{"id":67583,"date":"2015-02-03T08:45:44","date_gmt":"2015-02-03T13:45:44","guid":{"rendered":"http:\/\/countingpips.com\/?p=67583"},"modified":"2015-02-03T08:19:57","modified_gmt":"2015-02-03T13:19:57","slug":"euro-steady-as-us-yields-tumble","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/02\/euro-steady-as-us-yields-tumble\/","title":{"rendered":"Euro Steady as US Yields Tumble"},"content":{"rendered":"
February 3, 2015<\/div>
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Article by ForexTime<\/a><\/p>\n

The Federal Reserve showed concerned about global trends in its latest policy statement and again issued a comment that it can be patient. The Fed is optimistic about the economy, as the job market continues to diminish, though price pressures have declined further below the 2% target due to energy price drops. The Fed made note of international developments for the first time as a factor in its policy calculus. This could mean that continued negative price pressures, especially in Europe could keep the Fed on the sideline for an extended period.<\/p>\n

Today\u2019s inflation news from Europe is exactly what the Fed is afraid of. Eurozone producer price inflation dropped to -2.7% year over year in December from -1.6% year over year in November. The drop was to a large extent due to lower energy prices, which declined -8.3% year over year after falling 4.9% year over year in November. This is also feeding through to the intermediate goods sector.<\/p>\n

When discussing inflation the Fed said that inflation has declined further below the Committee\u2019s longer-run objective, largely reflecting declines in energy prices. Market-based measures of inflation compensation have declined substantially in recent months.<\/p>\n

In additional to concerns over inflation, internal conflicts between the EU and Greece over budgetary items started to flair.\u00a0 Greek 10-year yields today are down sharply, amid signs that a compromise between Tsirpas and his Eurozone peers may be necessary. Tsirpas is quietly dropping his insistence on a debt cut and is proposing a modification of repayment terms, something which Eurozone officials always were willing to talk about.<\/p>\n

The recent decline in US yields has kept the EUR\/USD range bound, but stronger than expected jobs news on Wednesday, Thursday and Friday will re-ignite the trend.\u00a0 Momentum has turned positive as the MACD (moving average convergence divergence) index generates a buy signal.\u00a0 The RSI is also moving higher after printing oversold reading last week and now is reflecting a level of 33, which is on the lower end of the neutral range.<\/p>

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

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Article by ForexTime The Federal Reserve showed concerned about global trends in its latest policy statement and again issued a comment that it can be patient. The Fed is optimistic about the economy, as the job market continues to diminish, though price pressures have declined further below the 2% target due to energy price drops. […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-67583","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/67583","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=67583"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/67583\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=67583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=67583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=67583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}