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Jefferies: Lowered its price target for Oracle (ORCL.N) from $320 to $290.On September 2nd, NASA announced on September 1st that it has awarded Blue Origin a contract to develop a Mars communications network designed to provide reliable, high-bandwidth communications and navigation services for current and future Mars exploration missions. According to NASA, the maximum potential value of this fixed-price contract is approximately $700 million. Under the contract, Blue Origin will be responsible for the design, development, integration, launch, and operation of the Mars communications network, and will deliver a high-performance Mars communications orbiter to NASA by December 31, 2028.September 2nd - According to the Financial Times, a senior European Central Bank (ECB) policymaker stated that the ECB should not shy away from further interest rate hikes if inflation "starts to move in the wrong direction." ECB Governing Council member Machrouf said he was "uneasy" that the eurozone inflation rate was hovering above 3%, while economic growth was "slightly stronger" than predicted before the summer. Machrouf stated, "Our decision next week will not surprise anyone." He added that he expects the ECB to also "slightly" raise its eurozone economic growth forecast this year. Machrouf emphasized that even at 2.5%, the ECBs benchmark deposit rate would not dampen economic activity. "Policy is not restrictive," he said, adding that restrictive policy "generally speaking, will only begin when interest rates exceed 2.75%." Furthermore, he believes it is unclear whether further rate hikes are needed after the expected rate increase next week, and the ECB should adhere to its "meeting-by-meeting" strategy and avoid providing forward guidance. He stated that inflation expectations are "in good shape," and there are no signs of a "second round of inflation on the wage side. We see the associated risks being managed."According to the Financial Times, ECB Governing Council member Machrouf stated that the ECB must be prepared to raise interest rates further.On September 2nd, the National Medical Products Administration (NMPA) issued a new announcement stating that, to ensure public medication safety, my country will convert the over-the-counter (OTC) formulation of Yumei (a traditional Chinese medicine) into a prescription drug and manage it accordingly. The announcement requires marketing authorization holders of relevant products to submit supplementary applications for revising the product instructions to the NMPAs Center for Drug Evaluation by November 30, 2026, in accordance with the "Drug Registration Management Measures" and other relevant regulations. Other contents of the instructions must be revised according to prescription drug requirements, and the drug label must also be revised accordingly. After the supplementary application for revising the drug instructions is approved, the marketing authorization holders of relevant products must replace the instructions and labels of already manufactured drugs within nine months, or inform patients in other ways. They should also promptly collect and report adverse reaction information and implement risk control and pharmacovigilance measures. The NMPA requires that marketing authorization holders, manufacturers, distributors, and clinical users of relevant products strictly adhere to the relevant management requirements for prescription drugs when producing, selling, and using this product.

EUR/USD Price, Chart, and Analysis

Drake Hampton

Apr 18, 2022 09:48

Euro bears have been given a new lease of life following the European Central Bank's (ECB) latest monetary policy decision, with the central bank lending scant assistance to the embattled single currency. All policy settings remained unchanged, and the hawkish market attitude preceding the decision was wiped away by ECB President Lagarde's subsequent press conference in which she stated that inflation will remain elevated in the coming months and growth will slow. The ECB, on the other hand, did not provide a firm timetable for the conclusion of the Asset Purchase Program, instead stating that it will occur somewhere in Q3, disappointing market hawks. Additionally, the ECB stated that they would maintain maximum flexibility, lending credence to reports last week that the central bank was developing a new crisis tool that could be used to rein in bond yields and spreads if they continued to rise/widen, implying that targeted bond-buying would be reinstated. In light of this, the single currency is expected to continue to deteriorate.

 

While the ECB appears to be resting on its laurels, the US Federal Reserve is now aggressively pursuing a strategy of monetary tightening, with both the central bank and board members discussing a series of 50 basis point hikes in the coming months. The market has already priced in a 50bp increase in May, another 50bp increase is predicted in June, and a third half-point hike at the July meeting is also gaining confidence. At the moment, no one at the Fed is aggressively opposing these views, allowing the US dollar to rise further as interest rate differentials with a plethora of other currencies appear ready to expand. The US dollar index (DXY) hit a new two-year high following the ECB meeting.

 

The weekly EUR/USD chart indicates that the pair fell below the significant 1.0800 level before recouping a small chunk of its losses. There is a very serious possibility that 1.0636 may come under assault in the coming weeks, with the next target being 1.0570, the April 2017 low. EURUSD would trade at 1.0340 following a complete retracement of the January 2017-February 2018 rise.

Weekly EUR/USD Price Chart

According to retail trader data, 71.85 percent of traders are net long, with a 2.55 to 1 ratio of long to short traders. The number of traders who are net-long has decreased by 8.66 percent from yesterday and by 0.18 percent from last week, while the number of traders who are net-short has increased by 13.42 percent from yesterday and by 1.55 percent from last week.

 

We normally take a contrarian position on crowd mood, and the fact that traders are net long EUR/USD signals that prices may continue to fall. Positioning is slightly less net-long than yesterday, but significantly more net-long than last week. The combination of current attitude and previous movements suggests that the EUR/USD trading tendency will remain mixed.

 

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