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
Bullish
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
Wall Street
Bullish
Gold
Mixed
GBP/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
USD/JPY
Mixed
More View more
Real Time News
  • The Indian Rupee has been rising despite a surge in local Covid cases, owing to rising yields amid a temporary flood of US Dollars into the banking system. INR remains at risk, eyeing CPI data. Get your market update from @ddubrovskyFX here:https://t.co/6r7hahVtx4 https://t.co/a0z46Q0Mn4
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/tnF1RME8gJ
  • Top event risk on my radar for the week ahead: Musk on SNL (Sat); run of Fed speak with Brainard, Williams, Bostic (Tues); US CPI and UK GDP (Wed); Mexico central bank rate decision (Thur); US earnings - PLTR, BABA, ABNB, DASH, DIS (Tues-Thur). What are you watching?
  • It starts. This man is living the life. https://t.co/YhD4oMNAFG
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.82% 🇦🇺AUD: 0.77% 🇨🇭CHF: 0.75% 🇳🇿NZD: 0.62% 🇯🇵JPY: 0.46% 🇨🇦CAD: 0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/j5I6Gut0CR
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Gold: 0.85% Silver: 0.53% Oil - US Crude: -0.18% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/wZsuyfwuv1
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 88.33%, while traders in Wall Street are at opposite extremes with 77.43%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/IrlL0LEJe3
  • Fresh projections coming out of the Bank of England (BoE) instills an improved outlook for the $GBP. Get your market update from @DavidJSong here:https://t.co/BNicSsCTZG https://t.co/2tjCVIx1Vp
  • Gold Price Forecast: Gold Bulls Re-Ignite Big-Picture Bullish Trend https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2021/05/07/gold-price-forecast-gold-bulls-re-ignite-big-picture-bullish-trend.html $Gold https://t.co/TaJCgg0w0T
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: France 40: 0.24% Germany 30: 0.17% FTSE 100: 0.17% Wall Street: 0.01% US 500: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/WlYaH7FiDo
EURUSD May Break Key Support if PMI Data Fuels ECB Rate Cut Bets

EURUSD May Break Key Support if PMI Data Fuels ECB Rate Cut Bets

Dimitri Zabelin, Analyst

ECB RATE DECISION, EUROZONE,EURUSD – TALKING POINTS

  • Eurozone PMI data may undershoot expectations, fuel ECB rate cut bets
  • EURUSD as a result may puncture lower lip of critical support channel
  • Traders may wait to commit capital before ECB rate decision, outlook

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

EURUSD may fall if Eurozone PMI data misses estimates and fuels rate cut bet expectations ahead of the ECB rate decision this week. Economic data out of the Eurozone has been tending to underperform relative to economists’ expectations, with inflationary pressure remaining disappointingly tepid. A sour reading may lend credence to the notion that more accommodative policy may be required to boost economic activity.

The IMF’s recent publication of the updated economic outlook certainly supports the notion of the need for looser credit conditions. Following the release of the report, overnight index swaps showed a modest increase in ECB rate cut probabilities. However, given the scope and magnitude of the ECB rate decision, volatility may be relatively muted by traders’ hesitancy to enter a position prior to the central bank outcome.

CHART OF THE DAY: WILL PMI DATA CAUSE EURUSD CAPITULATION?

At the time of writing, the pair is sitting on the lower edge of the 18-month resistance-turned-support channel. The lack of follow through suggests traders may be hesitant to feel confident in a particular price direction prior to what could be trend-defining catalysts. Traders will likely find themselves waiting for the assurance of a daily close with follow through before entering a short position or increasing exposure.

Chart Showing EURUSD

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