Euro’s April Fool

April 1, 2015

Markets looks to be making an inauspicious start to the second quarter after a first quarter that ended on a risk averse note, certainly for equity markets and to some degree the Yen. The stand out from Q1 was the euro which suffered its worst quarter on record against the dollar for many reasons that we have been discussing throughout the course of 2015 so far. The decline will be widely welcomed by many parts of the Eurozone and in particular the ECB which had been working hard to try and prevent further deflationary pressures and help peripheral nations boost exports and growth. We’ve been seeing even before the formal commencement of quantitative easing from the ECB tentative signs economic conditions in the Eurozone were improving with unemployment peaking in the peripheral nations and now the rate of falling inflation is slowing down. The Eurozone economy looks to be turning a corner and all this has boosted European equities, but these improvements are from a very low base and further weakness for the euro cannot be ruled out especially as the Greece issue rumbles on and on.

Today the focus will be on manufacturing data from across Europe and later in the day from the US as PMI surveys are released. This morning EURUSD is trading at 1.0775 still 300 points off the multi-year lows set in the middle of last month. Also, keep an eye on Iranian nuclear and sanction negotiations which have been extended by a day in a positive sign that there is a strong appetite to reach some sort of agreement. Even if there isn’t a formal agreement today there is the next target of June when further talks are due to take place, but this meeting has the potential to influence movements in both crude prices and the dollar.

Publication source
FxPro information  FxPro reviews

January 18, 2017
Trump Inauguration Market Outlook
Friday, January 20, 2017 will mark the historic inauguration of what promises to be a highly unconventional US presidential administration...
January 17, 2017
Oil spikes higher on Saudi Oil minister comments
Oil has spiked higher on Al Falih comments in Davos (Saudi oil minister). He said during a panel discussion at WEF in Davos that there will be inflation in the cost of doing business in the oil industry, following the squeeze that accompanied the decline in crude prices...
January 16, 2017
GBP under pressure ahead of May speech
A speech from Theresa May is one of the key events for financial markets this week and certainly the most relevant for the British pound. Primie Minister is about to deliver a speech on UK’s stance and conditions ahead of the triggering article 50 and beginning the Brexit negotiations...

FBS Rating
HotForex Rating
OctaFX Rating
Larson&Holz IT Ltd Rating
FXCM Rating
XM Rating

OptionFair Rating
Banc De Binary Rating
Grand Option Rating
TropicalTrade Rating
Porter Finance Rating
Beeoptions Rating