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
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
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
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • RT @globaltimesnews: A total of 1,052 cases of #coronavirus have been reported as of Jan 25 in #Hubei Province, with 129 in critical condit…
  • RT @FactSet: $SPX is reporting revenue growth of 2.9% for Q4, led by the Health Care (11%), Utilities (9%), and Communication Services (9%)…
  • The AUD has been hit by the risk-appetite pullback occasioned by the spread of Wuhan-strain coronavirus. This week may see domestic focus return, if headlines allow, with key inflation data due. Get your $AUDUSD market update from @DavidCottleFX here: https://t.co/UIpwno0pSq https://t.co/kib4d1mA0q
  • RT @anilvohra69: USD inverted (red) is correlated to Excess Reserves (blue) and Reserve Balances (green). 1/2 https://t.co/bbO1pPWY4F
  • RT @FactSet: $SPX is reporting a decline in earnings of -1.9% for Q4, led by the Energy (-42%), Consumer Discretionary (-14%), and Material…
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/6iMyDFqnqe
  • 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/2mjzvYvgSn
  • Previewing the Texas Rangers new home! https://t.co/WITZGSQPlc
  • Thanks for having me on @MartinSEssex https://t.co/fg8uOe16wr
  • The MACD is often used with its default setting when entering trades. However, this versatile indicator can be customized to assist traders in exiting trades too. Learn how to better incorporate the MACD into your trading strategy here: https://t.co/HnY7gzsI2q https://t.co/5F1DSvAXyy
EURUSD Drops as Italy Risks Snap Elections, USDCAD Spikes - US Market Open

EURUSD Drops as Italy Risks Snap Elections, USDCAD Spikes - US Market Open

2019-07-19 13:25:00
Justin McQueen, Analyst
Share:

MARKET DEVELOPMENT – EURUSD Drops as Italy Risks Facing Snap Elections, USDCAD Spikes

DailyFX 2019 FX Trading Forecasts

EUR: A recovery in the US Dollar after Fed’s Williams faux pas had been clarified, has weighed on the Euro, which is once again back towards the low 1.12s. Overnight, comments from Fed’s Williams had led to a surge in bets for a 50bps rate cut, however, this had later been clarified by a spokesperson, noting that this was not in relation to the upcoming meeting, thus sparking a pullback in 50bps cut expectations. Keep in mind as well that the most dovish FOMC member, Bullard, had previously stated that a 50bps cut would be somewhat overdone.

Aside from the communication error at the Fed, Italian risks are once again plaguing the market with the FTSE MIB notably underperforming as tensions rise between the League and 5 Star Party. Yesterday, both parties had stated that the coalition were at risk of breaking, consequently raising the prospect of a snap election. Bund-BTP spreads are modestly wider this morning, keeping the Euro on the backfoot, most notably against the Swiss Franc.

CAD: The Canadian Dollar fell to fresh weekly lows following soft retail sales (-0.1% vs. Exp. 0.3%), which had also coincided with soft oil prices. However, the Loonie has since pulled off worse levels amid offers at 1.31.

EURUSD Drops as Italy Risks Snap Elections, USDCAD Spikes - US Market Open

Source: DailyFX, Thomson Reuters

IG Client Sentiment

EURUSD Drops as Italy Risks Snap Elections, USDCAD Spikes - US Market Open

How to use IG Client Sentiment to Improve Your Trading

WHAT’S DRIVING MARKETS TODAY

  1. Gold Price Soars Through Resistance, Consolidation Needed Ahead of Next Push” by Nick Cawley, Market Analyst
  2. GBPUSD Outlook: Volatility Begins to Awaken as Brexit Risks are Priced In” by Justin McQueen, Market Analyst
  3. USDCAD, GBPUSD, EURJPY & More – Charts to Watch Next Week” byPaul Robinson, Currency Strategist
  4. Using FX To Effectively Trade Global Market Themes at IG” by Tyler Yell, CMT , Forex Trading Instructor

--- 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

News & Analysis at your fingertips.