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.

Free Trading Guides
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
Oil - US Crude
More View more
Breaking news

ECB leaves all rates unchanged in line with expectations

Real Time News
  • RT @zerohedge: LAGARDE: EURO AREA NOT SEEING JAPANIFICATION Euro Area should look again https://t.co/867WUUHiKz
  • Gold really liking Lagarde so far, testing monthly highs, recovering the remainder of the post nfp sell-off $Gold #ecb https://t.co/tMKY74HRan
  • RT @ecb: Lagarde: A cross-check of the economic analysis with the signals coming from the monetary analysis confirmed an ample degree of mo…
  • RT @ecb: Lagarde: In order to reap the full benefits from our monetary policy measures, other policy areas must contribute more decisively…
  • ECB President Christine Lagarde says in her first @ecb meeting press conference to 'not over-interpret or second guess' her remarks
  • ECB's Lagarde: -Govnts with fiscal capacity should act to raise longer term growth potential -A comprehensive policy review is somewhat overdue $EUR
  • $EUR | The @ecb raises its forecasts for 2019 #GDP to 1.2% from 1.1% prior, but lowers 2020 GDP estimate to 1.1% from 1.2% prior. #CPI unchanged at 1.2% for 2019, raised by 0.1% to 1.1% for 2020 and lowered by 0.1% for 2021 to 1.4%
  • ECB's Lagarde: -Risks still tilted to the downside but risks are somewhat less pronounced -Some indicators of a mild increase in core inflation, headline inflation to pick up slightly in coming months $EUR
  • There were no surprises from the European Central Bank Thursday as it kept all its monetary policy settings unchanged, as expected. Get your market updates from @MartinSEssex here:https://t.co/J90GMvG1ot https://t.co/X1LKGMzAjh
  • ECB's Lagarde: -Highly accomodative policy still needed -Inflation outlook subdued -We stand ready to adjust all instruments as needed -Some initial signs of stabilization in growth slowdown $EUR
EUR/USD Plunges Below 1.2900 As ECB's TLTRO Draws Weak Response

EUR/USD Plunges Below 1.2900 As ECB's TLTRO Draws Weak Response

2014-09-18 09:44:00
Edward Hyon,

Talking Points:

  • Eurozone ECB Announced the Results for Their TLTRO Allotment: €82.6 BillionActual.
  • EUR/USD Trims Its Gains As TLTRO Take-up At €82.6 Billion Below Estimates.
  • Looking Ahead, Keep Focused on the Scottish Independence Referendum.

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

The deployment of the European Central Bank (ECB) Chief’s targeted lending program, often referred to as TLTRO, announced in June, showed a weak response as banks took €82.6 Billion in targeted long-term loans. A survey of economists polled by Bloomberg called for a median forecast of €150 billion. The trillion euro stimulus package introduced by Mario Draghi, a tool to boost credit for the real economy and keep the financial system flooded with liquidity, is expected to boost ECB’s balance sheet to approximately 3-trillion euros from 2-trillion euros. The size of ECB’s balance sheet is negatively correlated with the Euro.

Ahead of the results of the first TLTRO stimulus, the Euro grinded higher against the US Dollar, but traded just shy of 1.2900 level. Immediately after the release, EUR/USD plunged to trim its earlier losses as ECB targeted loans came in weaker-than-forecast, trading firmly below the psychologically important 1.2900 level. DailyFX Currency Strategist Ilya Spivak mentioned “a larger-than-expected capital allocation seems likely to offer support to the Euro.” However, the opposite has happened and it boded-ill for the currency pair.

Not too distant away, the market may possibly be free from the extensive risk built-up from the Scottish Independence Referendumas it draws to a close. The opinion polls ahead of the ballot points to a 50/50 chance of “Yes” or “No” outcome, which suggests volatility will remain alive for the session ahead in the forex market.

From a technical angle, DailyFX Currency Strategist Ilya Spivak mentions near-term support to rest at 1.2858 (marked by the September 9 low) and support-turned-resistance at 1.2994 (September 16 high). He remains short EUR/USD in line with the long-term fundamental outlook. Meanwhile according to DailyFX Speculative Sentiment Index, the ratio of long to short positions in EUR/USD stands at 1.15 as 53 percent of traders are long.

GBP/USD 5 Minute Chart

EUR/USD Plunges Below 1.2900 As ECB's TLTRO Draws Weak Response

Daily Chart - Created Using FXCM Marketscope 2.0, Volume Indicator Available Here


Edward Hyon, DailyFX Research Team

Keep up to date on event risk with DailyFX Calendar

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


News & Analysis at your fingertips.