Home Euro continues to struggle
Daily Look

Euro continues to struggle

The single currency starts the week scraping itself from the floor after last week’s concerted push lower. The break below 1.10 on EURUSD happened before the US jobs data, but the firmer than expected release led to further dollar strength and the euro suffered the most in the wake of the ECB’s detailing of bond buying the day before. The QE program starts today, so the coming days are likely to see some indications of how the technicalities of the program are panning out. On the subject that never left the headlines during February, the Greek government has faced criticism from the eurogroup, who stated over the weekend that the latest proposal put forward fell short of those that were agreed two weeks ago. Greece is now threatening a referendum, essentially on whether to push through further austerity or push back. This is no more than a vague threat, but underlines the view that tensions remain and that seeking a longer-lasting agreement for Greece will not prove easy.

Friday’s data in the US has raised the prospect of the Fed easing at the tail end of the summer, with unemployment edging ever closer to what the Fed feels is a level at which inflation could start to rise. In addition, there are signs that earnings are also recovering on a sustained basis, which is another pre-condition to tightening. As the week starts, we’re seeing the dollar slightly weaker against most major currencies, but in the wider picture dollar strength looks to be the dominant force. For today, there are no major data releases, so the focus will remain on the headlines surrounding ECB QE and also Greece as Eurozone finance minister meet in Brussels.

further reading:

EUR/USD recovers despite euro-zone worries – dead cat bounce?

EUR/JPY Corrects Post Japanese GDP

FxPro - Forex Broker

FxPro - Forex Broker

Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss.