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. See our updated Privacy Policy here.

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
More View more
Real Time News
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here: https://t.co/qV3c7a4YR3 https://t.co/2Qka1WPhnE
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUuBpt https://t.co/kloJCFmJty
  • 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: https://t.co/vg7w10la3j https://t.co/wwxKQFibW6
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EST on DailyFX! A look at the levels heading into #FOMC - https://t.co/lxd5fZnn4H
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/Nx6AHxZksK
  • Markets Week Ahead: Euro, Dollar, Gold, S&P 500, Earnings, Inflation Check out @RichDvorakFX's latest market recap and preview plus all the weekly forecasts from the @DailyFXTeam at the link below! Link to Analysis - https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/07/25/markets-week-ahead-euro-dollar-gold-sp500-fed-earnings-inflation.html $EURUSD $SPX #Trading
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/xKkBwu951j
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/MYWlQphqtb
  • 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/paOy1oQmn3
  • US indices have a packed week ahead with earnings from the major technology names, US GDP data due and an FOMC rate decision. With so much on the docket the potential for volatility is heightened. Get your stock market forecast from @PeterHanksFX here: https://t.co/CH4WoStHvu
The Dollar’s Great Leap Forward

The Dollar’s Great Leap Forward

Boris Schlossberg, Technical Strategist

After surging higher against every major counterpart on Thursday and taking out key support/resistance in the process, the question now is whether the US dollar’s unexpected rally will roll on.

The US dollar (USD) continued to rally throughout Asian and early-European trade today, with the greenback strong across the board: EURUSD fell through the 1.3000 barrier, GBPUSD broke 1.5400, and USDJPY maintained its vertical ascent, reaching 101.44 before pausing.

There was very little news on the economic calendar in Europe today, with only the UK trade data coming in a bit weaker than expected. The UK trade deficit widened to -9.1 billion versus -9.0 billion forecast, and a bit better than the -9.4 billion reported the month prior. The data had little impact on GBPUSD, but the currency weakened in the overall dollar rally, tumbling through the 1.5400 figure in morning London dealing.

One side effect of the great leap forward in the USDJPY has been the unwinding of the safe-harbor trades. USDCHF has managed to soar as well, while taking EURCHF all the way to 1.2460 before settling down.

The majors now stand at key support levels against the greenback, with EURUSD pressing near the long-term range bottom of 1.2950, GBPUSD nearing 1.5300, and AUDUSD zeroing in on the seminal parity mark.

Yesterday's move was not only a surge in USDJPY, but a massive rally in the dollar versus the G10 in general, and it will be interesting to see if the markets will try to press the move further in today's North American session or stage a rebound in high-beta currencies now trading near key support levels.

The Only Non-Casualty of the Dollar Rally

The one unit that has survived the surge in the greenback relatively unscathed is the Canadian dollar (CAD), which has shown relative strength yesterday and today. USDCAD remains well below the 1.0100 level, and the loonie is enjoying the "North America bid" as investors reposition towards the region that appears to be economically stronger than the rest of the world.

Today's Canadian employment data, which is the only major release on the North American docket, could go a long way towards supporting that thesis. The market anticipates a rise of 14.8K versus a horrid print of -54.K last month.

Canadian labor data has a history of mean reversion after massive prints in either direction, so the chances for a rebound are strong. If the number prints at 20K or better, that could fuel a further rally in the loonie and push USDCAD to test parity as the day progresses.

By Boris Schlossberg of BK Asset Management

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

DISCLOSURES