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Weekly EurUsd Outlook for June 17, 2024 – Fed Stance and European Politics Drive Market
Europe has weathered the impact of nationalism after the parliamentary elections, although there have been some national disruptions (see France), which are weighing down the euro. In the United States, inflation continues to slow, but the Federal Reserve has informed the markets that there will be at most two rate cuts in 2024, postponing expansionary…
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Weekly EurUsd Outlook for June 3, 2024 – Favorable Euro Window Amidst Inflation Concerns
ECB Rate Decision Nears Amid Rising European Inflation The ECB’s rate decision is approaching, and the preliminary inflation data for May is crucial for understanding whether Frankfurt will act in this direction or be swayed by some conflicting signals that have emerged in recent days. Inflation is indeed rising in Germany, according to preliminary May…
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EUR/USD Weekly Outlook for May 27, 2024 – Low Volatility and Central Bank Anticipation
The minutes of the latest Federal Reserve meeting highlighted that it is still not time to cut rates in the United States. Upcoming data will be crucial in determining if such a move will be made in 2024, while the ECB appears ready to proceed with it as early as June. EUR/USD remains without clear…
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Weekly EUR/USD Outlook for May 20, 2024 – Inflation Weighs on the Dollar
U.S. Inflation Moderates, Boosting Euro Against Dollar Inflation is aiding the euro, which is approaching resistance levels that, if breached, could trigger a rally for the single currency. We’ll delve into this more in our regular technical analysis section on EUR/USD. As expected, the key market mover this week was the U.S. April inflation data.…
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EurUsd Weekly Outlook for May 13, 2024 – Eyeing Rate Cuts in Europe
A week not abundant with macroeconomic insights as we await American inflation data. The market is settling on the idea that the Federal Reserve will start cutting rates from September onwards. The partial asynchrony with the Eurozone, where the cost of borrowing is expected to begin decreasing from June, has favored a return of EurUsd…
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Weekly Outlook for EurUsd as of May 6, 2024 – Dollar’s Defense Tested Amidst Economic Uncertainty
As predicted, the Fed keeps rates unchanged at 5.5%, while simultaneously slowing down the pace of reducing the central bank’s balance sheet. The economy continues to run at full throttle, coupled with low unemployment, which prevents inflation from decreasing as expected, forcing the Fed to maintain a restrictive monetary policy. The dollar remains strong but…
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Weekly EurUsd Outlook, April 29, 2024 – Europe Poised to Capitalize as U.S. Growth Slows
Interest Rate Strategies Amid Economic Shifts Markets have a fairly clear idea of what should happen with interest rates. The ECB might cut rates once or twice in 2024, with the first move expected in June, while the Fed might only adjust monetary policy by late 2024 if inflation slightly recedes from current levels and…
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EurUsd Weekly Outlook, April 22, 2024 – Diverging Monetary Paths and the Test at 1.05
The monetary policies of the Federal Reserve and the European Central Bank are heading in opposite directions. Jerome Powell has adopted a more hawkish stance than Christine Lagarde, pushing up U.S. interest rates and bolstering the dollar, which is further favored by an increasingly tense geopolitical climate. The widening gap between the growth and expected…
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Weekly EurUsd Outlook for April 15, 2024 – U.S. Inflation Climbs, ECB Holds Rates
March U.S Inflation Fuels Economic Uncertainty Amid ECB Caution March’s eagerly awaited U.S. inflation data showed a significant rise, particularly in petroleum products, setting the stage for an increase in the headline CPI to 3.5%. The core rate, stripped of volatile components, exceeded expectations at 3.7%. Recent remarks from central bankers, focusing largely on unexpectedly…
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UBS Updates Year-End S&P 500 Target to 5,500 Amid Strong Economic indicators
In a recent market analysis report, UBS has adjusted its year-end target for the S&P 500 to 5,500, up from its previous estimate of 5,200. This revised forecast comes as U.S. equities continue to experience robust growth, supported by solid earnings performances and significant investments in artificial intelligence (AI). For the first quarter of 2024,…
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Wall Street Forecasts Reflect Rising Confidence in S&P 500 with Latest Update from Wells Fargo
Amidst an atmosphere of growing economic optimism, Wall Street has seen a series of bullish revisions to S&P 500 year-end targets, culminating in Wells Fargo’s latest and highest forecast to date. In a recent industry trend, prominent financial institutions have been adjusting their expectations for the S&P 500 index. Oppenheimer Asset Management and Société Générale…
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EurUsd Weekly Outlook, April 8, 2024 – Crosscurrents of Global Monetary Policies
Powell plays the firefighter and urges caution on rate cuts. The American economy continues to produce encouraging data, including on the employment front, causing stock markets to halt their gains while bond yields rise. The dollar attempts an assault on the euro, where inflation is increasingly contracting, but without success. The EurUsd supports hold steady…
