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
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
GBP/USD
Bullish
USD/JPY
Mixed
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Bullish
More View more
Breaking news

ECB leaves all rates unchanged in line with expectations

Real Time News
  • Indices Update: As of 15:00, these are your best and worst performers based on the London trading schedule: US 500: 0.78% Wall Street: 0.71% Germany 30: 0.66% France 40: 0.51% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/vgpzLly7LV
  • RT @BIS_org: The #euro’s share in terms of #OTCderivatives gross market value rose to 44% in 2019, above the #USdollar share of 24% #Trienn…
  • $USD $DXY: US Dollar Index spiking higher off a critical support level underpinned by the 97.00 handle. The pivot to the upside was sparked by another optimistic #tradetalk headline with the move erasing half of yesterday's downside driven by the December FOMC meeting https://t.co/kTg62HSeH2
  • IMF Spokesman Rice: - Hopeful for progress being made on US-China talks $USDCNH $SPX
  • $USDJPY support held through the $USD sell-off, price action springs to life on the trade deal tweet https://t.co/ekebDkQqzM
  • China calls Trump's bluff markets still don't care https://t.co/GpolEhbrlN
  • Voting has begun in the #UKElection with the polls due to close at 10pm local time, an exit poll to be published soon after and results expected late Thursday and on Friday. Get your market update from @MartinSEssex here: https://t.co/KQdaF3ySJp #Brexit https://t.co/tb0dwBMIDC
  • $USDJPY jumps following trade headlines https://t.co/05H6Jip2mG
  • Commodities Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.45% Silver: -0.28% Gold: -0.56% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/8trC0Edjvp
  • Now that's a move with conviction!! Offshore Yuan plunges below the 7.0 mark after President Trump tweets that we are 'very close to a big deal with China' https://t.co/vVmaeqmikp https://t.co/Q3BktpjsKU
Euro Rallies as Growth Prospects Improve, British Pound Extends Rebound

Euro Rallies as Growth Prospects Improve, British Pound Extends Rebound

2010-03-12 12:01:00
David Song, Currency Strategist
Share:

Talking Points
•    Japanese Yen: Maintains Range Against Greenback
•    Pound: BoE Sees Rise in Private Spending
•    Euro: Industrial Outputs Expand the Most in 20-Years
•    U.S. Dollar: Retail Sales, U. of Michigan Confidence on Tap

Euro Rallies as Growth Prospects Improve, British Pound Extends Rebound


Industrial outputs in the euro region surged 1.7% in January to mark the biggest expansion since August 1989, while the annualized rate increased for the first time since April as production jumped 1.4% from the previous year. However, wholesale prices in Germany tipped 0.1% in February, which fell short of expectations for a 0.3%, while the index advanced 2.1% from last year, and subdued price pressures could lead the European Central Bank to maintain a neutral policy stance going into the second-half of the year as they maintain their one and only mandate to ensure price stability. Nevertheless, Bundesbank President Axel Weber argued the Governing Council needs to conclude its emergency measures as soon as the recovery takes hold during a panel discussion in Germany, and the ECB may continue to normalize policy over the coming months as growth prospects improve.

The British Pound rallied for the second-day to reach a high of 1.5171, but the exchange rate is likely to maintain a narrow range going into the following week as the Bank of England is scheduled to release its policy minutes on Wednesday at 10:30 GMT. Meanwhile, BoE Chief Economist Spencer Dale held an improved outlook for the U.K. and said that there are “some tentative signs that nominal spending in our economy is starting to accelerate” as the expansion in monetary and fiscal policy continues to support economic activity. In addition, Mr. Dale argued that “much of the impact of our asset purchases is still to come through,” and went onto say that “the most difficult decision will be to decide the timing of the withdrawal” of the emergency measures.

The greenback weakened across the board, with the USD/JPY slipping to a low of 90.16 during the European trade, and the reserve currency could face increased selling pressures going into the North American session as the economic docket is expected to reinforce a dour outlook for the world’s largest economy. Retail spending in the U.S. is anticipated to contract 0.2% in February after rising 0.5% in the previous month, and the data could stoke a weakened outlook for future growth as private consumption accounts for more than two-thirds of the economy. Nevertheless, the U. of Michigan confidence survey is projected to increase to 74.0 in March following the unexpected drop during the previous month, while business inventories are forecasted to rise 0.1% in January.


Do You Expect a Breakout in the EUR/USD This Month? Join us in the Forum

Related Articles: 

Dollar Congestion Sets in as Sentiment, Policy Forecast Stabilize


To discuss this report contact David Song, Currency Analyst: instructor@dailyfx.com


Market Brief

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.