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
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
GBP/USD
Mixed
USD/JPY
Mixed
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
  • CHF Swiss Sep M3 Money Supply YY Actual: 2.6% Previous: 2.7%
  • Yet more #Brexit delay keeps gold underpinned, charts suggest it could gain but fundamental risk appetite will probably decide that. #Crudeoil prices sink on worries about oversupply. https://www.dailyfx.com/forex/market_alert/2019/10/21/Gold-Prices-Find-Support-In-Brexit-Turmoil-US-China-Trade-Uncertainty.html?utm_source=Twitter&utm_medium=Cottle&utm_campaign=twr
  • Join @DavidCottleFX 's #webinar at 4:00 AM ET/8:00 AM GMT for your weekly update on the top Asia Pacific market drivers that traders should watch this week. Register here: https://t.co/HNf3Axw8s5 https://t.co/xApzkcobSR
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: US 500: 0.23% Wall Street: 0.20% Germany 30: 0.08% France 40: -0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/fupnm3hipk
  • European Opening Calls from IG: #FTSE 7165 +0.20% #DAX 12666 +0.26% #CAC 5646 +0.18% #MIB 22387 +0.29% #IBEX 9348 +0.20% #STOXX 3588 +0.23% #SA40 49591 +0.16%
  • EUR Germany Sep PPI MM: Actual: 0.1% Forecast: -0.1% Previous: -0.5% YY Actual: -0.1% Forecast: -0.2% Previous: 0.3%
  • Markets believe that the European Central Bank @ecb will ease policy this year. This could be very bad news for the Swiss National Bank, but it’s not clear that it will resort to old remedies. Get your market update from @DavidCottleFX here: https://t.co/jZV0Ytw6Db https://t.co/KXULyswial
  • Japan’s All Industry Activity Index (MoM) (AUG) Actual: 0.0% Est: 0.1% Previous: 0.2% #JPY
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.04%, while traders in Germany 30 are at opposite extremes with 78.78%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/cCfWKn4CzA
  • (ASEAN Fundamental Forecast) US Dollar Outlook: MYR, SGD May Fall on CPI. Rupiah to Drop on Cut? #USD $USDMYR $USDSGD $USDIDR - https://www.dailyfx.com/forex/fundamental/article/special_report/2019/10/21/US-Dollar-Outlook-MYR-SGD-May-Fall-on-CPI-Rupiah-to-Drop-on-Cut.html?CHID=9&QPID=917702 https://t.co/3u9AfXqbeN
EUR/USD May be in for ECB Shock, GBP/USD Weakness Persists - US Market Open

EUR/USD May be in for ECB Shock, GBP/USD Weakness Persists - US Market Open

2019-07-22 12:40:00
Justin McQueen, Analyst
Share:

MARKET DEVELOPMENT – EUR/USD May be in for Dovish ECB Surprise

DailyFX 2019 FX Trading Forecasts

GBP: The Pound is on the backfoot to begin the week, down 0.3% against the greenback to trade at 1.2450. As markets await the likely appointment of Boris Johnson to be the next Prime Minister, resignations from several MPs are expected to be on the way in defiance of Boris Johnson potentially heading towards a no-deal Brexit, given his recent outlook. The outlook remains weak for GBP with the next PM seemingly likely to struggle to garner some cohesion in parliament, thus the odds of a snap-election are on the rise. EURGBP back towards 0.9000, holding for now and slightly stemming the drop in GBP, key support in GBPUSD situated at 1.24.

EUR: The Euro is braced for another dovish ECB meeting, which is once again managing to hold just above the 1.12 handle. Since Draghi’s sintra speech, there has been little signs of notable improvements within the Eurozone economy, therefore making entirely possible for a potential rate cut, as soon as this week. Currently, as it stands, markets are pricing in a 50/50 chance for a 10bp deposit rate cut at the July meeting, as such, a decision to do so could see EURUSD back at the low 1.11. However, with expectations split down the middle, there is a potential for a ECB sources leak in order to sure up expectations. At the same, eyes are also on EURCHF, which trades at its lowest level since July 2017 with the cross potentially set up for a break below 1.10. While the SNB are seen to typically move in lockstep with the ECB, given that interest rates are already deep in negative territory, there may be some limits to what the SNB can actually do in response to ECB easing, thus there is a risk of a sharp appreciation in the CHF, particularly if the equity markets roll-over on continued fears over trade wars.

EUR/USD May be in for ECB Shock, GBP/USD Weakness Persists - US Market Open

Source: DailyFX, Thomson Reuters

IG Client Sentiment

EUR/USD May be in for ECB Shock, GBP/USD Weakness Persists - US Market Open

How to use IG Client Sentiment to Improve Your Trading

WHAT’S DRIVING MARKETS TODAY

  1. EURUSD Under Pressure Ahead of PMI Data and ECB Meeting” by Nick Cawley, Market Analyst
  2. CAD Longs Sharply Increase, GBP Remains Bearish, JPY Shorts Build - COT Report” by Justin McQueen, Market Analyst
  3. FTSE 100 Outlook – Constructive Price Behavior Suggests Higher Prices” 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.