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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
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
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
Breaking news

British Pound sinks as EU Brexit negotiator Barnier says there may not be an EU/UK deal

Real Time News
  • Several member states open to continuing talks after December 31st deadline if a good deal can't be reached by then, according to a Senior EU Diplomat $GBP
  • The bullish engulfing candle is one of the forex market's most clear-cut price action signals for reversals and continuation. Learn more about this price action trading signal here:
  • Adds that some EU member states have become jittery as the Brexit endgame nears $GBP
  • EU Diplomat says still unclear if negotiators can bridge gaps on 3 key issues $GBP
  • Heads Up:🇬🇧 BoE FPC Meeting due at 09:30 GMT (15min)
  • 🇮🇹 Unemployment Rate (OCT) Actual: 9.8% Expected: 9.9% Previous: 9.7%
  • 🇮🇹 Unemployment Rate (OCT) Actual: 9.8% Expected: 9.9% Previous: 9.6%
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 94.23%, while traders in EUR/USD are at opposite extremes with 76.39%. See the summary chart below and full details and charts on DailyFX:
  • Heads Up:🇮🇹 Unemployment Rate (OCT) due at 09:00 GMT (15min) Expected: 9.9% Previous: 9.6%
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here:
Jobs Data Dollar Bulls (and the Fed) Will Love

Jobs Data Dollar Bulls (and the Fed) Will Love

2013-05-08 17:41:00
Kathy Lien, Technical Strategist

Today’s US jobless claims report was positive for the dollar and will likely keep the Fed’s focus on tightening monetary policy at a time when other central banks are engaged in a race to devalue their currencies.

In this quiet week for the financial markets, today’s weekly jobless claims report is the most important piece of US data on the economic calendar. Over the past few years, the impact of jobless claims on currencies has diminished, as fewer firings have not translated into stronger hiring. However, with the Federal Reserve's eyes transfixed on the labor market, the continued decline in claims eases concerns about a retrenchment in jobs.

According to the latest report, jobless claims dropped to a five-year low of 323K (from 327K) for the week of April 27. Continuing claims also fell to 3.005 million, down from 3.032 million.

The timing of the drop in claims couldn't be better for the US dollar. The Federal Reserve was surprisingly optimistic at the last monetary policy meeting, and the positive sentiment was confirmed by the stronger non-farm payrolls (NFP) report. Now, the improvement in jobless claims suggests that May payrolls will be solid as well.

This will keep discussions about tapering asset purchases alive inside the Fed, which should help the dollar at a time when other major central banks are actively weakening their currencies by way of lower interest rates or even direct currency intervention.

While the favorable jobless claims report has helped to boost the greenback, the dollar is still mixed overall, trading higher against the euro (EUR), Swiss franc (CHF), and Canadian dollar (CAD), but lower against the Japanese yen (JPY), Australian dollar (AUD), and New Zealand dollar (NZD).

We expect stocks to reach new highs today on the back of the jobless claims report, which should limit the slide in currencies.

Key Fundamental Drivers of Currency Flows

Today is one of those days when underlying fundamentals of G7 nations are driving currency flows instead of the market's appetite for US dollars. The euro, for example, topped out below 1.32 and has trickled lower since then. The euro barely reacted to the latest monthly report from the EuropeanCentral Bank (ECB) and instead pulled back alongside European equities.

The British pound (GBP), AUD, and NZD, on the other hand, all benefitted from solid economic reports, although GBP gave up earlier gains after the jobless claims numbers. With less to worry about now that the UK economy is beginning to improve, the Bank of England (BoE) predictably left interest rates unchanged. UK Industrial production rose 0.7% in March, while manufacturing production jumped 1.1%.

Australia and New Zealand, on the other hand, reported unambiguously positive employment numbers that sent their respective currencies soaring, but the gains may be limited given the recent actions by the Reserve Bank of Australia (RBA) and Reserve Bank of New Zealand (RBNZ) to weaken their currencies.

South Korea Joins the “Race to Debase”

Finally, it is worth noting that South Korea joined the ongoing “Race to Debase” last night by cutting interest rates 25 basis points (bps) to 2.5 percent.

In the past, we have said that South Korea is a country that will be hurt significantly by weakness in the Japanese yen. While citing "sluggishness of economic activities in the euro area" and "weaker-than- initially-anticipated" Chinese growth, the fact that the Korean won (KRW) hit a five-year high versus the yen is a strong motivation for easing because South Korean companies are major competitors of Japanese corporations in many export markets.

By Kathy Lien of BK Asset Management

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