• In the early hours of this morning, the euro hit a nine year low, while at the same time, the dollar index rose to a nine year high. The two are of course inexorably linked and a significant part of the dollar’s dominance in 2014 can be attributed to the weak euro. Today’s move comes after Mario Draghi dropped further hints about new easing measures to come at the January 22nd meeting. There is also speculation that Germany may be more willing to allow a Greek exit from the eurozone.
• The euro is now well off the morning lows, but has some distance to travel still if it is to close the gap from Friday’s session. The EUR/JPY is seeing larger falls as the yen fights off the dollar’s earlier strength.
• While the focus is on the euro, the Australasian pairs are faring worse with the AUD/JPY off by 0.54%, the NZD/USD down 0.53% and the AUD/USD down 0.37%.
• Gold is performing well despite the dollar pressure, up 0.73% on the day.
• The S&P 500 futures are pointing to a negative start to the day for equities.
Coming up today: • Coming up today we have UK construction PMI at 09.30.
• German CPI is also expected at some point today.
Trade Idea:
• So the dollar index looks like it will be picking up its main trends from 2014 as we move into 2015 proper.
German CPI is a big unknown that could stabilise or sink the euro further today, which in the short term could make the EUR/USD too much of a gamble. Instead, we could turn to other dollar pairs showing weakness, namely the NZD/USD.
Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.
Euro Hits Nine Year Low
Morning Report: 9.00 London
• In the early hours of this morning, the euro hit a nine year low, while at the same time, the dollar index rose to a nine year high. The two are of course inexorably linked and a significant part of the dollar’s dominance in 2014 can be attributed to the weak euro. Today’s move comes after Mario Draghi dropped further hints about new easing measures to come at the January 22nd meeting. There is also speculation that Germany may be more willing to allow a Greek exit from the eurozone.
• The euro is now well off the morning lows, but has some distance to travel still if it is to close the gap from Friday’s session. The EUR/JPY is seeing larger falls as the yen fights off the dollar’s earlier strength.
• While the focus is on the euro, the Australasian pairs are faring worse with the AUD/JPY off by 0.54%, the NZD/USD down 0.53% and the AUD/USD down 0.37%.
• Gold is performing well despite the dollar pressure, up 0.73% on the day.
• The S&P 500 futures are pointing to a negative start to the day for equities.
Coming up today:
• Coming up today we have UK construction PMI at 09.30.
• German CPI is also expected at some point today.
Trade Idea:
• So the dollar index looks like it will be picking up its main trends from 2014 as we move into 2015 proper.
German CPI is a big unknown that could stabilise or sink the euro further today, which in the short term could make the EUR/USD too much of a gamble. Instead, we could turn to other dollar pairs showing weakness, namely the NZD/USD.
A good way to play this is a LOWER trade predicting that the NZD/USD will close below 0.7600 in 7 days time for a potential return of 153%.
Disclaimer: This financial market report is intended for educational and information purposes only. It should not be construed as investment or financial advice and you should not rely on any of its content to make or refrain from making any investment decisions. The views expressed in this report are those of the author and do not necessarily reflect the views or position of Binary.com accepts no liability whatsoever for any losses incurred by users in their trading. Binary options trading may incur losses as well as gains.
Summary:
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