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
EUR/USD
Bullish
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
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
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Technology stocks continue to be a source of weakness for US equities, undermining risk appetite. Meanwhile, US-China tensions simmer beneath the surface creating uncertainty. Get your #equities update from @PeterHanksFX here: https://t.co/yH8oTwT3iW https://t.co/tvfrXThyaC
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/Xi9QU3ADPF
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/cQwbeZ6Feq
  • #Oil prices saw a reprieve to the recent selling pressure but remain at risk while below downtrend resistance. Here are the levels that matter on the #WTI technical chart. Get your #commodities update from @MBForex here: https://t.co/CcXsF3JCMH https://t.co/RUmS1cX52v
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/boEI8RuQdC
  • The growth-linked New Zealand Dollar may rise on the upcoming #RBNZ rate decision following rosy economic data. However, downside potential in the S&P 500 could offset $NZDUSD gains. Get your #currencies update from @ddubrovskyFX here: https://t.co/LfCe6C6G3P https://t.co/kUeBxxeaEf
  • It was a quiet week in Aussie as $AUDUSD put in its second consecutive week of indecision. But taking a more granular look highlights the potential for a reversal scenario. Get your #currencies update from @JStanleyFX here: https://t.co/PPK20nubAf https://t.co/0nfmRRFNnz
  • The S&P 500 pushed the market's comfort with a head-and-shoulders pattern through Friday's close. What should we look for in technical patterns, overlapping fundamental tides and speculative positioning for the likes of $EURUSD next week? https://www.dailyfx.com/forex/video/daily_news_report/2020/09/19/EURUSD-Pressure-Building-while-Anxious-Traders-Weigh-Did-SP-500-Break.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/lgVJVwi8th
  • Sterling remains trapped by overarching fundamentals drivers and both $GBPUSD and $EURGBP are going to have to wait until the Brexit dust settles. Get your #currencies update from @nickcawley1 here: https://t.co/vF1K1cy0nd https://t.co/NSA7qiQihc
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/d9EmTOHyTv
Euro Rallies After ECB Keeps Rates on Hold at 0.75%

Euro Rallies After ECB Keeps Rates on Hold at 0.75%

2012-08-02 12:28:00
Christopher Vecchio, CFA, Senior Strategist
Share:

THE TAKEAWAY: EUR European Central Bank Rate Decision > Main refinancing rate on hold at 0.75% > EURUSD BULLISH

The European Central Bank kept its main refinancing rate on hold at 0.75%, as expected, amid a deepening European sovereign debt crisis. Whereas European Central Bank President Mario Draghi promised measures last week to help stem the crisis, little has materialized thus far, as market participants away the much anticipated press conference at 08:30 EDT /12:30 GMT today.

Accordingly, because there was no rate cut, it appears that investors are covering their Euro shorts as well as repositioning themselves for a major bond buying program to be announced during the European Central Bank’s press conference. Speculation has arisen that if the European Central Bank kept rates on hold, it would be a sign that further nonstandard measures were on the verge of being announced today. Thus far, we are in wait-and-see mode.

EURUSD 1-minute Chart: August 2, 2012

Euro_Rallies_After_ECB_Keeps_Rates_on_Hold_at_075_body_Picture_3.png, Euro Rallies After ECB Keeps Rates on Hold at 0.75%

Charts Created using Marketscope – Prepared by Christopher Vecchio

Still, in response to the rate decision, in which the Credit Suisse Overnight Index Swaps were pricing in an 82% chance of a 25-basis point rate cut today (from 0.75% to 0.50%), the Euro has climbed across the board. The EURUSD jumped from 1.2262 ahead of the release to as high as 1.2347 soon after, and was trading at 1.2339, at the time this report was written. Similar price action was observed in the EURJPY, which jumped from 95.90 to as high as 96.65, before pulling back to 96.52.

To follow developments from the European Central Bank’s press conference, visit DailyFX’s FX squawk box, the Real Time Forex News Feed.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, send an e-mail with subject line "Distribution List" to cvecchio@dailyfx.com

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

DISCLOSURES