The euro held onto its gains against the dollar as ECB minutes for the June 5-6th meeting highlighted policy makers are ready to deliver more stimulus as the debate begins on how to use adjust their current tools. Some called for TLTRO III to be more aggressive in supporting the economy, reminding markets that all tools will be used if we see a greater downturn in the eurozone economy. ECB rate cuts expectations pared slightly following the policy minutes release.

The euro could see further gains here as market participants see the Fed possibly embarking on a much more aggressive rate cut trajectory than the ECB. Over the next 12 months, markets could see the Fed delivering 100 basis points in rate cuts while the ECB may only deliver half of that total. The common currency is also benefiting from slightly higher revisions with German EU-harmonized inflation readings.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities.

Opinions are the authors — not necessarily OANDA’s, its officers or directors. OANDA’s Terms of Use and Privacy Policy apply. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD remains depressed but off daily lows

The EUR/USD pair is recovering from a daily low of 1.1216, although holding in negative territory for the day. US preliminary Michigan Consumer Sentiment Index improved by less-than-anticipated in July, coming in at 98.4 vs. the 98.5 expected.


GBP/USD trading marginally lower daily basis but above 1.2500

The Pound gave back some of its Thursday’s gain on dollar’s relief. The GBP/USD pair broke a daily descendant trend line coming from June’s high and holds above it, leaving little room for sellers to act.


USD/JPY: bears pausing, still in control

Japanese National Inflation steady at 0.7%YoY in June. US Michigan Consumer Sentiment Index expected at 98.5 in July. USD/JPY corrective advance falling short of signaling an interim bottom in place.


Something has spooked the Fed

We wish we knew what it is. Wild talk of the US joining Japan and Europe with zero or negative return on the 10-year is or should be very frightening.

Read more

Gold consolidates around $ 1440, eyes US data for fresh direction

Gold (futures on Comex) extends its side-trend around the 1440 mark into the mid-European session, having stalled its retreat from 2019 highs of 1454 near 1437 region.

Gold News