We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.79%, while traders in USD/CAD are at opposite extremes with 67.95%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Wrdc0JzKNe
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/OlWS2GLtjb
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Silver: 0.78% Gold: 0.42% Oil - US Crude: -1.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/GVZUxbwFHZ
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.44% 🇨🇭CHF: 0.42% 🇯🇵JPY: 0.37% 🇳🇿NZD: 0.26% 🇬🇧GBP: 0.10% 🇨🇦CAD: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/jHAHL6TLIY
  • Popular carry play: $EURMXN. Reminder that non-commercials and asset managers had been holding near record longs in $MXN, leaving the currency vulnerable to a deeper pullback as risk appetite sours https://t.co/UcxpPFnQb1
  • #Euro May Fall on Eurozone Confidence Data as #COVID-19 Spreads https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2020/02/27/Euro-May-Fall-on-Eurozone-Confidence-Data-as-COVID-19-Spreads.html
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.83% US 500: -0.87% France 40: -1.98% Germany 30: -2.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/qdKxJadnUE
  • Carry unwind lifting $EURUSD above 1.09, eyes on notable option expiries - 1.0900 (632mln), 1.0915-25 (1.2bln), 1.0955 (1bln)
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/SbDPHN0Win
  • European Opening Calls From IG #FTSE 6870 -2.45% #DAX 12451 -2.54% #CAC 5544 -2.47% #AEX 566 -2.74% #MIB 22818 -2.58% #IBEX 9107 -2.25% #OMX 1743 -2.20% #STOXX 3486 -2.56%
Teh Euro and Dollar Diverge from their Traditional Risk Appetite Roles

Teh Euro and Dollar Diverge from their Traditional Risk Appetite Roles

2010-07-01 17:14:00
John Kicklighter, Chief Currency Strategist
Share:
What an unusual day. Risk appetite was under clear pressure Thursday morning; and the capital markets were responding in kind. The Dow and S&P 500 furthered significant medium-term bearish breakouts, commodities were tumbling and bond yields fell off. And yet, EURUSD rallied on the day. In fact, the euro advanced across the board and the US dollar would stumble against most of its crosses. This is an unusual development given the greenback is the undisputed safe haven currency while the euro is heavily dependent on general investor confidence as it is suffering from a financial seizure that threatens a full-blown financial crisis. This divergence comes on part of the euro itself. The currency responded this morning to Spain's 'successful' bond auction whereby the government sale of 3.5 billion euros worth of five year notes received a 1.7 bid-to-cover. This helped stabilize confidence; but in reality, demand was rather weak; and there are bigger problems than just Spain. Another issue to arise during the day was a six-day lending facility, used to fill in the liquidity gap with the 12-month unlimited facilities expiry. This short-term liquidity infusion amounted to 112 billion euros. This is a sizable sum and add significantly to yesterday's 132 billion euro draw for three-month coverage. Overall, conditions are still poor for the region. And, given the euro's temporary strength, the primary exchange rate (EURUSD) would lead to a wide selling of dollars. This situation won't last for long as tomorrow's NFPs could set both currencies back in the risk appetite track. As for my positions, today's volatility certainly changed things around. My EURGBP short was pressured and we are above my second entry level. Having added at 0.82, that half of the position is in the red; but my initial holding is still well in the money. If I am stopped out at trailing stop level, I'll still end with a net profit. With risk aversion, my AUDCHF continues its decline and so does USDCHF. With the latter pair, I have decided to take profit at the combination of a 200-day SMA and 61.8 percent Fib. One true underperformer is USDJPY. This has dropped below a range support level; but given my small position size, I will stick with it and add as it continues lower because I like the long-term outlook. For potential trades, both GBPNZD and EURCAD have broken their long-term descending trendlines. The former is far more attractive from a fundamental perspective; but I need a pull back for a better price. EURCAD is more questionable for fundamentals; so I have to approach it with a smaller position size and with good management. For pure breakout opportunity, CADJPY is still looking good. If I want a breakout with better follow through though, it is AUDNZD that draws my attention.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.