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
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
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Mixed
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
USD/JPY
Mixed
More View more
Real Time News
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: -0.06% Oil - US Crude: -0.97% Silver: -1.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/H9676jm7CT
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.14% 🇪🇺EUR: 0.01% 🇨🇦CAD: -0.01% 🇯🇵JPY: -0.07% 🇳🇿NZD: -0.17% 🇦🇺AUD: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/tm1u1cKErl
  • #Market Snapshot $AUDUSD sliding to fresh session-lows on the back of #MorganStanley's suggestion #IronOre prices will fall in Q4 Haven-linked $USD and $JPY pushing back to session-highs after dipping lower in early trade $Gold nudging slightly higher https://t.co/FsT9RIZYvR
  • All eleven S&P 500 sectors ended deeply in the red, with energy (-4.55%), information technology (-3.21%), materials (-2.93%) and real estate (-2.91%) among the worst performers. A whopping 94.7% of the S&P 500 components closed lower. https://t.co/kqP3xPZBJf
  • Rising demand for safety boosted the US Dollar, which climbed for a third day to 94.43 - a two-month high. Strong USD dampened precious metal prices, and put pressure on risk-linked currencies namely AUD, NZD and NOK. https://t.co/ijthZpUdTn
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.57%, while traders in EUR/GBP are at opposite extremes with 63.44%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/zn9sbgM386
  • While @IG_US Client Sentiment is offering a mixed outlook for the S&P 500 and #Dow Jones, these could be at risk to a turn lower based on multiple bearish technical warning signs. Get your market update from @ddubrovskyFX here:https://t.co/9kYnq6hH1f https://t.co/YIvXZ76eH1
  • #NOK, #AUD and #NZD are expected to be the most-active #G10 majors versus #USD with one-week implied volatility at 16.33, 12.22 and 12 respectively [delayed] -BBG
  • $DJIA futures carving out a Falling Wedge pattern just above the 200-MA after falling over 8% from the September 3 post-crisis high. $DJI #DowJones Is a recovery in the works? Find out how to trade these patterns and more here: https://www.dailyfx.com/education/technical-analysis-chart-patterns/falling-wedge.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr https://t.co/7dfYFgkpub
  • Copper prices may continue to push higher despite a worrying surge in Covid-19 cases and the lack of progress in Congressional stimulus negotiations. Get your #copper market update from @DanielGMoss here:https://t.co/N2OW566nID https://t.co/C33TkPT1vN
Euro Struggles Ahead Of Key Data, Pound Bucks Trend– All Eyes On FOMC

Euro Struggles Ahead Of Key Data, Pound Bucks Trend– All Eyes On FOMC

2012-08-22 12:40:00
David Song, Strategist
Share:

Talking Points

  • Euro: Greek Looks For More Time, ECB’s Independence Remains At Risk
  • British Pound: BoE’s Posen Argues For More Purchases, RSI Approaching Overbought
  • U.S. Dollar: Existing Home Sales To Rebound, All Eyes On FOMC Minutes

Euro: Greek Looks For More Time, ECB’s Independence Remains At Risk

The Euro slipped to 1.2442 on Wednesday amid the drop in risk-taking behavior, and the single currency may weaken further over the remainder of the week as the economic docket is expected to show manufacturing and service-based activity contracting once again in August. At the same time, headlines coming out of Europe may drag on investor confidence as Greek Prime Minister Antonis Samaras looks to buy more time in meeting the budget target, but there’s growing speculation that the region may need additional funding as the debt crisis continues to drag on the real economy.

Despite the mixed views surrounding the European Central Bank’s bond purchase program, it seems as though President Mario Draghi will put the institution’s independence on the line in an effort to save the monetary union, but the non-standard measure may come under increased scrutiny as it will only help to buy more time. As we see the Governing Council embarking on its easing cycle throughout the second-half of the year, the relief rally in the EURUSD is likely to be short-lived, and we should see the downward trend carried over from 2011 continue to take shape as the ongoing turmoil in the financial system raises the threat for a prolonged recession. Indeed, the recent series of higher highs paired with higher lows favors a bullish bias for the coming days, but the lack of momentum to push back above former support around the 1.2500 figure may produce a lower top in the EURUSD should we see a slew of negative developments coming out of the euro-area.

British Pound: BoE’s Posen Argues For More Purchases, RSI Approaching Overbought

The British Pound bucked the trend and maintained the overnight advance to 1.5816 despite the shift in market sentiment, and the sterling may continue to outperform against its major counterparts as market participants appear to be treating the U.K. currency as a safe-haven. Nevertheless, Bank of England board member Adam Posen, who is scheduled to leave the Monetary Policy Committee at the end of the month, argued that the board ‘should be buying things other than just Gilts’ as the economy remains in ‘stagnation,’ but we may see the bank stick to the sidelines throughout the remainder of the year as economic activity is expected to gradually gather pace in the coming months. As the GBPUSD appears to be carving out an upward trend, we may see the pound-dollar continue to retrace the decline from May, but we will be keeping a close eye on the relative strength index as it approaches overbought territory.

U.S. Dollar: Existing Home Sales To Rebound, All Eyes On FOMC Minutes

The greenback bounced back ahead of the FOMC Minutes, with the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDOLLAR) advancing to an overnight high of 10,030, and we should see the reserve currency appreciate further during the North American trade as we expect the Fed to talk down speculation for QE3. Although U.S. Existing Home Sales are projected to increase 3.3% in July, market participants may show a fairly muted reaction to the report as they weigh the prospects for future policy. As private sector activity gradually picks up, we may see the FOMC sound a bit more upbeat towards the economy, and the committee may strike a less dovish outlook for monetary policy as the world’s largest economy gets on a more sustainable path.

FX Upcoming

Currency

GMT

EDT

Release

Expected

Prior

USD

14:00

10:00

Existing Home Sales (JUL)

4.52M

4.37M

USD

14:00

10:00

Existing Home Sales (MoM) (JUL)

3.3%

-5.4%

USD

14:30

10:30

DOE U.S. Crude Oil Inventories (AUG 17)

-3699K

USD

14:30

10:30

DOE U.S. Gasoline Inventories (AUG 17)

-2371K

USD

14:30

10:30

DOE U.S. Distillate Inventory (AUG 17)

677K

CAD

15:00

11:00

BoC Governor Mark Carney Speaks on Canadian Economy

USD

18:00

14:00

Federal Open Market Committee Meeting Minutes

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. 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 dsong@dailyfx.com.

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.

DISCLOSURES