Two trades to watch: EUR/USD, Barclays
Fiona Cincotta November 1, 2021 8:00 AM
EURUSD looks to yearly low, German retail sales tumble. Barclays falls as CEO unexpectedly steps down.
EUR/USD under pressure, German retail sales tank
EUR/USD experienced its steepest daily decline in 4.5 month on Friday despite Eurozone GDP rising 2.2% and returning to pre-pandemic levels and despite CPI inflation surging to 4.1% a fresh 13 year high. However, the ECB meeting had passed, and the ECB are sticking with the verse that elevated inflation is transitory.
Meanwhile, US Dollar jumped after US core PCE inflation reached a 30 year high of 3.6% prompting bets of a move to tighten monetary policy by the Fed.
Today German retail sales unexpectedly tumbled 2.5% MoM in September down from a 1.1% rise in August. Expectations had been for a 0.6% increase.
Looking ahead US ISM manufacturing PMI is expected to show a slight move lower to 60.5 in October, down from 61.1 in September.Learn more about the euro
Where next for EUR/USD?
EUR/USD is edging towards yearly lows. It trades below its descending trendline dating back to early June and below its 20 & 50 sma.
Whilst the RSI remains in bearish territory and the failure to break above the 50 sma and falling trendline resistance boosts the bear’s case.
Sellers would need to break through 1.5525 the yearly low in order to target 1.15 round number.
Any recovery would need to retake 1.1580 a level which capped losses across most of last week, in order
Barclays Bank falls after CEO unexpectedly steps down
Jes Staley Barclays chief executive since 2015 has stepped down following the preliminary conclusions of a FCA and PRA probe into his historical links to pedophile Mr Epstein.
Back in May 2020 Mr Staley had been unanimously recommended for re—election at the AGM after the board decided that he had been sufficiently transparent in an account which he had offered on his 15 year business relationship with Epstein provide in February of the same year.
The board and Mr Staley agreed that he will step down as he intends to contest the charges.
Barclays has announced that C.S Venkatakrishnan, head of global market has already assumed the role of CEO.
Where next for Barclays share price?
Barclays share price has fallen on the open, dropping below the rising trend dating back to late September. The MACD also appears to be forming a bearish crossover, keeping the seller’s hopeful.
Immediate support sits at 194p today’s low, with a breakthrough there opening the door to 190p and exposing the 50 sma at 189p. Below here the sellers could gain traction.
Any recovery would need to retake the rising trendline at 198p in order to re-target 204p the recent high.
How to trade with FOREX.com
Follow these easy steps to start trading with FOREX.com today:
- Open a Forex.com account, or log-in if you’re already a customer.
- Search for the market you want to trade in our award-winning platform.
- Choose your position and size, and your stop and limit levels.
- Place the trade.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.