Skip to Content
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
Fed Speculation Still in Focus, Euro Uneasy on Spain Election

Fed Speculation Still in Focus, Euro Uneasy on Spain Election

Ilya Spivak,

Talking Points:

  • Euro Gaps Down at Weekly Open After Spain Election Outcome
  • Fed Rate Hike Path in Focus on US GDP, Durables and PCE Data
  • US Dollar Risk on the Upside, Gold and Stocks Look Vulnerable

The Euro gapped down at the weekly trading open after Spain’s Prime Minister Mariano Rajoy and his PP party lost parliamentary majority at a general election held over the weekend. This opens the door for coalition negotiations that may bring the eurosceptic, anti-austerity Podemos party into government.

Looking ahead, revised US GDP figures as well as Durable Goods Orders and PCE data will drive speculation about the 2016 path of Fed rate hikes. Markets are positioned more dovish than the central bank's own projections, putting surprise risk on the upside for the US Dollar in the event that firm results force traders to reconsider. Such outcomes may also weigh on gold and undermine market-wide risk appetite.

--- Written by Ilya Spivak, Currency Strategist for

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

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