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.



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
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
Oil - US Crude
Wall Street
More View more
Real Time News
  • What is seasonal change in volatility. Are we going through one right now? Find out:
  • The US Dollar will be bracing for a cascade of political risks including the first presidential debate, ongoing stimulus talks, the Supreme Court vacancy against the backdrop of key employment data. Get your #currencies update from @ZabelinDimitri here:
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your $USDINR market update from @ddubrovskyFX here:
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out:
  • Weakness in equity markets continued last week as losses built and technical patterns hint further bearishness might be ahead. Get your #equities update from @PeterHanksFX here:
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here:
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:
  • #Gold prices succumbed to selling pressure as the US Dollar soared this past week What is #XAUUSD facing these next few days and can these fundamental forces extend its selloff? Check out my outlook here -
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here:
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here:
Euro Optimism Fizzles Despite German Support, Continues To Carve Top

Euro Optimism Fizzles Despite German Support, Continues To Carve Top

2012-08-17 12:30:00
David Song, Strategist

Talking Points

  • Euro: Germany Shows Greater Support For Bond Purchases
  • British Pound: BoE’s Weale Strikes Improved Tone, Eyes July High

Euro: Germany Shows Greater Support For Bond Purchases

The Euro advanced to 1.2380 as German Chancellor Angela Merkel endorsed the European Central Bank’s bond purchasing program, and it seems as though the Governing Council will have little choice but to carry out its easing cycle throughout the remainder of the year as Merkel pledges ‘to do everything’ to support the monetary union. As European policy increase their effort to alleviate heightening borrowing costs in Spain and Italy, a further expansion in the ECB’s balance sheet should provide some short-term relief, but the fundamental outlook for the region remains bleak as the debt crisis continues to drag on the real economy.

Indeed, there’s talk that Greece will ask for an extension to meet its budget target as the region faces a deepening recession, and it seems as though the Governing Council will implement a range of tools over the coming months as the governments operating under the single-currency struggle to get their house in order. As the EURUSD remains capped by the 50-Day SMA (1.2379), the near-term outlook for the pair remains bearish, and we would like to see a close below the 20-Day SMA (1.2281) for the euro-dollar to give back the rebound from July (1.2041).

British Pound: BoE’s Weale Strikes Improved Tone, Eyes July High

The British Pound pared the advance from earlier this week as market participants scaled back their appetite for risk, but the GBPUSD looks poised for a bullish breakout amid the series of higher highs paired with higher lows. Meanwhile, Bank of England board member Martin Weale struck an improved outlook for the U.K. and said that the region remains in a ‘sustained period of stagnation’ rather than a double-dip recession, and it seems as though the Monetary Policy Committee will continue to sit on the sidelines as the central bank anticipates the Funding for Lending program to boost private sector activity. As the GBPUSD finally puts in a close above the 200-Day SMA (1.5714), the pair looks poised to make a run at the July high (1.5766), and we may see the sterling continue to recoup the losses from earlier this year should the economic developments on tap for the following week encourage an improved outlook for the region.

FX Upcoming










U. of Michigan Confidence (AUG P)






Leading Indicators (JUL)






Property Prices (JUL)

--- Written by David Song, Currency Analyst

To contact David, e-mail Follow me on Twitter at @DavidJSong

To be added to David's e-mail distribution list, send an e-mail with subject line "Distribution List" to

Will the EUR/USD Resume the Downward Trend From 2011? Join us in the Forum

Related Articles: Weekly Currency Trading Forecast

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