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
Bearish
USD/JPY
Bearish
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • The Australian Dollar and New Zealand Dollar tend to rise with stocks. They have recently fallen despite gains in the #SP500. What does this mean for $AUDUSD and $NZDUSD ahead? #AUD #NZD #RBA #RBNZ - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/17/AUDUSD-NZDUSD-Outlook-Looks-Past-Stocks-to-Rate-Cut-Bets.html?CHID=9&QPID=917702 https://t.co/ddf2fV7Kyl
  • A few snippets from today's commentary. Check out the link below for the full story (via @DailyFX). https://t.co/I31tuq764r https://t.co/x0BaiOFA1P
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/e2YrN3dBrl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.00%, while traders in France 40 are at opposite extremes with 79.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/UL7hqSD2Ki
  • US Dollar Forecast: $USD Lacking Impetus Ahead of Consumer Sentiment #Forex traders shift focus away from US-China trade deal headlines - perhaps toward the monthly release of #ConsumerSentiment data for volatility and clues on the Greenback's next move https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2020/01/16/us-dollar-forecast-usd-lacking-impetus-ahead-of-consumer-sentiment.html
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.11% 🇦🇺AUD: -0.02% 🇯🇵JPY: -0.03% 🇨🇭CHF: -0.05% 🇬🇧GBP: -0.06% 🇨🇦CAD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Kxcb9EtIWb
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.45% France 40: 0.26% Wall Street: 0.07% US 500: 0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/I5YIsKQAog
  • 🇯🇵 JPY Tertiary Industry Index (MoM) (NOV), Actual: 1.3% Expected: 1.0% Previous: -5.2% https://www.dailyfx.com/economic-calendar#2020-01-17
  • The $JPY has weakened as a bounce-back in risk appetite saps haven-asset demand. However, the old uptrend line still provides clear resistance. Get your market update from @DavidCottleFX HERE:https://t.co/IMhgQ9jbF9 https://t.co/I7087olftk
  • Heads Up:🇯🇵 JPY Tertiary Industry Index (MoM) (NOV) due at 04:30 GMT (15min), Actual: N/A Expected: 1.0% Previous: -4.6% https://www.dailyfx.com/economic-calendar#2020-01-17
Euro Outlook: EUR/GBP Broke Congestive Zone. Selloff Ahead?

Euro Outlook: EUR/GBP Broke Congestive Zone. Selloff Ahead?

2019-11-12 08:00:00
Dimitri Zabelin, Junior Currency Analyst
Share:

Euro, EUR/GBP, German ZEW Data – Talking Points

  • Euro may fall if German ZEW data reinforces regional slowdown fears
  • Selloff in Euro could ensue, accelerate EUR/GBP’s downside breakout
  • Asia-Pacific recap: New Zealand inflation expectations sunk NZD/USD

Learn how to use politicalrisk analysis in your trading strategy!

APAC RECAP

The New Zealand Dollar fell against most of its major counterparts and dragged AUD with it after two-year inflation expectations for Q4 showed a softer price growth projection ahead of the RBNZ rate decision. The 1.80 percent figure failed to meet and exceed the prior 1.86 percent print, prompting sellers to unload their Kiwi exposure as the prospect of a rate hike was pushed further down the line.

European Economy Outlook: Why German Data Matters

German ZEW Survey Expectations and Current Situation are expected to show -13 and 22.3 prints, lower than their prior releases at -22.8 and -25.3, respectively. The dismal nature of these indicators is reflective of a broader weakness in European growth as the continent contends with trade wars and internal political strife. Inflationary prospects continue to remain gloomy despite the ECB’s rate cuts and introduction of QE.

As the largest economy in the Eurozone, German data commands the attention of traders because of the impact its growth trajectory has for the entire region – although recently France has been outperforming Germany. Economic indicators coming out of the former have been printing at levels not seen since either the Eurozone debt crisis or the 2008 financial crash. A poor data print may therefore spook investors and lead to a selloff in the Euro.

EUR/GBP Outlook

The data may also accentuate EUR/GBP’s decline after the pair broke below the lower bound of the 0.8597-0.8642 congestive range its been stuck in since October 16. However, positive RSI divergence signals that upside momentum is picking up. Traders may closely watch how this technical conflict manifests itself. Looking ahead, if the downside breakout is met with follow-through, it may prompt a selloff until the pair hits support at 0.8491.

EUR/GBP – Daily Chart

Chart showing EUR/GBP

EUR/GBP chart created using TradingView

EURO 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.