Forex News: ECB Says Economy Will Recover Later in 2013

RELATED QUOTES

SymbolPriceChange
EURUSD=X1.3818+0.0004

THE TAKEAWAY: ECB monthly bulletin says economy will recover later in 2013 -> Inflation expected to fall below 2% target this year -> Euro trading higher following Roesler comments

The European Central Bank’s monthly bulletin said the Euro-zone economy will begin a gradual recovery later in 2013, and inflation is expected to fall below 2% this year. However, the ECB further said that risks to the economy remain to the downside.

The economy is expected to recover because of the accommodative monetary policy and significantly improved financial market confidence, and reduced fragmentation. The ECB said further weakness is expected to extend into this year before the recovery begins. The central bank also expects foreign demand to support export growth.

The report further reported that inflation is expected to fall in line with the ECB’s target of keeping inflation below but close to 2%.

The Euro-zone economy contracted in both Q2 and Q3 of 2012 and focus is now turned to the GDP result for Q4. Furthermore, inflation fell to 2.2% in December, and lower inflation makes it easier for the ECB to decide to take further monetary actions. Any signs of improvement in the Euro-zone economy would be Euro positive.

However, the Euro did not significantly react to the optimistic ECB bulletin and continued to trade slightly below 1.3350 against the US Dollar in Forex markets. EURUSD saw a small rally earlier in the European session, following Economy Minister Roesler’s comments that Germany won’t accept a weakening Euro and will pay the price to save the single currency. EURUSD may now see resistance at 1.3404, by a ten-month high set in recent trading. Support could be provided by a broken resistance line around 1.3284.

EURUSD Daily: January 17, 2013

ECB_Says_Economy_Will_Recover_Later_in_2013_body_eurusd_daily_chart.png, Forex News: ECB Says Economy Will Recover Later in 2013

-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to bbspier@fxcm.com .

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

Loading...
 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.2520-0.0008-0.06%
    USDSGD=X
    1.7299-0.0007-0.04%
    EURSGD=X
    2.1024-0.0017-0.08%
    GBPSGD=X
    81.7743+0.0416+0.05%
    SGDJPY=X
    6.1934+0.004+0.06%
    SGDHKD=X
    2.5862+0.0016+0.06%
    SGDMYR=X
    9,121.0420-30.1768-0.33%
    SGDIDR=X
    4.9722+0.0081+0.16%
    SGDCNY=X
    1.1689+0.0004+0.03%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,294.60-8.90-0.68%
    GCM14.CMX
    19.67+0.01+0.05%
    SIN14.CMX
    90.18-0.65-0.72%
    ^XAU
    3.04+0.02+0.51%
    HGK14.CMX
    104.59+0.83+0.80%
    CLK14.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.73+0.08
    ^FVX
    2.72+0.08
    ^TNX
    3.52+0.06
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.115-0.002-1.71%
    B22.SI
    0.48+0.020+4.35%
    5GJ.SI
    2.27+0.090+4.13%
    5ME.SI
    2.190.0000.00%
    JS8.SI
    0.61+0.005+0.83%
    E5H.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.162+0.034+26.56%
    5GF.SI
    0.20+0.034+20.48%
    5WD.SI
    0.59+0.050+9.26%
    L5I.SI
    0.28+0.020+7.69%
    C33.SI
    0.215+0.015+7.50%
    5UE.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.103-0.010-8.85%
    5OS.SI
    0.112-0.008-6.67%
    5RC.SI
    0.355-0.025-6.58%
    KJ9.SI
    0.215-0.015-6.52%
    F9M.SI
    0.29-0.020-6.45%
    5PC.SI