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
EUR/USD Overtakes $1.3100, EUR/JPY ¥130.00 amid ECB Press Conference

EUR/USD Overtakes $1.3100, EUR/JPY ¥130.00 amid ECB Press Conference

2013-06-06 13:24:00
Christopher Vecchio, CFA, Senior Strategist
Share:

THE TAKEAWAY: EUR European Central Bank Rate Decision > Key Rate on Hold at 0.50%, Deposit Facility Rate on Hold at 0.00% > No Implementation of Negative Rates > EURJPY, EURUSD BULLISH

The European Central Bank kept its key interest rate on hold at its all-time low of 0.50%, while leaving its main deposit rate on hold at 0.00%, as the recent uptick in European data in May has put plans for further accommodation on ice in the near-term. ECB President Mario Draghi stuck to his more recent usual script, saying that “downside” risks remain to the Euro-zone growth outlook, while medium-term inflation expectations remain “broadly balanced” and “firmly anchored.” Overall, the ECB will keep policy accommodative for “as long as needed.”

While these talking points have been more or less unchanged the past several months, the big news everyone was listening for was whether or not the ECB would go ahead and implement a negative deposit rate, as a method to help spur lending in the region. Such a measure would be welcomed at this point, considering that loan growth slowed by -0.9% in April, the twelfth consecutive month of contraction.

To this end, President Draghi noted that the ECB’s Governing Council’s discussion today focused on improving credit conditions in the periphery. During his presser, the head of the ECB said that asset-backed securities purchases, another LTRO, negative deposit rates, and credit claims were all discussed as ways to help stoke economic growth. But, as he noted and as various other ECB policymakers said last week (Asmussen, Constancio, and Noyer of note), that the implementation of any new measures of such great magnitude remains far away, or rather, not going to happen in the near-term.

EURJPY 1-minute Chart: June 6, 2013

EURUSD_Overtakes_1.3100_EURJPY_130.00_amid_ECB_Press_Conference_body_x0000_i1027.png, EUR/USD Overtakes $1.3100, EUR/JPY ¥130.00 amid ECB Press Conference

Charts Created using Marketscopeprepared by Christopher Vecchio

With market participants interpreting the ECB’s stance as having shied away from implementing negative rates or any other measures that would result in a theoretically expanded ECB balance sheet, the Euro’s stage was set for a rally. Accordingly, the EURJPY surged from ¥129.85 prerelease to as high as 130.73 during President Draghi’s press conference, before falling to 130.41, at the time this report was written.

Price action was similar in other EUR-based pairs, with the EURUSD jumping from a low of $1.3088 to as high as 1.3167, and the EURAUD rallying from a low of A$1.3769 to a high of 1.3879.

Note: ECB President Mario Draghi’s press conference was ongoing at the time of publishing; this article may not contain the most up to date information upon consumption.

--- 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, please fill out this form

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

DISCLOSURES