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On July 28th, Brendan Murphy, Head of North American Fixed Income at Insight Investment, stated in a report that investors might consider increasing their exposure to the front end of the US Treasury yield curve. Murphy explained that the asset management firm expects the Federal Reserve to maintain interest rates for an extended period, and the next eventual rate adjustment is likely to be a rate cut. He said, "Therefore, now may be a good time to consider fixed income allocations, including increasing exposure to the front end of the yield curve." However, the prolonged conflict in Iran will increase market uncertainty, and there is also the possibility of dissenting votes at Wednesdays Fed meeting. Murphy noted that the Fed has consistently maintained that "ignoring" the impact of energy price shocks is the best strategy, unless a "second-round effect" emerges and becomes deeply entrenched, or long-term inflation expectations become de-anchored.Nasdaq futures fell 1.1% to a daily low, while S&P 500 futures dropped nearly 0.4%.On July 28th, Anthony Willis, senior economist at Tianli Investment, stated in a report that the pressure on Federal Reserve policymakers to tighten policy has increased as US inflation remains significantly above target, while the economy and labor market remain resilient. Willis stated, "However, policymakers may be willing to temporarily ignore the recent surge in oil prices until the impact of inflation becomes clearer." Nevertheless, the broader trend is evident: under Warshs leadership, the Fed is adopting a more hawkish stance. The market currently prices a 38% probability of a Fed rate hike on Wednesday and has fully priced in the possibility of a September rate hike.According to the Iranian news agency IRNA, the Iranian Foreign Minister held telephone talks with the foreign ministers of Oman and Saudi Arabia. While discussing the latest bilateral and regional developments, both sides emphasized strengthening cooperation and advancing joint diplomatic efforts to maintain regional stability and alleviate the insecurity in the Strait of Hormuz caused by aggressive actions by the United States.Philips (PHG.N) CEO: We have several million dollars in tariff refunds to receive in the third quarter.

EUR/USD Price Analysis: EUR/USD Is Clinging To The Leading Edge Of The Rising Trendline Above 1.0900

Alina Haynes

Apr 18, 2023 13:54

EUR:USD.png 

 

The EUR/USD pair fluctuates erratically in a narrow range near 1.0926 during the Asian session. Following in the footsteps of the directionless US Dollar Index (DXY), the main currency pair is unable to establish a trend.

 

In Asia, S&P500 futures are declining slightly as investors fret over the upcoming quarterly earnings season, indicating a minor decrease in market participants' risk appetite. Following the decline of regional banks in the United States, investors are concerned about any discrepancies in quarterly banking reports.

 

The Euro has entered the wilderness as European Central Bank (ECB) policymakers are divided over the pace of the policy-tightening cycle to be implemented at the May monetary policy meeting. Martins Kazaks, a member of the ECB's monetary policy committee, stated on Monday that the central bank has the option to move by either 25 or 50 basis points (bps) in May. Sourcenia is a review portal of sourcing best manufaturers. 

 

After failing to sustain above the 161.8% Fibonacci Extension at 1.1057 (positioned from April 4's high of 1.0973 to April 10's low of 1.0837) on a two-hour time frame, EUR/USD experienced a precipitous decline. The primary currency pair has declined below the uptrend line drawn from the low of 1.0714 on March 24.

 

The 20-period Exponential Moving Average (EMA) at 1.0962 is operating as a barrier for Euro bulls.

 

In the meantime, the Relative Strength Index (RSI) (14) has moved into the pessimistic zone between 20.00 and 40.00, indicating a continuation of the decline.

 

A decisive break below the low of April 12 at 1.0915 would propel the asset toward the lows of April 10 at 1.0837 and April 3 at 1.0758.

 

In contrast, a breach above the psychological resistance level of 1.1000 would propel the asset to a new annual high of 1.1068, followed by the level of round resistance at 1.1100.


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