Tim Riddell, analyst at Westpac, suggests that Eurozone activity data and surveys continue to signal growing risks of recession and any inflation pressures appear to the downside.

Key Quotes

“This week, ECB officials have affirmed their recent stimulus package, despite numerous critics stating that ECB’s NIRP is distorting the economy and financial markets while impairing the struggling financial sector.”

“The departure of Draghi next month is unlikely to see any change in monetary policy, but Lagarde’s arrival could increase the urgency of the ECB’s much repeated pleas for both fiscal and structural support.”

“In the interim, Eurozone nations are compiling budget proposals for submission to the EC at the end of this month so fiscal relaxation is unlikely. Germany may be facing a recession and has a relatively favourable fiscal stance, but its finance ministry is not showing any sign of fiscal leniency. Even their recent carbon reduction initiatives are fiscally neutral.”

“Despite recent data weakness, Westpac’s Data Pulse has rebounded and the Surprise Index is holding. Although this does not imply a EUR turn, it may allow for interim bounces before ECB accommodation pressures trigger redefinition of a lower trading range.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD nears weekly highs as risk-on returns

The EUR/USD pair was dragged higher by a soaring Pound, now hovering around 1.1040. The market is all about sentiment, and this last dependent on Brexit and the US-China trade relationship.



GBP/USD surges to 5-month highs on reports of a draft Brexit deal

GBP/USD has leaped toward 1.28, hitting the highest since May. Reports suggest that the UK and the EU are zooming in on a deal. Details are awaited and negotiations continue.


USD/JPY in search of a firm direction, stuck in a range below mid-108.00s

The prevalent risk-on mood weighed on the JPY’s safe-haven status and extended support. A sharp fall in the US bond yields undermined the USD and failed to impress bullish traders.


Gold consolidates in a range below $1500 mark

Gold extended its sideways consolidative price action on Tuesday and remained confined in a narrow trading band, below the key $1500 psychological mark.

Gold News

Cryptos: Incumbents don't know to play well

The Libra project led by Facebook remains on track despite the first defections. Those who have abandoned the project are mostly payment gateways. Bitcoin's lack of tone weighs on Ethereum's mood.

Read more