Euro Flounders in Forex Markets as Others Surge

James Randall
euro notes

The euro was the main loser in forex trade yesterday and into today, continuing an unlucky streak for the single currency.

Over the course of the month, the currency has lost 1.63% in value – due in part to problems with the European Central Bank, which is expected to keep interest rates at very low levels in 2019.

However, its woes continued yesterday after the Spanish parliament failed to pass a budget for the year. The separatists in Catalonia blocked the bill, meaning that a general election could be on the cards.

In the US, the dollar index, which measures the greenback’s performance in relation to other major international currencies, was up a little at 97.2. In contrast to the euro, this currency has managed to go up by 1.7% over the course of the month.

There was also more good news for the New Zealand dollar. This currency rose to $0.6805 over the course of the day in the NZD/USD pair, which represented a rise of 0.15%.

As the trading week begins to draw to a close, it’s worth looking at what’s on the horizon today and into next week.

Today (Thursday) sees retail sales data come out of the US for December at 1.30pm GMT. Month on month, this measure is due to stay the same at 0.2%.

Continuing jobless claims for the week of February 1st are expected at the same time. These are due to show a shift upwards from 1,736,000 to 1,740,000.

However, the initial jobless claims for the week of February 8th, which are out at the same time, are expected to show some more positive news for job seekers. It is forecast that this level will drop from 234,000 to 225,000.

A purchasing managers’ index study from Business NZ in New Zealand is due at 9.30pm GMT and will cover the month of January. This was last recorded at 55.1.

Into tomorrow, Chinese consumer price index data for the month of January will kick off the day at 1.30am GMT. Year on year, it was last seen at 1.9%.

Japanese industrial production figures for December will be out at 4.30am GMT and are expected to hold firm at -1.9% year on year.

A speech from Raphael W. Bostic, the President and CEO of the Federal Reserve Bank of Atlanta, will occur at 2.55pm GMT.

The preliminary Michigan Consumer Sentiment Index, which is considered an important indicator of consumer confidence, will be out at 3pm GMT.

Looking ahead to Monday, North American trading is likely to be significantly slower than usual given two public holidays. President’s Day will take place in the US, while Family Day will take place in Canada.

Early on Tuesday morning, the minutes of the Reserve Bank of Australia’s meeting will be released at 12.30am GMT.

European current account figures are due out at 9am GMT, while British unemployment figures for the month of December are expected at 9.30am GMT. These were last recorded at 4%.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.

James Randall
Blackbull LogoYour capital is at risk
  • User-friendly platform with great trade-analysis tools
  • Leverage Up To 1:500
  • Spreads as low as 0.00 pips
  • Quality trade execution thanks to high-spec IT infrastructure
  • $0 minimum account opening balance
  • 26,000 tradeable instruments
  • Not available in all jurisdictions
  • Regulatory infrastructure
tickmill_logo-173% of retail CFD accounts lose money 73% of retail C...
  • Well regulated
  • Ultra-fast and high leverage trading
  • Spreads as low as 0.0 pips
  • Comprehensive research tools
  • Relatively limited number of markets
  • Does not accept US traders
Your capital is at risk Europe* CFDs ar...
  • Multi-asset broker offering a wide variety of markets
  • Strong regulatory framework
  • Innovative risk management tools
  • Choice of market-leading platforms
  • Wide spreads on some markets
  • Expiry date on Demo Accounts
Between 74-89% of CFD traders lose Between 74-89 % of retail investor accounts lose money when trading CFDs
  • Low trading costs
  • Great market flow
  • Research and analysis which helps spot trades
  • Wide range of Copy and Social Trading options
  • Limited range of non-forex markets
eToro Logo77% of CFD traders lose 77 % 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.
  • Social and Copy Trading Platform
  • Beginner Friendly
  • Risk-free Demo Account
  • Top-tier regulation
  • Limited means of raising queries
  • Withdrawal process isn’t really ‘client-focused’