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. See our updated Privacy Policy here.

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
Subscribe
Please try again
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
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
More View more
Real Time News
  • The US Dollar continues to hold its ground against most ASEAN currencies as recent downtrends lose momentum. What is the road ahead for USD/SGD, USD/THB, USD/PHP and USD/IDR? Find out from @ddubrovskyFX here:https://t.co/UcleaZEAaW https://t.co/dRD22S792t
  • 🇳🇿 Business NZ PMI (AUG) Actual: 40.1 Previous: 62.6 https://www.dailyfx.com/economic-calendar#2021-09-16
  • The Canadian Dollar has been caught in broad ranges against the Euro and the US Dollar, but can the upside bias in USD/CAD and EUR/CAD prolong? Find out here:https://t.co/8DubboXsjv https://t.co/SQAz8sCpmv
  • RT @BrendanFaganFx: Bitcoin Outlook: Crypto Adoption to Become Widespread in Wake of El Salvador, AMC? #Bitcoin #Ethereum $AMC $BTCUSD $ET…
  • Heads Up:🇳🇿 Business NZ PMI (AUG) due at 22:30 GMT (15min) Previous: 62.6 https://www.dailyfx.com/economic-calendar#2021-09-16
  • The 10-day range and realized volatility (ATR) on $USDMXN are the lowest since 2008 and 2014 respectively. Breakout risk is high - when the right spark comes along (eg FOMC) https://t.co/teP1XQI7W6
  • Bitcoin taking a breather today after rallying back above $47,000. 50-day MA crosses back above the 200-day MA $BTCUSD #Bitcoin https://t.co/5Yidx9WQhc
  • AUD/USD extends the decline following the larger-than-expected contraction in Australia employment as fresh data prints coming out of the US fuel speculation for an imminent shift in monetary policy. Get your $AUDUSD market update from @DavidJSong here:https://t.co/40vc0oCeiE https://t.co/vjrF47cALn
  • Gold prices are plodding along below symmetrical triangle support, with momentum indicators starting to point lower. Get your market update from @CVecchioFX here: https://t.co/9JDAY4QlnJ https://t.co/ftL6JbIC3c
  • Ouch. S&P Global said today that El Salvador's announcement that Bitcoin was legal tender represented an 'immediate' negative credit risk to its B- standing. They warn of trouble with IMF fund access and fiscal vulnerabilities. #Bitcoin
Euro Forecast: More Gains on Way for EUR/USD, EUR/JPY, EUR/CHF?

Euro Forecast: More Gains on Way for EUR/USD, EUR/JPY, EUR/CHF?

Martin Essex, MSTA, Analyst
EURUSD Chart

Source: IG

Fundamental Euro Forecast: Bullish

  • The Euro was unexpectedly resilient against most of the other major currencies last week despite data showing a very weak Eurozone services sector, a worse-than-expected business climate in Germany and poor consumer sentiment there too.
  • While economic data continue to take a back seat as currencies are driven by the economic impact of the coronavirus – and the authorities’ reactions to it – the Euro’s surprising vigor suggests its advance could continue in the week ahead.

Euro well placed to outperform

Against most expectations, the Euro gained ground against the US Dollar, the Japanese Yen and the Swiss Franc last week, while holding its ground against the British Pound. As market trading continues to be dominated by concerns about the economic impact of the coronavirus pandemic, and the responses to it by governments and central banks, this suggests its relative outperformance could continue in the week ahead.

The Euro’s sturdiness came despite data showing that the “flash” purchasing managers’ index for the Eurozone service sector in March tumbled to 28.4, well below both the previous 52.6 and the 39.0 expected by economists. In Germany, the bloc’s largest economy, the Ifo business climate index also came in below expectations and the GfK measure of German consumer sentiment did too.

Yet EUR/USD, for example, made solid gains that could well continue in the days ahead.

EUR/USD Price Chart, One-Hour Timeframe (March 23-26, 2020)

EURUSD Price Chart

Chart by IG (You can click on it for a larger image)

Similarly, EUR/JPY advanced, as did EUR/CHF, while EUR/GBP was relatively stable. Here too, therefore, there could be more room to the upside over the next week.

EUR/JPY Price Chart, One-Hour Timeframe (March 23-26, 2020)

EURJPY Price Chart

Chart by IG (You can click on it for a larger image)

Week ahead: Inflation, unemployment and retail sales

The Eurozone economic diary remains busy in the week ahead, including confidence, inflation, unemployment and retail sales data for the bloc as a whole, as well as German inflation figures. Friday’s ratings of French and German sovereign debt by Standard & Poor’s are worth keeping an eye on too.

However, next week – like the past week – will almost certainly be dominated by the continuing responses of central banks and governments to the spread of Covid-19. The European Central Bank, like several others, has responded strongly to the risk of a recession – essentially clearing the way for potentially unlimited money-printing.

Can Coronavirus Helicopter Money Bring Markets Back to Life?

Against this background, market correlations will likely remain high and Euro trading will continue to be dominated by market sentiment as traders switch between safe havens like the US Dollar, US Treasuries and German Bunds, and “risk-on” assets like stocks, crude oil, the Australian Dollar, the British Pound and the Euro. If confidence continues to seep back, the Euro should be among the beneficiaries.

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below

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

DISCLOSURES