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
EUR/USD
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
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
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
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
More View more
Real Time News
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/uf6KEYTes5
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/gRjdVfbg66
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/mLLGqYUygY
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/HUYJzEkYiT
  • #Gold prices put in a major breakout last month and, so far, buyers have held the line. But a really big Fed meeting is on the calendar for this week. Can Gold bulls hold? Get your market update from @JStanleyFX here: https://t.co/NGRTSfceOW https://t.co/QkSUORIQE2
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/PHK2sqB1jV
  • Top event risk for more than just the Dow and Dollar this week is the Wednesday #FOMC rate decision. What the markets expect sets the tone for how the event impacts price action. My run down of the week and Fed decision: https://www.dailyfx.com/forex/video/daily_news_report/2021/06/12/Dollar-and-SP-500-Breaks-Must-Abide-the-FOMC-Decision-This-Week.html https://t.co/Huvth4f706
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/AkE7bFRWAt
  • $GBPUSD continues to trade in ranges as volatility dwindles. UK data to play second fiddle to FOMC. Get your market update from @JMcQueenFX here: https://t.co/T0Eg4KaENB https://t.co/GMmZa5L0Il
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/wlGgQrcK3X
"Abenomics" Comes up a Little Short

"Abenomics" Comes up a Little Short

Boris Schlossberg, Technical Strategist

Weaker-than-expected Japanese GDP data indicated that the country’s massive stimulus program hasn’t fully kicked in, but on the other hand, the miss may now help fend off the planned sales tax increase.

The US dollar (USD) was slightly bid at the start of the week's trade as currency markets shrugged off weak GDP numbers from Japan and the euro (EUR) came under pressure on news that Greece will need additional bailout funds after the German election in September.

In Japan, the GDP report missed its mark by a wide margin, printing at only 0.6% versus 0.9% expected as the stimulus from Prime Minister Shinzo Abe's reform program failed to produce the full intended effect. Nevertheless, the headline number may have been worse than the reality, as much of the miss was due to the drawdown of inventories, which contributed -1.1% to the overall number.

On the other hand, consumption, which constitutes more that 60% of the Japanese economy, rose at a 1.9% rate, indicating that spending is slowly starting to pick up as Abe tries to infuse the economy with more confidence.

The USDJPY initially plunged to a low of 95.91, but recovered all of its losses and was up as the Asian session wore on. One of the unintended positive consequences of the weak GDP data is the fact that it may now delay the controversial planned increase in the sales tax as Japanese officials fear the economy may not be strong enough to absorb the shock to consumption.

For now, USDJPY appears to be stabilizing near the 96.00 level and as traders await fresh data from both the US and Japan. With many traders on both sides of the Pacific out on holiday, the pair could remain range-bound in the near term until markets get better clarity starting in September.

Another Wave of Greek Stimulus Upcoming

Meanwhile, in Europe, the EURUSD drifted lower, breaking below the 1.3300 barrier following a weekend report that Bundesbank expects further aid packages to Greece after the German election in September. Today, Greek GDP printed better than expected and was revised to -4.6%, which is the lowest rate of decline since 2011, but is still markedly contractionary.

The EURUSD has run into stiff resistance at the 1.3400 level and may now consolidate its recent gains while the Eurozone economic calendar remains quite sparse.

Dollar Searching for Rally Fuel

In today's North American session, the docket contains only the monthly US budget statement, and slow trading conditions could prevail until tomorrow's US retail sales report, which will offer traders a better look at consumer spending at the start of Q3.

If the retail sales data shows further weakening, the greenback could quickly give up today's gains as markets begin to doubt the likelihood of a September taper by the Federal Reserve.

See related: US Data the Dollar Is Counting on

By Boris Schlossberg of BK Asset Management

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

DISCLOSURES