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
USD/JPY
Mixed
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
Bearish
Bitcoin
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
More View more
Real Time News
  • RT @lisaabramowicz1: U.S. investment-grade bonds are still very much in a sweet spot. Spreads on the debt have fallen to the lowest since M…
  • 🇺🇸 USD MBA Mortgage Applications (NOV 8), Actual: 9.6% Expected: N/A Previous: -0.1% https://www.dailyfx.com/economic-calendar#2019-11-13
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.56%, while traders in France 40 are at opposite extremes with 83.09%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/rivYzCbCp2
  • Heads Up:🇺🇸 USD MBA Mortgage Applications (NOV 8) due at 12:00 GMT (15min), Actual: N/A Expected: N/A Previous: -0.1% https://www.dailyfx.com/economic-calendar#2019-11-13
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/6rBo32FNxJ
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Silver: 1.11% Gold: 0.59% Oil - US Crude: -0.75% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/6kJZ63Pjzt
  • Gold Price Forecast: XAU/USD Sellers May Press Towards 200-DMA More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/xau-usd/2019/11/13/Gold-Price-Forecast-XAUUSD-Sellers-May-Press-Towards-200-DMA-MK.html?CHID=9&QPID=917714 https://t.co/SQ7fHrZH6K
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.96% 🇨🇭CHF: 0.28% 🇬🇧GBP: 0.06% 🇪🇺EUR: 0.02% 🇦🇺AUD: -0.23% 🇨🇦CAD: -0.25% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/PY232tlY6W
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: US 500: -0.34% Wall Street: -0.36% France 40: -0.65% Germany 30: -0.88% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/bsxMTEZKqp
  • The $JPY continues to crumble against a broadly supported US Dollar. $USDJPY may consolidate shortly but there’s little sign of a durable reversal. Get your market update from @DavidCottleFX here:https://t.co/YfHQibPlux https://t.co/bNjsogVUOg
ECB Sinks EUR/USD Towards July 2017 Lows, Chinese Trade Data Next

ECB Sinks EUR/USD Towards July 2017 Lows, Chinese Trade Data Next

2019-03-08 00:00:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open Talking Points

  • Risk appetite deteriorated after dismal ECB economic projections
  • EUR/USD sunk through support levels, eyeing June 2017 lows next
  • Markets eye China trade data to monitor impact of slowing growth

Build confidence in your own EUR/USD strategy with the help of our free guide!

Key FX Developments Thursday

The Euro depreciated following a significantly more dovish-than-expected ECB rate decision. The European Central Bank, after leaving interest rates unchanged, envisioned keeping it that way through this year. Previously, policymakers were envisioning an increase at some point beyond this summer. The central bank also announced that TLTROs, another stimulus tool, will begin from September 2019.

Despite the news of lower rates for longer, which can bode well for equities, and indeed the Euro Stoxx 50 initially rallied on the news, stocks turned lower in the aftermath. This may have been due to Eurozone 2019 growth estimates being significantly weakened from 1.7% to 1.1% in 2019. Meanwhile, global growth is slowing. China’s GDP is at a decade low and Italy recently entered a technical recession.

EUR/USD Technical Analysis - Eyeing June 2017 Lows

EUR/USD declined about 1%, suffering its worst day since the beginning of January. The Euro dropped through multiple support areas, exposing June 2017 lows at 1.1119. Near-term resistance appears to be 1.1217 which was as low as prices got in 2018. With that in mind, EUR/USD seems to be resuming its dominant downtrend from April.

EUR/USD Daily Chart

ECB Sinks EUR/USD Towards July 2017 Lows, Chinese Trade Data Next

Chart Created in TradingView

With that in mind, another central bank that turned increasingly pessimistic about the outlook had knock-on effects for trading during the Wall Street session. The S&P 500 declined 0.81%, extending its losing streak to 4 days, which was the longest since the middle of December. The haven-linked US Dollar understandably appreciated as well as the anti-risk Japanese Yen.

Friday’s Asia Pacific Trading Session

S&P 500 futures are pointing cautiously higher, perhaps indicating that there is room for a breather when Asia Pacific stock markets trade. At an unspecified time during the APAC session, China’s February trade report is expected to cross the wires. Markets will continue gauging the global impact of slower growth on the world’s second-largest economy.

US Trading Session Economic Events

ECB Sinks EUR/USD Towards July 2017 Lows, Chinese Trade Data Next

Asia Pacific Trading Session Economic Events

ECB Sinks EUR/USD Towards July 2017 Lows, Chinese Trade Data Next

** All times listed in GMT. See the full economic calendar here

FX Trading Resources

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES

News & Analysis at your fingertips.