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
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/mUXGeXPyW5
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.81%, while traders in France 40 are at opposite extremes with 75.68%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/unWfQ1QF5n
  • LIVE NOW: Join Technical Strategist @MBForex for his Weekly Strategy Webinar to review the setups we're tracking into the weekly / monthly open! https://t.co/chKtG7waxH
  • $USD set up for this week - $EURUSD looks like it wants to break out. still holding w/in resistance zone 1885-1900, but higher-low support, quick return to zone. attractive for a bearish usd thesis next resistance 1950 and then the big zone from 1965-2000 https://t.co/uK80mIe8i2
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.25% 🇪🇺EUR: 0.15% 🇯🇵JPY: 0.14% 🇨🇦CAD: 0.03% 🇨🇭CHF: -0.01% 🇬🇧GBP: -0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/l6UqEhgY1s
  • Weekly Strategy Webinar starting in 15mins on DailyFX! https://t.co/lxd5fZ5LG7
  • $USD starting the week with some balance. $DXY support 91.82-91.93 resistance 92.19-92.26 https://t.co/1W1wPyVgTc https://t.co/cW8d3l4iia
  • Heads Up:🇷🇺 Monetary Policy Report due at 12:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-08-02
  • Join @MBForex at 8:30 EST/12:30 GMT for your weekly scalping webinar. Register here: https://t.co/VGr4ZK3QZ9 https://t.co/Pd3SA45g6O
  • 🇮🇳 Balance of Trade Prel (JUL) Actual: $-11.23B Previous: $-9.37B https://www.dailyfx.com/economic-calendar#2021-08-02
ECB to Look Through Stronger Euro-Zone Economic Data

ECB to Look Through Stronger Euro-Zone Economic Data

Martin Essex, MSTA, Analyst

Talking Points

- The European Central Bank is unlikely to taper its monetary stimulus program soon despite stronger data from the Euro-Zone and from Germany, its largest economy.

- The figures are therefore unlikely to boost the Euro near-term

- See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar.

The Euro-Zone economy is growing healthily, as is the economy of its largest member Germany, according to a batch of data released Tuesday. However, that is unlikely to persuade the European Central Bank to “taper” significantly its monetary stimulus program near-term, and is therefore unlikely to strengthen the Euro.

The figures released included news of stronger Euro-Zone economic growth, lower unemployment and higher inflation. GDP grew by 0.5% quarter on quarter in the final three months of last year, up from the 0.4% expected and the previous 0.4%. Year on year it was unchanged at 1.8% rather than the 1.7% predicted. The unemployment rate in December was 9.6%, its lowest in more than seven years. Inflation in January was 1.8%, its highest since February 2013, and core inflation was stable at 0.9%.

In Germany, unemployment fell by more than expected in January, to a record low, although there was also news of an unexpected drop in retail sales in December.

There was little reaction in the EURUSD exchange rate though, as traders took the view that the ECB is unlikely to respond to the data by loosening monetary policy near-term. However, the Euro did jump later after US President Donald Trump's trade advisor told the Financial Times newspaper that Germany was benefiting from a grossly undervaluedEuro. EURGBP and EURJPY also climbed, while the Dollar index dipped below the 100 mark for the first time in five days in a market dominated by Trump’s policies.

Chart: EURUSD 5-Minute Timeframe (January 31, 2017). Source: IG

ECB to Look Through Stronger Euro-Zone Economic Data

In the government bond market, there was an early rise in the yield on the Euro-Zone benchmark 10-year German government bond but it then lost most of its gains.

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him atmartin.essex@ig.com

Don't trade FX but want to learn more? Read the DailyFX Trading Guides.

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

DISCLOSURES