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.

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
Mixed
Wall Street
Bullish
Low
High
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
Gold
Bullish
Low
High
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
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 94.57%, while traders in France 40 are at opposite extremes with 71.27%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/DpuFUPtd1u
  • Heads Up:🇮🇹 Retail Sales MoM (OCT) due at 09:00 GMT (15min) Previous: -0.8% https://www.dailyfx.com/economic-calendar#2020-12-04
  • Heads Up:🇨🇿 Unemployment Rate (NOV) due at 09:00 GMT (15min) Actual: 3.8% Expected: 3.8% Previous: 3.7% https://www.dailyfx.com/economic-calendar#2020-12-04
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.79% Silver: 0.72% Gold: 0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/YeN5uOchic
  • Brush up your knowledge on #tradewars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/ZWaL6laTU5 https://t.co/i2X7EA6i10
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.12% 🇬🇧GBP: 0.09% 🇨🇦CAD: 0.05% 🇯🇵JPY: -0.10% 🇦🇺AUD: -0.12% 🇳🇿NZD: -0.21% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/iCnrKCNJSS
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.45% US 500: 0.14% Wall Street: 0.08% France 40: -0.06% Germany 30: -0.24% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/RYDTcaLllr
  • EU Stoxx 50 Index at Risk on Vaccine Hiccup, #ECB Tempering Expectations - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2020/12/04/EU-Stoxx-50-Index-at-Risk-on-Vaccine-Hiccup-ECB-Tempering-Expectations.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr #EUStoxx50 $FESX $EUSTX https://t.co/s6k95MXei5
  • Heads Up:🇨🇿 Unemployment Rate (NOV) due at 08:00 GMT (15min) Expected: 3.8% Previous: 3.7% https://www.dailyfx.com/economic-calendar#2020-12-04
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/II37qTqX0K
Euro Pops Higher As Trump's Trade Advisor Says It's Grossly Undervalued

Euro Pops Higher As Trump's Trade Advisor Says It's Grossly Undervalued

2017-01-31 16:45:00
Martin Essex, MSTA, Analyst
Share:

Talking Points

- The Euro jumped against the currencies of its major rivals Tuesday after Peter Navarro, head of Donald Trump’s new National Trade Council, accused Germany of currency manipulation

- Berlin is using a “grossly undervaluedEuro to gain advantage over its trading partners, he told the Financial Times newspaper

- 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 gained a cent against the dollar and strengthened against other rivals too Tuesday after Peter Navarro, the head of Donald Trump’s new National Trade Council, told the Financial Times that Germany is using a “grossly undervalued” Euro to “exploit” the US and its EU partners.

In comments which the newspaper said are likely to trigger alarm in Europe’s largest economy, Navarro described the Euro as like an “implicit Deutsche Mark” whose low valuation gave Germany an advantage over its main trading partners. His views, the FT added, suggest the new US administration is focusing on currency as part of its hard-charging approach on trade ties.

In response, EURUSD charged from below 1.07 to above 1.08 at one point, while EURGBP popped higher before easing back and EURJPY strengthened but then more than lost its gains.

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

Euro Pops Higher As Trump's Trade Advisor Says It's Grossly Undervalued

Navarro’s comments were challenged by German Chancellor Angela Merkel, who said her government had always called on the ECB to pursue an independent policy.Germany is a country that has always called for the European Central Bank to pursue an independent policy, just as the Bundesbank did that before the Euro existed,”she told a news conference.Because of that we will not influence the behaviour of the ECB. And as a result, I cannot and do not want to change the situation as it is, she added.

However, there was some evidence that Navarro has a point in the day’s economic data. In Germany, unemployment fell by 26,000 in January, to a record low, and the jobless rate eased to 5.9% from 6.0%. By contrast, data from Italy showed the unemployment rate at 12% in December, stable compared with an upwardly revised rate for the month before, which was the highest since June 2015. Youth unemployment climbed to 40.1%, its highest level since June 2015, from a revised 40.0% in November.

The north/south divide in the Euro-Zone was also emphasised by news that Spanish inflation rose to 3% in January, its highest since December 2012. Figures released Monday showed inflation in Germany in the same month was just 1.9%, although that was the country’s highest inflation rate since July 2013.

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him at martin.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