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
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • #Gold attempted to rebound from multi-month lows today, climbing as high as $1,760 before hitting resistance and turning back downwards. The precious metal is now trading back around $1,735. $XAU $GLD https://t.co/QgXRBljgWe
  • Equities have managed to start the new month on the front foot as bond yields are taking a breather from their rapid surge over the last few weeks. DAX 30 bulls aim towards the 14,000 mark. Get your #DAX market update from @HathornSabin here:https://t.co/E7CYIM0KQC https://t.co/bnFyQfXLP6
  • ECB President Lagarde: - Pandemic is still heavily weighing on European economies - ECB will do its job to ensure firms and families can access finances needed to weather the storm - They can do so with confidence that financing conditions will not tighten prematurely #ECB $EUR
  • Heads Up:💶 ECB President Lagarde Speech due at 16:10 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-03-01
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.92% 🇨🇦CAD: 0.66% 🇳🇿NZD: 0.62% 🇯🇵JPY: -0.04% 🇪🇺EUR: -0.25% 🇨🇭CHF: -0.65% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/hg9Ce9xspE
  • The FTSE 100 has not been an easy handle lately, a theme that is often the case with this index and its choppy price action. Get your #FTSE market update from @PaulRobinsonFX here:https://t.co/QcIFpL232J https://t.co/nisYpjAFbJ
  • 🇲🇽 Markit Manufacturing PMI (FEB) Actual: 44.2 Previous: 43 https://www.dailyfx.com/economic-calendar#2021-03-01
  • In line with comments from Stournaras last week - ECB should accelerate PEPP purchases - No fundamental justification for a tightening of bond yields at long end - GC Should instruct board at March 11 meeting to fight unwarranted tightening of financing conditions
  • The Dollar is really trying again to spark a meaningful reversal yet again, but the market seems to have hardened its skepticism. I'll be watching this $EURUSD support (100SMA and trendline) closely these next 48 hours https://t.co/D1A5gthGdP
  • Heads Up:🇲🇽 Markit Manufacturing PMI (FEB) due at 15:30 GMT (15min) Previous: 43 https://www.dailyfx.com/economic-calendar#2021-03-01
EUR/USD Rally Fizzles as ECB Officials Dispute Euro Rate Strength

EUR/USD Rally Fizzles as ECB Officials Dispute Euro Rate Strength

David Song, Strategist

Talking Points:

- GBP/USD Remains Overbought Following Hawkish BoE Rhetoric.

- EUR/USD Rally Fizzles as ECB Officials Dispute Euro Strength.

DailyFX TableGBP/USD

GBP/USD extends the advance from late-2017, with the pair at risk for a fresh monthly highs as the Bank of England (BoE) endorses a hawkish outlook for monetary policy.

The pound-dollar exchange rate sits near the monthly-high (1.3836) despite the slowdown in the U.K. Consumer Price Index (CPI), and the pair may continue to exhibit a bullish behavior as Monetary Policy Committee (MPC) member Michael Saunders warns ‘interest rates will need to rise further over time.’ The BoE appears to be on track to deliver one rate-hike per year as the central bank starts to normalize monetary policy, and Governor Mark Carney and Co. may continue to prepare U.K. households and businesses for a less accommodative stance as ‘the steady erosion of slack over the past year or so had reduced the degree to which it was appropriate for the MPC to accommodate an extended period of inflation above the target.’

With that said, topside targets remain in the radar for GBP/USD as the pair breaks out of a near-term wedge formation, while the Relative Strength Index (RSI) sits in overbought territory for the first time since September.

GBP/USD Daily Chart

GBP/USD Daily Chart

Interested in trading? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

  • Like, EUR/USD, Cable has also warded off the risk for a double-top as it clears the September-high (1.3657), with the pair at risk for a further advance as long as the RSI holds above 70.
  • Break/close above the 1.3830 (61.8% retracement) to 1.3870 (78.6% expansion) hurdle opens up the topside target around 1.3970 (50% expansion), with the next region of interest coming in around 1.4100 (100% expansion).
EUR/USD

EUR/USD pulls back from a fresh 2018-high (1.2323) as European Central Bank (ECB) officials start to comment on the single-currency, and the euro-dollar exchange rate may face a larger pullback ahead of the policy meeting on January 25 as it snaps the series of higher highs & lows from the previous week.

With inflation still running below target, ECB Vice President Vitor Constancio expressed concerns about sudden changes in the Euro ‘which don’t reflect changes in fundamentals,’ while Governing Council member Ewald Nowotny argued that the appreciation in the single-currency ‘is not helping’ as the central bank struggles to achieve its one and only mandate for price stability. The recent comments suggest the ECB will oppose a further appreciation in the single-currency even as the quantitative easing (QE) program is set to expire in September, and the Governing Council may increase its efforts to talk down the single-currency at its first rate decision for 2018 as ‘growth had repeatedly been stronger than expected in the euro area and inflation dynamics had remained largely unchanged or surprised on the downside.

Keep in mind, the change in the monetary policy outlook may continue to fuel the broader shift in EUR/USD behavior, but the pair stands at risk for a larger pullback should the Relative Strength Index (RSI) highlight a textbook sell-signal and slip below 70. Want to know what other currency pairs the DailyFX team is watching? Download and review the Top Trading Opportunities for 2018.

EUR/USD Daily Chart

EUR/USD Daily Chart

Interested in having a broader discussion on current market themes? Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups!

  • Near-term rally in EUR/USD appears to have run its course as it struggles to break/close above the 1.2320 (23.6% retracement) to 1.2370 (61.8% expansion) region, while the RSI struggles to hold in overbought territory.
  • First downside region of interest comes in around 1.2130 (50% retracement) followed by the former-resistance zone around 1.1960 (38.2% retracement), which largely lines up with channel support.
  • Broader outlook remains tilted to the topside as both price & the RSI preserve the bullish formations from November.
DailyFX Calendar

Click Here for the DailyFX Calendar

--- 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, please follow this link.

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

DISCLOSURES