News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Bullish
Gold
Bullish
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • #Gold Price Outlook: Gold Recovery First Test at Trend Resistance - $XAUUSD Levels - https://t.co/VHAsch23R0 https://t.co/9nnskcEVxQ
  • The US 10Y yield sits at 1.39, slightly off its intraday high of 1.43 https://t.co/a7mvDvlBiG
  • Bitcoin trying to turn it green on the. Yellen thinking 'time to sweep the leg'
  • commodity currencies have been putting in big moves of late. $USDCAD fresh two-year-lows, nearing 1.2500. But $CADJPY has been in a pronounced breakout for a little longer, and $EURCAD has recently joined the party. https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/02/24/Canadian-Dollar-Price-Forecast-Loonie-USD-CAD-USDCAD-CAD-JPY-CADJPY-EUR-CAD-EURCAD.html https://t.co/GQeIBjPmpH https://t.co/21VFUWPXv7
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Silver: 0.60% Oil - US Crude: -0.05% Gold: -0.37% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/OVvBvd24Qj
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 89.59%, while traders in Wall Street are at opposite extremes with 75.75%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/gM9tZwFhj3
  • The South African Rand continued to strengthen against the greenback after South African Finance Minister Tito Mboweni presented the annual budget speech earlier today. Get your $USDZAR market update from @Tams707 here:https://t.co/E2Uoa2YkNX https://t.co/OpZDwSUjGC
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Wall Street: 1.44% US 500: 1.15% France 40: 0.30% Germany 30: 0.25% FTSE 100: 0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/1qOwkBpwIF
  • $USDCAD has continued to weaken today. The pair is currently trading below the 1.2550 level for the first time since the spring of 2018. $USD $CAD https://t.co/L6Or6cpd5a
  • Tomorrow is one of the last seriously interesting days of the earnings season for me. We get our Reddit darling ($AMC), a Covid player ($MRNA) and two recent IPO post-pandemic favorites ($ABNB and $DASH). #Earnings
March 16th FOMC Meeting

March 16th FOMC Meeting

Thomas Long, Course Instructor

I also believe that it is the technicals that show us how we get between those two points. So I am of the opinion that is the economic calendar that offers the first hint of a potential trend change.  

The most important factor in the value of a currency is the interest rate environment of that country/zone. Higher interest rates usually lead to a higher currency value while lower interest rates usually lead to a lower currency value. The interest rates of each country/zone in the pair and their relationship to each other is also of great importance.

When I look at the EUR/USD daily chart, I see a strong downtrend.

eurusd 031610

This means that the USD is stronger than the EUR. While there are many factors involved, we know that the European Central Bank (ECB) does not seem interested in raising rates while the US Federal Reserve has already raised the Discount Rate once. That may be enough for now, but today we may find out more about what they think when the FOMC, which is the Federal Open Market Committee, the group that is responsible for that decision at the US Federal Reserve, gives us their thoughts at 215PM Eastern.

If the FOMC gives the impression that they may raise rates at some time, the downtrend should remain intact. Even if they announce that their opinion has not changed, that would not change the trend of the EUR/USD. The only event that may change this downtrend is that the FOMC lowers rates or gives the impression that this is a possibility or if the ECB gives the impression that they are likely to raise interest rates. We are not likely to see either of those two events today. So we should expect the downtrend to remain intact after today's annoucement.

However, that may not mean selling pressure at 216PM Eastern. Markets seem to get a kick out of catching as many people as possible leaning too far in one direction by moving in the other direction. The expectations of traders are always key here and there is really no way to measure that until you actually see it play out on the charts.  Professional traders will actually take the time to read the FOMC announcement before trading or even wait for their analysts to pick it apart to make sure there is not some hidden meaning in their carefully chosen words. If it works for them, then it should work for us. So read the report first before making a decision. If you are not comfortable doing that, check out what the analysts at DailyFX have to say after they read the report. But be measured in your actions immediately after the release to make sure you aren't one of those leaning too far in the wrong direction.

 

 

 

 

 

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

DISCLOSURES