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
Bullish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 87.94%, while traders in EUR/USD are at opposite extremes with 71.17%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/wSWdSw9NMi
  • WTI crude oil price action has been quite volatile today around Iran nuclear deal talks. The commodity is currently down -1.2% on the session after falling as much as -4.3% from intraday highs. #OOTT $CL_F $USO https://t.co/IPeHsxVYO8
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: -0.14% FTSE 100: -0.17% Wall Street: -0.21% Germany 30: -0.22% France 40: -0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/7ak6BIkvMw
  • Biden administration delays revamp of Trump's blacklist for China investments -BBG $USDCNH $SHCOMP
  • $EURUSD breakout stalled (so far) around the same spot that caught the feb top fib from the same study that caught the low in march (at the 38.2) https://t.co/ikWed0YfwE https://t.co/OfvmSW2V4S
  • The USD/CAD breakdown has stalled into lateral technical support at 1.2048/61 and the focus is on a reaction off this mark. Get your $USDCAD @MBForex here:https://t.co/LMTzDyI1df https://t.co/hD74PjjJHk
  • US Dollar Outlook: DXY Index Hammered as Treasury Yields Ebb -via @DailyFX Link to Full Analysis: https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2021/05/18/us-dollar-outlook-dxy-index-hammered-as-treasury-yields-ebb.html $USD $DXY #Trading https://t.co/2zVfDWI5Y7
  • AUD/USD attempts to retrace the decline following the update to the US Consumer Price Index (CPI) as it bounces back from the 50-Day SMA (0.7715). Get your $AUDUSD market update from @DavidJSong here:https://t.co/EIQ7utBH9A https://t.co/RcWf6JgYX5
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 87.64%, while traders in EUR/USD are at opposite extremes with 70.33%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/EhQn4EqJYE
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 0.06% Gold: -0.03% Oil - US Crude: -1.48% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ALjM4GEwOj
Euro Hits December Highs as ECB Downplays Policy Pivot

Euro Hits December Highs as ECB Downplays Policy Pivot

Christopher Vecchio, CFA, Gregory Marks,

Talking Points

- ECB keeps rates on hold, no LTRO.

- Euro initially slips, but soon rallies to fresh December highs versus Australian, US Dollars

- ECB likely on hold through early-1Q’14.

The European Central Bank left its monetary policy firmly on hold today, offering a change in neither the key benchmark interest ratenor the deposit facility rate. After the surprise 25-bps cut last month to the main refinancing rate, the ECB determined that the policy change was already having a positive impact given incoming price and survey data.

Accordingly, in absence a further deterioration in data or a return of the crisis - or significantly weaker price pressures, which the ECB does not expect ("firmly anchored") - another non-standard policy measure related to a direct capital injection into blanks on carte blanche terms is unlikely (like LTROs 1 & 2 in December 2011 and February 2012).

ECB President Draghi also used the press conference to outline the ECB’s forecasts for 2013, 2014, and 2015. Overall, low levels of inflation are expected to persist over the next few years, and “downside risks” to growth remain. The forecasts:

Draghi 12/05/13

New

Prior

GDP 2013

-

-0.4%

GDP 2014

1.1%

1.0%

GDP 2015

1.5%

-

Inflation 2013

1.4%

1.5%

Inflation 2014

1.1%

1.3%

Inflation 2015

1.3%

-

EUR/USD (5-Minute Chart)

Euro_Hits_December_Highs_as_ECB_Downplays_Policy_Pivot_body_Picture_1.png, Euro Hits December Highs as ECB Downplays Policy Pivot

Source: FXCM Marketscope

The Euro fell following the ECB rate announcement at 12:45GMT and took a hit following stronger than expected U.S. GDP and Jobless Claims data. During Mr. Draghi’s press conference we saw the Euro head over 100pips higher from the 13:30GMT spike low. The Euro came off after hitting the R1 daily pivot level and we may see some of the strength start to come off ahead of tomorrow’s crucial NFP print as traders pare back risk following a strong week in U.S. data.

Christopher Vecchio, Currency Analyst

Gregory Marks, DailyFX Research Team

Keep up to date on event risk with the DailyFX Calendar.

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

DISCLOSURES