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
More View more
Real Time News
  • 🇦🇺 Markit Services PMI Final (JUL) Actual: 44.2 Previous: 56.8 https://www.dailyfx.com/economic-calendar#2021-08-03
  • $AUDNZD likely to attempt closing at a new 2021 low over the remaining 24 hours following the stellar New Zealand jobs report The December 2020 low has been further exposed at 1.0418 since July's #RBNZ rate decision New Zealand bond yields on the rise https://t.co/ipjwkSNt9n https://t.co/ncQX4hL8G3
  • Strong jobs report lifts $NZD - Money markets pricing in a 93% probability of a 25bps hike at the August meeting (previously 77%) - Over the forecast horizon, the RBNZ had projected (in the May MPS) the unemployment rate to gradually fall to 4.3% https://t.co/G5Ejzl2H6L
  • #NZDUSD cautiously higher after solid New Zealand jobs report Unemployment rate declined to 4.0% in Q2 from 4.7% prior (vs 4.4% anticipated) Job gains were at 1.7% y/y vs 1.2% expected Data seems to be supporting the case for a less-dovish #RBNZ given the cease to QE recently https://t.co/XmzhuLXh1H
  • 🇳🇿 Unemployment Rate (Q2) Actual: 4% Expected: 4.5% Previous: 4.7% https://www.dailyfx.com/economic-calendar#2021-08-03
  • 🇳🇿 Employment Change QoQ (Q2) Actual: 1% Expected: 0.7% Previous: 0.6% https://www.dailyfx.com/economic-calendar#2021-08-03
  • Heads Up:🇦🇺 Markit Services PMI Final (JUL) due at 23:00 GMT (15min) Previous: 56.8 https://www.dailyfx.com/economic-calendar#2021-08-03
  • The Nasdaq 100 may continue outperforming Dow Jones futures ahead as fears about global growth continue weighing on the 10-year Treasury yield ahead of NFPs. What are the risks? Find out from @ddubrovskyFX here:https://t.co/kADmxIfyHt https://t.co/VUltiTLch1
  • Heads Up:🇳🇿 Unemployment Rate (Q2) due at 22:45 GMT (15min) Expected: 4.5% Previous: 4.7% https://www.dailyfx.com/economic-calendar#2021-08-03
  • Heads Up:🇳🇿 Employment Change QoQ (Q2) due at 22:45 GMT (15min) Expected: 0.7% Previous: 0.6% https://www.dailyfx.com/economic-calendar#2021-08-03
EUR/USD Unfazed After The ECB Minutes Failed To Surprise

EUR/USD Unfazed After The ECB Minutes Failed To Surprise

Oded Shimoni, Junior Currency Analyst

Talking Points:

- Decoupling of inflation expectations from oil price a matter of concern

- ECB strongly reiterated the need for other policy areas to contribute to measures

- Focus is on the implementation of the additional measures decided in March

Showcase your trading skills against your peers in FXCM's $10,000 Monthly Challenge Here, but learn good trading habits with FXCM’s “Traits of successful traders” series

The Euro was unchanged versus other major currencies (at the time this report was written) after today’s ECB Meeting Minutes failed to surprise, and emphasized that the bank’s focus was on the implementation of the additional measures decided in March.

In their latest policy meeting, which was held last month, the central bank decided to keep monetary policy at status quo by keeping rates unchanged and maintaining monthly purchases under the asset purchase programme (QE) at €80 billion.

Looking in to the account of the meeting, the bank said that incoming data pointed to ongoing output growth at a moderate pace, while risks to the growth outlook were still tilted to the downside.

The bank also emphasized the need for other policy areas to contribute to measures, while acknowledging that structural reform recommendations might prove challenging, as needs differed widely across euro area countries. Establishing a detailed country-specific agenda was in the realm of national governments and other European institutions, the bank said.

The bank expressed a concern that inflation expectations are not recovering parallel to higher oil prices, while also emphasizing that the focus is now on the implementation of the additional measures that had been decided in March.

As was mentioned earlier this week by DailyFX Currency Strategist Christopher Vecchio, Euro non-commercial positioning was the least short the Euro since heading into June 2014, which represented potential for a decline in the EUR/USD, with the Fed’s minutes yesterday proving to be a catalyst for such a move, as rate hike speculation for the Fed’s June meeting spiked higher.

Against this overall background, it seems that the ECB account of monetary policy failed to surprise as the bank put the focus on the March meeting decision again, which implies that the ECB might be in a “wait and see” mode. When the minutes hit the wires, the Euro was unchanged versus other majors.

The DailyFX Speculative Sentiment Index (SSI) is showing that about 48.7% of FXCM’s traders are long the EUR/USD at the time of writing. The SSI is mainly a contrarian indicator.

You can find more info about the DailyFX SSI indicator here

EURUSD 5-Minute Chart: May 19, 2016

EUR/USD Unfazed After The ECB Minutes Failed To Surprise

--- Written by Oded Shimoni, DailyFX Research

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

DISCLOSURES