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
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
  • All eyes on the Fed on Wednesday as investors weigh on chances of a taper announcement. Get your weekly equities forecast from @HathornSabin here: https://t.co/Cv06XcvldF https://t.co/I12g2YPkdE
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/KsPiWBysiR
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/iUvhLfQgcK
  • The US Dollar caught a bid in the late part of last week to set a fresh September high. FOMC is around the corner, are bulls going to be able to push for another fresh high? Get your weekly US Dollar forecast from @JStanleyFX here: https://t.co/ZkDHyV1VhM https://t.co/w5sPChKdNx
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/bde30KM8OE
  • The Australian Dollar remains vulnerable to most of its major counterparts, with AUD/USD and AUD/JPY resuming losses. Did AUD/NZD bottom? AUD/CAD may consolidate. Get your weekly Australian Dollar forecast from @ddubrovskyFX here: https://t.co/sjh91mjtXs https://t.co/dGT067zKnH
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/VLZQhrQTAf
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/j5xDAG6LLb
  • While the meetings of central bankers in the US, Japan and the UK will be front, left and center of traders’ minds this coming week, it would be wise not to ignore next Sunday’s German Federal Election. Get your euro forecast from @MartinSEssex here: https://t.co/m920Uvmngm https://t.co/yQYtfHf66s
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/Dqq9S9vGvo
Euro May Fall as EU, Italy Budget Battle Heats Up

Euro May Fall as EU, Italy Budget Battle Heats Up

Ilya Spivak, Head Strategist, APAC

TALKING POINTS – EURO, ITALY, EUROPEAN COMMISSION, EU

  • European Commission may push back against Italy on budget
  • EDP trigger likely to stoke uncertainty, weighing on the Euro
  • G10 currencies in corrective mode after sweeping risk aversion

European politics are back in focus for currency markets, with Italy now in the spotlight. The European Commission will report on the country’s budget, which it has said breaches the regional bloc’s fiscal rules. For its part, Rome has balked at amending its position.

This puts Brussels in a difficult position. A tough punitive stance is likely to be spun as evidence of supranational overreach and used as fodder to support the very same type of anti-establishment politicians now in power in Italy. Looking the other way might embolden others to break the rules however.

Taking the unprecedented step of activating the Excessive Deficit Procedure (EDP) may be next. That would put Italy on notice and hit it with a fine of 0.2 percent of GDP. The money may be treated as a deposit and returned if Rome cleans up its act within 3-6 months. Otherwise, escalation would follow.

Since no country has been subject to EDP proceedings before, uncertainty surrounding it is likely to spook markets and push Italian borrowing costs higher. EU authorities may be angling for just such an outcome, hoping that market discipline of this kind will inspire swift compliance without the find being permanent.

While this may be as close as Brussels comes to finding a middle path between over- and under-reacting to the Italian government’s obstinate position, the Euro is likely to suffer. Absent precedent, traders may opt to divest themselves of EUR exposure until greater clarity emerges.

G10 CURRENCIES RETRACE AFTER BRUTAL RISK AVERSION

The Australian and New Zealand Dollars corrected higher while the US Dollar and Japanese Yen retreated as a corrective mood settled over the G10 FX space. The moves mark retracement in trading patterns at work amid brutal risk aversion yesterday.

See our free guide to learn how to use economic news in your trading strategy!

ASIA PACIFIC TRADING SESSION

Asia Pacific Trading Session Economic Calendar

EUROPEAN TRADING SESSION

European Trading Session Economic Calendar

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

FX TRADING RESOURCES

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

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

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

DISCLOSURES