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.



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
Oil - US Crude
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
Wall Street
More View more
Real Time News
  • What are some monetary policies that could affect Gold this quarter? Get your Gold free forecast here: #DailyFXGuides
  • Even more remarkable than the record high levels of leverage registered in US equities this past week was the attention it garnered. Paying attention to risk is a threat when markets are this high and the docket as dense as it is this week. My outlook:
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here:
  • 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:
  • USD hegemony is at risk thanks to changes in the global economy and the long-term consequences of the US-China trade war. Get your market update from @CVecchioFX here:
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge:
  • The formation of several bullish technical patterns suggests that the haven-associated Japanese Yen is at risk of further losses against the Euro and Australian Dollar. Get your market update from @DanielGMoss here:
  • Natural gas is moving lower after weather models pointed to warmer-than-average temperatures across much of the US. Get your market update from @FxWestwater here:
  • Gold and silver prices may continue to rise in the coming months on the back of falling real rates of return and the prospect of additional fiscal support under a Biden administration. Get your market update from @DanielGMoss here:
2 Lesser-Known Currencies Collapsing Big

2 Lesser-Known Currencies Collapsing Big

Kathy Lien, Technical Strategist

Heightened risk aversion from the conflict in Syria has sent world currencies lower, but domestic policies in India and Turkey added to the pain, driving both nations’ currencies to record lows versus the US dollar.

Today’s price action in the financial markets is a classic example of how geopolitical risks can overshadow economics. This morning's US data was mixed, and in Germany, business confidence increased. However, investors are unwinding carry trades as the growing risk of an international response to the chemical weapon attacks in Syria drove all major currencies lower against the US dollar (USD) and Japanese yen (JPY).

See related: A New FX Risk That Trumps All Others

Despite the decline in stocks this month and downside surprises in US economic reports, consumer confidence increased in the month of August. The Conference Board's consumer sentiment index rose to 81.5 from 81, reaching the second-highest level since January 2008. Manufacturing activity in the Richmond region also ticked up, but house prices grew at a slower pace in June, as evidenced by the S&P Case-Shiller index, which rose by 0.89% vs. 1.04% the month prior.

Bad to Worse for Emerging Market Currencies

Meanwhile, emerging market currencies continued to collapse, with the Indian rupee (INR) and Turkish lira (TRY) falling to record lows against the US dollar (USD). Risk aversion and concerns about Syria contributed to the selloff, but domestic policies led the moves lower.

In India, markets were punished after Parliament approved a $20 billion plan to provide cheap grain to the poor. This new legislation will touch nearly 70% of India's population of 1.2 billion. No one will argue that food for the poor is desperately needed in India, but the rice will be highly subsidized, which raises concerns about the government's ability to control spending or meet its fiscal deficit targets.

In reaction, investors drove the rupee down more than 2.8%. Despite widespread initiatives, India has a serious problem with investor confidence. Too many local investors prefer to invest abroad as opposed to domestically, and as the currency continues to weaken, the Reserve Bank of India will need to announce additional measures to stabilize the markets.

The Turkish lira also dropped 1.9% to reach a fresh record low against the US dollar after the central bank said it would not raise interest rates. While the bank has sold dollars in an attempt to offset the slide in TRY, it views the drop as being temporary.

As such, the central bank will not want to alter the plans to keep interest rates at 6.75% until inflation falls to 6.2% (from 8.8% currently). Unfortunately, a falling currency will make it very difficult for inflation to ease and poses an upside risk to prices. The central bank prefers to defend the lira through intervention, but if inflation starts to move higher because of a weakening currency, it may have no choice but to raise interest rates.

In all, emerging market central banks have a long battle ahead of them, and one that will be difficult to win on their efforts alone.

By Kathy Lien of BK Asset Management

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