Tag Archives: education

Post-ECB Rally Looking Toppy as Euro Data Continues to Disappoint

DailyFX.com –

Post-ECB Rally Looking Toppy as Euro Data Continues to DisappointPost-ECB Rally Looking Toppy as Euro Data Continues to Disappoint

Fundamental Forecast for Euro: Bearish

The first week of the year has brought just the most recent allotment of bad data out of the Euro-zone. This week has seen disappointments in German inflation, German unemployment and Euro zone inflation figures. So, not a great week on the data front for Europe. But this isn’t really a surprise, is it? This is just more of the same that much of the world has become accustomed to. Europe is contracting. The bigger question here revolves around the ECB, and what they might actually do at their next policy meeting. Because after the disappointment that the ECB brought to markets in December, numerous questions have remained as to what they may actually do. read more

US Dollar Slow To Respond to Risk Trends, Fed Keeping it Back?

DailyFX.com –

US Dollar Slow To Respond to Risk Trends, Fed Keeping it Back?US Dollar Slow To Respond to Risk Trends, Fed Keeping it Back?

Fundamental Forecast for Dollar: Bullish

  • Debate over the timing of the Fed’s next rate hike was drowned out by China, commodities and capital markets’ plunge
  • While risk aversion is broadening, the Dollar has yet to show it is serious about resuscitating its haven appeal
  • What are the Traits of Successful Traders? See what our studies have found to be the most common pitfalls of retail FX traders.

The Dollar still carries the glow of last month’s Fed hike and there is a new – and traditionally favorable – wind blowing in the currency’s favor: risk aversion. Yet despite, the encouraging fundamental circumstances, the Greenback is showing little of the drive it had enjoyed the past few years. The equally-weighted USDollar Index has inched up to a 12-year high while the trade-weighted ICE Dollar Index is virtually unchanged. Drives for commodity-currency based majors (USDCAD, AUDUSD, NZDUSD) and the tumble in the Cable (GBPUSD) seem to have more to do with counterparts than the Dollar itself. EURUSD, the world’s most liquid currency pair, perhaps best reflects the situation with a minor anti-dollar close week-over-week. read more