We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • 🇪🇺 EUR German IFO Current Assessment (JAN), Actual: 99.1 Expected: 99.1 Previous: 98.8 https://www.dailyfx.com/economic-calendar#2020-01-27
  • 🇪🇺 EUR German IFO Expectations (JAN), Actual: 92.9 Expected: 94.8 Previous: 93.9 https://www.dailyfx.com/economic-calendar#2020-01-27
  • 🇪🇺 EUR German IFO Business Climate (JAN), Actual: 95.9 Expected: 97.0 Previous: 96.3 https://www.dailyfx.com/economic-calendar#2020-01-27
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.63%, while traders in US 500 are at opposite extremes with 72.23%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/RJrPXJkhLH
  • Heads Up:🇪🇺 EUR German IFO Current Assessment (JAN) due at 09:00 GMT (15min), Actual: N/A Expected: 99.1 Previous: 98.8 https://www.dailyfx.com/economic-calendar#2020-01-27
  • Heads Up:🇪🇺 EUR German IFO Expectations (JAN) due at 09:00 GMT (15min), Actual: N/A Expected: 94.8 Previous: 93.8 https://www.dailyfx.com/economic-calendar#2020-01-27
  • Heads Up:🇪🇺 EUR German IFO Business Climate (JAN) due at 09:00 GMT (15min), Actual: N/A Expected: 97.0 Previous: 96.3 https://www.dailyfx.com/economic-calendar#2020-01-27
  • Bit grim in the equity space this morning...#equities #ftse #stocks Prices via @IGcom @DailyFX https://t.co/oJZHzqpp0O
  • RT @themarketear: China is 35% of luxury goods demand https://t.co/F7Yh97Nmax
  • What are safe-haven assets and how can you trade them? Find out: https://t.co/B9RRWB7sZ0 https://t.co/GIFZkLphCa
Euro May See Correlation with Risk Return as Greece’s Troubles Fade

Euro May See Correlation with Risk Return as Greece’s Troubles Fade

2010-03-29 17:35:00
John Rivera, Currency Analyst
Share:

EUR/USD

The Euro has built upon Friday’s gains as Euro-Zone members agreed to a plan to help aide troubled Greece. The relief rally has started to lose steam despite positive equity markets. The EUR/USD has started to see its correlation with risk diminish as the credit issues n the region had become the main driver. Influence has faded from 43% a month ago to 36% as the pair has started to diverge from equity markets. ECB and FED interest rate expectations have remained anchored which has lessened their impact in direction. If markets start to look past the troubles in the region then we could see risks trends dominate future price action.

0329pd1

ECB Interest Rate Expectations

ECB interest rate expectations have spiked higher following the accord reach by European leaders to help Greece. The ECB will be hard pressed to raise rates if members are struggling to secure financing to fill gaps in their budgets. Nevertheless, the region’s recovery continues to show signs of continuing and if inflation begins to accelerate the central bank may be forced to adhere to their sole mandate of price stability and begin tightening. Upcoming German employment data could impact the outlook for yields as a strengthening labor market in the Euro-Zone’s largest economy will put policy makers on alert as wage inflation is the biggest concern. Discuss this and trading ideas join the EUR/USD forum.

0329pd2

FOMC Interest Rate Expectations

Early forecasts that the U.S. economy added 182,000 in February have failed to help raise the outlook for interest rates as the Fed is expected to remain on hold as long as unemployment remains elevated. Fed funds futures are pricing in a 13.1% chance of a rate hike in June which at the end of last year was the decision that markets were targeting for tightening to begin. Greater than expected job growth may help raise the outlook as many are attributing many of the new hires to the census.

0329pd3

Risk

Stocks extended their gains today as the government’s personal spending report showed a gain for the fifth straight month. The positive consumption today combined with the relief generated from the solution for Greece and the forecast that the economy added jobs in February has raised the outlook for growth. A rising trend line has offer support when needed, but the steady gains give the indication that further upside potential exists. Therefore, if the EUR/USD’s relationship with risk holds then the pair may look to recoup its recent losses. Discuss this and other fundamental data in the Economics Forum.

0329pd4

To discuss this report or be added to the email list contact John Rivera, Currency Analyst: instructor@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.