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
Bearish
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
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
Wall Street
Bearish
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
Gold
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
GBP/USD
Bearish
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
Bullish
More View more
Real Time News
  • $USDCNH reversing lower after bursting over 1.5% from the yearly low. Could this be indicative of firming market sentiment? https://t.co/9CDc2Lukuc
  • Heads Up:🇬🇧 Gfk Consumer Confidence (SEP) due at 23:01 GMT (15min) Expected: -27 Previous: -27 https://www.dailyfx.com/economic-calendar#2020-09-24
  • IBEX 35 price action breaks down amid recent market volatility. Get your market update from @FxWestwater here:https://t.co/MX2O5yrAMy https://t.co/po5awA5AZP
  • FTSE Russell says China will be included in global bond index, as widely expected $CNH
  • After suffering steep losses Monday, gold declines have continued, threatening secondary support. Get your $XAUUSD market update from @PeterHanksFX here:https://t.co/mSxxBdUVR0 https://t.co/LBE3lBhu00
  • DOJ expected to file antitrust action against Google in coming weeks according to AP News - BBG
  • Update on #Cryptocurrencies #BITCOIN +0.12% #BITCOINCASH -0.08% #ETHEREUM -0.22% #RIPPLE +0.26% #LITECOIN -0.55%
  • 🇰🇷 Consumer Confidence (SEP) Actual: 79.4 Previous: 88.2 https://www.dailyfx.com/economic-calendar#2020-09-24
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.20% 🇬🇧GBP: 0.15% 🇪🇺EUR: 0.07% 🇯🇵JPY: -0.05% 🇨🇭CHF: -0.30% 🇦🇺AUD: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/AxA4F2bdLO
  • Heads Up:🇰🇷 Consumer Confidence (SEP) due at 21:00 GMT (15min) Previous: 88.2 https://www.dailyfx.com/economic-calendar#2020-09-24
Euro Marches Higher On Growing ECB Bets, Sterling Correction Underway

Euro Marches Higher On Growing ECB Bets, Sterling Correction Underway

2012-08-23 12:55:00
David Song, Strategist
Share:

Talking Points

  • Euro: ECB Looks At Secret Yield Cap, German’s Schaeuble Criticizes Greek Extension
  • British Pound: BoE’s Weale Endorses Wait-And-See Approach, RSI Flirts With Overbought
  • U.S. Dollar: Pares Losses Following FOMC Minutes, Mixed Views Surrounding Jackson Hole

Euro: ECB Looks At Secret Yield Cap, German’s Schaeuble Criticizes Greek Extension

The Euro advanced to a fresh monthly high of 1.2571 amid reports that the European Central Bank is looking to implement a secret yield ceiling on Spanish and Italian debt, but we may see the Governing Council struggle to meet on common ground as the bond purchase program comes under increased scrutiny. Meanwhile, German Finance Minister Wolfgang Schaeuble argued that giving Greece additional time to meet its budget target is not the solution as it translates into providing additional assistance, and went onto say that the euro-area has ‘gone to the limit’ in aiding the region as it struggles to get its house in order.

In response, Greek Prime Minister Antonis Samaras warned that a Greek exit would set precedence and trigger a domino effect across the monetary union, and we may see a growing rift within the EU as the governments operating under the fixed-exchange rate continue to act in their own interest. Indeed, the EURUSD may continue to retrace the decline from the previous month as it breaks out of the range-bound price action from earlier this month, but we will be keeping a close eye on the relative strength index as it approaches oversold territory. At the same time, the 100-Day SMA (1.2615) will serve as an important indicator as it lines up with the downward trend line from back in 2011, and we may see the short-term rally taper off ahead of September as European policy makers struggle to restore investor confidence.

British Pound: BoE’s Weale Endorses Wait-And-See Approach, RSI Flirts With Overbought

The British Pound struggled to maintain the overnight advance to 1.5911 despite the rise in private sector borrowing, and the pullback in the GBPUSD may be short-lived as the Bank of England continues to endorse a wait-and-see approach for the near-term. Although the BoE continues to discuss the potential for more quantitative easing, MPC board member Martin Weale argued that there is no need to expand the asset purchase target in the current environment, and we may see the central bank preserve its current policy throughout the remainder of the year as the new lending program is expected to strengthen the recovery. As the relative strength index on the GBPUSD pullback ahead of overbought territory, we may see a short-term correction in the days ahead, but we will be looking for a series of higher highs and higher lows in the exchange rate as the upward trending channel from July continues to take shape.

U.S. Dollar: Pares Losses Following FOMC Minutes, Mixed Views Surrounding Jackson Hole

The greenback appears to be regaining its footing on Thursday, with the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDOLLAR) bouncing back from an overnight low of 9,938, and the reserve currency may continue to recoup the losses following the FOMC Minutes amid the mixed views surrounding the Jackson Hole Economic Symposium on tap for next week. As the policy statement talked up speculation for another round on quantitative easing, there’s bets that Fed Chairman Ben Bernanke may hint at QE3 ahead of the September meeting, but the central bank head may strike a more balanced tone for monetary policy as the recent batch of data coming out of the world’s largest economy reflects a more robust recovery. In turn, we may see the dollar consolidate ahead of the Fed conference, and the fresh batch of central bank rhetoric may set the tone for September as market participants weigh the prospects for future policy.

FX Upcoming

Currency

GMT

EDT

Release

Expected

Prior

EUR

14:00

10:00

Euro-Zone Consumer Confidence (AUG A)

-22.0

-21.5

USD

14:00

10:00

New Home Sales (JUL)

365K

350K

USD

14:00

10:00

New Home Sales (MoM) (JUL)

4.3%

-8.4%

USD

14:00

10:00

House Price Index (MoM) (JUN)

0.5%

0.8%

USD

14:00

10:00

House Price Purchase Index (QoQ) (2Q)

0.6%

NZD

22:45

18:45

Trade Balance (New Zealand dollars) (JUL)

-47M

331M

NZD

22:45

18:45

Balance (YTD) (New Zealand dollars) (JUL)

-647M

-747M

NZD

22:45

18:45

Exports (New Zealand dollars) (JUL)

3.78B

4.20B

NZD

22:45

18:45

Imports (New Zealand dollars) (JUL)

3.76B

3.87B

AUD

23:30

19:30

RBA Governor Glenn Stevens Testifies on Monetary Policy

--- 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