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
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • That if you’re offended by what someone says on Twitter and that ruins your day, you live an extremely lucky life to be able to have that be your biggest problem for the day. https://t.co/H9KQjR3ViK
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/tl54v6sKkX
  • Moving averages are extremely popular due to its easy-to-use nature and multitude of uses when trading. What are some popular moving averages and how can you use them? Find out: https://t.co/ik0wQ3MLGE https://t.co/heAYoTMDeR
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here:https://t.co/ZNs4Qi8ieG https://t.co/UqZBBPZiOl
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/rChAkNqPL2
  • Long wick candles are recurrent within the forex market. This makes understanding the meaning behind these candles invaluable to any trader to comprehend the market dynamics during a specific period. Learn about the importance of extended wicks here: https://t.co/SIpslvhX0J https://t.co/jVxcE1QUBs
  • Safe haven stocks also allow traders to diversify their portfolio and reduce risk. Learn if safe-haven stocks are made for you here: https://t.co/MTc4tUDD6c https://t.co/DOQ6tyzep9
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/WQLZ1X7gIY
  • but the next major point in my view to monitor will be 52.76 - at least in the short term.
  • #Brent having broken above the pre-OPEC drop off at 45.51 is a huge deal considering it failed to crack resistance there in August (leading to the invalidation of "uptrend 2") and the psychological significance of that level https://t.co/LkEyRxFhnq
EUR and Italian Assets Sink on Budget Proposal - US Market Open

EUR and Italian Assets Sink on Budget Proposal - US Market Open

2018-09-28 13:25:00
Justin McQueen, Analyst
Share:

MARKET DEVELOPMENT – ITALIAN ASSETS SINK ON BUDGET ANNOUNCEMENT

EUR: After the largest intra-day drop in 2018, the Euro has extended on losses, breaking below 1.16 against the greenback and subsequently eyeing support at 1.15. However, initial support is seen at 1.1580 for now. The driver of the move has been the uncertainty surrounding Italian politics yet again following the governing coalitions decision to set a deficit to GDP target of 2.4% above the 1.6-1.9% threshold preferred by the Finance Minister Tria (Problems could mount if Tria leaves). In response to the budget announced, Italian bond yields are now at fresh highs with the 10yr rising over 30bps and wider by 38bps against the German 10yr, consequently weighing on the Euro. That said, Italian assets have plunged with the FTSE MIB losing as much as 900points with Italian banks hitting limit down.

GBP: The Pound is softer this morning, following a relatively weak growth report in which the yearly growth figure missed expectations. Elsewhere, business investment showed a surprise drop as investors remain concerned over the outcome regarding Brexit. GBPUSD hover around 1.3040 with the next key support at 1.30. Eyes will be on the Conservative party conference over the weekend, however, judging by historical performance the Pound may extend on losses early next week (Prior Tory party conferences saw a 1% decline in GBP).

CAD: The outperformer in the G10 space is the Loonie following a better than expected GDP reading, which took the spot rate back below 1.30. However, while data and rate expectations continue to keep the CAD afloat, the major concerns are centred around NAFTA and with no signs of any real progress, the pressure will likely mount for the currency.

DailyFX Economic Calendar: Thursday, September 27, 2018 – North American Releases

EUR and Italian Assets Sink on Budget Proposal - US Market Open

DailyFX Webinar Calendar: Thursday, September 27, 2018

EUR and Italian Assets Sink on Budget Proposal - US Market Open

IG Client Sentiment: USDCAD Chart of the Day

EUR and Italian Assets Sink on Budget Proposal - US Market Open

USDCAD: Retail trader data shows 63.3% of traders are net-long with the ratio of traders long to short at 1.73 to 1. In fact, traders have remained net-long since Sep 14 when USDCAD traded near 1.30311; price has moved 0.6% lower since then. The number of traders net-long is 8.5% lower than yesterday and 58.2% higher from last week, while the number of traders net-short is 8.4% higher than yesterday and 10.8% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USDCAD prices may continue to fall. Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed USDCAD trading bias.

Five Things Traders are Reading

  1. USDJPY Bulls In Control, Widening Bond Spreads Support Upsideby Justin McQueen, Market Analyst
  2. Charts for Next Week – EUR/USD, GBP/USD, Gold Price & More" by Paul Robinson, Market Analyst
  3. EURUSD Battles Negative Italian Budget Sentiment, Weak CPIby Nick Cawley, Market Analyst
  4. Gold Price Range Finally Breaks, Silver Bear-flag Set to Trigger” by Paul Robinson, Market Analyst
  5. Bitcoin (BTC) Price: Bullish Chart Pattern Forming” by Nick Cawley, Market Analyst

--- 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