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
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
Bullish
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.39% Gold: -0.10% Silver: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/VYJLLMIYs1
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.19% 🇳🇿NZD: 0.09% 🇨🇭CHF: 0.08% 🇦🇺AUD: 0.05% 🇪🇺EUR: 0.03% 🇨🇦CAD: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/vYpt09hgMQ
  • #Copper prices surging above the 2017 high as RSI climbs above 70 for the first time since July Hate to say I told you so......but 👉https://www.dailyfx.com/forex/market_alert/2020/11/17/Copper-Prices-Poised-to-Outperform-on-Chinese-Recovery-Vaccine-News-.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $CPER #XCUUSD https://t.co/u3ucCf64Vz
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.08%, while traders in NZD/USD are at opposite extremes with 74.40%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/mUnqic6URw
  • Australia says it will vigorously fight Chinese wine tariffs - BBG $AUD $XJO
  • South Korea to decide on November 29 whether to raise social distancing rules Ministry says tougher rules could cause side effects - BBG $USDKRW
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/MIgA7RlblS
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here: https://t.co/qV3c7a4YR3 https://t.co/OSOYhffKNr
  • Japan FinMin Aso: Extra budget must also help change post-virus economy No decision on giving cash handouts to single parents Local banks must be strong enough to serve communities and must make own decisions on issues like mergers - BBG $JPY
  • China to impose anti-dumping deposits over Australian wine from Nov 28th - Reminder: Alcoholic beverage exports have over a 30% exposure to China $AUD https://t.co/jLTjF9AV68
Dovish European Central Bank (ECB) Forward-Guidance to Rattle EUR/USD

Dovish European Central Bank (ECB) Forward-Guidance to Rattle EUR/USD

2018-09-10 16:30:00
David Song, Strategist
Share:

Euro Talking Points

EUR/USD pares the decline following the U.S. Non-Farm Payrolls (NFP) report, with the exchange rate bouncing back from a fresh monthly-low (1.1526), but the European Central Bank (ECB) meeting on tap for September 13 may produce headwinds for the Euro as the Governing Council remains in no rush to move away from its easing-cycle.

Image of daily change for major currencies

Dovish European Central Bank (ECB) Forward-Guidance to Rattle EUR/USD

Image of daily change for eurusd

EUR/USD may face range-bound conditions ahead of the ECB interest rate decision in light the failed attempt to test the August-high (1.1734), but fresh remarks from the Governing Council may continue to sap the of the single currency as the central bank keeps the door open to further support the monetary union.

Keep in mind, the ECB is expected to unveil an updated exit strategy as the central bank pledges to wind down its asset purchases to EUR15B/month starting in October, with the quantitative easing (QE) program set to expire in December.

However, the ECB may continue to highlight a dovish forward-guidance as ‘significant monetary policy stimulus is still needed to support the further build-up of domestic price pressures and headline inflation developments over the medium term,’ andthe Governing Council is likely to reiterate that interest rates will ‘remain at their present levels at least through the summer of 2019’ as the central bank struggles to achieve its one and only mandate for price stability. As a result, unless there’s a material change in the monetary policy outlook, more of the same from President Mario Draghi and Co. may rattle the Euro, with EUR/USD at risk of facing range-bound conditions as market participants gear up for the Federal Reserve rate decision on September 26. Sign up and join DailyFX Currency Analyst David Song LIVE for an opportunity to discuss potential trade setups.

EUR/USD Daily Chart

Image of eurusd daily chart
  • Near-term outlook for EUR/USD is getting clouded with mixed signals as it fails to extend the series of higher highs & lows from the previous week, with the exchange rate at risk for a larger pullback amid the failed attempt to test the August-high (1.1734).
  • Lack of momentum to push back above the 1.1640 (23.6% expansion) to 1.1680 (50% retracement) region raises the risk for a move back towards the Fibonacci overlap around 1.1390 (61.8% retracement) to 1.1400 (50% expansion), with the next region of interest coming in around 1.1290 (61.8% expansion), which largely lines up with the 2018-low (1.1301).

For more in-depth analysis, check out the Q3 Forecast for the Euro

Image of DailyFX economic calendar

Additional Trading Resources

Are you looking to improve your trading approach? Review the ‘Traits of a Successful Trader’ series on how to effectively use leverage along with other best practices that any trader can follow.

Want to know what other currency pairs the DailyFX team is watching? Download and review the Top Trading Opportunities for 2018.

--- Written by David Song, Currency Analyst

Follow me on Twitter at @DavidJSong.

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

DISCLOSURES