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
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
More View more
Real Time News
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here:
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes 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:
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here:
  • RT @FxWestwater: Japanese Yen Forecast: JPY Crosses Eye BoJ, CPI as Haven Flows Bolster Yen Strength Link: https:/…
  • 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:
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here:
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here:
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today:
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here:
A Fed Tapering Option Never Heard Before

A Fed Tapering Option Never Heard Before

Kathy Lien, Technical Strategist

For the first time, October has been put forth as a viable timetable for Fed tapering, and traders must now consider this option while examining new economic data and US labor market conditions.

Better-than-expected US economic data and hawkish comments from Atlanta Fed President Dennis Lockhart failed to provide much support to the US dollar (USD) this morning.

Despite the US trade balance reaching its best level since October 2009, the dollar barely budged. Investors were not impressed that the trade deficit narrowed 22.4% to -$34.2 billion, down from -$44.097 billion. The underlying improvements were also ideal, with exports rising 2.2% to a record high and imports falling 2.5%.

This is a quiet week for US economic data, but investors will continue to look for clues about how soon the Federal Reserve will begin tapering asset purchases. Unfortunately, the outdated trade balance data plays only a small role in the decision.

Earlier this morning, Fed President Lockhart said that a 180k-200k increase in jobs could lead to a reduction in bond purchases and that he wouldn't rule out a tapering move in October. While Lockhart is not a voting member of the Federal Open Market Committee (FOMC) this year, this is the first time that October has been put forth as a viable option.

Previously, the focus had been on the September and December meetings because of the pre-scheduled press conferences by Fed Chairman Ben Bernanke, but the central bank could also hold a special press conference after a move in October—an option that now shouldn't be ruled out completely.

The more important comments today will be from Chicago Fed President and FOMC voter Charles Evans this afternoon. Evans is a known dove whose comments will most likely err on the side of caution.

Today’s 2 Biggest Movers vs. the Dollar

Meanwhile, the Canadian dollar (CAD) and Australian dollar (AUD) have seen the greatest movements today against the greenback. Like the US, Canada enjoyed a sharp improvement in trade throughout the month of June. The country's trade deficit narrowed to CAD -0.47B from a downwardly revised CAD -0.78B. Exports rose 1.4% and reached a record high thanks to increased demand for cars and aircraft, and imports increased by 0.6%.

While Canada's trade balance is slowly crawling back towards a surplus, the fact that the export-dependent nation is running a deficit at all means that the economy is still suffering.

Much to the surprise of many traders, the decision by the Reserve Bank of Australia (RBA) to cut interest rates by 25 basis points (bps) to 2.5% turned out to be positive for the AUD.

See related: 2 Overnight Rallies, One of Which Makes Sense

The neutral tone of the RBA statement and the lack of update on China or the RBA outlook for the mining sector suggested that the central bank is not considering additional rate cuts at this time.

However, despite a 15% decline in the AUDUSD this year, the RBA still believes that the exchange rate is too high, which suggests that officials would be more comfortable with the AUDUSD trading between the 0.85 and 0.80 levels.

By Kathy Lien of BK Asset Management

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