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
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
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCagF5 https://t.co/4DGXwA8vqs
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/mAMhWbV6Jy
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/E9ZmJvqO0z
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/fqxw1AoKc1
  • Gold snapped a two-week losing streak but keeps price within the broader August downtrend. These are the levels that matter on the $XAUUSD weekly chart. Get your market update from @MBForex here: https://t.co/B3Jct6mIBD https://t.co/xTGIM2hRBv
  • $GBPUSD continues to move higher, despite Friday’s weakness, as vaccination hopes continue to fuel positive sentiment despite ongoing lockdown fears and downbeat UK data. Get your market update from @nickcawley1 here: https://t.co/S8UoHzOwFN https://t.co/qI6UZdggvM
  • 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/6wxX6oQurn
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/w009tJEQZn
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/2AeO1AdD2M
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/INJz4NSugQ
Euro Outlook Shaky After ECB Warns of Sovereign Debt Crisis 2.0

Euro Outlook Shaky After ECB Warns of Sovereign Debt Crisis 2.0

Dimitri Zabelin, Analyst

Euro, EUR/USD, ECB Outlook, Sovereign Debt Crisis – Talking Points

  • Euro unnerved after ECB officials warns Eurozone may face another sovereign debt crisis
  • Officials calling for jointly-issued debt, but fiscally-conservative states feel apprehensive
  • EUR/USD broke below key 1.0989-1.0981 support range, could challenge floor at 1.0783

Asia-Pacific Recap

US equity futures pointed higher heading into Asia’s Thursday trading session after stock markets ended in red at Wall Street’s close. Foreign exchange markets were relatively quiet, though the growth-sensitive Australian and New Zealand Dollars were modestly gaining vs their G10 counterparts. Learn about what might have catalyzed the risk-on tilt in investor sentiment here.

Euro Outlook Shaky After ECB Issues Warning of Stress in Sovereign Bond Markets

On Tuesday, ECB policymaker Yannis Stournaras warned that without proper measures, the Eurozone could face another sovereign debt crisis. While borrowing costs for economically-distressed member states – particularly those in the Mediterranean – have risen, they are, in historical terms, still relatively low. However, this dynamic may change if the coronavirus dampens what is an already-shaky outlook for regional growth.

Mr. Stournaras warned that even after the immediate threat of a wider contagion is eliminated, “Debt-sustainability issues might surface again[and] hamper growth prospects”. He warned that banks’ balance sheets may be in jeopardy as expectations of an increase in “soured loans” is anticipated to occur. As it stands, CDS spreads on European sub-investment grade debt are still hovering at crisis-era highs.

He was one among a growing number of policymakers who advocate for the issuance of joint bonds that will help to lower the risk premium for more at-risk economies and give them cheaper access to credit markets. However, fiscally-conservative states like Germany have expressed trepidation in going through with the policy out of concern that they may then be liable if other members default.

However, Germany’s economic fate – regardless of jointly-issued bonds or not – is still tied to the prosperity of its neighbors because they are its biggest customers. If Italy, France and other member states are enduring a recession or sovereign debt crisis, the Germany economy will not be immune. Officials are stressing that by mutualizing risk, governments can allocate more of their spending away from servicing debt.

Instead, states could then implement growth-stimulating policies and decrease the prospect of a regional downturn. Germany would benefit since its economic colleagues could then have more spending power and can continue purchasing goods from the so-called “Steam Engine of Europe”. Consequently, the Euro may rise if governments are able to reach a consensus on fiscal stabilization and step away from the precipice of a crisis.

EUR/USD Analysis

EUR/USD has broken below a key support range between 1.0989 and 1.0981, opening the door to a possible retest of the floor at 1.0783. However, traders may wait to commit capital until a clearer directional bias is given. If EUR/USD closes below the zone with follow-through, this may inspire further liquidation. Follow me on Twitter @ZabelinDimitri for more in-depth fundamental and technical analysis of the Euro.

EUR/USD – Daily Chart

Chart showing EUR/USD

EUR/USD chart created using TradingView

EURO TRADING RESOURCES

--- Written by Dimitri Zabelin, 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