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
✖

Euro at 10 week low as inflation data puts pressure on ECB to cut interest rates

Article By: ,  Financial Analyst
February 3, 2014 9:01 AM

An action-packed start to the month, with important data releases. Today starts with PMI data from the EU and UK. Both are expected to be very close to the previous and could do with a lift after last week’s emerging markets sell off. The euro is at a a 10-week low after slightly weaker inflation data put pressure on the ECB to cut rates to counter deflation risks. In the US, the ISM PMI will be released this afternoon and a slight drop is expected.

There’s also the RBA rate announcement this week, expected to remain unchanged. But with the AUD being higher than what the RBA want they could use this as a tool to weaken the currency. ADP data in the US will be announced on Wednesday and has been posting better than expected results over the last two months.

On Thursday the UK and EU Central Banks will announce their rate decisions. The consensus is that no change is expected but the ECB have shocked the market before with a surprise rate cut after weaker than expected inflation data. We find ourselves in the same territory, with weaker inflation causing a risk of deflation.

Friday is when the non-farm payrolls for the US will be abband after last month’s very weak data due to the big freeze, it is expected to be back to normal. Lots of data to digest this week so expecting a lot of swings as each are announced and also any comments from central banks.

 

EUR/USD

Supports 1.3460 1.3400 1.3380 | Resistance 1.3500 1.3560 1.3600

 


USD/JPY

Supports 101.75 101.60 101.15 | Resistance 102.45 103.00 103.50

 



GBP/USD

Supports 1.6390 1.6370 1.6315 | Resistance 1.6470 1.6530 1.6610

 

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