Two trades to look at EURUSD and Barclays

Two trades to look at EURUSD and Barclays

EUR/USD rises after the Fed, with German inflation and US GDP in focus

EUR/USD rose 0.9% within the earlier session and is extending as we speak’s larger transfer.

USD trades below stress after Fed financial coverage announcement. The Fed, as anticipated, raised charges by 75 foundation factors.

Nevertheless, Fed Chairman Jerome Powell mentioned there have been indicators of weak point within the financial system, significantly round spending and output. Whereas he didn’t rule out a hike of greater than 75 foundation factors, he did say the Fed would not supply ahead steering.

The market interpreted the assembly as average, pushing the USD decrease. Fed Powell mentioned the US was not but in recession. With that in thoughts, the main focus might be on US GDP information. U.S., which is anticipated to point out a rebound to 0.4% progress after contracting -1.6% within the first quarter.

In Europe, all eyes might be on German inflation information, which is anticipated to fall to eight.1% year-on-year in July, down from 8.2% in June, marking the third consecutive month of falling inflation.

The place subsequent for EUR/USD?

After bouncing again from the 2022 low of EUR/USD 0.9952, it has up to now struggled to maneuver considerably above the 20 sma. At present the worth is rising above the 20 sma, which, mixed with the bullish MACD, retains patrons hopeful that they are going to be extra keen.

Resistance may be seen at 1.0280, final week’s excessive, with a breakthrough right here opening the door to 1.0340, the Might low.

If the 20 sma will not be damaged, the pair could fall to 1.01, the weekly low. A break beneath right here opens the door to 1.00 and 0.9952, the 2022 low.

Barclays falls after first-half revenue hunch

Barclays is falling after disappointing income within the first six months of the 12 months. The British financial institution reported an enormous £1.9 billion hit from a conduct cost associated to the price of having to purchase again billions of {dollars} value of securities, which it bought by mistake.

Pre-tax income got here in at £3.7bn, down from £4.9bn in the identical interval a 12 months earlier. This was additionally beneath the anticipated 33.9 billion.

Regardless of the massive success, the financial institution confirmed a dividend of two.5p. per share and a £500m share buyback programme, though this isn’t serving to to stem the losses.

Elsewhere, Barclays reported a robust efficiency in its funding banking enterprise, with buying and selling division income up 48%. Like its peer Goldman Sachs, Barclays is thought for the standard of its operations, and as we speak’s outcomes stand out. The mounted revenue, international trade and commodities enterprise reported a 51% enhance in income.

In the meantime, advisory payment revenue fell 31% as offers dried up amid uncertainty brought on by the Ukraine battle.

The place is Barclay’s share worth?

After assembly resistance at 162p, the share worth has fallen beneath the 50 sma and the downtrend line, which mixed with the bearish crossover formation on the MACD suggests additional losses might be on the playing cards.

Sellers might want to go beneath the 20 sma at 153p to open the door to the 145p July low, with a break beneath right here making a decrease low and bringing 139p the 2022 low into goal.

If the 20 sma holds, patrons will look to interrupt above the 50 sma at 158p and 163p July excessive. An increase above right here takes the Might excessive of 173p to the goal.

Barclays share price is up for grabs after earnings

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