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
More View more
Real Time News
  • Keppel Corp is seeking to buy Singapore Press Holdings (SPH) for S$2.2 billion following the spin-off of its media assets, and plans to delist and privatize the company - BBG
  • S&P 500 Futures Lift Nikkei 225, Regulatory Risks Hit Chinese Stocks https://www.dailyfx.com/forex/market_alert/2021/08/02/SP-500-Futures-Lift-Nikkei-225-Regulatory-Risks-Hit-Chinese-Stocks.html https://t.co/bBmLaL5aHB
  • 🇰🇷 Markit Manufacturing PMI (JUL) Actual: 53 Previous: 53.9 https://www.dailyfx.com/economic-calendar#2021-08-02
  • Heads Up:🇰🇷 Markit Manufacturing PMI (JUL) due at 00:30 GMT (15min) Previous: 53.9 https://www.dailyfx.com/economic-calendar#2021-08-02
  • 7 out of 11 S&P 500 sectors ended lower, with 58% of the index’s constituents closing in the red. Consumer discretionary (-2.78%), energy (-1.76%) and utilities (-0.87%) were among the worst performers, whereas materials (+0.40%) and real estate (+0.32%) outperformed. https://t.co/qC0SSsqCyR
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/3iISQtTzlX
  • RT @Yeap_IG: Short introduction to the #Supertrend technical indicator! https://t.co/ZczqF1ugEm
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHHGbZ https://t.co/nAoZXAZFuD
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EST on DailyFX! https://t.co/lxd5fZnn4H
  • Bitcoin ended a 10 consecutive day advance with yesterday's bearish close - breaking pace only after it overtook the 100-day moving average. That 10-day climb matches the longest bull charge with only two other examples. $BTCUSD https://t.co/G5UdX96mn9
EURUSD Latest: Euro Under Pressure From German Fallout, Trade Wars

EURUSD Latest: Euro Under Pressure From German Fallout, Trade Wars

Nick Cawley, Strategist

EURUSD News and Talking Points

- German coalition government rattled further and may not survive.

- US President Trump see leverage in automobile tariffs.

The Brand New DailyFX Q3 Trading Forecasts for all major currencies, commodities and indices, are now available to download to help you make more informed trading decisions.

EURUSD to Move Lower as Headwinds Increase

All is not well in Europe’s economic engine and the euro is set to be hit further lower in the coming weeks. In Germany, Angela Merkel’s ruling coalition government is under threat after CSU party leader and interior minister Horst Seehofer offered to resign in response to the recent EU migration deal. If Seehofer’s resignation is accepted it will call into question the future of Angela Merkel’s government at a time when Europe needs its strongest of pillars. And it is not just internal ructions shaking Germany with the US-EU trade wars seemingly being notched up. Over the weekend US President Trump highlighted again the potential leverage from tariffs against the EU automobile industry, at a time when the sector is still reeling from the emissions scandal and fears over the outcome of a no-deal Brexit. Around 1 in 5 new cars exported from Germany goes to the UK.

EURUSD continues to respect the 1.1500 area after half-a-dozen failed attempts to break lower. Options barriers and quarter-end re-balancing may have prevented move lower but the charts continue to point to further weakness. The pair trade below all three moving averages while the RSI indicator in mid-market but pointing lower. A break below 1.1504 opens the way to 1.1448 with 1.1187 the longer-term objective.

The latest IG Client Sentiment Indicator shows how retail are positioned in EURUSD and how recent positional changes help retail make better-informed trading decisions.

EURUSD Daily Price Chart (April 2017 – July 2, 2018)

EURUSD Latest: Euro Under Pressure From German Fallout, Trade Wars

If you are new to foreign exchange, or if you would like to update your knowledge base, download our New to FX Guide and our Traits of Successful Traders to help you on your journey.

What’s your opinion on the EURUSD?

Share your thoughts with us using the comments section at the end of the article or you can contact the author via email at Nicholas.cawley@ig.com or via Twitter @nickcawley1

--- Written by Nick Cawley, Analyst

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

DISCLOSURES