Is it too soon to welcome back the Euro? | Vantage FX

Is it too soon to welcome back the Euro?

February 6, 2015

The Euro rebounded yesterday against the Dollar reversing all losses from Wednesday. It was inspired by the news that the Greek banks will be receiving emergency funding – as much as 60 billion Euros from the ECB to avoid financial system failure. Also, the EU published a 180-page report and upgraded economic prospects of the Euro-area by 0.2% for both 2015 and 2016 based on the lower oil prices Euro depreciation and easing monetary policy.
The speculation that the SNB may buy some Euro again to weaken the Swiss Franc also attributed to the Euro rally. EURCHF rose to new highs of 1.06 since the big SNB event in January.

The Euro rose by 1.3% to $1.1480. The resistance above is still 1.1530, which is the bottom of the last consolidation area and the 23.6% retracement level of the falling of QE program announcement.

The Sterling jumped to a one-month high after the Bank of England policy makers maintained their main interest rate and kept monthly assets buying amount unchanged. Technically, a head-and-shoulders bottom on the daily chart of Pound Dollar has been formed and the first theoretical bull target is 1.56, the year open of 2015 and the bottom of former consolidation.

Back to the stock markets, the Shanghai Composite lost 1.18% to 3136 even after the PBOC cut the reserve rate by 0.5%. The Nikkei Stock Average lost 0.98%. Australian ASX 200 gained 0.58% again to new high 5811. In European markets, the UK FTSE was up 0.1%, the German DAX lost 0.1% and the French CAC Index rebounded 0.15%. US stocks broadly rose on upbeat unemployment claims. The S&P 500 closed 1.03% to 2062. The Dow gained 1.2% to 17885, and the Nasdaq Composite Index gained 1.03% to 4765.

On the data front, Australia RBA Monetary Policy Statement will be published at 11:30 am AEDST. U.S. and Canada monthly job market reports will be the focus of markets and out at 0:30 am AEDST.

Have a great trading day!

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX Pty Ltd, does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. The research contained in this report should not be construed as a solicitation to trade. All opinions, news, research, analyses, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently any person acting on it does so entirely at their own risk. The experts writers express their personal opinions and will not assume any responsibility whatsoever for the actions of the reader. We always aim for maximum accuracy and timeliness and Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on the service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.




Fast & Easy Account Opening Start Now!

  • Please enter a valid data!

  • Please enter a valid data!

  • Please enter a valid data!

  • Please enter a valid data!

  • Please enter a valid data!
Forex Promotions

Open a live account today to gain exclusive access to our 8 Forex Promotions. 

Find out more.