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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bearish
USD/JPY
Bearish
Gold
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
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • The Australian Dollar and New Zealand Dollar tend to rise with stocks. They have recently fallen despite gains in the #SP500. What does this mean for $AUDUSD and $NZDUSD ahead? #AUD #NZD #RBA #RBNZ - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/17/AUDUSD-NZDUSD-Outlook-Looks-Past-Stocks-to-Rate-Cut-Bets.html?CHID=9&QPID=917702 https://t.co/ddf2fV7Kyl
  • A few snippets from today's commentary. Check out the link below for the full story (via @DailyFX). https://t.co/I31tuq764r https://t.co/x0BaiOFA1P
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/e2YrN3dBrl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.00%, while traders in France 40 are at opposite extremes with 79.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/UL7hqSD2Ki
  • US Dollar Forecast: $USD Lacking Impetus Ahead of Consumer Sentiment #Forex traders shift focus away from US-China trade deal headlines - perhaps toward the monthly release of #ConsumerSentiment data for volatility and clues on the Greenback's next move https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2020/01/16/us-dollar-forecast-usd-lacking-impetus-ahead-of-consumer-sentiment.html
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.11% 🇦🇺AUD: -0.02% 🇯🇵JPY: -0.03% 🇨🇭CHF: -0.05% 🇬🇧GBP: -0.06% 🇨🇦CAD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Kxcb9EtIWb
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.45% France 40: 0.26% Wall Street: 0.07% US 500: 0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/I5YIsKQAog
  • 🇯🇵 JPY Tertiary Industry Index (MoM) (NOV), Actual: 1.3% Expected: 1.0% Previous: -5.2% https://www.dailyfx.com/economic-calendar#2020-01-17
  • The $JPY has weakened as a bounce-back in risk appetite saps haven-asset demand. However, the old uptrend line still provides clear resistance. Get your market update from @DavidCottleFX HERE:https://t.co/IMhgQ9jbF9 https://t.co/I7087olftk
  • Heads Up:🇯🇵 JPY Tertiary Industry Index (MoM) (NOV) due at 04:30 GMT (15min), Actual: N/A Expected: 1.0% Previous: -4.6% https://www.dailyfx.com/economic-calendar#2020-01-17
EURUSD Remains Under Selling Pressure as Italian Bond Yields Jump

EURUSD Remains Under Selling Pressure as Italian Bond Yields Jump

2018-10-08 08:00:00
Nick Cawley, Analyst
Share:

Euro, US dollar and Italian Bond Yields Talking Points:

  • Italian 10-year bond yield hits 3.50% -- nearly 300 basis points more than Germany.
  • Robust US labor market underpins US dollar strength.

We have just released our Brand New Q4 Trading Forecasts including USD and EUR.

EURUSD Set for the Next Leg Lower

The Euro remains under pressure at the start of the week with Italian government bond yield rising further, dragging the 10-year BTP/Bund spread out to nearly 300 basis points, pointing to a weaker euro. The latest move higher in Italian yields reflects increasing concerns from the EU Commission that Italy’s budget is a ‘source of concern’ prompting fears of a showdown between the two. Italian 10-year yields have doubled since early May and are likely to test 4.00% in the short-term.

Friday’s non-farm payrolls report was a mixed bag with a lower headline jobs report print but a strong upward revision in the prior month and a near five-decade low in the unemployment rate. The US dollar basket (DXY) remains in good technical shape – comfortably above all three moving averages – and is looking to re-test the 50% Fibonacci retracement level at 95.87 which would leave 96.60 – a 16-month high – as the next target.

US Dollar Basket (DXY) Daily Price Chart (January 2017 – October 8, 2018)

EURUSD Remains Under Selling Pressure as Italian Bond Yields Jump

EURUSD continues to trade either side of 1.1500 with support seen at 1.1464 ahead of 50% Fibonacci retracement at 1.14480. If broken and closed below, then 1.1300 comes into play.

IG Client Sentiment Datashows how investors are currently 56.8% net-long EURUSD and combined with recent positional shifts, we get a strong bearish contrarian trading bias.

EURUSD Daily Price Chart (November 2017 – October 8, 2018)

EURUSD Remains Under Selling Pressure as Italian Bond Yields Jump

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on EURUSD – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.

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

DISCLOSURES

News & Analysis at your fingertips.