EUR/USD posted a stellar performance following heavy USD sell-off


EUR/USD

After a muted first half of the session, the pair trading with little direction, EUR/USD posted a stellar performance following the US cross-over as the USD sold off heavily on the back of falling UST yields. Specifically, the US 10yr yield resided below the 2% level for the first time since June 2013 as the S&P 500 erased all YTD gains amid the global equity sell-off and after weaker-than-expected US empire manufacturing (6.17 vs. Exp. 20.25); lowest since April and US retail sales (-0.3% vs. Exp. -0.1%). As such, demand for the USD plummeted and EUR/USD soared upwards, breaking the 1.2700 and 1.2800 handle to the upside in the process. The pair reached a session high at 1.2886, meeting resistance and has since been steadily retracing into the European close. Looking ahead to tomorrow, Euro-zone CPI and the weekly US jobs report will be the focus for markets.

GBP/USD

Initially trading without direction after the European open, the pair strengthened on the release of October UK jobs numbers, which showed real wage growth in the UK rose to -0.3% from -0.8% on an ex-bonus basis. As such GBP/USD was provided with a minor lift to hit highs of 1.5939, however this move was eclipsed after the US came to market, with the pair trading amid similar conditions as the EUR on aforementioned falling US yields and subsequent falling USD demand, which pushed GBP above the 1.6000 handle and gaining over 100 pips in process. However, as some positive sentiment returned to markets and UST pulled off highs, the move could not be sustained and the pair broke back below key 1.6000 level heading into the close. Looking ahead the calendar looks light for UK based data, however a host of US central bank speakers, notably Fed’s Yellen, as well as BoE’s Cunliffe are scheduled.

USD/JPY

Participants shrugged off the Japanese industrial production data overnight, with the heavy USD selling seen after the US cross-over dictating play for the session (as across other FX markets). As the USD sold off on risk-averse sentiment the USD/JPY tripped stops on the way through 107.00 and 106.00 to print fresh lows at 105.23, yet the move (as across other major FX pairs) failed to consolidate and USD/JPY bounced back above the important 106.00 handle. Looking ahead Japanese events appear light, however Philadelphia Fed Business Outlook complete a full session for the US tomorrow, as should offer price action for the pair.

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD holds above 0.6500 in thin trading

AUD/USD holds above 0.6500 in thin trading

The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.

AUD/USD News

EUR/USD comfortable below 1.0800 lower lows at sight

EUR/USD comfortable below 1.0800 lower lows at sight

The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.

EUR/USD News

Gold price finishes Thursday’s session set to reach new all-time highs

Gold price finishes Thursday’s session set to reach new all-time highs

Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.

Gold News

Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales

Bitcoin price extends retreat from $69K as old whales shift their holdings to new whales

Bitcoin price continues to move further away from the $69,000 threshold, gaining ground as BTC bulls hope for a retest of the $73,777 peak. This is because of the general assumption that clearing this blockade would set the tone for a reach higher, marking a new all-time high.

Read more

Bears have been standing before a steamroller so far this year

Bears have been standing before a steamroller so far this year

Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.

Read more

Majors

Cryptocurrencies

Signatures