News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Bullish
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
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • 🇲🇽 Economic Activity YoY (APR) Actual: 22.33% Expected: 21.7% Previous: 0.8% https://www.dailyfx.com/economic-calendar#2021-06-25
  • 🇲🇽 Economic Activity YoY (APR) Actual: 22.3% Expected: 21.7% Previous: 0.8% https://www.dailyfx.com/economic-calendar#2021-06-25
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 89.81%, while traders in GBP/JPY are at opposite extremes with 70.72%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/AcZYvlrDPz
  • Heads Up:🇬🇧 BoE Quarterly Bulletin due at 11:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-06-25
  • Heads Up:🇲🇽 Economic Activity YoY (APR) due at 11:00 GMT (15min) Expected: 21.7% Previous: 0.8% https://www.dailyfx.com/economic-calendar#2021-06-25
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/ej8BfvKvhP
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 0.88% Gold: 0.36% Oil - US Crude: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ZMIZgYhtKC
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.11% 🇯🇵JPY: 0.11% 🇨🇦CAD: 0.10% 🇪🇺EUR: 0.07% 🇦🇺AUD: 0.07% 🇬🇧GBP: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/0kNdpPogmw
  • 🇫🇷 Unemployment Benefit Claims (MAY) Actual: -133.7K Previous: 65.9K https://www.dailyfx.com/economic-calendar#2021-06-25
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.29% US 500: 0.11% FTSE 100: 0.03% Germany 30: -0.09% France 40: -0.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/0IHtbaanwG
ECB's Draghi Promised "Whatever it Takes" - Here's Why it Hasn't Worked

ECB's Draghi Promised "Whatever it Takes" - Here's Why it Hasn't Worked

Christopher Vecchio, CFA, Senior Strategist

THE TAKEAWAY: It's been one year since European Central Bank President Mario Draghi promised to do "whatever it takes" to save the Euro > European economies and financial markets remain stressed > Empty promises leave Euro at clear structural risks > EURUSD BEARISH

Happy anniversary, Euro.

The pundits are out in full force today celebrating the one-year anniversary of ECB President Draghi’s promise that the ECB would do “whatever it takes” to save the Euro. The anniversary coincides with what Senior Technical Strategist Jamie Saettele calls an important near-term top as the EURUSD approaches levels not seen since the June 19 FOMC meeting.

But when looking in the rearview mirror, from an FX rates perspective, all has been well: the EURUSD has climbed from a yearly low of $1.2041 on July 24, 2012 to above 1.3200 today, an impressive +10% gain.

Similarly, sky rocketing Italian and Spanish bond yields – the main reason for President Draghi’s proclamation – have come down sharply, putting a lid on concerns for dissolution of the Euro-Zone.

In reality, because the Euro-Zone’s problems have moved beyond financial markets and into the real economies, here is what President Draghi’s “whatever it takes” really achieved: record high Unemployment Rates.

ECBs_Draghi_Promised_Whatever_it_Takes_Heres_Why_it_Hasnt_Worked_body_Picture_1.png, ECB's Draghi Promised "Whatever it Takes" - Here's Why it Hasn't Worked

Since the end of the 3Q’12 to the end of the 2Q’13, here’s what has changed in the Euro-Zone’s closely-watched labor markets:

- Euro-Zone: 11.5% to 12.1%

- Spain: 25.5% to 26.5%

- Greece: 24.6% to 27.4%

- Italy: 10.8% to 11.9%

- Portugal: 15.8% to 17.7%

When all is said and done, if President Draghi’s “whatever it takes” doesn’t address the underlying economic issues that are worsening the Euro-Zone’s labor market crisis, then there is little reason to believe that the Euro’s problems have gone away at all.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

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

DISCLOSURES