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
Mixed
Oil - US Crude
Mixed
Wall Street
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
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/bg5cVcLvvW
  • (Commodities) Gold Prices Seesaw as US Dollar, Treasury Yields Diverge Before Netflix Earnings #Gold #XAUUSD #USD #Bonds https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2021/04/20/Gold-Prices-Seesaw-as-US-Dollar-Treasury-Yields-Diverge-Before-Netflix-Earnings.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/aYDFImOCGw
  • 🇬🇧 Claimant Count Change (MAR) Actual: 10.1K Previous: 86.6K https://www.dailyfx.com/economic-calendar#2021-04-20
  • 🇬🇧 Average Earnings incl. Bonus (FEB) Actual: 4.5% Expected: 4.8% Previous: 4.8% https://www.dailyfx.com/economic-calendar#2021-04-20
  • 🇬🇧 Employment Change (JAN) Actual: -73K Expected: -150K Previous: -147K https://www.dailyfx.com/economic-calendar#2021-04-20
  • 🇬🇧 Unemployment Rate (FEB) Actual: 4.9% Expected: 5.1% Previous: 5% https://www.dailyfx.com/economic-calendar#2021-04-20
  • Heads Up:🇬🇧 Claimant Count Change (MAR) due at 06:00 GMT (15min) Previous: 86.6K https://www.dailyfx.com/economic-calendar#2021-04-20
  • Heads Up:🇬🇧 Unemployment Rate (FEB) due at 06:00 GMT (15min) Expected: 5.1% Previous: 5% https://www.dailyfx.com/economic-calendar#2021-04-20
  • Heads Up:🇬🇧 Average Earnings incl. Bonus (FEB) due at 06:00 GMT (15min) Expected: 4.8% Previous: 4.8% https://www.dailyfx.com/economic-calendar#2021-04-20
  • Heads Up:🇬🇧 Employment Change (JAN) due at 06:00 GMT (15min) Expected: -150K Previous: -147K https://www.dailyfx.com/economic-calendar#2021-04-20
4 US Dollar Moves in Play Today

4 US Dollar Moves in Play Today

Boris Schlossberg, Technical Strategist

If today’s US data disappoints, the dollar’s recent correction could continue, causing the greenback to lose ground and target specific price levels versus the euro, yen, British pound, and Aussie.

It was a meandering night of trading in the FX market with high-beta currencies trying to rally early in the session on hopes that a People’s Bank of China (PBoC) news conference would allay investor fears about a liquidity crunch in the Chinese markets. The conference was not an official PBoC event, but Chinese authorities did address the recent volatility in the markets, stating that they expect the "seasonal" factors to disappear and adding that they are watching liquidity conditions carefully.

The news provided a modicum of support to risk assets and European markets rallied in response. Initially, it caused a pop in the euro (EUR), Australian dollar (AUD), and British pound (GBP), but the gains dissipated as morning dealing progressed and currencies remained in tight consolidation ahead of the North American open.

The news out of China did ease the pressure on US rates, however, and ten-year Treasury yields dropped below the key 2.50% mark, sending USDJPY below the 97.00 figure. The pair quickly found support at that level, though, and rebounded to 97.20. Still, if US yields continue to decline throughout today’s North American trade, USDJPY will likely revisit 97.00 later in the day.

The economic calendar was very quiet, but the one data point that did appear on the docket continued to show recovery in the UK economy. UK mortgage applications rose to an impressive 36.1K versus 33.1 expected, which indicates that the housing market in Britain continues to improve.

The mortgage data is just the latest example of stronger-than-expected economic releases from the UK, suggesting that Q2 GDP performance is likely to be considerably better than initially thought. The GBPUSD pair saw little reaction to the news, but remained relatively well bid nonetheless, and the pair could make a run towards the 1.5400 level later in the day if the correction in the US dollar (USD) rally continues.

4 Dollar Moves That Could Happen Today

The dollar’s recent correction could in fact accelerate during today’s North American session if US data disappoints the market. With durable goods, new home sales, and the Case-Shiller index all on the calendar, investor will have plenty of data to digest during North American trade.

Moreover, today’s housing data could be of particular interest. Housing has been one of the key drivers of the recovery, spurred on by low interest rates. However, it will be interesting to see if the recent uptick is having any dampening effect on demand.

It may be too early to gauge the impact of rising rates on the US housing market, but if the data does disappoint, the dollar is likely to sell off, as US yields will continue to retreat from their highs.

Monday was the first day in more than a week that the dollar saw weakness across the board as investors reconsidered the prospects of Fed tapering. If today's US economic data misses its mark, that skepticism will only increase, sending USDJPY through 97.00, EURUSD through 1.3150, GBPUSD towards 1.5400, and AUDUSD to 0.9300 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