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
Bearish
GBP/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
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
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • My pleasure! https://t.co/R7ArKNjCNO
  • The range in USD/CAD broke with aggression this week as CAD sellers pushed the currency after the Bank of Canada rate decision. Get your $USDCAD technical analysis from @JStanleyFX here: https://t.co/8oHoLLqvtR https://t.co/8ZXx6GbKAn
  • The $USD may fall against the Swedish Krona and Norwegian Krone if commentary from officials at the Davos forum uplift market mood and pressure haven-linked currencies. Get your market update from @ZabelinDimitri here: https://t.co/CPmNJSgHXY https://t.co/RdM0cbyfSf
  • The $AUD is pressuring four-month trend support against its US counterpart as sellers fight to reassert the dominant, long-term downtrend. Get your market update from @IlyaSpivak here:https://t.co/Bup64Arva9 https://t.co/CpraRXneTJ
  • The British Pound may fall as #Brexit commences, but will the Bank of England cut rates? The US Dollar could rise if the Fed spooks markets with plans to unwind repo operations $GBPUSD #BoE #GBP #Sterling - https://www.dailyfx.com/forex/fundamental/forecast/weekly/gbp/2020/01/26/British-Pound-May-Yet-Fall-on-Brexit-BoE-and-Fed-Are-Risks.html?CHID=9&QPID=917702 https://t.co/v39NsmOCwa
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/5VQdkbIqTo
  • Last week was more of the same, a narrowing range following the UK general election fireworks; GBP/USD has a couple of clear signposts to keep an eye on. Get your $GBPUSD technical analysis from @PaulRobinsonFX here: https://t.co/3pJfj0w2AX https://t.co/Cm6zhnBSGR
  • The $AUD is pressuring four-month trend support against its US counterpart as sellers fight to reassert the dominant, long-term downtrend. Get your market update from @IlyaSpivak here: https://t.co/Bup64Arva9 https://t.co/OLpavqPOVA
  • RT @globaltimesnews: A total of 1,052 cases of #coronavirus have been reported as of Jan 25 in #Hubei Province, with 129 in critical condit…
  • RT @FactSet: $SPX is reporting revenue growth of 2.9% for Q4, led by the Health Care (11%), Utilities (9%), and Communication Services (9%)…
Euro Remains Under Pressure Ahead of ECB Rate Decision

Euro Remains Under Pressure Ahead of ECB Rate Decision

2010-05-05 16:05:00
Michael Wright, Currency Analyst
Share:

ft
Fundamental Outlook
The European Central Bank is widely expected to keep their benchmark interest rate unchanged at 1.00% amid the brewing sovereign debt crisis. Policy makers are also unlikely to remove stimulus measures until the crisis is over in order to aid governments who are slashing spending to cut their deficits. Ahead of tomorrow’s release, inventors are weighing in a zero percent chance that the central bank will increase rates twenty five basis points, according to the Credit Suisse Overnight index swaps. During their semi-annual report, the European Committee raised its 2010 GDP forecast 0.9% from 0.7% as European companies step up their output to meet reviving global demand even as domestic consumption is static. At the same time, the European Union lowered its deficit forecast to 6.6% from 6.9%, and went onto say that the economy faces unusual impediments and significant headwinds.

It appears to be almost certain that rates will be left on hold following the Euro-Zone inflation estimate for April which hinted that prices rose at an annual pace of 1.5%, staying comfortably below ECB’s target of 2%. Indeed, growth has been tepid at best in the euro-area and with the onset of the Greek debt crisis, the ECB has few tools at its disposal to stop the region from slipping further. Adding on further pressure, Moody’s investor services said that it may cut its rating on Portugal for the first time as the country tries to reduce its deficit and revive economic growth. In Spain, the country’s first quarter unemployment rate jumped to 20.06% as the government fails to restructure its economy. In all, central bank President Jean-Claude Trichet’s post-announcement press conference is likely to stay firmly focused on issues related to the Greece, Portugal, and Spain.

Related articles:

Euro Extends Two Day Nose Dive Amid Greek Debt Contagion Fears, British Pound Halts Three Day Decline

Technical Outlook


EUR/USD
eur05.05

EUR/USD: Taking a look at the 10 year chart, the pair looks to have broken below an eight year rising trend, and focus now turns to the 138.2% Fibonacci projection at 1.2564. It is noteworthy that the pair has tumbled into oversold territories, and short term bounce may be likely in the near term. However , traders should not discount a period of consolidation before we see further declines.


For More Technical Analysis Visit the DailyFX Technical Page


Written by Michael Wright, Daily FX Research
Questions? Comments? Email me at 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.