Friday, February 26, 2021
Forex Broker News
  • Home
  • Forex Broker Reviews
    • All
    • Preferred Brokers
    • Regulated Brokers
    • Unregulated Brokers
    celox forex broker homepage

    Celox Review

    Onorio

    Onorio Review

    Lucrum pro Lucrum.pro

    Lucrum Pro Review

    plutus Global homescreen

    Plutus Global Review

    jp finance broker

    JP Finance Review

    galore pro forex broker

    Galore Pro Review

    profit trade review

    Profit Trade Review

    LegacyFX Review

    LegacyFX Review

    City Index Review

    City Index Review

  • Broker Types
  • Forex Jobs
    • Marketing
    • Customer Support
    • Web Development
    • Compliance
    • Sales
    • Trading Solutions
    • IT
    • R&D
    • Administrative
    • Business Analyst
  • News
No Result
View All Result
  • Home
  • Forex Broker Reviews
    • All
    • Preferred Brokers
    • Regulated Brokers
    • Unregulated Brokers
    celox forex broker homepage

    Celox Review

    Onorio

    Onorio Review

    Lucrum pro Lucrum.pro

    Lucrum Pro Review

    plutus Global homescreen

    Plutus Global Review

    jp finance broker

    JP Finance Review

    galore pro forex broker

    Galore Pro Review

    profit trade review

    Profit Trade Review

    LegacyFX Review

    LegacyFX Review

    City Index Review

    City Index Review

  • Broker Types
  • Forex Jobs
    • Marketing
    • Customer Support
    • Web Development
    • Compliance
    • Sales
    • Trading Solutions
    • IT
    • R&D
    • Administrative
    • Business Analyst
  • News
No Result
View All Result
Forex Broker News
No Result
View All Result
Home News Forex Broker News fxcc blog

Euro whipsaws in wide ranges after the ECB’s confusing signals, USA equity markets fall as FOMC interest rate bets fade

Table of Contents

  • RELATED POSTS
  • Defend yourself at all times when trading FX
  • How fear in its various forms can impact on your trading
  • How to employ a multi time-frame strategy when trading FX

RELATED POSTS

Defend yourself at all times when trading FX

How fear in its various forms can impact on your trading

How to employ a multi time-frame strategy when trading FX

ADVERTISEMENT

The euro experienced whipsawing price-action versus its peers during the afternoon sessions as the ECB announced its rate setting decision and outlined a new direction in terms of forward guidance. Rather than announce an interest rate cut in the short-term, the ECB and the President Mario Draghi surprised FX analysts and analysts as they suggested that any rate could would be most likely held off until quarter two 2020 and that they’ll monitor the usual factors of: GDP growth, employment and inflation before escalating the current TLTRO III programme.

The ECB’s revised monetary policy took
FX market participants by surprise creating whipsawing price-action in many
pairs which proved tricky to trade during the afternoon session. EUR/USD traded
in a wide, daily-range, oscillating between initial bearish and final bullish
sentiment towards the end of Thursday’s trading. At 20:52pm U.K. time the major
pair traded at 1.114 up 0.04%. Perhaps the cleanest movement for a euro pair
was demonstrated by EUR/CHF; trading initially below the daily pivot-point the
cross-pair broke to the upside as the ECB policy was broadcast, breaching the
third level of resistance, R3, to trade up 0.68%. Germany’s DAX closed down
-1.33%, the various German IFO metrics missing the forecasts dented equity
market sentiment across wider Europe, as did the new forward guidance the ECB
announced.  

Good economic news in the form of
retail sales and unemployment claims for the USA, dented many investors and
traders belief that the FOMC was odds on to announce a cut in the key interest
rate by at least 25bps on July 31st. New orders for U.S. manufactured durable
goods jumped by 2% in June, the largest growth since August 2018 and reversing
the -2.3% slump in May, while beating market expectations of a 0.7% growth by
some distance. Demand for machinery increased the most in nearly 18 months; transport
equipment orders rose sharply, mainly civilian
aircraft, motor vehicles and parts.

The latest weekly and continuous
unemployment claims also receded, Thursday’s better than anticipated economic
data caused U.S. equity investors to reduce their faith in the FOMC cutting the
rate next week, consequently the USA equity markets sold off as cheaper
corporate debt is less likely to be forthcoming. The SPX closed down -0.51% and
the NASDAQ 100 closed down -1.01%. At 21:15pm U.K. time the dollar index, DXY,
traded up 0.07% at 97.80 maintaining a 1.60% monthly rise.

Focus on Friday July 26th will mainly
concentrate on the latest GDP growth figures for the USA to be published by the
BEA statistics agency at 13:30pm U.K. time. Both Bloomberg and Reuters news
agencies expect a reading of 1.8% for Q2 annually to be revealed, falling from
3.1% for Q1. How the markets for both USA equities and the U.S. dollar react,
will depend on whether the estimate is priced in. Such a low reading (if met)
may encourage the FOMC to reduce the key interest rate below its current 2.5%
level, therefore, counter-intuitively a poor GDP reading could be bullish for
equities and bearish for USD.

At 21:30 pm on Thursday USD/JPY traded
up 0.42% and USD/CHF traded up 0.63% as the traditional safe-haven currencies
gave way to the appeal of the globe’s reserve currency. GBP/USD traded down
-0.24% at 1.245 as price neared S1. EUR/GBP initially traded close to S1, but
as euro sentiment reversed after the ECB broadcast, the cross-pair  traded close to R1 and up 0.30% on the day.

Sterling failed to make significant
gains versus any peers as the U.K. parliament session formally ended on
Thursday, but not before new prime minister Johnson delivered a bizarre, random
speech in the House of Commons threatening the E.U. with a no-deal exit and in
an instant destroying any goodwill Theresa May had built up with her European
counterparts.

Share197Tweet123ShareSend

Related Posts

Defend yourself at all times when trading FX
fxcc blog

Defend yourself at all times when trading FX

August 18, 2019
How fear in its various forms can impact on your trading
fxcc blog

How fear in its various forms can impact on your trading

August 18, 2019
How to employ a multi time-frame strategy when trading FX
fxcc blog

How to employ a multi time-frame strategy when trading FX

August 18, 2019
Accepting what you can control when trading FX is critical to your progress
fxcc blog

Accepting what you can control when trading FX is critical to your progress

August 18, 2019
Some essentials to place in your trading-plan
fxcc blog

Some essentials to place in your trading-plan

August 15, 2019
Are you prepared to fully commit to trading in order to experience success?
fxcc blog

Are you prepared to fully commit to trading in order to experience success?

August 15, 2019

Select one of the Best Forex Brokers for your Trading  |  Read the Reviews

celox forex broker homepage

Celox Review

Onorio

Onorio Review

Lucrum pro Lucrum.pro

Lucrum Pro Review

plutus Global homescreen

Plutus Global Review

jp finance broker

JP Finance Review

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money. forexbroker.news is an affiliated partner with various Forex brokers and may be compensated for referred Forex traders.

Risk Disclosure: Forexbroker.news assumes no liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and forex signals. Operations in the international foreign exchange market contain high levels of risk. Forex trading may not be suitable for all investors. speculating only the money you can afford to lose. Forexbroker.news remind you that the data contained in this website is not necessarily real-time and may not be accurate. All stock prices, indexes, futures are indicative and not appropriate for trading. Thus, Forexbroker.news assumes no responsibility for any trading losses you might incur as a result of using this data.You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Disclaimer: It is our organization's primary mission to provide reviews, commentary, and analysis that are unbiased and objective. While ForexBroker.News has some data verified by industry participants, it can vary from time to time. Operating as an online business, this site may be compensated through third party advertisers. Our receipt of such compensation shall not be construed as an endorsement or recommendation by ForexBroker.News, nor shall it bias our reviews, analysis, and opinions.

  • Privacy Policy
  • Contact US
  • Terms of use,

Copyright © 2020 forexbroker.news

No Result
View All Result
  • Home
  • Forex Broker Reviews
  • Broker Types
  • Forex Jobs
    • Marketing
    • Customer Support
    • Web Development
    • Compliance
    • Sales
    • Trading Solutions
    • IT
    • R&D
    • Administrative
    • Business Analyst
  • News

© 2020 https://forexbroker.news - Forex Broker news & magazine