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
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
Gold
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
Oil - US Crude
Bullish
Bitcoin
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
  • ECB's Weidmann says first signs have emerged that the downturn in Germany's export-orientated industry could level off $EUR
  • ECB's Weidmann says monetary policy accommodation is still warranted, adds that impact on tiering on bank profits is only modest $EUR
  • Join @malkudsi 's #webinar at 9:00 AM ET/2:00 PM GMT as he discusses five popular continuation patterns and uses. Register here: https://t.co/7XCMLsqXZO https://t.co/CiJOsMlB71
  • What is #forex risk management? As a trader why is it important to know the basics of it? https://t.co/zndCrZlnqE #tradingstyle https://t.co/qFChCgr41P
  • RT @onlyyoontv: Watching #HongKong elections Sunday. 4mln ppl hit polls. Seen as referendum on pro-democracy movement. Security tight. Fear…
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.02%, while traders in France 40 are at opposite extremes with 79.87%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/MsDN4XgJAR
  • What are the truths and myths of #forex trading? Find out from @DailyFX analysts here: https://t.co/uF75VPzstr https://t.co/soLloKxMYl
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Silver: 0.65% Gold: 0.51% Oil - US Crude: -0.57% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/t2PxpO1HEm
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.16% 🇯🇵JPY: 0.13% 🇨🇦CAD: -0.02% 🇨🇭CHF: -0.06% 🇪🇺EUR: -0.06% 🇬🇧GBP: -0.27% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/iI1uVqA6M3
  • Gold Price: Signals to Break the Deadlock - XAU/USD Forecast More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/xau-usd/2019/11/22/Gold-Price-Signal-to-Break-the-Deadlock-XAUUSD-Forecast-MK.html?CHID=9&QPID=917714 https://t.co/0pz8KRXUxG
Euro May Fall Vs US Dollar on Critical US, Eurozone Data

Euro May Fall Vs US Dollar on Critical US, Eurozone Data

2019-08-30 06:30:00
Dimitri Zabelin, Junior Currency Analyst
Share:

US Dollar, EURUSD, Euro, US Income Data – TALKING POINTS

  • Euro may fall if Eurozone jobs data, core CPI slips
  • Traders will be closely watching US PCE deflator
  • Consumption, income data also high-profile events

Learn how to use political-risk analysis in your trading strategy!

The Euro may struggle to rise against the US Dollar if Eurozone unemployment and CPI data fall short of forecasts and reinforce the notion that the ECB needs to deliver stimulative measures. EUR/USD’s pain may be amplified if US consumption, income and PCE deflator data show weakness and fuel the demand for liquidity and anti-risk assets like the Greenback.

The Eurozone unemployment rate is expected to stay at 7.5 percent, unchanged from the previous reading. CPI publications will also garner the attention of traders as economic activity in the region continues to cool. Germany’s economy – unofficially labeled the steam engine of Europe – showed a contraction in the second quarter on a seasonally-adjusted basis, sparking fears that stimulative measures may be seriously considered.

The European central bank is widely expected to deliver credit easing next month after soon-to-be-appointed ECB President Christine Lagarde hinted she may further push rates into negative territory. Traders will be closely watching the September 12 meeting where policymakers are expected to deliver a rate cut and comment on the region’s economic prospects.

In the US, traders will be eager to see the publication of US consumption and income data. Considering almost 80 percent of the economy is powered by consumers, it is no wonder economists and analysts will be following this indicator closely. Investors will also be keen to see the publication of the PCE deflator, the Fed’s favored inflation gauge and a barometer of progress toward meeting its statutory mandate.

A poor reading out of this particular data point may fuel what are already-aggressive rate cut expectations from the Fed. The central bank’s position for months has been that despite the outlook “deteriorating” – to quote Jerome Powell at the Jackson Hole symposium – the Fed is still data dependent. Despite this reiterated message, markets continue to price in rate cut bets which likely is setting them up for disappointment.

CHART OF THE DAY: Will ECB Rate Decision, US Data Catalyze EUR/USD Break Below Key Support?

Chart showing EURUSD

EUR/USD chart created using TradingView

EUR/USD 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.