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
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
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
Gold
Bearish
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • What are the trading lessons every #forex trader should learn when diving into the forex market? Get your free guide here: https://t.co/w77TGnEVwP https://t.co/m5ZMY4ao6F
  • The New York #forex session is one of the most liquid #forextrading sessions. Want to learn to trade in this session? Read up! https://t.co/qDNTKLVhFa https://t.co/tZetcS5Ev7
  • #DidYouKnow a #Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/c51s3IBcEu https://t.co/roWhofPtMb
  • $USD price action has edged roughly 1.5% lower since touching year-to-date highs earlier this month and the recent stretch of weakness jeopardizes the US Dollar’s bullish trend. https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/10/13/usd-price-us-dollar-technical-forecast-eurusd-gbpusd-audusd-usdcad.html
  • RT @C_Barraud: 🇮🇳 World Bank Says #India Faces Severe Slowdown, Cuts GDP Forecast - Bloomberg *India’s gross domestic product growth seen a…
  • Why are Bollinger Bands @bbands and #forex such a good combo? Because forex is a form of pairs trading, each transaction involving a long position in one currency and a short position in another. Find out how you can use it in your trading strategy here: https://t.co/ZuN2xl5GIw https://t.co/G0ByyTvBnT
  • Lessons from Bretton Woods are forgotten, the US-China #tradewar represents a true existential threat to the post-World War II international trade order, and in turn, the globalized economy that has grown out of the ashes of history. More from @CVecchioFX :https://t.co/paaBxX6Xt0 https://t.co/Bf4KXjRYzR
  • The inside bar pattern occurs regularly within the financial markets. Incorporating the inside bar strategy within a trading system can enhance a trader’s market analysis technique. Find out how you can use it from @WVenketas here: https://t.co/E3EWOYTYNw https://t.co/4mSc3NB4qM
  • Currency markets may be battered by breakneck volatility if a slowdown in global economic growth triggers a collapse in the fragile market for collateralized loan obligations (CLOs). Get your market update from @ZabelinDimitri here:https://t.co/KfjjtaXs7b https://t.co/FbNC12Nq6A
  • The $GBP will be in for a volatile week ahead of critical talks at the EU-UK summit as the October 31 deadline approaches. Will policymakers be able to avoid a no-deal #Brexit? Get your $GBPUSD market update from @ZabelinDimitri here: https://t.co/r7eAf885V6 https://t.co/sqqRqnrPYa
EURUSD Oscillates After ECB, Gears up for US GDP Data Ahead

EURUSD Oscillates After ECB, Gears up for US GDP Data Ahead

2019-07-26 06:30:00
Dimitri Zabelin, Junior Currency Analyst
Share:

US GDP DATA, WHAT HAPPENED WITH THE ECB, EURUSD OUTLOOK TALKING POINTS

  • APAC equities, AUD, NZD in the red after amid tech regulatory crackdown in Australia
  • ECB rate decision, commentary caused the Euro to oscillate before settling unchanged
  • US Dollar may gain if US GDP data fuels risk aversion or cools Fed rate cut forecasts

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

APAC RECAP

Early into Asia Pacific trading hours, regional equities were broadly swimming in the red with South Korea’s Kospi Index and Taiwan’s equity TAIEX benchmark gapping lower. The AUD and NZD were also suffering from risk aversion supposedly caused by concerns about Facebook and Google facing regulatory crackdowns in Australia.

WHAT HAPPENED WITH THE ECB?

The Euro turned volatile but failed to find directional conviction following the ECB rate decision and commentary by ECB President Mario Draghi. While the central bank highlighted that the outlook is getting “worse and worse” – particularly in manufacturing data – there were also internal disagreements over the degree of stimulus needed. The ECB did allude to examining the possibility of “new asset buying” i.e. QE.

Draghi stated that recessionary risks remain “pretty low”, though more data has been showing that equity markets may be due for a correction. Overnight index swaps are pricing in an 85% probability of a cut by the September meeting. Christine Lagarde will be taking over Draghi’s post at the end of October and is expected to continue along the same lines as her predecessor in an effort to boost regional activity and apathetic CPI.

US GDP DATA: HOW WILL US DOLLAR RESPOND?

If US GDP data surprises lower or higher, the US Dollar may rise. If the report shows growth beating forecasts, USD may experience greater capital inflow as markets cool their dovish expectations. When the IMF published its updated world economic outlook – which carried gloomy undertones – overnight index swaps for Fed rate cut bets edged modestly higher – as did the US Dollar. We may see a similar reaction in financial markets if US GDP data undershoots forecasts and fuels risk aversion.

Read my IMF update to get a better understanding of US Dollar dynamics!

CHART OF THE DAY: SOUTH KOREA KOSPI, TAWAIN TAIEX INDICES GAP LOWER INTO FRIDAY’S TRADING SESSION

Chart Showing Kospi, TAIEX Index

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.