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
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Mixed
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
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
More View more
Real Time News
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/d9EmTOHyTv
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true.Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/xqbUxwWgTZ
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/Gi8LHCT5sB
  • The AB=CD pattern is simple once you know how to spot it and draw the proper Fibonacci retracements. Make your trading strategy as simple as ABCD here: https://t.co/AKmlmaAZBS https://t.co/FFmRYyx4ou
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here: https://t.co/aVAzFypAg1 https://t.co/r7aJb4qpqc
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/ERyiY47G5H https://t.co/fIGDaDW21V
  • ...even more incredible is net speculative futures positioning in $EURUSD, rounding off from a record net long position...and it hasn't even cleared 1.20... https://t.co/SfyYTMTT1x
  • Net speculative futures positioning in the Dollar (here overlaid with the $DXY) has pushed to extreme levels commensurate to the levels in Oct 2017 and April 2018 https://t.co/JqHGgVUCqc
  • The $SPX closed below the 50-day moving average Friday. The first time it has done so in 103 trading days. The 'technical' end of an exceptional run: https://t.co/HUn5Q6JmlK
  • Despite recent weakness in the #SP500, the growth-linked New Zealand Dollar has been gaining momentum ahead of the #RBNZ next week Could this trend continue, or will $NZDUSD capitulate to the mercy of risk trends? Check out my fundamental outlook - https://www.dailyfx.com/forex/fundamental/forecast/weekly/nzd/2020/09/19/New-Zealand-Dollar-Outlook-NZDUSD-May-Rise-on-RBNZ-Watch-SP-500.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/34vcR4fjpT
Euro to Strengthen as ECB Rethinks Expanding its Bond-Buying Program

Euro to Strengthen as ECB Rethinks Expanding its Bond-Buying Program

2017-07-06 12:08:00
Martin Essex, MSTA, Analyst
Share:

Talking Points

- The minutes of the last European Central Bank policy meeting reveal that it considered dropping its pledge to expand or extend its bond-buying program if warranted.

- That’s positive long-term for the Euro as it brings a tightening of monetary policy closer.

- Want to know where the Euro is heading?Check out our brand new Trading Guides: they’re free and have just been updated for the third quarter of 2017.

The Euro advanced modestly and could strengthen further in the days ahead after the minutes of the European Central Bank’s policy meeting on June 7/8 revealed that it considered dropping its pledge to expand or extend its bond-buying program if necessary. While it decided not to do so, the fact that it was even considered suggests that a “tapering” of its monetary stimulus to boost the Euro-Zone economy is coming closer.

It will likely be discussed again in future meetings even though Euro-Zone inflation is currently weak, with the minutes noting that “if confidence in the inflation outlook improved further, the case for retaining this [easing] bias could be reviewed.”

EUR/USD climbed on the news but the reaction was mild as the central bank also stressed that it did not want to upset the markets by giving the impression that it was moving away from its policy of low interest rates and huge asset purchases.

Chart: EUR/USD Five-Minute Timeframe (July 6, 2017)

Euro to Strengthen as ECB Rethinks Expanding its Bond-Buying Program

Chart by IG

Nonetheless, the prospect of an eventual reduction in the ECB’s asset-purchase program should be a positive factor for the Euro.

--- Written by Martin Essex, Analyst and Editor

To contact me, email me at martin.essex@ig.com

Follow me on Twitter @MartinSEssex

And join me tomorrow, Friday, at 0815 GMT for live coverage of the UK trade and industrial production figures. Can a wider trade deficit send the British Pound lower? Any questions beforehand? Just let me know

For help trading profitably, you can also check out the IG Client Sentiment Data

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

DISCLOSURES