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September 19th - A weekly survey by the American Association of Individual Investors (AAII) shows that investor sentiment has further deteriorated, falling to its lowest level since 2025, as oil prices remain high and the Federal Reserve raises interest rates for the first time since 2023. The latest survey released by the AAII on Friday shows that 53.3% of surveyed investors are bearish, more than half. Only 28.8% of investors are bullish, the lowest level in a year. Charles Rothbrook, vice president of the AAII, stated in a statement that overall, the difference between the number of bulls and bears in the market has fallen to -24.5%, a level that is "unusually low" and has been below the historical average of 6.5% for the ninth consecutive week. This is also the lowest level of this indicator since May 2025. The latest survey also shows that more than half of the respondents hold higher-than-normal cash allocations, indicating that investors are cautious. Among them, 19.1% of respondents said their cash allocations were "significantly higher than normal."September 19th - According to CBS, shipping through the Bab el-Mandeb Strait continues to be disrupted due to the Houthi rebels recent expansion of influence along the Red Sea coast, resulting in a significant decline in Saudi export shipments. Data from shipping company Kpler shows that in the past seven days, only five ships carrying Saudi products have passed through the Bab el-Mandeb Strait to leave the Red Sea, far below one-third of the average seven-day period this year. The previous weeks record was 11 ships in the week of July 24th. The Bab el-Mandeb Strait is one of the most important channels for Saudi oil exports. The Houthi rebels currently state that navigation in the area is not threatened except for Saudi vessels, but the market is concerned that any attacks could reduce shipping companies willingness to use the route. Data shows that the volume of commodity tanker traffic through the Bab el-Mandeb Strait has been below normal levels in the past seven days, but has not been completely disrupted.According to Punchbowl, the latest estimates submitted by U.S. Central Command to the Congressional Defense Committee show that, as of September 3, the cost of U.S. military operations against Iran has reached $43.6 billion.According to CBS: Data shows that Saudi Arabia’s exports through the Bab el-Mandeb Strait remain sluggish, with weekly traffic volume since early August less than a third of the seven-day average this year.Iranian Parliament Speaker Qalibaf: The era of US F-35 and F-15 fighter jets being tracked and attacked has begun. "What used to be a terrible nightmare has now become a reality."

EUR/USD Trades in a 1.0780-1.0800 Range as Attention Turns to Fed Chairman Powell and ECB President Lagarde's Speeches

Drake Hampton

Apr 20, 2022 09:49

The EUR/USD pair is trading sideways within a narrow range of 1.0780-1.0798 as the US dollar index (DXY) maintains its stability following an attack on the round level resistance of 101.00 during the Asian session. Market players are anticipating Thursday's dictations from Federal Reserve (Fed) Chairman Jerome Powell and European Central Bank (ECB) President Christine Lagarde.

 

The asset has been drifting lower this month, owing to the Fed's and ECB's divergent approaches to their different interest rate policies. On the one hand, the Fed appears to be torn between a 50-basis-point (bps) or 75-basis-point (bps) rate hike and a 75-basis-point boost, despite the fact that a rate hike is impending to limit the inflation issue.

 

Meanwhile, supply chain constraints and rising energy prices have left the ECB with no choice but to maintain a neutral position. Following Russia's invasion of Ukraine, the eurozone has seen sluggish growth, which is projected to persist for an extended period. Increased energy expenditures reduce households' real incomes and, as a result, their trust in the European economy. This has also fueled fears of stagflation in Europe, complicating the ECB's decision-making.

 

Investors will be watching the publication of the Eurozone's Industrial Production during the Europe session. Monthly Industrial Production is predicted to come in at 0.7 percent, while the catalyst may come in at 1.5 percent on a yearly basis.

EUR/USD

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