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
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Nasdaq 100 Retreats on Inflation Concerns, Nikkei 225 and ASX 200 Open Higher https://www.dailyfx.com/forex/market_alert/2021/05/18/Nasdaq-100-Retreats-on-Inflation-Concerns-Nikkei-225-and-ASX-200-Open-Higher.html https://t.co/o8Orqv1V7L
  • (Commodities Briefing) Gold Price Outlook: Will XAU/USD Overturn the Medium-Term Downtrend? #Gold #XAUUSD https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2021/05/18/Gold-Price-Outlook-Will--XAUUSD-Overturn-the-Medium-Term-Downtrend.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/ZR0vXNhBIB
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.42% 🇦🇺AUD: 0.37% 🇬🇧GBP: 0.28% 🇨🇭CHF: 0.14% 🇪🇺EUR: 0.13% 🇯🇵JPY: 0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/YWzI8DJhdJ
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 87.91%, while traders in Germany 30 are at opposite extremes with 77.35%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/kRxLmNvUAS
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/KMmPnHt3Ce
  • RBA Minutes: Rate rise conditions unlikely met until 2024 at earliest, changing 3-year yield target from 0.1% not warranted. Will continue bond buys if assists progress towards goals -BBG $AUDUSD #RBA
  • RT @BrendanFaganFx: Japanese Yen Analysis: USD/JPY Points Higher as GDP Data Misses Expectations $USDJPY Link: https://www.dailyfx.com/forex/market_alert/2021/05/18/Japanese-Yen-Analysis-USDJPY-Points-Higher-as-GDP-Data-Misses-Expectations.html
  • Heads Up:🇦🇺 RBA Meeting Minutes due at 01:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-18
  • Japan's Economic Minister Yasutoshi says Q1 GDP drop due largely to dip in consumption - BBG
  • What are some monetary policies that could affect Gold this quarter? Get your Gold free forecast here: https://t.co/bTXkGN1CIM #DailyFXGuides https://t.co/hJeqJek0Ai
EUR/USD Plunges to 3-Month Low on Dismal German IFO Data

EUR/USD Plunges to 3-Month Low on Dismal German IFO Data

David Maycotte,

Talking Points

The Euro sank to a 3-month low on the back of disappointing German IFO figures that may further boost speculation for ECB stimulus.

The German IFO gauge of business confidence disappointed across the board as the headline business climate index fell to 110.4 (110.9 estimates vs 111.2 prior), the lowest level in 5-months. Despite the miss, the print falls broadly in line with near- to medium-term trend averages. The gauge for current business confidence came in at 114.8 (115.4 expected vs 115.3 prior) and future expectations also fell to 106.2 (106.5 expected vs 107.3 prior).

“On balance, these figures offer little in terms of directional guidance for the Euro in as much they would do little further to inform speculation about the likelihood of imminent ECB stimulus expansion,” says DailyFX Strategist Ilya Spivak. At present, he has entered short EUR/USD.

The Euro has been under pressure since the ECB meeting on May 8th. The outlook remains bearish as euro economic data worsens amid rampant ECB speculation.

The Euro sank vs the US Dollar following the data release, to the lowest level since February 27, 2014.

“There is a lot to break through at these levels. The 200 day average, October high and 2/27 low continue to hold up,” says DailyFX Strategist Jamie Saettele, “but two reversal attempts since 5/15 have failed. As such, beware a flush into 1.3560/90.” He is currently looking at a EUR/USD diagonal wedge pattern, that if fully retraced yields a target of 1.3294.

EUR/USD Plunges to 3-Month Low on Dismal German IFO Data

EUR/USD 5-Minute Chart using FXCM Marketscope 2.0

-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to instructor@dailyfx.com.

Want to trade with proprietary strategies developed by FXCM? Find out how with Mirror Trader.

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

DISCLOSURES