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
Oil - US Crude
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
More View more
Real Time News
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.02% 🇪🇺EUR: -0.06% 🇬🇧GBP: -0.12% 🇨🇦CAD: -0.22% 🇦🇺AUD: -0.23% 🇯🇵JPY: -0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/LZfExkLfjB
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: France 40: 1.31% Germany 30: 0.97% FTSE 100: 0.82% US 500: 0.57% Wall Street: 0.48% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/gUKOWwsere
  • The July flash PMIs from Markit don't paint the most encouraging picture. The US and UK composite activity measures have slide, the Eurozone's has actually advanced and Australia's has tumbled. Despite this picture, SPX just off its record https://t.co/HrcdPASU9Q
  • The July PMIs haven't triggered late-in-the-week volatility which leaves the likes of the $SPX just off its record. DailyFX's @JohnKicklighter discusses weekend and what's ahead 👇 https://t.co/oB9i7XAXCz
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.37% Gold: -0.40% Silver: -1.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/es0k9q46z0
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.49%, while traders in Wall Street are at opposite extremes with 70.30%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Bo2bJUaa0h
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Gold: -0.39% Oil - US Crude: -0.44% Silver: -1.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/mqveb8LmH7
  • 🇺🇸 Markit Manufacturing PMI Flash (JUL) Actual: 63.1 Expected: 62 Previous: 62.1 https://www.dailyfx.com/economic-calendar#2021-07-23
  • LNG looks fundamentally bullish. Low storage - supportive of sustained upward price action. Get your market update from @WVenketas here:https://t.co/h8NC2m4S2G https://t.co/TYADcug01i
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: France 40: 1.20% Germany 30: 1.04% FTSE 100: 0.87% Wall Street: 0.52% US 500: 0.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/vSdsBpA79Y
EUR/USD Hit as Germany Rules That ECB Actions are Against EU Treaty

EUR/USD Hit as Germany Rules That ECB Actions are Against EU Treaty

Justin McQueen, Analyst

EUR/USD, ECB Analysis and Talking Points

  • German Constitutional Court Rules that ECB QE is Legal
  • However, Some of ECB’s Actions Violates EU Treaty
  • Euro and BTPs Drop as ECB Given 3-Months to Justify Actions

Bottom Line: German Constitutional Court ruled that it did not find the ECB’s PSPP to be in violation of the prohibition on monetary financing, in other words ECB QE is legal (Voting 7:1). The Courts did however, state that some of the ECB’s actions violate the constitution, adding that it isn’t backed by EU Treaty. In turn, the German Court has stated that the Bundesbank may be prohibited from participating in the implementation and execution of the ECB decisions at issue after 3-months, unless the ECB Governing Council adopts a new decision to explain that the monetary policy objectives of PSPP are not disproportionate to the economic and fiscal policy effects.

That said, the ruling does not apply to the actions undertaken by the ECB to combat the impact of coronavirus.

Market Reaction: Initially, the Euro and BTPs saw a slight pop higher as the German Constitutional Court dismissed challenges against ECB QE. However, the caveat that some measures were not backed by EU Treaty ultimately resulted in underperformance in both the Euro and BTPs.

What Next?: Focus will now turn to the Bundesbank and the ECB to justify PSPP to the German Courts within 3-months in order to prevent the Bundesbank being halted from participating in QE.

EURUSD Price Chart: 1-Minute Time Frame

EUR/USD Hit as Germany Rules That ECB Actions are Against EU Treaty

Source: IG Charts

--- Written by Justin McQueen, Market Analyst

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES