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
Mixed
More View more
Real Time News
  • Japanese Chief Cabinet Secretary Kato: - Vaccine schedule can't be fixed before approval - Tokyo area still facing severe Covid situation - BBG $USDJPY
  • The British Pound may continue gaining ground against its haven-associated counterparts in the near term. However, the currency may give up gained ground against the New Zealand Dollar.Get your $GBP market update from @DanielGMoss here:https://t.co/cIp4BfbsXT https://t.co/VS6g0Z3FKO
  • Not the most common of the Dollar-based majors, but $NZDUSD has tentatively broken its persistent bull trend while net spec futures positioning (COT) hit its highest level since May 2018 https://t.co/4HUxRWqzN4
  • 🇨🇳 FDI (YTD) YoY (DEC) Actual: 6.2% Previous: 6.3% https://www.dailyfx.com/economic-calendar#2021-01-20
  • Wall Street Futures Update: Dow Jones (+0.13%) S&P 500 (+0.21%) Nasdaq 100 (+0.43%) [delayed] -BBG
  • While the US Dollar has been holding its ground, its downside bias against the Singapore Dollar, New Taiwan Dollar Thai Baht and Indonesian Rupiah remains intact as it hovers at support. Get your market update from @ddubrovskyFX here:https://t.co/p7gAztWuVG https://t.co/lsTW6x9gIL
  • Asia-Pacific stocks look set to trade higher after US Treasury secretary nominee Janet Yellen showed her support to Biden’s US$ 1.9 trillion fiscal stimulus plan - a boost to energy, industrial and information technology sectors in particular. https://t.co/VSSHeXgtGF
  • The US Dollar may be finding a turning point against ASEAN currencies as smaller fiscal stimulus bets, soft earnings risk and Covid cases translate into some capital flight from equities. Get your #ASEAN currencies market update from @ddubrovskyFX here:https://t.co/F3uz5GHMSd https://t.co/OfexTM6SnX
  • Heads Up:🇺🇸 Joe Biden's Inauguration due at 00:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-20
  • Heads Up:🇦🇺 Westpac Consumer Confidence Index (JAN) due at 23:30 GMT (15min) Previous: 112 https://www.dailyfx.com/economic-calendar#2021-01-19
Forex Analysis: Euro Eyes EU FinMin Summit, Aussie Gains on RBA Bets

Forex Analysis: Euro Eyes EU FinMin Summit, Aussie Gains on RBA Bets

Ilya Spivak, Head Strategist, APAC

The Euro is looking for further progress at a summit of EU finance ministers to extend its rally while the Aussie gains as the RBA downplays rate cut outlook.

Talking Points

  • Euro Looks for Bank Regulation Deal at EU Summit to Extend Rebound
  • Australian Dollar Gains as RBA Pours Cold Water on 2013 Rate Cut Bets

All eyes are on a meeting of EU finance ministers in European trading hours, where policymakers are due to focus on the issue of a single bank supervisor. Leaders of the common market agreed in June to set this as a precondition to allowing the EFSF/ESM bailout facilities to recapitalize regional banks directly without funneling funds through the governments of member states (which otherwise increases sovereign debt levels). Progress on this front is likely to be viewed favorably by the Euro as well as risk appetite at large, and vice versa.

The Australian Dollar outperformed in overnight trade, rising against all of its leading counterparts despite a decision to cut interest rates to 3 percent by the RBA. The reduction was widely expected, with data from Credit Suisse suggesting markets were pricing in the probability of a 25bps reduction at over 90 percent. This turned forex traders’ attention away from the change in the lending rate itself and toward guidance for future policy. RBA Governor Glenn Stevens projected no urgency in continuing the easing cycle, saying the effects of past efforts are yet to be felt in the overall economy. This was perceived as denting the likelihood of further rate cuts in the near term, sending the Aussie higher.

Asia Session: What Happened

GMT

CCY

EVENT

ACT

EXP

PREV

23:50

JPY

Monetary Base (YoY) (NOV)

5.0%

-

10.8%

0:00

NZD

ANZ Commodity Price (NOV)

1.0%

-

1.4%

0:01

GBP

BRC Sales Like-For-Like (YoY) (NOV)

0.4%

0.9%

-0.1%

0:30

AUD

Building Approvals (MoM) (NOV)

-7.6%

-1.6%

9.5%

0:30

AUD

Current Account Balance (A$) (3Q)

-14900M

-14550M

-12369M

0:30

AUD

Current Account Balance (3Q)

0.1

0

0.3

0:30

AUD

Building Approvals (YoY) (OCT)

14.50%

20.2%

14.3%

1:30

JPY

Labor Cash Earnings (YoY) (OCT)

0.2%

-

-0.5%

3:30

AUD

Reserve Bank of Australia Rate Decision

3.00%

3.00%

3.25%

Euro Session: What to Expect

GMT

CCY

EVENT

EXP/ACT

PREV

IMPACT

8:00

EUR

EU-27 Finance Ministers Meet in Brussels

-

-

High

9:30

GBP

PMI Construction (NOV)

49.3 (A)

50.9

Medium

10:00

EUR

Euro-zone PPI (YoY) (OCT)

2.6% (A)

2.7%

Medium

10:00

EUR

Euro-zone PPI (MoM) (OCT)

0.1% (A)

0.2%

Medium

Critical Levels

CCY

SUPPORT

RESISTANCE

EURUSD

1.2992

1.3137

GBPUSD

1.6023

1.6184

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @IlyaSpivak

To be added to Ilya's e-mail distribution list, please CLICK HERE

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

DISCLOSURES