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
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • US Markets at the Close $NDX 12464.0 -1.73% $SPX 3768.49 -1.34% $DJI 30924.14 -1.11%
  • USD/JPY stronger during trade, now pushing towards 108 level $USDJPY https://t.co/GemouFGvHF
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.02% US 500: -0.03% Germany 30: -0.52% FTSE 100: -0.53% France 40: -0.71% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/jsQ36v1JJy
  • USD/CAD put in a test at the 1.2500 psychological level last week, but bulls following the falling wedge for topside breakouts may have to wait for a bit longer. Get your $USDCAD market update from @JStanleyFX here:https://t.co/81i2hiJT53 https://t.co/G0tuoC80CH
  • Gold continues its decline, now trading below $1,700 $XAUUSD https://t.co/PbAygJY9Yt
  • $USDJPY in full on bull mode longer-term, a really strong breakout from the falling wedge formation https://t.co/FDaE6Qzbfj https://t.co/23ubngiXnQ
  • USD/CHF sharply higher, extending recent gains https://t.co/sEukWUYhBU
  • Canadian Dollar Price Forecast: USD/CAD Holds Support as USD Drives https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/03/04/Canadian-Dollar-Price-Forecast-USDCAD-USD-CAD-Holds-Support-as-USD-Drives.html $USDCAD https://t.co/pw7XkF7F7n
  • USD/RUB sharply higher as President Biden places sanctions on Russia $USD $RUB https://t.co/44yZ3qi0ci
  • AUD/USD lower off the back of Fed Chair Jerome Powell's speech https://t.co/Sh1WWLEsKE
EUR Unmoved by Mixed IFO Report; German Business Confidence Mired by Trade Wars

EUR Unmoved by Mixed IFO Report; German Business Confidence Mired by Trade Wars

Justin McQueen, Analyst

EUR Analysis and Talking Points

  • German Business Confidence Mired by Slowing Growth and Trade Tensions
  • President Trump Threatens to Impose Tariffs on EU Autos

German Economic Outlook Deteriorates

The Euro and DAX saw a subdued reaction following a relatively mixed German IFO report. The business climate in Germany dropped to 101.8 in June from 102.3 as expected. However, the current assessment had fallen more than expected, having slipped to 105.1 from 106.1, while the expectations index had printed higher than forecast at 98.6 rather than 98. The IFO cited concerns over US trade war and weaker global economic growth as reasons for declining business confidence.

President Trump Ups the Trade War Ante

The backdrop of escalating trade tensions continues to plague investor sentiment. On Friday, President Trump threatened to impose a 20% tariff on all European cars coming into the US if trade barriers and tariffs on the US from EU are not 'broken down and removed'. In response to this, European equities came under pressure, most notably German auto names. Additionally, Trump tweeted over the weekend that all countries should remove tariffs or be met with reciprocity by the US, as such, with the US showing no signs that it will back down, investor morale could continue to come under pressure over the forthcoming months.

Background on Trade Wars

IG Client Positioning shows that recent changes in sentiment warn that the current EURUSD price trend may soon reverse higher.

EURUSD PRICE CHART: 1 HOUR TIME FRAME (June 11th- June 25th)

EUR Unmoved by Mixed IFO Report; German Business Confidence Mired by Trade Wars

Chart by IG

--- 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