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
EUR/USD
Mixed
Oil - US Crude
Bullish
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
Gold
Bullish
GBP/USD
Mixed
USD/JPY
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
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/Q0yRRpMpPX
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/pSeSiNnmHe
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/iVOEuK40rn
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/ltEO5dpKux
  • WTI crude oil is currently trading up against major resistance via the 2019 and 2020 highs within the confines of a channel; something has to give. Get your market update from @PaulRobinsonFX here: https://t.co/MO9foRjm2y https://t.co/YhBFdvZDEb
  • The Dow Jones and S&P 500 outlook appears bleak in the near term as retail traders increase their upside exposure. At the same time, these indices confirmed bearish technical warning signs. Get your market update from @ddubrovskyFX here:https://t.co/fKCHELbOxo https://t.co/eVDwmFTaIg
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/8B8hqHahm1
  • The US Dollar finished off an eventful week after CPI and retail sales injected volatility into markets. FOMC is now in the Greenback’s sights as taper talks linger. Get your market update from @FxWestwater here: https://t.co/MHi0lfQ93j https://t.co/4XetwYAaNd
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/ZZRLV0Wkea
  • The Nasdaq 100 index has likely formed a bearish Gartley pattern, which hints at further downside potential. Negative MACD divergence on the weekly chart suggests that upward momentum may be fading. Get your market update from @margaretyjy here: https://t.co/GkMEkVA7YR https://t.co/E1vyCMVt6K
ECB Attributes Monetary Policy to Economic Risks and Steady Inflation

ECB Attributes Monetary Policy to Economic Risks and Steady Inflation

Benjamin Spier, Technical Strategist

THE TAKEAWAY: ECB warns that downside risks to growth ‘materialized’ -> Bank supports single mechanism to directly recapitalize banks -> Euro consolidates following losses

The European Central Bank decided to cut the key interest rate by 25 basis points in their July meeting because downside risks to the economic outlook have materialized and inflationary pressures were dampened by a drop in growth, according to the ECB monthly bulletin. They also forecasted a decline in economic growth for Q2 and maintained an inflation target rate slightly under 2%.

However, the ECB did predict a gradual recovery over the medium term, with adverse factors like high sovereign debt and unemployment. They said inflation will likely remain steady due to a balance of weak growth and higher than expected energy prices.

The ECB also welcomed the agreements made in the EU summit at the end of June and said that ‘economic and monetary unions need to be put on a more solid basis.’ They also volunteered to conduct the EFSF’s and ESM’s market operations, and welcomed the prospect of a single supervisory mechanism that can recapitalize banks directly, but they did not volunteer for that role in the bulletin notes.

Last week, the ECB lowered the interest rate to 0.75% for July, which was the minimum expectation among most analysts, and caused a selloff of risk related assets as those hoping for further monetary action were disappointed.

Euro made a small gain against the dollar at the time of the bulletin release, following continued declines that begun after yesterday’s release of the FOMC minutes and continued with news of Australian pay cuts and job losses. The ECB bulletin was fairly neutral and in line with market expectations for the ECB view, and the small Euro pop could have merely been a consolidation. EURUSD is currently trading at new 2-year lows above 1.2200, the next support comes in around previous support of 1.2143 or 61.8% expansion at 1.2133.

ECB_Attributes_Monetary_Policy_to_Economic_Risks_and_Steady_Inflation______body_eurusd_daily_chart.png, ECB Attributes Monetary Policy to Economic Risks and Steady Inflation

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

DISCLOSURES