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
Wall Street
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
More View more
Real Time News
  • Feels like the market has been front-running next week’s FOMC announcement, which will reveal updated dot plot projections. Expectations clearly set for a more hawkish shift in guidance. That said, if the Fed does not deliver, US Dollar bulls could be disappointed. $USD $DXY https://t.co/o2v6ibac3L
  • USD/CAD has been chopping around the past week-and-a-half, offering virtually no cues on its next direction. Get your market update from @PaulRobinsonFX here:https://t.co/eq1YkOa3mC https://t.co/V6h8BjyeGa
  • FDA panel votes 16-3 against approving Covid-19 booster shots - BBG
  • RT @C_Barraud: 🇺🇸 Americans Haven’t Been This Down on #Housing Market Since 1982 - Bloomberg *Link: https://t.co/wWFnbAwIDO https://t.co/6G…
  • US Dollar Price Action Setups Pre-FOMC: EUR/USD, GBP/USD, USD/CAD https://www.dailyfx.com/forex/analyst_picks/todays_picks/james_stanley/2021/09/17/US-Dollar-Price-Action-Setups-pre-FOMC-EURUSD-EUR-USD-GBP-USD-GBPUSD-USD-CAD-USDCAD.html https://t.co/J25MYsXCa9
  • The US Dollar is pushing up to a fresh September high after the release of University of Michigan Consumer Sentiment data. Get your $USD market update from @JStanleyFX here:https://t.co/2CDNZh2a89 https://t.co/bULXuCaHKk
  • I have this $SPX chart taking over one of my whole screens, and I just keep staring at that 50-day moving average... https://t.co/R9LQAuL2DL
  • RT @TheStalwart: Nice chart, which shows why countries in green on the perimeter, like Iran, Peru, and Turkey are known for their stability…
  • Selling pressure strengthening in Wall Street two hours before the close. S&P 500 down roughly 1% intraday, the largest decline since August 18th #trading $SPX $SPY
  • One of the strongest correlation with Bitcoin at the moment is the US 10-Year Treasury yield https://t.co/uZBzJ7yiXf
Dwindling German IFO Business Climate Survey to Rattle EURUSD Rally

Dwindling German IFO Business Climate Survey to Rattle EURUSD Rally

David Song, Strategist

Trading the News: German IFO Business Climate

Updates to Germany’s IFO Business Climate survey may rattle the recent rally in EURUSD as the index is expected to narrow for the third consecutive month in June.

Image of DailyFX economic calendar

A print of 97.5 or lower may produce headwinds for the Euro as it dampens the outlook for growth and puts pressure on the European Central Bank (ECB) to further insulate the monetary union.

In turn the, the ECB may show a greater willingness to implement a negative interest rate policy (NIRP) for the Main Refinance Rate, its flagship benchmark for borrowing costs, as President Mario Draghi insists that “further cuts in policy interest rates and mitigating measures to contain any side effects remain part of our tools.

However, a positive development may keep the ECB on the sidelines, and the Governing Council may largely endorse a wait-and-see approach at the next meeting on July 25 as the central bank prepares to launch another round of Targeted Long-Term Refinance Operations (TLTRO) in September.

Sign up and join DailyFX Currency Strategist David Song LIVE for an opportunity to discuss key themes and potential trade setups surrounding foreign exchange markets.

Impact that the IFO Business Climate survey had on EUR/USD during the last release

Period

Data Released

Estimate

Actual

Pips Change

(1 Hour post event )

Pips Change

(End of Day post event)

MAY

2019

05/23/2019 08:00:00 GMT

99.1

97.9

-5

+41

May 2019 German IFO Business Climate

EUR/USD 5-Minute Chart

Image of eurusd 5-minute chart

Germany’s IFO Business Climate survey narrowed more-than-expected in May, with the index slipping to 97.9 from 99.2 the month prior. A deeper look at the report showed the gauge for current conditions also falling to 100.6 from a revised 103.4 in April, while the index for future expectations unexpectedly held steady at 95.3 amid projections for a 95.0 print.

The Euro struggled to hold its ground following the mixed data prints, but the market reaction was short-lived, with EURUSD bouncing back during the North American session to close the day at 1.1182. Learn more with the DailyFX Advanced Guide for Trading the News.

EUR/USD Rate Daily Chart

Image of eurusd daily chart
  • Keep in mind, the broader outlook for EURUSD is no longer tilted to the downside as both price and the Relative Strength Index (RSI) break out of the bearish formations from earlier this year.
  • With that said, EURUSD stands at risk for a larger correction as the exchange rate clears the April-high (1.1324) after failing to test the 1.1000 (78.6% expansion) handle.
  • The break/close above 1.1340 (38.2% expansion) brings the 1.1390 (61.8% retracement) to 1.1400 (50% expansion) region on the radar as the exchange rate extends the series of higher highs and lows from the previous week, with the next region of interest coming in around 1.1430 (23.6% expansion) to 1.1450 (50% expansion).

Additional Trading Resources

New to the currency market? Want a better understanding of the different approaches for trading? Start by downloading and reviewing the DailyFX Beginners Guide.

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader series on how to effectively use leverage along with other best practices that any trader can follow.

--- Written by David Song, Currency Strategist

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES