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
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
Wall Street
Bearish
Gold
Bullish
GBP/USD
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
USD/JPY
Bearish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in NZD/USD are at opposite extremes with 66.83%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ElMUYZ7p9R
  • The rest of the New York trading session is absent major scheduled event risk with US markets closed for the Martin Luther King Jr holiday. There is always a risk of unscheduled developments
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Silver: 0.50% Gold: 0.41% Oil - US Crude: -0.55% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/eXSdZgvVeB
  • Despite China's better-than-expected 6.5% 4Q GDP report, $USDCNH is still up on the day. There is strong external influence on this rate, but Dollar still exerts the greater pressure. If it breaks 6.50 and Biden keeps pressure on China trade, I'll be watching https://t.co/5W5tcfeTZ5
  • Forex Update: As of 17:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.19% 🇨🇭CHF: 0.05% 🇪🇺EUR: -0.02% 🇨🇦CAD: -0.16% 🇦🇺AUD: -0.25% 🇳🇿NZD: -0.28% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/BrmnTuolx0
  • The Capitol of the United States has been temporarily shut down ahead of President-Elect Biden's inauguration out of caution
  • Another Dollar pair on my radar is $USDCHF. Its 20-day day correlation coefficient to EURUSD is -0.90 (very strong negative). If the latter's break is sustained, both have appeal. If it stalls (soon), USDCHF is still abiding its resistance which supports establishing levels https://t.co/Pcre3xCbYd
  • Indices Update: As of 17:00, these are your best and worst performers based on the London trading schedule: US 500: 0.13% France 40: 0.11% Germany 30: 0.09% Wall Street: 0.07% FTSE 100: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/ZXdpvpEJJ3
  • Germany's central bank (Bundesbank) warned earlier today in its monthly report that if the government extended its Covid lockdown, the country could suffer "a sizeable setback"
  • The US Dollar Index rallied more than 0.6% this week marking the second consecutive weekly advance. Get your $USD update from @MBForex here: https://t.co/hVshzMbc31 https://t.co/LG0HG9fQ4c
Other Central Banks That Hate the Fed's Decision

Other Central Banks That Hate the Fed's Decision

Kathy Lien, Technical Strategist

The financial markets were disappointed by the Fed’s decision to postpone tapering, but so too were other central banks, which may now have to ease their own policies to combat fast-rising currencies.

Investors sold the US dollar (USD) aggressively on Wednesday, but less than 24 hours after the Federal Reserve decided not to taper asset purchases, the greenback recovered all of its losses against the Japanese yen (JPY) and is trading higher against the British pound (GBP).

Meanwhile, the euro (EUR), Swiss franc (CHF), New Zealand dollar (NZD), and Canadian dollar (CAD) all extended their gains, but the moves have been modest.

While the weakness in sterling can be attributed to softer UK data, the rapid-fire recovery in USDJPY may have caught some traders by surprise. New highs in the Nikkei helped to lift all of the JPY pairs, but the prospects for more stimulus from the Bank of Japan (BoJ) are also weighing on the currency. BoJ member Takahide Kiuchi said the central bank could be influenced by external factors such as market expectations, and will be forced to respond accordingly.

It should be no surprise that the actions of the Federal Reserve can have global repercussions. When Fed Chairman Ben Bernanke talked tapering in July, it drove global bond yields higher, creating a headache for other central banks.

Now, the decision to delay a reduction in asset purchases can also pose a problem for central banks including Japan, Australia, and New Zealand, which may have been banking on dollar strength to ease pressure on their own currencies. If those foreign currencies continue to strengthen versus the dollar, the central banks may have to offset the drag on the economy with easier monetary policies.

This morning's US economic reports were relatively good, which should support Bernanke's thesis that if the Fed keeps the QE pedal to the metal, the recovery should solidify and gain momentum. Manufacturing activity in the Philadelphia region expanded at its fastest pace since March 2011, while leading indicators rose 0.7%, and existing home sales grew 1.7%.

The country's current account deficit also narrowed to -$98.9 billion, its best level in 11 years. Jobless claims rose less than expected, but the Labor Department said the data continues to be distorted because two states are still working through a backlog of applications after computer system upgrades. In all, however, the data was better than expected, keeping the dialogue about Fed tapering this year alive.

UK Data Halts the GBPUSD Rally

Meanwhile, weaker UK retail sales data has made the British pound today’s worst-performing currency so far. Consumer spending dropped 0.9% in the month of August, and while the contraction in spending reported by the British Retail Consortium signaled that retail sales could be weak, few expected the largest decline in ten months.

The pullback in demand can be blamed on food sales, which soared in July, but plunged in August. If consumer spending fails to recover significantly in September, retail sales could subtract from GDP growth in the third quarter.

Considering that there are no major UK reports expected on Friday and none scheduled for release next week, the decline in consumer spending could cap GDP gains in the near term, or at least limit its rise relative to other currencies. However, if the UK PMI reports due the first week of October confirm that the recovery still underway, we could see renewed GBPUSD gains.

By Kathy Lien of BK Asset Management

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

DISCLOSURES