Daily Market Review - 10/03/2014

EUR/USD

EURUSD_Oct 3

As has been mentioned the Euro is down. The rate has declined below 1.2600, but couldn’t fix the gains, and the rate has rebounded back up a bit. Taking to account fundamental background and technical pattern on the chart the level will be tested again with quite high chances of success.

USD/JPY

USDJPY_Oct 3

The bounce of the pair was quite strong, but signs of resuming downward trend have appeared already. Most likely inability to break above 110 decisively has turned into downward trend.

GBP/USD

GBPUSD_Oct 3

The Pound continues to go down. The downward trend extends from July 2014. Next goal on the downside will be 1.6000. That’s the aim for the Pound today on the downside.


Market Overview

The Euro is traded with downward inclination on Friday due to its inability to hold its ground after the ECB meeting. The Euro is inactive this morning and is under insignificant sales.

Recently there was another meeting of the ECB during which the interest rate as expected remained at 0.05% yearly. The mechanism of the low rate alone works pretty badly. That is why the ECB has adopted the idea of assets purchasing as a stimulating measure.

Purchasing of securities backed up by assets is meant for two years. Precise volume of financial means for that is unknown, but the market assumes that it will be a bit lower than 1 trillion Euros. The ECB is following its own assets balance, and the assumption is that it is necessary to return it to 2012 level.

Additional mechanism of economic stimulating besides assets purchasing is still unknown. Also it is not clear how these schemes will influence on inflation. Index of Consumer Prices in the EU in September remained on 0.3% yearly. Quite a small figure. But now it seems that the ECB is not afraid of deflation risks.

At that the Euro hasn’t gone too far from 2 year minimums. It is clear that the ECB was late with stimulating. So effectiveness of current measures is twice as less.

Today the market is waiting for data on European Retail Sales. In the evening the USA is going to issue statistics on the labor market in September, so Euro volatility will exacerbate.


Economic Calendar

All Day

Holiday

Germany – National Day

All Day

Holiday

India – Dussehra

All Day

Holiday

South Korea – National Foundation Day of Korea

00:00

USD

FOMC Member Bullard Speaks

01:00

AUD

HIA New Home Sales (MoM) (Aug)

01:00

CNY

Non-Manufacturing PMI (Sep)

07:15

EUR

Spanish Services PMI (Sep)

07:45

EUR

Italian Services PMI (Sep)

07:50

EUR

French Services PMI (Sep)

07:55

EUR

German Services PMI (Sep)

08:00

EUR

Services PMI (Sep)

08:30

GBP

Services PMI (Sep)

09:00

EUR

Retail Sales (MoM) (Aug)

12:30

USD

Average Hourly Earnings (MoM) (Sep)

12:30

USD

Nonfarm Payrolls (Sep)

12:30

USD

Participation Rate (Sep)

12:30

USD

Private Nonfarm Payrolls (Sep)

12:30

USD

Trade Balance (Aug)

12:30

USD

Unemployment Rate (Sep)

12:30

CAD

Trade Balance (Aug)

14:00

USD

ISM Non-Manufacturing Employment (Sep)

14:00

USD

ISM Non-Manufacturing PMI (Sep)

The post Daily Market Review – 10/3/2014 appeared first on Citrades.

DISCLOSURE: Information on IntelliTraders should not be seen as a recommendation to trade binary options or forex. IntelliTraders is not licensed nor authorized to provide advice on investing and related matters. Information on the website is not, nor should it be seen as investment advice. Clients without sufficient knowledge should seek individual advice from an authorized source. Binary options and forex trading entails significant risks and there is a chance that clients lose all of their invested money. Past performance is not a guarantee of future returns.

This website is independent of binary brokers featured on it. Before trading with any of the brokers, clients should make sure they understand the risks and check if the broker is licensed and regulated. We recommend choosing a regulated broker. In accordance with FTC guidelines, IntelliTraders has financial relationships with some of the products and services mention on this website, and IntelliTraders may be compensated if consumers choose to click these links in our content and ultimately sign up for them.

IntelliTraders does not accept any liability for loss or damage as a result of reliance on the information contained within this website; this includes education material, price quotes and charts, and analysis. Please be aware of the risks associated with trading the financial markets; never invest more money than you can risk losing. The risks involved in trading binary options are high and may not be suitable for all investors. The IntelliTraders Network is educational material and not trading advice. Trade at your own risk.

© 2019 IntelliTraders, inc. All rights reserved. Privacy Policy Terms & Conditions