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
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
GBP/USD
Bullish
USD/JPY
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
Gold
Mixed
Oil - US Crude
Bullish
Bitcoin
Mixed
More View more
Real Time News
  • RT @CVecchioFX: A question I frequently get asked these days is, "Is it realistic to believe that the US Dollar can lose its role in the gl…
  • LIVE NOW: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=1338844901231735299&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • US 10-Year Notes Draw 1.842% Primary Dealers Accepted: 24.5% Direct Bidders Accepted: 19.4% Indirect Bidders Accepted: 56.1% B/C Ratio: 2.43
  • ⬇️ Highly recommend my fellow volatility fiends give this article a read https://t.co/iQTNxAInvW
  • RT @HuXijin_GT: US Congress passed many China-related bills, China can't respond to all of them. The principle of Chinese government, as I…
  • here we go, starting right now -> https://www.dailyfx.com/webinars/1338844901231735299?webinar=1338844901231735299&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr https://t.co/xx9H1CqID9
  • LIVE IN 5 MINUTES: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=1338844901231735299&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Great comprehensive article on volatility by @PaulRobinsonFX: 'Market Volatility: The Impact of Volatility in Major Financial Markets' https://www.dailyfx.com/forex/fundamental/article/special_report/2019/12/05/Market-Volatility-The-Impact-of-Volatility-in-Major-Financial-Markets.html
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.16%, while traders in US 500 are at opposite extremes with 77.02%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/kaNGUABcNM
  • LIVE IN 15 MINUTES: Join @JStanleyFX as he runs through price action set-ups for the FX and CFDs market. https://www.dailyfx.com/registerToSeminar?webinar=1338844901231735299&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
EUR/USD Eyeing Key Economic Growth Indicators in US and EU

EUR/USD Eyeing Key Economic Growth Indicators in US and EU

2019-04-03 07:30:00
Dimitri Zabelin, Junior Currency Analyst
Share:

TALKING POINTS – EUR/USD, US ISM, EUROZONE GROWTH

  • EURUSD watching for key US, EU econ data
  • Trade tensions rising with threat of auto tariffs
  • Rising EU-based event risk could boost CHF

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

In the last breath of March, EURUSD shaved off almost two percent following the release of numerous underperforming European economic reports and a less-than-optimistic outlook for inflation from ECB President Mario Draghi. The regional slowdown – particularly out of key Eurozone economies such as Germany and France – has emboldened Euro bears as the outlook progressively seems to deteriorate.

Tomorrow, a cascade of key growth indicators will be released, which if in line with the prevailing trend of underperformance in the region, may fall short of estimates and exert further pressure on the already-battered Euro. US ISM data will be released tomorrow, though given the recent trend of underperformance in US economic reports, it is also likely that the indicator will fall short of the 58.0 forecast.

Given that market sentiment is broadly less risk-inclined, it is possible that the US Dollar may rise if local data underperforms. This is due to the Greenback’s unparalleled liquidity and status as the world reserve currency. If growth out of the largest economy in the world appears to be in jeopardy, investors may flock to the Greenback because of an increased demand to park their capital in the safest and most liquid asset.

Lingering fears over the outcome of Brexit will likely continue to dominate headlines as UK lawmakers scramble to avoid a no-deal outcome by the April 12 deadline. There is also the increasing concern over the future of EU-US trade relations as policymakers from both sides prepare for a possible revival of a cross-Atlantic trade war.

As European-based event risks begin to take the spotlight, the Swiss Franc may further strengthen against the Euro if investors begin to pivot from chasing yields to preserving capital. CHF may outperform in this regard relative to the JPY because of its regional proximity to the EU-based event risk. This might explain why the Franc has prospered amid fears of what looks like an increasing probability of a no-deal Brexit.

Year-to-date, EURCHF has already lost over eight percent amid the economic and political turmoil the region faced in 2018 ranging from trade wars to the Italian budget crisis. If the current state of European affairs – politically and economically – worsen, bullish sentiment for Euro (or what’s left of it) would likely evaporate and send EURCHF lower.

CHART OF THE DAY – EUR/CHF

Chart Showing EURCHF

FX TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

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

DISCLOSURES

News & Analysis at your fingertips.