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.



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
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
  • USD/MXN drops back into its recent range as investors await further guidance from economic data. Get your weekly Mexican Peso forecast from @HathornSabin here:
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here:
  • What is your forex trading style? Take the quiz and find out:
  • Australian Dollar plunged for a fifth week but held key downtrend support at the yearly lows. Get your weekly AUD technical forecast from @MBForex here:
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here:
  • Last week’s march higher in EUR/USD may well extend further after Friday’s Eurozone economic statistics that will likely turn the ECB more hawkish on monetary policy. Get your weekly Euro forecast from @MartinSEssex here:
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here:
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:
  • Cable is pulling off after a strong run; near-term weakness may be the theme before trying to rally again. Get your weekly GBP technical forecast from @PaulRobinsonFX here:
  • 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:
Risk-on Moves in a Risk-off Market

Risk-on Moves in a Risk-off Market

Kathy Lien, Technical Strategist

Profit taking is being blamed for the sudden volatility seen today across world currency and equity markets, but curious gains in high-beta currencies like the euro and British pound are puzzling to many traders.

The US dollar (USD) traded sharply lower this morning in what was turning out to be a volatile day for currencies and equities. Despite the lack of US economic data, USDJPY and USDCHF were both down more than 1%.

There's no specific explanation for the selloff outside of profit taking, which was also seen in European equities. The FTSE and DAX both fell over 1.5%, which is a big move for both indices. As a result, US equity futures were also pointing to a lower open.

What is confusing for many traders is why the euro (EUR), British pound (GBP), and other high-beta currencies are performing so well when risk appetite is deteriorating. The answer is simple: investors loaded up on long dollar positions (particularly against the Japanese yen (JPY)) as stocks hit new highs, and the unwind is now due to the cutting of that exposure.

Some are also saying that stocks are selling off because investors are waking up to the negative impact of rising US yields. This may be true, but higher yields should be positive for the dollar, or at least stem the currency's slide during periods of risk aversion.

There was one piece of US data released this morning, and that was the International Council of Shopping Center's weekly chain store sales report, which said spending dropped 0.9% the week of May 25 after rising by 0.2% the prior week.

The lack of big moves in the Nikkei and Japanese government bonds tell us that the selloff in USDJPY is being driven largely by the dollar, and not the yen.

Eurozone Calls for More Easy Money

While the EUR is performing very well today, the Organisation for Economic Co-operation and Development (OECD) called on the European Central Bank (ECB) to cut the deposit rate and consider additional quantitative easing (QE). The OECD believes that the central bank's outright monetary transaction (OMT) program has achieved a lot, but that more needs to be done.

The agency cut its global growth forecasts to 1.2% this year from a prior forecast of 1.4%. The concern centers on the high level of unemployment in Europe and the negative impact of continued fiscal reform. As such, they expect the Eurozone economy to contract by 0.6% this year and expand by 1.1% in 2014.

In contrast, US GDP growth is expected to increase by 1.9% in 2013 and 2.8% next year. Japanese growth, on the other hand, is expected to hit 1.6% this year, but slow to 1.4% in 2014.The OECD now estimates Chinese growth to reach 7.8% in 2013, which is a significant revision from the prior estimate of 8.5%.

Federal Open Market Committee (FOMC) voter Eric Rosengren (Boston) is speaking this afternoon, so keep an eye on the headlines, and, of course, the performance of US equities, which should play a major role in determining how the dollar trades today. For USDJPY, 100.65 is support, and for the EURUSD, 1.30 is resistance.

By Kathy Lien of BK Asset Management

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