation to fall below the target…

Euro Lower As Eurogroup Meeting Disappoints

The euro depreciated against its major counterparts in the European session on Wednesday, as Eurozone finance ministers failed to resolve impasse and agree on a package of measures to cushion the economic fallout from the coronavirus outbreak. Ministers were deadlocked on the issue of coronabonds – jointly issued bonds as part of the crisis response. While Italy, Spain, France and some other EU states favour common debt issuance, the Netherlands has rejected this idea. The finance ministers will resume negotiations on Thursday. European stocks fell after Spain’s daily toll of coronavirus deaths rose for the first time in five days and the death toll surpassed 10,000 in France. The German economy will shrink by nearly 10 percent in the second quarter as the coronavirus paralyses the country, six leading research institutes warned today. The euro fell to a 2-day low of 1.0551 against the franc, from a high of 1.0568 set at 1:45 am ET. If the euro declines further, 1.02 is likely seen as its next support level. The euro slipped to 1.0830 against the greenback, after touching as high as 1.0902 at 7:30 pm ET. On the downside, 1.06 is likely seen as its next support level….

Croatia Producer Prices Fall For First Time In Five Months

Croatia’s producer prices dropped for the first time in five months in March, figures from the Croatian Bureau of Statistics showed on Wednesday. The producer price index fell 2.7 percent year-on-year in March, after a 0.9 percent increase in February. prices declined for the first time in five months. Prices for domestic market decreased 1.2 percent annually in March and foreign market declined 4.5 percent. On a month-on-month basis, producer prices declined 2.7 percent in March, following 0.1 percent fall in the previous month. Prices decreased for the second straight month. The material has been provided by InstaForex Company – www.instaforex.com…

Evening review for April 8th for EUR/USD. Euro needs US labor market statistics

Outlook for EUR/USD. A lot of macroeconomic data was unveiled during recent days.
1. In Europe, the epidemic has passed its peak. The epidemiological situation has improved in Italy and Spain.
2. Eurozone finance ministers failed to agree on the region-wide stimulus. The meeting is suspended until Thursday.
3. In the US, the situation is likely to stabilize by the end of the week.
Nevertheless, the market mood is still difficult to predict.
I suppose that the US employment data will be of crucial importance. The data is expected to be published on April 9th.
EUR/USD:
Buy positions can be opened from the level of 1.1040.
Sell positions can initiated from 1.0765.The material has been provided by InstaForex Company – www.instaforex.com…

Hungary Inflation Lowest In 3 Months

Hungary’s consumer price inflation eased to three-month low in March, data from the Hungarian Central Statistical Office reported on Wednesday. The consumer price index rose 3.9 percent year-on-year in March, slower than 4.4 percent increase in February. Economists had expected a 3.6 percent rise. Price for food grew 7.6 percent and those of alcoholic beverages and tobacco, and services rose by 7.2 percent and 3.8 percent, respectively. On a month-on-month basis, consumer prices rose 0.2 percent in March, after a 0.3 percent increase in the preceding month. Food prices rose at a higher rate in March, which may have been caused by the effects of the coronavirus outbreak, while motor fuel prices declined as a result of significantly falling oil prices, the agency said. Core consumer prices rose 4.3 percent annually in March and increased 0.6 percent from the previous month. Separate data from the statistical office showed that the trade surplus increased EUR 1.118 billion in February versus EUR 775 million in last year. Exports rose 3.9 percent year-on-year in February, following a 2.8 percent increase in January. Imports increased 0.1 percent annually in February, after a 2.4 percent rise in the preceding month. The material has…

USD/JPY analysis for 04.08.2020 – End of the downward correction (bull flag pattern) and bigger up-swing in play. Watch for

Corona virus news:Boris Johnson has spent a second night in intensive care amid concerns about the seriousness of his condition and how the government will make key decisions about the coronavirus pandemic in his absence.The foreign secretary, Dominic Raab, who is deputising for the prime minister, has no power to make major decisions without cabinet agreement, it emerged on Tuesday.Technical analysis: USD/JPY has been trading sideways at the price of 108.88. Anyway, there is the potential completion of the downward correction (bull flag pattern) in the backgorund and rejection of the important pivot support at 108.50, which is strong indication for the further upside continuation. My analysis from yesterday is still valid.Watch for buying opportunities on the dips. The area around 109.10 looks like good zone to load long positions.Upward targets are set at the price of 109.85 and 110.60. MACD oscillator is showing strong upside pressure and the slow line is turned to the upside, which is great addition to our long bias. Resistance levels are set at the price of 109.37, 109.85 and 110.60 Support level is set at the price of 108.50.The material has been provided by InstaForex Company – www.instaforex.com…

Japan Eco Watchers Current Conditions, Outlook Weaken Sharply

A measure of the public assessment of the Japanese economy fell for the second month in a row in March, survey data from the Cabinet Office showed on Wednesday. The current conditions index of the Economy Watchers’ Survey, which measures the current situation of the economy, decreased to 14.2 in March from 27.4 in February. Economists had forecast a reading of 22.4. The outlook index that signals future activity fell for the second straight month to 18.8 in March from 24.6 in the previous month. Economists had expected a score of 20.0. The material has been provided by InstaForex Company – www.instaforex.com…

EUR / USD: Euro bound to decline below $1.05

The global financial crisis of 2008-2009 is now used as a template for forecasting and developing investment strategies for various assets. However, the nature of the previous and current crisis caused by the outbreak of coronavirus is fundamentally different. The latter is more likely a natural disaster, after which the economy usually recovers quickly. Therefore, it is hardly worth surprising that the number of supporters of the U-shaped growth of US GDP is increasing. If this really happens, then it’s too early to buy American stocks, as well as selling greenbacks.The growth of the S&P 500 index by more than 20% of the March minimum suggests that large-scale measures to support the US economy, proposed by the White House and the Fed, somewhat calmed the financial markets. However, stocks are still in a vulnerable position. Market participants may be scared by the news about the worsening epidemiological situation in the United States, as well as reports that the country government is not able to transfer financial incentives to business quickly enough.The decline in the S&P 500 is fraught with the resumption of sales of EUR / USD. The volatility of the main currency pair in 2020 increased sharply. At the same…