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
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
More View more
Real Time News
  • Feels like the market has been front-running next week’s FOMC announcement, which will reveal updated dot plot projections. Expectations clearly set for a more hawkish shift in guidance. That said, if the Fed does not deliver, US Dollar bulls could be disappointed. $USD $DXY https://t.co/o2v6ibac3L
  • USD/CAD has been chopping around the past week-and-a-half, offering virtually no cues on its next direction. Get your market update from @PaulRobinsonFX here:https://t.co/eq1YkOa3mC https://t.co/V6h8BjyeGa
  • FDA panel votes 16-3 against approving Covid-19 booster shots - BBG
  • RT @C_Barraud: 🇺🇸 Americans Haven’t Been This Down on #Housing Market Since 1982 - Bloomberg *Link: https://t.co/wWFnbAwIDO https://t.co/6G…
  • US Dollar Price Action Setups Pre-FOMC: EUR/USD, GBP/USD, USD/CAD https://www.dailyfx.com/forex/analyst_picks/todays_picks/james_stanley/2021/09/17/US-Dollar-Price-Action-Setups-pre-FOMC-EURUSD-EUR-USD-GBP-USD-GBPUSD-USD-CAD-USDCAD.html https://t.co/J25MYsXCa9
  • The US Dollar is pushing up to a fresh September high after the release of University of Michigan Consumer Sentiment data. Get your $USD market update from @JStanleyFX here:https://t.co/2CDNZh2a89 https://t.co/bULXuCaHKk
  • I have this $SPX chart taking over one of my whole screens, and I just keep staring at that 50-day moving average... https://t.co/R9LQAuL2DL
  • RT @TheStalwart: Nice chart, which shows why countries in green on the perimeter, like Iran, Peru, and Turkey are known for their stability…
  • Selling pressure strengthening in Wall Street two hours before the close. S&P 500 down roughly 1% intraday, the largest decline since August 18th #trading $SPX $SPY
  • One of the strongest correlation with Bitcoin at the moment is the US 10-Year Treasury yield https://t.co/uZBzJ7yiXf
Euro Forecast: EUR/USD Outlook Positive for Week Ahead, EUR/GBP Too

Euro Forecast: EUR/USD Outlook Positive for Week Ahead, EUR/GBP Too

Martin Essex, MSTA, Analyst
EUR/USD Chart

Euro Price, News and Analysis

  • As I predicted here last week, there were few crumbs for the hawks on the European Central Bank’s policymaking Governing Council at last week’s meeting and EUR/USD was consequently little changed while there was even a sizable slide in EUR/GBP.
  • Nonetheless, a tightening of Eurozone monetary policy is edging closer and that means any stronger than expected activity or inflation figures are more likely to boost the Euro than weaker than predicted data are to weaken it.

Euro price heading higher

With September’s meeting of the ECB’s Governing Council now behind us, Euro traders’ attention will turn increasingly to the next meeting on October 28 and, more importantly, the meeting on December 16. That’s because the December meeting in particular is now “live” in the sense that it could end with a tapering of the central bank’s support for the Eurozone economy.

As I wrote here, EUR/GBP is well placed to rally in the week ahead, with 0.86 an obvious target if Wednesday’s UK inflation data come in weaker than predicted. However, EUR/USD could also firm as the year progresses, with any stronger than forecast activity or inflation data reinforcing the view that tighter Eurozone monetary policy is on the way and any weaker than predicted numbers brushed aside as aberrations.

As the two-hour chart below shows, EUR/USD has been rising since August 20 and there is little in the way now of a further advance to around 1.19, which is not only a “round number” but also marks the highs reached a week ago – assuming, of course, that there is no sudden move into the safe-haven US Dollar should risk sentiment sour.

EUR/USD Price Chart, Two-Hour Timeframe (August 19 – September 10, 2021)

Please add a description for the image.

Source: IG (You can click on it for a larger image)

Like to know more about EUR/USD and why to trade it? Check out this article here

The problem for this week is that there are actually very few data points for the Euro to react to; just Eurozone industrial production for July Wednesday, trade for August Thursday and final inflation for August Friday.

Nonetheless, now the ECB has revised up its target for inflation in 2022 and “recalibrated” its Pandemic Emergency Purchase Program, the most likely direction for the Euro is upwards, particularly if the ECB’s hawks continue to press for action sooner rather than later.

--- Written by Martin Essex, Analyst

Feel free to contact me on Twitter @MartinSEssex

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

DISCLOSURES