Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

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You should consider whether you can afford to take the high risk of losing your money.

The vast majority of retail client accounts lose money when trading CFDs.
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Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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EURUSD Trading Levels Ahead of US GDP Growth Release

EURUSD will be in focus as the US economy gets to see another GDP growth release on Thursday. 

The fourth quarter advance figure is expected to come at 2.6%, down from 3.2%.

EURUSD – Daily Chart

EURUSD – Daily Chart2

EURUSD is stuck at the top of the recent rally, and traders need clarification about the following path for the pair. 

The US dollar made a small gain as fears mounted over an escalation of the conflict in Ukraine. European leaders are increasing their supply of weapons to the country. 

President Volodymyr Zelensky welcomed a decision by Germany to supply Leopard 2 battle tanks and remarked that he was “sincerely grateful” to Chancellor Olaf Scholz. Zelensky’s foreign minister, Dmytro Kuleba, called on allies to join the “tank coalition” and send “as many of them as possible” to support Ukraine. 

Spain said it was “willing… to work with our allies to do whatever is necessary including the sending of Leopards”. 

Russia hit back at the move and said it was “extremely dangerous.” The Russian embassy in Germany accused Berlin of abandoning its “historical responsibility” and of taking the conflict in Ukraine “to a new level of confrontation.”

Meanwhile, a key barometer of health for the US economy continues to flash a recession warning. Many business leaders also agree that the US economy is looking worse. The Conference Board’s Leading Economic Index declined for the 10th consecutive month, with a 1% drop in December to 110.5. Economists were anticipating a decline of 0.7%, according to Refinitiv. 

According to the Conference Board, the index usually peaks around a year ahead of a recession. The index looks to have peaked in February 2022, the Conference Board added, which coincided with the Ukraine conflict. 

“There was widespread weakness among leading indicators in December, indicating deteriorating conditions for labour markets, manufacturing, housing construction, and financial markets in the months ahead,” the board said.

Last Updated: 26/01/2023

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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