This information has been prepared by IG, a trading name of IG Markets 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. See full non-independent research disclaimer and quarterly summary.
Euro traders cautious ahead of US inflation data
EUR/USD continues to be weak this morning as currency traders are all too aware of this afternoon’s US inflation figures. The euro has spent most of the month bobbing along just below the $1.34 level as it has had to absorb one piece of bad economic data after another from eurozone nations. More worryingly has been the fact that Germany has succumbed to the disappointing trend of its eurozone counterparts by posting poor data too.
The last week has seen equity markets stage a rally as expectation and hope have led to the belief that the European Central Bank will be forced into taking more action because of the eroding confidence and results.
The week could still offer plenty of twists and turns as we await tomorrow’s eurozone manufacturing and services data, then Friday’s speech from ECB president Mario Draghi on the international platform of Jackson Hole.