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.

Free Trading Guides
EUR/USD
Bullish
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
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
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • The US Dollar could rise against #ASEAN currencies such as the Singapore Dollar as US-China tensions seem to escalate. The Indian Rupee is also looking ahead of local 1Q GDP data. Get your ASEAN currencies market update from @ddubrovskyFX here:https://t.co/LkEFJViPWY https://t.co/ZGFaQQ3Hr2
  • The #Euro is the big driver here for DXY as it is 57% of the index. It is rising now and trying to break above the March 27 high at 11147. Get your $EURUSD technical analysis from @PaulRobinsonFX here:https://t.co/6gt3F9LuGP https://t.co/73SaL5AeXD
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/EIC9YqfTec
  • Anybody else think that casting directors in movies are some of the most underrated people when it comes to giving a film/series credit?
  • No https://t.co/EoBltaP17k
  • Crude #oilprices may face heightened liquidation pressure as the cycle-sensitive #commodity finds itself under the pressure of resilient resistance and a vulnerable, multi-week rising channel. Get your crude #oil market update from @ZabelinDimitri here: https://t.co/cGPX4qcOH1 https://t.co/0U4JMJVFuf
  • The @ecb will likely boost its Pandemic Emergency Purchase Program at Thursday’s meeting of its Governing Council; a move that could give the #Euro a lift. Get your currencies market update from @MartinSEssex here: https://t.co/I4PbmJNG1z https://t.co/hu6Ld1KdDB
  • $GBPUSD doesn’t have the cleanest set of technical indications, but #USD may give indications if it can break its trading range via the $DXY. Get your currencies market update from @PaulRobinsonFX here: https://t.co/PrC9wAaXvU https://t.co/vHYHflwqR3
  • The ongoing contraction in US production may keep #oilprices afloat in June as crude output falls to its lowest level since October 2018. Get your crude #oil market update from @DavidJSong https://t.co/jj1bMLX0DF https://t.co/O9NOqbfHkb
  • watching the #SpaceX launch🍿
EUR/GBP Eyes Mid-Week Releases, ECB Talk, UK GDP

EUR/GBP Eyes Mid-Week Releases, ECB Talk, UK GDP

2018-01-22 11:00:00
Nick Cawley, Strategist
Share:

EUR News and Talking Points

- EUR/GBP may push higher if the ECB gives even a modest hint of ending QE.

- Data releases and a potential German coalition deal may boost the single currency.

Check out our newTrading Forecasts - they’re free and have been updated for the first quarter of 2018.

ECB May Keep its Powder Dry

EUR/GBP is likely to remain stuck in a range ahead of the latest European Central Bank (ECB) monetary policy announcement with investors keeping a close eye on the accompanying statement for any signals that the central bank may give on the current bond buying program (QE). The minutes from the December meeting signalled a shift from the central bank to earlier communication over QE although markets are expecting the ECB to wait and see the next staff projections in March before commenting on any bond buying/reduction timetable. The current EUR30 billion a month bond buying programme is scheduled to finish in September this year.

DailyFX analyst Chris Vecchio will be covering the ECB Rate Decision Live on Thursday, January 25 from 12:30 GMT.

German Coalition News and Data Releases Weigh Heavy

A busy economic calendar in the week ahead will also keep investors on their toes with a raft of closely watched sentiment indicators released mid-week. In addition, on Friday the latest ECB survey of professional forecasters is released, a quarterly survey of expectations for the rates of inflation, real GDP growth and unemployment in the euro area for several timeframes, together with a quantitative assessment of the uncertainty surrounding them.

Germany’s Social Democrats (SDP) voted on Sunday to enter coalition talks with Angela Merkel’s Conservatives, opening the way for the two largest political parties to form a grand coalition. The deal however was not without its detractors within the SDP, with 362 delegates voting ‘Yes’ and 279 voting ‘No’, highlighting the difficulty of the upcoming discussions. Talks will begin shortly and once/if a deal has been reached, SPD delegates will then vote on whether to approve it or not.

EUR/GBP Eyes Mid-Week Releases, ECB Talk, UK GDPEUR/GBP Eyes Mid-Week Releases, ECB Talk, UK GDP

EUR/GBP Stuck ahead of UK GDP

The European single currency is not alone in waiting for important data releases, with GBP on edge ahead of the latest UK jobs and data release on Wednesday and the first look at Q4 GDP on Friday. Any uptick in wages will be welcomed by the Bank of England, especially after the recent fall in inflation, while the GDP release could come in anywhere 0.4% and 0.6%, as the market begins to upgrade UK growth prospects.

DailyFX analyst Martin Essex will be covering the UK Jobs and Wages data on Wednesday while I will be taking a look at the UK Q4 GDP release on Friday this week.Both webinars begin at 09:15 GMT.

A look at the daily chart shows EUR/GBP stuck in a sideways channel, and sitting on the 50% Fibonacci retracement level of the April – August 2017 move. Resistance remains around 0.8930 with support at 0.8730 ahead of Fibonacci support and the December 8, 2017 low at 0.86930.

EUR/GBP Price Chart (May, 2017 - January 22, 2018)

EUR/GBP Eyes Mid-Week Releases, ECB Talk, UK GDP

Chart by IG

DailyFX provide a comprehensive range of free, constantly updated Trading Guides including Forex for Beginners, Top Trading Lessons and The Number One Mistake Traders Make. We also run a Client Sentiment Indicator, highlighting the latest retail flows in all the major currency pairs, to help traders make a more informed decision.

--- Written by Nick Cawley, Analyst

To contact Nick, email him at nicholas.cawley@ig.com

Follow Nick on Twitter @nickcawley1

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

DISCLOSURES

News & Analysis at your fingertips.