TenkoFX - Analytics

    TenkoFX

    425.75 7.25/10
    68% of positive reviews
    Real

    EUR/USD intermarket: Most intrinsics points to the upside before referendum results Matías Salord

    EUR/USD stabilized around American session lows, slightly above 1.1350, consolidating modest gains for the day and far from the highs. The pair peaked earlier at 1.1420 when reports with the latest UK referendum polls were released and boosted risk appetite.The rally of the euro against the US dollar also happened at the same time the US dollar lost ground across the board and equity and crude oil prices rose. Near the end of the American session, crude oil prices gained momentum again and the WTI barrel is back above the $50.00 handle at daily highs while stocks in Wall Street are moving toward the top. At the same time, EUR/USD remains steady, moving around the 20-hour moving average.Another indication that EUR/USD could regain some bullish momentum (at least until everything is back related with the UK referendum) are US bond yields. The 10-year yield retreated to 1.715% and now is moving toward daily highs, back at 1.735%. EUR/USD so far has not responded to the yield move.USD with some support from monetary policy expectationsOne factor that limited the decline of the US dollar versus the euro and also in the market during the last hours were Fed rate hike expectations. The fact that markets now await the “remain” position to win in the United Kingdom and also the better-than-expected jobless claims data in the US pushed the odds of a July rate hike from 9.6% to 14.3%. 


    To leave a comment you must or Join us


    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree