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
Bullish
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
Mixed
Gold
Bearish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • #Brazil benchmark equity index #Ibovespa suffered its biggest one-day decline since May 2017 and broke a 2-year uptrend after news broke that Latin America's largest country reported its first case of #Covid_19. It may be a painful session ahead when local markets open. https://t.co/YFLJD1gCVs
  • Bank of Japan's Kataoka: It is appropriate for the central bank to lower interest rates, BoJ should strengthen forward guidance. Coordination with fiscal policy very important -BBG
  • Looking at my majors-based #Yen index, #JPY could have quite the room to rally on average if there is a deeper turn in equities. The currency has still largely been consolidating since December on average and a break above the January and February highs could mark a bullish trend https://t.co/fIA4BeTmyf
  • The $JPY has lost out to a broadly resurgent US Dollar, with a clearly dwindling band of Yen bulls left to hope that the most recent rise has become overextended. Get your market update from @DavidCottleFX here:https://t.co/7Ndm5jiOi7 https://t.co/nP50B7d4yi
  • The double-edged sword of globalization: Pro: Hyper interconnectedness means everything is transmitted far more quickly. Con: Hyper interconnectedness means everything is transmitted far more quickly.
  • China reports 433 additional #coronavirus cases on February 26 which brings total to 78,497. 29 deaths were also reported bringing total fatalities to 2,744 -BBG
  • Bank of Korea says it will continue to monitor the #COVID19 outbreak (BBG)
  • BREAKING: SOUTH KOREA CONFIRMS AN ADDITIONAL 334 #CORONAVIRUS CASES BRINGING THE TOTAL TO 1595. (BBG)
  • The #Yen may rise after the #WHO reported that most new #coronavirus cases are now emanating outside of China. #SP500 futures are pointing lower with Thursday’s session in focus $USDJPY - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/02/27/Yen-May-Rise-as-Most-New-Coronavirus-Cases-Emerge-Outside-of-China.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/md4R2F0JBe
  • #USDKRW down https://t.co/MJKDR1lPwM
Euro Extends Slide Before U.S. Session Despite G-20 Pledge

Euro Extends Slide Before U.S. Session Despite G-20 Pledge

2011-09-23 13:45:00
Christopher Vecchio, CFA, Sr. Currency Strategist
Share:

Fundamental Headlines

Dow Heads For Worst Weekly Drop since 2008 – Bloomberg

ECB Ready to Act Next Month if Outlook Worsens – Bloomberg

Greek Default Talk Gathers Pace – Reuters

Economic Signals Heighten Worries of a Double-Dip – WSJ

Moody’s Downgrades 8 Greek Banks – WSJ

European Session Summary

As equity markets head towards fresh lows on the year, there has been a significant move away from risk across the globe. While the carnage is not as evident in the United States, where equity markets had been floating higher before this week, major exchanges in Europe have painted a different picture. Headed into today, the three major U.S. indexes were down between 10 and 15 percent for the quarter; the five major European exchanges were down as much as 35 percent.

In light of worries of a double-dip recession by policymakers, the G-20 finance ministers released a statement last night promising to act together to tackle “renewed” challenges faced by the global economy. The statement said that policymakers are “committed to a strong and coordinated international response.” Although the statement was intended to ease investor fears, futures were barely changed on the move. In fact, headed into the hours ahead of the North American session open, the major Asian and European equity markets were all significantly in the red. It’s clear that words no longer suffice as a method of soothing fears of another global economic slowdown, and until substantial coordinated policy is set forth, worries will continue to grow.

AUD/USD 5-minute Chart: September 23, 2011

Euro_Extends_Slide_Before_U.S._Session_Despite_G-20_Pledge_body_x0000_i1028.png, Euro Extends Slide Before U.S. Session Despite G-20 Pledge

Charts created using Strategy Trader– Prepared by Christopher Vecchio

Trade was choppy in the currency markets, which saw multiple currencies, including the Australian Dollar and the European Euro, set multi-month lows against the U.S. Dollar ahead of the North American session open. However, within an hour before trading in New York began, risk saw some bids higher as equities’ futures turned higher. In fact, at the time this report was written, the Aussie had turned positive on the day against the U.S. Dollar. With no significant events on the economic docket, trading volume and price action should thin out after Europe closes.

Thus far, on Friday, the Dow Jones FXCM Dollar Index is relatively unchanged, trading at 9923.43, at the time this report was written, after opening at 9924.03. The index has traded mostly higher, with the high at 9991.99 and the low at 9911.02.

24-Hour Price Action

Euro_Extends_Slide_Before_U.S._Session_Despite_G-20_Pledge_body_Picture_1.png, Euro Extends Slide Before U.S. Session Despite G-20 PledgeEuro_Extends_Slide_Before_U.S._Session_Despite_G-20_Pledge_body_Picture_4.png, Euro Extends Slide Before U.S. Session Despite G-20 Pledge

Key Levels: 12:40 GMT

Euro_Extends_Slide_Before_U.S._Session_Despite_G-20_Pledge_body_Picture_7.png, Euro Extends Slide Before U.S. Session Despite G-20 Pledge

Written by Christopher Vecchio, Currency Analyst

To contact the author of this report, please send inquiries to: cvecchio@dailyfx.com

Follow Christopher Vecchio on Twitter: @CVecchioFX

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

DISCLOSURES

News & Analysis at your fingertips.