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
Oil - US Crude
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
  • LIVE NOW: In this session, Currency Analyst @ddubrovskyFX discusses traders' positioning as a key element of market analysis to determine the prevailing and future price trends. https://www.dailyfx.com/webinars/998956395
  • South Korea #coronavirus cases top 1,000. For perspective, it was 51 a week ago.
  • Markets after realizing they may have to contend with reignited US-China trade tensions, #coronavirus and a neutral Fed all at the same time: https://t.co/PlC75iOY13
  • The $USD may rise against the Malaysian Ringgit after Prime Minister Mahathir Mohamad resigned. Bank of Malaysia may cut rates on #coronavirus fears with fiscal stimulus uncertain. Get your market update from @ddubrovskyFX here: https://t.co/WSx7FEf6W6 https://t.co/byzavtwAo5
  • LIVE IN 30 MIN: In this session, Currency Analyst @ddubrovskyFX discusses traders' positioning as a key element of market analysis to determine the prevailing and future price trends. https://www.dailyfx.com/webinars/998956395
  • The British Pound, #Euro and Japanese #Yen rose versus the US Dollar. #Coronavirus fears sank stocks and increased #Fed rate cut bets. The $GBPUSD technical bias still points lower #USD - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/02/26/British-Pound-Euro-Yen-Gain-as-US-Dollar-Weakens-in-Tense-Session.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/qupkKdbHms
  • Join @ddubrovskyFX 's #webinar at 8:00 PM ET/1:00 AM GMT to find out what information you can gain from knowing what other traders are buying or selling. Register here: https://t.co/Bb3CTDaWVC https://t.co/BlxHOemKwy
  • China is "fully expected" to meet terms outlined in "Phase 1" of the US-China trade deal despite the outbreak of the #coronavirus according to top US officials (SCMP) - First Squawk Could you imagine the pandemonium if markets had to contend with #covid19 and reignited tensions?
  • The #coronavirus has revealed that these debt markets are more susceptible to economic shocks than imagined".
  • has alleviated the anxiety of a region-wide default. Consequently, investors have grown more comfortable with investing in riskier assets (both sovereign and corporate) while underwriting standards for the latter deteriorate.
Euro, British Pound Rally as Economic Developments Reinforce Improved Outlook For Future Growth

Euro, British Pound Rally as Economic Developments Reinforce Improved Outlook For Future Growth

2010-07-22 10:34:00
David Song, Currency Strategist

Talking Points
•    Japanese Yen: Pares Yesterday’s Advance
•    Pound: Retail Sales Top Forecast in June
•    Euro: Manufacturing, Service-Based Activity Unexpectedly Expands at Faster Pace
•    U.S. Dollar: Existing Home Sales, Chairman Bernanke Testimony on Tap

However, the EUR/USD is likely to face increased volatility going into the end of the week as the European Central Bank is scheduled to release the results of the commercial bank stress test tomorrow at 16:00 GMT, and the ongoing weakness in the banking sector could lead the pair to retrace the advance from the yearly low (1.1879) as the outlook for future growth remains clouded with uncertainties.

The Euro-Zone advanced manufacturing PMI reading for July unexpectedly increased to a three-month high of 56.5 from 55.6 in the previous month, with the gauge for service-based activity advancing to 56.0 from 55.5 versus forecast for a drop to 55.0, while the composite index rose to 56.7 from 56.0 in June. At the same time, industrial new orders for the euro-region surged 3.8% in May amid projections for a 0.1% drop, while demands increased at an annual pace of 22.7% to mark the fastest pace of growth since 2000, and conditions are likely to improve going forward as the region continues to benefit from the rebound in global trade. However, as the European financial system remains weak, with governments operating under the fixed exchange rate system tightening fiscal policy, the ECB is likely to support the economy going forward as it aims to balance the risks for the region.

The British Pound pared the previous day’s decline and rallied to a high of 1.5289 following a larger-than-expected rise in retail sales, and the exchange rate may continue to push higher over the near-term as it maintains the upward trend from the June low (1.4346). Nevertheless, the economic docket showed household spending in the U.K. increased 0.7% in June to top forecasts for a 0.5% rise, while sales excluding auto fuel jumped 1.0% amid projections for a 0.6% advance. As the outlook for future growth improves, the Bank of England may increase its economic assessment and see scope to normalize monetary policy over the coming months as price growth continues to hold above the government’s 3% limit for inflation, but the ongoing slack within the real economy could lead the central bank to maintain a loose stance throughout the second-half of the year as it aims to encourage a sustainable recovery.

The greenback weakened across the board following a rebound in risk sentiment, and the dollar could face increased selling pressures throughout the North American trade as equity futures foreshadow a higher open for the U.S. market. However, dovish rhetoric from Fed Chairman Ben Bernanke should shake up market sentiment as he’s scheduled to testify in front of the House Financial Services Committee at 13:30 GMT, and any fresh commentary from the central bank head is likely to move the currency market as investors weigh the outlook for future growth. At the same time, the economic docket is expected to show existing home sales slum9.9% in June to an annualized pace of 5.10M from 5.66M in the previous month, while the home price index is forecasted to contract 0.3% in May after expanding 0.8% in the month prior.

How Will The European Bank Stress Test Affect The Exchange Rate? Join us in the Forum

Related Articles: 

Forex Trading Strategy Analysis: Trade with Market Conditions

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



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


News & Analysis at your fingertips.