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  • Squawk / 02 April 2019 at 5:41 GMT
    Founder, Owner, Director / Market Chartist
    United Kingdom
    EUR/USD – Euro stays weak

    Last Monday 25th March we highlighted Euro vulnerability here previously driven lower by very weak German Purchasing Managers’ Index data.
    This weakness has continued in late March with dovish comments from European Central Bank members and the ongoing weakening of economic data across the Eurozone.
    Furthermore, the US Dollar has seen broader strength through latter March and into early April, despite a shift to a more “risk on” phase, with global equity markets setting a more positive tone.
    This combination of a weakening Euro and firming US$ leaves EURUSD risks to downside and aims at the 2019 low at 1.175 into early April, as we look at in more depth here: https://www.fxexplained.co.uk/forex-articles/current-market-analysis/eur-usd-euro-stays-weak/
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  • Squawk / 26 March 2019 at 6:31 GMT
    Founder, Owner, Director / Market Chartist
    United Kingdom
    Yen stays strong in risk off scenario

    Last Friday’s very weak German Manufacturing Purchasing Managers’ Index data was another blow to the global economic backdrop, with concerns throughout this year of a global slowdown in China, through Asia Pacific and increasingly also in Europe.
    This has seen riskier asset classes come under negative forces over the past week, with global equity averages suffering notable corrective losses as we have shifted to a “risk off” phase.
    A very dovish Federal Reserve at their 20th March Meeting has seen longer term US Treasury (UST) yields plunge back lower and an inversion of the 3 months-10yr sector of the UST yield curve. This yield curve inversion is often seen as a sign of a future recession.
    In the Forex space, the main beneficiary of this shift to a “risk off” scenario has been the Japanese Yen as a safe haven.
    Here we focus on USDJPY: https://www.fxexplained.co.uk/forex-articles/current-market-analysis/yen-stays-strong-in-risk-off-scenario/
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