Risk Sentiment Dips in Europe But Euro Holds Steady
| Action Insight Mid-Day Report 3-10-25 |
Risk Sentiment Dips in Europe But Euro Holds Steady |
Risk sentiment took a mild turn to the downside in European markets today, with DAX pulling back from last week’s solid gains. Investors are watching developments in Germany’s political arena, where Greens have voiced opposition to proposals by CDU’s Friedrich Merz for a sweeping overhaul of debt rules, including a massive increase in state borrowing and a EUR 500B infrastructure fund. While this move appears to have dampened market confidence temporarily, the broader reaction remains measured, suggesting that investors are just waiting for more clarity on any subsequent political negotiations. Despite initially rejecting Merz’s plans, Greens have indicated they will present their own ideas and hold further talks with both conservative CDU/CSU and SPD. This could be a strategic negotiation tactic aimed at extracting additional concessions for climate protection measures or other political agenda. Meanwhile, Euro is largely unfazed, holding steady in tight range against Dollar. Supporting Euro’s relative resilience, strong investor confidence data in both the Eurozone and Germany stand in stark contrast to deteriorating sentiment in the US.... |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0780; (P) 1.0834; (R1) 1.0888; More... While further rise could be seen in EUR/USD, loss of momentum as seen in 4H MACD could limit upside to bring retreat. On the downside, break of 1.0764 minor support will with bias neutral for consolidations first, before staging another rally. Nevertheless, firm break of 1.0932 will pave the way back to 1.1274 key resistance next. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | Labor Cash Earnings Y/Y Jan | 2.80% | 3.20% | 4.80% | 4.40% | | 23:50 | JPY | Bank Lending Y/Y Feb | 3.10% | 3.10% | 3% | 2.90% | | 23:50 | JPY | Current Account (JPY) Jan | 1.94T | 1.99T | 2.73T | | 05:00 | JPY | Leading Economic Index Jan P | 108 | 108.1 | 108.4 | 108.3 | | 06:00 | JPY | Eco Watchers Survey: Current Feb | 45.6 | 48.5 | 48.6 | | 07:00 | EUR | Germany Industrial Production M/M Jan | 2.00% | 1.50% | -2.40% | -1.50% | | 07:00 | EUR | Germany Trade Balance (EUR) Jan | 16.0B | 21.2B | 20.7B | | 09:30 | EUR | Eurozone Sentix Investor Confidence Mar | -2.9 | -10 | -12.7 |
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