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.

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
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Heads Up:🇳🇿 Services NZ PSI (DEC) due at 21:30 GMT (15min) Previous: 46.7 https://www.dailyfx.com/economic-calendar#2021-01-25
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.70% FTSE 100: 0.67% France 40: 0.59% US 500: 0.03% Wall Street: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/3K94pQai89
  • Gold holding steady as stocks, dollar remain relatively flat during trade $XAU $USD https://t.co/DOS8MlnGWa
  • The US economy will be in particular focus over the coming days, with the first Federal Reserve rate decision of the Biden presidency and the initial Q4’20 US GDP report on the docket. Get your market update from @CVecchioFX here:https://t.co/IsXHxRNVvv https://t.co/xnYIDGwvDL
  • Germany will not be able to stick to debts limits in constitution for years - Handelsblatt
  • The FTSE 100 has extended its pullback from trendline resistance (stemming from the 2009 low) with the index shedding 0.6% for the week. Get your #FTSE market update from @JMcQueenFX here:https://t.co/ZH3mu1MlEx https://t.co/NHPRYQIVDB
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Gold: -0.01% Oil - US Crude: -0.02% Silver: -0.48% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ra1oz2gMJz
  • WTI Crude futures settle up 0.96%, at $52.77 - BBG
  • I'm not usually big with head and shoulders patterns but there are conflicting signals in $USD atm. 1st chart here is on h4 and it's a h&s with neckline ~ 90. 2nd chart is on h8, and its an inverse h&s with neckline ~ 91. Given calendar, a break this week can def happen. https://t.co/EuuD7kFDVP
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in GBP/JPY are at opposite extremes with 66.31%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/lXqkGmTKFc
Taper Talks and Change in ECB Expectations Send Bond Prices Lower

Taper Talks and Change in ECB Expectations Send Bond Prices Lower

Benjamin Spier, Technical Strategist

EUROPEAN SESSION UPDATE: Although European stocks are trading higher after the PMI beats, bond prices are lower along with the Euro against the US Dollar

Want to trade with proprietary strategies developed by FXCM? Find out how here.

The biggest headline of the European session was the better than expected rise in Euro-zone PMI’s for August to two-year highs. Although European equity indexes reacted positively to the news by rising significantly, the Euro has not shown any major gains in today’s trading.

Furthermore, although European equities and US futures are trading higher, European bond prices are significantly lower today. UK 10-year bond yield is trading 4.9 bps higher at the time of this writing, and Italian benchmark yield is trading 2.2 bps higher. The weird divergence in the direction of equities and bonds may be due to further effects of the ‘Septaper’ talks, which were reinforced by yesterday’s release of the FOMC minutes.

Also announced in the Euro-zone today, Citigroup no longer expects the ECB to cut interest rates in Q4, and the bank expects rates to remain unchanged for a longer period. The change in expectations for further monetary loosening probably stems from the rise in Euro-zone GDP in Q2, and any expectations for hawkish central bank policy may have been recently fanned by comments from the Bundesbank saying the ECB may still raise the target interest rate.

Finally, Greece has returned as a topic of interest for European leaders, as many of them are discussing the possibility that Greece will require more aid. Today, Eurogroup head Dijsselboem said that Greece will need another aid package, probably when the current aid package ends at the end of 2014.

The Euro continues to trade slightly above 1.3325 against the US Dollar. A 6-month high recently set at 1.3451 may provide resistance here, and a broken resistance line around 1.3180 may provide support.

New to Forex? Watch this video

EURUSD Daily: August 22, 2013

Taper_Talks_and_Change_in_ECB_Expectations_Send_Bond_Prices_Lower_body_eurusd_daily_chart.png, Taper Talks and Change in ECB Expectations Send Bond Prices Lower

Chart created by Benjamin Spier using Marketscope 2.0

-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to instructor@dailyfx.com .

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

DISCLOSURES