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
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
Oil - US Crude
Bearish
Wall Street
Bullish
Gold
Bearish
GBP/USD
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
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
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.11% 🇦🇺AUD: -0.01% 🇬🇧GBP: -0.02% 🇨🇭CHF: -0.04% 🇳🇿NZD: -0.10% 🇨🇦CAD: -0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/tdHfhlRoON
  • Heads Up:🇯🇵 Industrial Production YoY Final (MAY) due at 04:30 GMT (15min) Expected: -25.9% Previous: -15% https://www.dailyfx.com/economic-calendar#2020-07-14
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: US 500: 0.09% Wall Street: 0.08% FTSE 100: -1.47% France 40: -1.61% Germany 30: -1.83% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/8NLFFxuuXr
  • RBNZ Credit Conditions Survey - New Zealand banks report a decline in demand for credit during first half of 2020. - Banks indicate lending standards are likely to tighten.
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/OjTZOQEytM https://t.co/0KdF1bvOXW
  • 🇨🇳 Balance of Trade (JUN) Actual: $46.42B Expected: $58.6B Previous: $62.93B https://www.dailyfx.com/economic-calendar#2020-07-14
  • Heads Up:🇨🇳 Balance of Trade (JUN) due at 03:00 GMT (15min) Actual: $46.42B Expected: $58.6B Previous: $62.93B https://www.dailyfx.com/economic-calendar#2020-07-14
  • Heads Up:🇨🇳 Balance of Trade (JUN) due at 03:00 GMT (15min) Expected: $58.6B Previous: $62.93B https://www.dailyfx.com/economic-calendar#2020-07-14
  • The ASX 200 and AUD/JPY are at risk of losses as cases of Covid-19 continue to climb in Victoria, Australia’s second-most populous state. Get your #ASX market update from @DanielGMoss here: https://t.co/O0LNvhy4eY https://t.co/YXoHRqy8WJ
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: -0.25% Silver: -0.31% Oil - US Crude: -2.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/rQwKZkZmUv
4 Catalysts for Renewed Risk Aversion

4 Catalysts for Renewed Risk Aversion

2013-03-27 16:45:00
Kathy Lien ,
Share:

Soft economic data from the US and Eurozone, as well as lingering uncertainty about Cyprus’ banks and Italy’s political gridlock have combined to weigh on stocks and currencies in what appears to be a classic “risk-off” shift.

With US stocks opening lower and European equities under significant pressure, the selloff in currencies is consistent with a return of risk aversion. The weakness this morning was kicked off by softer Eurozone data, which shouldn't surprise readers since we warned here earlier that the Italian elections in February and Cyprus problems would weigh on sentiment.

See also: The New Epicenter for Eurozone Problems

This morning's US economic report also failed to ease the pain, with pending home sales dropping 0.4% in the month of February after rising a downwardly revised 3.8% the previous month. While January was a very good month for the US housing market, existing, new, and pending home sales all gave back some gains in February.

Both the US dollar (USD) and the Japanese yen (JPY) have been big beneficiaries of the shift in risk appetite. Looking ahead, if we don't get any good news from Thursday's German retail sales and unemployment numbers, the EURUSD could find itself trading below 1.27.

Meanwhile, the market is still talking about Cyprus and whether it will be a template for future bailouts. Based on the big moves in German bonds, it is clear that investors in Europe are turning to the bonds of the strongest Eurozone economy for safety. As a result, ten-year German bund yields are trading at the lowest level since August.

4 Federal Reserve Speeches on Tap Today

We don't expect much recovery in currencies during the North American session. Four Federal Reserve Presidents are scheduled to speak today, though only one is a Federal Open Market Committee (FOMC) voter.

Between Fed Presidents Eric Rosengren (Boston), Sandra Pianalto (Cleveland), Simon Potter (VP, New York), and Narayana Kocherlakota (Minneapolis), Rosengren's comments will carry the most weight, and he is usually dovish, so don't be surprised if he echoes recent comments from New York Fed President William Dudley, who called on the Fed to keep monetary policy "very accommodative."

Canadian Dollar Achieves New Recent High

Finally, the Canadian dollar (CAD) reversed its earlier gains after hotter-than-expected consumer prices. Canadian CPI jumped 1.2% in the month of February, which was the strongest increase since 1982. Annualized price growth increased by the same amount, while seasonally adjusted prices rose by a more modest 0.4%.

For the Bank of Canada, higher inflationary pressures will further encourage the Bank’s hawkish bias. Between the recent rise in oil prices and stronger data, the CAD has now risen to a one-month high against the US dollar.

More: Seethe Latest USDCAD Chart

By Kathy Lien of BK Asset Management

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

DISCLOSURES

News & Analysis at your fingertips.