Poor PMI data from Europe led to a large depreciation of the euro, but this also contributed to the well-appreciated yen. The German manufacturing sector reflected further contraction, the biggest slowdown in activity in seven years. This is further compounded by the presumption that the ECB will announce incentives tomorrow.
The OIS market estimates the ECB's chance to cut interest rates tomorrow by 10 points to 47%.
On the currency pair, yesterday's breakthrough of long-term resistance marked in red, the price recorded a lower bottom. Sellers are already directing the price to the zone at 120.
The appreciation of the yen is due to weak data, which continue to show that global economic conditions are deteriorating. This, in addition to lower bond yields, feeds the yen.
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.