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
  • Gold has been trending lower after failing to clear resistance in the $1835 area earlier this month. Get your $XAUUSD market update from @DColmanFX here:https://t.co/3hm1g3BHgf https://t.co/MdTQKEBCBx
  • Key break here in the 10-year #Treasury yield as it rises to the highest since late June Took out 1.4230 resistance, and the 100-day SMA Eyes now on the 38.2% Fib extension at 1.4775 Also potential falling resistance from March https://t.co/4cI6l210ui
  • The move in rates after this week’s FOMC has continued and the 10 year yield has pushed up to a fresh two-month-high. Get your market update from @JStanleyFX here:https://t.co/CRWhuZ3sxD https://t.co/svHHqN2Zz8
  • S&P 500 contending with its proverbial ‘line in the sand’ as bulls and bears battle for directional control. How we close/trade around the 50-day moving average could serve as a noteworthy bellwether for risk trends headed into next week. I remain cautious below ~4,480. $SPX $ES https://t.co/qogkjs1Sx2
  • USD/JPY trades to a fresh monthly (110.57) amid the pickup in longer-dated US Treasury yields, and the exchange rate may stage a larger advance over the coming days. Get your market update from @DavidJSong here:https://t.co/dlNXOrJnM9 https://t.co/LCQd26W1zF
  • US yields continue to climb, with the 10-year Treasury yield trading above 1.45% $ZN $ZB https://t.co/N4EDfwD3nZ
  • $USDJPY bull thesis appears quite constructive. Technicals show topside breakout above trend resistance following a period of consolidation. Bond yields providing the fundamental catalyst. Eyes on Aug/YTD highs. A broad-based deterioration in market sentiment poses downside risk. https://t.co/AazskXGjHq
  • WTI posting another session of strong gains, currently flirting with the 74 handle $CL #Oil #OOTT https://t.co/oYnm2OYRky
  • The New Zealand Dollar’s bullish breakout attempt in early-September was rebuffed. Price action at the end of the month is telling a different story. Get your market update from @CVecchioFX here:https://t.co/AquMSrssne https://t.co/DtFuFfrS7Q
  • So much for that Evergrande recovery. Shares of the troubled Chinese property developer are down approximately -12% today following yesterday's impressive rally (biggest in a year) https://t.co/Nome25d9Bt
EURUSD Shrugs Off IFO Figures as It Continues to Push Higher

EURUSD Shrugs Off IFO Figures as It Continues to Push Higher

Daniela Sabin Hathorn, Analyst

EUR Talking Points:

  • EURUSD traded in a wide range this morning and continued to push higher despite German IFO figures coming in mixed
  • Business climate remains stable and current assessment improves, but expectations come in lower than expected which reinforces concerns about future growth

Business climate for the month of June was 97.4, in line with expectations but down from 97.9 in the previous month. Current assessment came in better than expected at 100.8 (Exp. 100.3) but expectations about the future failed to reach expectations of 94.6, coming in at 94.2.

These figures reinforce that Germany continues to face difficult economic conditions, with unemployment rising in May for the first time in 5 years and a stagnant growth which has faced periods of contraction. Despite June German manufacturing PMI being higher than expected and having improved from the previous month, the figure was still below 50 which indicates contraction meaning that the manufacturing industry, which is a big part of Germany’s export-led economy, continues to slow down, albeit at a slower rate.

PRICE CHART: EURUSD ONE-MINUTE TIME FRAME (INTRADAY)

EURUSD Shrugs Off IFO Figures as It Continues to Push Higher

The Eurozone continues to face complicated times with growth and inflation both declining. The ECB has indicated that if economic conditions continue to worsen we could see extended period of monetary easing with the possibility of continued negative rates.

Risk in the Eurozone has continued to increase as the EU finds itself with many open fronts, including ongoing Brexit concerns, Italy’s threat of a parallel currency to overcome its budget indiscipline, and the stalled talks with Switzerland over their various trading accords. It seems like more relationships between the member countries and the Central Government are getting strained and deteriorating sentiment in a moment when the EU finds itself with most of its top jobs up for grabs.

Recommended Reading

Eurozone Debt Crisis: How to Trade Future Disasters – Martin Essex, MSTA, Analyst and Editor

KEY TRADING RESOURCES:

--- Written by Daniela Sabin Hathorn, Junior Analyst

To contact Daniela, email her at Daniela.Sabin@ig.com

Follow Daniela on Twitter @HathornSabin

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

DISCLOSURES