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
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Mixed
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
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
More View more
Real Time News
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4QhQGQ6 https://t.co/KrMcyZZqO7
  • The Reserve Bank of Australia (RBA) rate decision may spark a bullish reaction in $AUDUSD as the central bank is expected to retain the current course for monetary policy. Get your market update from @DavidJSong here: https://t.co/WbcR9ER0qT https://t.co/TynsqCtPQ6
  • Gold has broken below a critical support confluence we’ve been tracking for months now and the risk remains for further losses while below this threshold in the weeks ahead. Get your $XAUUSD market update from @MBForex here:https://t.co/xgN2obaIWR https://t.co/H71ufPNkPg
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/Evr5KgUjVo
  • $GBPUSD corrects from stretched valuations, however, positioning clear is likely to entice dip-buyers. Get your market update from @JMcQueenFX here: https://t.co/sfFdBx9pN6 https://t.co/j6nnry65SW
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/oQrOpYINOj
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/LSVPlus0vv
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/rPd6B5KzuI
  • Time-cycle analysis suggests that the Japanese Yen could slide significantly lower against its major counterparts. Key levels for AUD/JPY, EUR/JPY and GBP/JPY. Get your market update from @DanielGMoss here:https://t.co/WPq4Z9zzEw https://t.co/VzVLrBbL9q
  • The Australian Dollar looks poised to outperform the haven-associated US Dollar and Japanese Yen. However, it may lose ground to the New Zealand Dollar. Key levels for AUD/USD, AUD/JPY and AUD/NZD. Get your market update from @DanielGMoss here:https://t.co/cuxRxl5WaF https://t.co/pujrmqSxV7
A USD/JPY Move That Defies the Data

A USD/JPY Move That Defies the Data

Kathy Lien, Technical Strategist

While US economic data continues to show strength and the misery only grows in the Eurozone and elsewhere, a downside move unfolded today in the USDJPY that may have caught some traders off guard.

With US economic data surprising to the upside and European data disappointing, investors have returned to selling euro. Not only has tail risk in the Eurozone returned with the European Central Bank (ECB) threatening to pull support from Cyprus if an agreement is not reached by Monday, but the outlook for growth has taken a turn for the worse, further compounding the euro's problems.

See related: EUR/USD Faces Dangerous Double Whammy

In contrast, better-than-expected US data reinforces Fed Chairman Ben Bernanke's more relaxed outlook on the US economy. In yesterday's press conference, Bernanke did not sound overly concerned about the negative risks posed by the sequester or Cyprus as long as US data continues to improve. And today, data did just that, with weekly jobless claims in the US coming in at 336k compared to 334k the previous week.

These extremely low levels have pushed the less-volatile four-week moving average to its lowest level in more than five years. The Philadelphia Fed survey also rose back into positive territory (2.0 in March versus -12.5 in February), while leading indicators rose 0.5%.

The only US data disappointment was in existing home sales, which grew less than expected, but the upward revision to the prior month's report served to offset some of the pain.

What is interesting, however, is that USDJPY is trading sharply lower, and while risk aversion is contributing to the move, it could also be related to large-scale selling seen in EURJPY.

German Economy Is Starting to Crack

In contrast to the upbeat US data, Eurozone manufacturing and service sector activity contracted at a faster pace in the month of March with the Eurozone PMI Composite Index dropping to 46.5 from 47.9. While this is not the lowest reading seen in the past six months, what is disconcerting is that the cracks in Germany’s economic armor are beginning to show. The Eurozone's largest economy is no longer able to provide umbrella support for the rest of the region and is now weakening alongside France, Italy, and Spain.

The deteriorating growth outlook and risks posed by Cyprus and Italy (let’s not forget about the still-unresolved Italian elections) makes the euro less attractive than the dollar, and this should continue to add pressure on the common currency.

Today’s 3 Best-Performing Currencies

However, not all currencies are performing poorly today, as the New Zealand dollar (NZD), British pound (GBP), and Australian dollar (AUD) are trading sharply higher against the greenback thanks to solid Q4 GDP growth in New Zealand, higher UK consumer spending, and stronger Chinese manufacturing activity. The collective strength in these three currencies indicates that investors still care about relative growth.

By Kathy Lien of BK Asset Management

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

DISCLOSURES