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
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.55%, while traders in Germany 30 are at opposite extremes with 80.61%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/YelFfA2Vst
  • 🇮🇩 Interest Rate Decision Actual: 3.5% Expected: 3.5% Previous: 3.5% https://www.dailyfx.com/economic-calendar#2021-04-20
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/5xuwJi0xvX
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 1.02% Silver: 0.36% Gold: -0.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/3QhJMfTWva
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.65% 🇳🇿NZD: 0.58% 🇨🇦CAD: 0.39% 🇬🇧GBP: 0.13% 🇨🇭CHF: 0.03% 🇯🇵JPY: -0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/3ngNFGV4CH
  • Heads Up:🇮🇩 Interest Rate Decision due at 07:30 GMT (15min) Expected: 3.5% Previous: 3.5% https://www.dailyfx.com/economic-calendar#2021-04-20
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.13% US 500: 0.08% Germany 30: -0.16% France 40: -0.19% FTSE 100: -0.20% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/cmd7UutJDY
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/bg5cVcLvvW
  • (Commodities) Gold Prices Seesaw as US Dollar, Treasury Yields Diverge Before Netflix Earnings #Gold #XAUUSD #USD #Bonds https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2021/04/20/Gold-Prices-Seesaw-as-US-Dollar-Treasury-Yields-Diverge-Before-Netflix-Earnings.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/aYDFImOCGw
  • 🇬🇧 Claimant Count Change (MAR) Actual: 10.1K Previous: 86.6K https://www.dailyfx.com/economic-calendar#2021-04-20
EUR Slips as ECB Forecasters Downgrade Inflation Expectations

EUR Slips as ECB Forecasters Downgrade Inflation Expectations

Nick Cawley, Strategist

Talking Points

- EUR/USD remains near a two-year high on Euro-Zone optimism and US dollar woes.

- Growth expectations are clicked higher but a lower inflation outlook may cause the ECB to reign in future monetary tightening expectations.

The results of the Q3 ECB survey of Professional Forecasters will present ECB President Mario Draghi with a headache moving forward, with growth expectations nudged higher but with inflation expectations moved lower.

EUR Slips as ECB Forecasters Downgrade Inflation Expectations

A look at the above table will show that the forecasters expect inflation to remain stubbornly low over the next three years and below the central bank’s mandate of close to 2%. This lower-for-longer inflation outlook may curtail some of the current thinking that the ECB will tighten monetary policy in the short- to medium-term. The ECB’s outlook for EURUSD was pegged around the 1.09 level for the next few years and with the pair currently trading around 1.16, even the revised lower inflation forecasts may prove difficult to hit.

The quarterly survey is conducted by financial experts within the EU but do not represent views of the ECB decision-making bodies or staff.

EURUSD is currently drifting off its August 2015 high after rallying from a low of 1.03400 at the turn of the year. And from a technical perspective, the 20-day ema has just moved up through the 100-day ema, a bullish sign that suggests further gains for the pair.

.

Chart: EURUSD Weekly Timeframe (January 2013 – July 21, 2017)

EUR Slips as ECB Forecasters Downgrade Inflation Expectations

Chart by IG

If you would like to get your free IG Client Sentiment trading guide, please click here.

--- Written by Nick Cawley, Analyst

To contact Nick, email him at nicholas.cawley@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