CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Daily Market Report: EURUSD, GBPUSD, AUDUSD

US dollar outperforms against the FX majors, German/French yields drop to record lows, while the RBA cuts rates by 0.25%.

EURUSD: Euro drops on worse than expected PMI as USD outperforms

The US dollar was the top perform amongst the FX majors yesterday, and the euro underperformed with Eurozone PMIs contracting, internal divisions at the EU summit that failed to reach a consensus on filling the top jobs, and threats of US tariffs on additional EU goods. Furthermore, German (and French) 10-year yields continue to edge lower into record negative territory, reducing the attractiveness of the euro following comments from the ECB’s Knot on easing. As for sentiment, retail bias has shifted from a previous majority short 58% to a now slight majority long 53% as shorts get enticed into taking profits. The fundamental outlook remains negative, and what little positive technical bias the pair was enjoying is eroding quickly.

GBPUSD: USD gains keep the pair’s bearish technical overview in check but lacking momentum

With the US dollar outperforming yesterday, it was difficult for the pound to keep up even if it outperformed compared to most of the remaining FX majors. UK data was a disappointment with its PMI contraction accelerating, money supply contracting, mortgage approvals down compared to last month, and net lending dropping to lows unseen in two years. The technical overview remains bearish as a result, though the relative lack of follow through after oscillations last week has meant its stalling heavily.

AUDUSD: Australian dollar holds its ground despite a 0.25% RBA rate cut

The Australian dollar lagged significantly yesterday and was the second-worst performer after the Swiss franc. Against the strengthening greenback then, the price drop was significant and erased nearly three consecutive days of gains. As of this morning however, despite another RBA rate cut of 0.25% for its second month in a row, the commodity currency has risen after making fresh intraday lows first. Technicals matter little in this state as fundamental portfolio repositioning will likely dominate flows in this currency, though as it stands the mid to long-term outlook remains bearish, while short-term daily technicals are more neutral as a non-trending ADX and mostly neutral indicators fail to offer guidance.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.