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
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
Gold
Mixed
GBP/USD
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
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
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/453MLny2lu
  • The haven-linked US Dollar may be in a position to benefit in the short-run as economic recovery bets support longer-dated Treasury yields, making them more competitive with stocks. Get your market update from @ddubrovskyFX here: https://t.co/BickxlcuZi https://t.co/OdARp4Z1mh
  • The Dow Jones and Nasdaq 100 look to be on diverging technical paths as volatility spikes. Meanwhile, the S&P 500 teeters on support as it splits the difference between its sister indices. Get your market update from @PeterHanksFX here: https://t.co/0gULgIN2kw https://t.co/dzuxyjkXmx
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCagF5 https://t.co/yTYG7ote3R
  • The reflation trade is helping to push the oil-linked Canadian Dollar higher as the post-Covid economic outlook clears. The Loonie is reliant on the global economy’s recovery. Get your market update from @FxWestwater here: https://t.co/CYUiH0PCca https://t.co/my6clW7pxY
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/q8Ds7wYrKA
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/qtAmyhFU9A
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/H19vRDCpUJ https://t.co/S74APOiQ3y
  • Two of the main Euro-pairs, $EURUSD and $EURGBP, are being driven by very different drivers. Get your market update from @nickcawley1 here: https://t.co/Vd32Y6HKEr https://t.co/Lgb5z5V1Xa
  • 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/9uPXNvDBS5
Euro Continues to Defy Gravity After Mixed Data Bag

Euro Continues to Defy Gravity After Mixed Data Bag

Martin Essex, MSTA, Analyst

EUR Talking Points:

- EURUSD continues to rise as the Euro-Zone economy steams ahead even though inflation remains subdued.

- ECB must decide whether to tighten monetary policy to cool the economy or leave it loose to stimulate consumer price rises.

Learn how to trade like an expert by reading our guide to the Traits of Successful Traders

New to forex and want to find out more about trading EURUSD? Take a look at our Forex Trading Guides

The Euro remains in demand as the European Central Bank continues to face a difficult question: whether to tighten monetary policy to cool a buoyant economy or to keep policy loose while inflation stays under its target of below but close to 2%.

Data released Wednesday showed German retail sales down by 1.9% in December both month/month and year/year. However, German unemployment fell by a larger than expected 25,000 in January and the unemployment rate in the Euro-Zone as a whole stayed at 8.7%. Inflation in the Euro-Zone slipped to 1.3% in January from 1.4% while core inflation edged up to 1.0%.

Against this mixed background, the Euro continued to take the path of least resistance: upwards.

EURUSD Price Chart, Daily Timeframe (February 1, 2017 to January 31, 2018)

Euro Continues to Defy Gravity After Mixed Data Bag

Chart by IG

Speaking Wednesday, ECB executive board member Benoit Coeure repeated the central bank’s official line that it expects its key interest rates to remain at their present levels for an extended period of time and well past the horizon of its net asset purchases.

We do not believe that the distribution of future inflation risks has moved permanently lower, he added, although many commentators reckon that the current strength of the Euro is adding to the ECB’s headache by keeping inflation so far below target.

Looking ahead

Coeure noted that quantitative easing in the Euro-Zone will not last for ever but added that there is a very broad agreement that the bank’s rate setters have to be patient and prudent, and are not going to be too hasty to change policy.

Nonetheless, further reductions in the ECB’s asset purchases – or even an end to them – seem more than likely late this year, and that will likely continue to support EURUSD, especially if the Dollar remains weak.

--- Written by Martin Essex, Analyst and Editor

To contact Martin, email him at martin.essex@ig.com

Follow Martin on Twitter @MartinSEssex

For help to trade profitably, check out the IG Client Sentiment data

And you can learn more by listening to our regular Trading Webinars

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

DISCLOSURES