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. See our updated Privacy Policy here.

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
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
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bearish
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
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/HUYJzEkYiT
  • #Gold prices put in a major breakout last month and, so far, buyers have held the line. But a really big Fed meeting is on the calendar for this week. Can Gold bulls hold? Get your market update from @JStanleyFX here: https://t.co/NGRTSfceOW https://t.co/QkSUORIQE2
  • 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/PHK2sqB1jV
  • Top event risk for more than just the Dow and Dollar this week is the Wednesday #FOMC rate decision. What the markets expect sets the tone for how the event impacts price action. My run down of the week and Fed decision: https://www.dailyfx.com/forex/video/daily_news_report/2021/06/12/Dollar-and-SP-500-Breaks-Must-Abide-the-FOMC-Decision-This-Week.html https://t.co/Huvth4f706
  • 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/AkE7bFRWAt
  • $GBPUSD continues to trade in ranges as volatility dwindles. UK data to play second fiddle to FOMC. Get your market update from @JMcQueenFX here: https://t.co/T0Eg4KaENB https://t.co/GMmZa5L0Il
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/wlGgQrcK3X
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCagF5 https://t.co/qnQ8Cx0DKv
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/RJLpBgS43V
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/6GrWzkOouM
Euro Sees Muted Response to Slowing Euro-Area Growth; Eyes on Inflation

Euro Sees Muted Response to Slowing Euro-Area Growth; Eyes on Inflation

Justin McQueen, Analyst

EUR Analysis and Talking Points

  • EURUSD was unfazed by the slowing of Euro-Area GDP given that growth remains robust
  • Focus will be on tomorrows inflation figures, which continues to remain subdued

Eurozone GDP Slows at the Beginning of 2018

The Euro-Zone economy expanded by 2.5% Y/Y in the first quarter of 2018, a slight moderation from the prior quarter of 2.7%, nonetheless, growth remains robust, keep in mind that 2017 saw Euro-Area GDP growing at the fastest pace in 10yrs. GDP Q/Q was 0.4% in line with consensus and marginally lower from 0.6% previously, data also showed that the unemployment rate remained at the lowest level since December 2008 at 8.5%. As such, given that the figures printed in line with expectations, a muted reaction had been observed in the Euro, which trades around the 1.2000 level against the US Dollar.

Robust Growth Likely to Keep the ECB Exit Strategy Intact

With the GDP data not as worse as previously feared given the recent run of poor economic data, namely from Germany, this will undoubtfully keep the pressure on the ECB to stick with its plans to end its ultra-loose monetary policy later this year, potentially signalling its next policy shift midway through the year (June/July). This prospect should help the Euro find a base in the near term and potentially push higher in the medium term.

See our Q2 EUR forecast to learn what will drive the currency through the quarter.

Questions Continue to Hover Over Inflation

Inflation in the bloc remains subdued, providing a headache for the ECB as a sustained adjustment towards the central bank’s target of “below but close to 2% goal” has yet to be seen. CPI figures released from Germany on Monday showed HICP inflation (most relevant metric for ECB interest rate deliberation) slow to 1.4% underperforming expectations of 1.5%, subsequently posing downside risks towards tomorrow’s Eurozone inflation report.

Join DailyFX Market Analyst Justin McQueen for live coverage of Eurozone CPI at 8:45-9:15GMT

PRICE CHART 1: EURUSD 1-MINUTE TIME FRAME (INTRADAY MAY 2, 2018)

Euro Sees Muted Response to Slowing Euro-Area Growth; Eyes on Inflation

Chart by IG

IG Client Sentiment Reportnotes that the combination of current sentiment and recent changes provides a stronger EURUSD bearish contrarian bias.

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES