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
EUR/USD
Bullish
Oil - US Crude
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
Wall Street
Bearish
Gold
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
Mixed
More View more
Real Time News
  • Norges Bank Governor says currency market functioning well adds that they have no particular target level for NOK
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/2NE7dnWMM4
  • Join @PaulRobinsonFX 's #webinar at 5:30 AM ET/9:30 AM GMT to learn about how you can become a better trader. Register here: https://t.co/WeWGKtdlyz https://t.co/F0bT0tnjiY
  • $NOK slips on the release given market pricing had been for a signal of a slightly earlier hike than previously forecast https://t.co/iQcZ70pCII
  • 🇩🇪 Ifo Business Climate (SEP) Actual: 93.4 Expected: 93.8 Previous: 92.5 https://www.dailyfx.com/economic-calendar#2020-09-24
  • Norges Bank - The policy rate forecast is little changed since June 2020 Monetary Policy Report and implies a rate at the current level over the next couple of years, followed by a gradual rise as activity approaches a more normal level $NOK
  • 🇳🇴 Norges Bank Interest Rate Decision Actual: 0% Expected: 0% Previous: 0% https://www.dailyfx.com/economic-calendar#2020-09-24
  • 🇩🇪 Ifo Business Climate (SEP) Actual: 93.4 Expected: 93.8 Previous: 92.6 https://www.dailyfx.com/economic-calendar#2020-09-24
  • Have you been catching on your @DailyFX podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/HbVXBTslrS
  • SNB will detail FX interventions on a quarterly basis from September 30
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, 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