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. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Higher global natural gas prices could hint to a near-term increase in US exports - Moody's via BBG $NG $NG_F
  • WTO crude is on pace to put in its highest session close in three years. If it clears 76, it will be a far bigger technical event. $CL_F weekly chart below
  • Fed's Williams: - It is reasonable for the taper to be completed by mid-2022 - I recognize that inflation is currently elevated
  • Both USD/CHF and USD/SEK rates appear poised for most upside in the near-term, while surging energy prices may be offering a different route for USD/NOK. Get your market update from @CVecchioFX here:
  • Fed's Williams: - Optimistic that the economy will allow an "imminent" taper - Elevated levels of uncertainty make forecasting difficult
  • Gold Price Outlook: #Gold Drops into Pivotal Support- $XAUUSD Levels -
  • Fitch Ratings: - We do not expect the advent of a new gov't in Germany to produce a significant change in near-term economic prospects - Expect sound fiscal policies following German elections, with a focus on sustainability of public debt
  • The USD is trading in an ascending triangle formation, marked by horizontal resistance around the 2021 highs to go along with bullish trendline support. Get your market update from @JStanleyFX here:
  • Fed's Brainard: - It is too soon to say the virus has permanently altered the labor market - It is critical to ensure that bank stress tests are powerful and do not deteriorate over time
  • Fed's Brainard: - We don't know when the pricing consequences of the pandemic will subside - Congress must step up and handle the debt ceiling crisis
Euro at Risk as North-South Political Rift Threatens Financial Stability

Euro at Risk as North-South Political Rift Threatens Financial Stability

Dimitri Zabelin, Analyst

Euro Outlook, Eurozone Finance Minister Meeting, Coronavirus – Talking Points

  • Euro at risk as political feud between North and South pressure regional growth prospects
  • Policymakers continue to debate on best course of action to combat coronavirus pandemic
  • EUR/USD is still range-bound but narrowing compression zone may reveal directional bias

Euro at Risk as Political Divide Threatens Regional Growth, Coordinated Policy

The Euro continues to suffer as typically fiscally-conservative officials from the North and their otherwise-inclined Southern counterparts bicker about a unified approach to address the economic impact of the coronavirus. A meeting on Thursday failed to yield meaningful results after a conference last week also ended with officials sticking to their positions. The debt-mutualizing “corona-bond” proposal continues to be the main point of contention.

The friction is nothing new, but the urgency of the talks under the current economic conditions is unprecedented as the Eurozone faces the prospect of a deeper recession than it endured ten years ago. While Brussels has loosened the purse strings to allow more governments to deficit spend, the issue over additional aid and use of the crisis-era Emergency Stability Mechanism (ESM) is pressuring the Euro.

This is because the impact of the virus-induced slowdown is anticipated to be so large that it would require a proportional stimulus response to mitigate the depth and severity of a recession. Regional inflation expectations continue to look grim as global uncertainty rises amid the coronavirus pandemic. Without a coordinated policy effort, the forecasts are likely to become gloomier.

Chart showing Eurozone economy

EUR/USD Analysis

EUR/USD recently flirted with the descending resistance (labelled as “Downtrend Alpha”) within the compression zone, potentially setting the pair up for a retest of support at 1.0783. A downside breakout would reinforce the fundamental notion of a bearish overhang haunting the Euro as the region faces the prospect of an unprecedented recession. Breaking below support at 1.0783 may open the door to retesting “Downtrend Beta”.

EUR/USD – Daily chart

Chart showing EUR/USD

EUR/USD chart created using TradingView


--- Written by Dimitri Zabelin, Currency Analyst for

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.