Single Currency Pulls Back on Inflation Fears and Fall in German Bond Yields

Support: +44 (0) 203 301 0483 | support@financialspreads.com
Financial Spreads: Spread Betting and CFD Trading


Forex Trading

: 01 August 2014

Inflation in the Eurozone surprisingly slowed to 0.4% last month, against 0.5% expected.

This is the weakest level in nearly five years and maintains the pressure on the ECB to kick-start growth with monetary easing.

Strangely though, given the steep sell off in equities, investors did not rush headlong into the safety of the dollar, with the EUR/USD pair dropping just 7 points to $1.3389.



Forex Trading

: 31 July 2014

Economic confidence in the Eurozone unexpectedly rose in July despite growing geopolitical tensions.

However, spread betting investors favoured the dollar yesterday as better than expected US growth figures reignited speculation that interest rates hikes are not far off.

Consequently, the EUR/USD pair continued to drop, losing 12 points to $1.3396.



Forex Trading

: 30 July 2014

With German bond yields falling to record lows and deflation remaining a real risk, some traders are wondering whether we are seeing the calm before the storm.

Either way, the euro resumed its slump against the dollar yesterday, losing 31 points to $1.3408, as a new set of sanctions against Russia sent investors into the safety of the US currency.



Forex Trading

: 29 July 2014

The shared currency gained 8 points versus the US dollar to $1.3439 largely on the prevailing risk-on sentiment in global CFD markets.

Although the US economy might have recovered less than initially predicted in the second quarter, the Fed will eventually move towards hiking rates before their European counterparts.

This would suggest that dollar strength could be with us for a while.


By Jonathan Sudaria, 1 August 2014


Contact Customer Support

+44 (0) 203 301 0483
support@financialspreads.com

Also see:
73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Spread betting & CFDs trading are complex instruments & come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading these products with this provider. You should consider whether you understand how these products work & whether you can afford to take the high risk of losing your money. Click here to see the risk warning notice.