CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

ECB exceeds expectations

Article By: ,  Financial Analyst
January 23, 2015 11:52 AM

The ‘buy dollars, wear diamonds’ theory gains further traction as Super Mario, albeit a little late to the game, exceeds market expectations with the details on sovereign QE measures. Total purchases will be made at a rate of €60 billion per month with a minimum target date of September 2016. However, there has been interpretations that that QE could become open ended as the ECB President emphasised the 2% inflation mandate along with the governing councils concerns with regards to the medium term inflation outlook.

Looking ahead, it’s possible  for the FOMC to deliver a curve ball next week by adopting a dovish stance in line with the recent Central Bank mantra, as surely the US power house can’t be immune to downturns in oil prices and inflation expectations. I’m not going argue that divergent monetary policies and widening GDP differential between the US and the rest of the world isn’t going to lead to increasing investment flow into the US on a longer term basis, but for next week I believe caution is warranted on a summer Fed hike.

The sad news of Saudi King Abdulla passing caused a $2 rally in oil prices, before his half-brother King Salman was announced his successor. King Salman is deemed to share a similar policy stance to his late brother. Having recently spent some time in Saudi Arabia, I learnt of the admiration and gratitude the Saudi people have for the infrastructure King Abdulla implemented in Saudi Arabia.

The Greek elections this weekend has the market expecting that Greece will now be led by Syriza Government. This fits in with comments made yesterday that Greece could qualify for the ECB bond purchase program, providing certain conditions are fulfilled. But as a coalition is formed, it will be the run on deposits and the effect this will have on the Greek banking system that will be the focus of  the market’s attention.

 

 

EUR/USD
Supports 1.1210-1.1150-1.1000   | Resistance  1.1315-1.1375-1.1440

 

 

USD/JPY
Supports  117.80-117.50-116.85 | Resistance  118.80-119.30-120.80

 

 

GBP/USD
Supports  1.4950-1.4915-1.4830 | Resistance  1.5030-1.5080-1.5135

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024