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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • US Dollar Ascending Triangle: EUR/USD, GBP/USD, USD/JPY, USD/CAD
  • Heads Up:🇺🇸 Fed Williams Speech due at 16:00 GMT (15min)
  • The price of oil appears to be on track to test the yearly high ($76.98) after breaking out of the descending channel from earlier this year. Get your #crudeoil market update from @DavidJSong here:
  • I read this morning that Boston Fed President Eric Rosengren is retiring 9 months earlier than his term expiration due to health issues. Hope he recovers quickly. Could change the calculus for the Fed's policy position next year as he was an incoming hawkish voter. #Tapering
  • The next 24 hours is going to be interesting for monetary and fiscal policy insight - particularly in the US. Keeping tabs on the Dollar and $SPX
  • BoE Governor Bailey says the rate of recovery has slowed over recent months and that slowing is continuing - Most MPC members view that outlook for the labour market as highly uncertain and to some degree likely to be resolved in fairly short order $GBP
  • The week starts off with elevated expectations for seasonal volatility, central bank speculation and critical political uncertainties. DailyFX's @JohnKicklighter highlights the dominating themes in the markets this week👇
  • Heads Up:🇬🇧 BoE Gov Bailey Speech due at 15:00 GMT (15min)
  • Tech stocks not having a good day, but cyclicals are on fire. Energy and financials sharply higher, materials also in positive territory. $ARKK about to break a double top pattern support #trading $XLE $XOP $XLF $XLB
Euro Lacks Direction amid Improved Labor Data; GBP Best in August

Euro Lacks Direction amid Improved Labor Data; GBP Best in August

Christopher Vecchio, CFA, Senior Strategist

Talking Points

  • Japanese Yen gains on week but key crosses (AUDJPY, EURJPY, USDJPY) steady despite broader global shift to “safer” assets.
  • British Pound closing out August as top performer – best single monthly performance for GBPUSD since March 2013.
  • Euro continuing to struggle to gain ground amid signs of a credit crunch.










(vs USD)








Dow Jones FXCM Dollar Index (Ticker: USDOLLAR): -0.02% (+0.46%prior 5-days)


August is coming to a close and it hasn’t been a pretty go of things for risk-seeking investors. As it stands, the S&P 500 is on pace to have lost around -2.8% since the start of the month, despite setting a new all-time nominal high in the first week just short of 1710.

Indeed, it was a bad month for global equity investors especially, considering that several emerging market stock exchanges lost upwards of -6%. If there was one region of the world that was relatively unaffected by global turmoil, it was Europe.

In fact, Europe became a bit of a safe haven during August, with the British Pound emerging as the top global performer. These capital inflows are purely a function of the near-term economic upswing the entire European continent has seen in recent weeks; and as long as data remains on the firm side, we should expect to see the European currencies remain supported against their high yielding counterparts going forward.

It remains a mystery, then, why the Euro has failed to gain traction against the US Dollar in recent weeks. Today would be a prime example: data emerges that Unemployment Rates are holding or starting to drop (especially in Italy, down -0.2% to 12.0%) yet the Euro can’t rally. Psychologically, the Euro’s luck may be running out of especially if data turns lower in September – and a QE3 taper (‘Septaper’) could exacerbate recently calm credit markets.

Taking a look at European credit, improved data out of the broader region as well as Italy and Spain have yields holding relatively steady on Friday. The Italian 2-year note yield has decreased to 1.953% (-0.1-bps) while the Spanish 2-year note yield has increased to 1.817% (+1.4-bps). Similarly, the Italian 10-year note yield has increased to 4.382% (+1.6-bps) while the Spanish 10-year note yield has increased to 4.523% (+0.5-bps); higher yields imply lower prices.

EURUSD 5-minute Chart: August 30, 2013 Intraday

Euro_Lacks_Direction_amid_Improved_Labor_Data_GBP_Best_in_August_body_Picture_1.png, Euro Lacks Direction amid Improved Labor Data; GBP Best in August

Read more: US Dollar Continues Climb amid Emerging Markets Rebound; Yields Up


Euro_Lacks_Direction_amid_Improved_Labor_Data_GBP_Best_in_August_body_x0000_i1028.png, Euro Lacks Direction amid Improved Labor Data; GBP Best in August

See the DailyFX Economic Calendar for a full list, timetable, and consensus forecasts for upcoming economic indicators. Want the forecasts to appear right on your charts? Download the DailyFX News App.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

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