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
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
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • WTI crude oil prices extend gains on positive vaccine news and the kickoff of the US presidential transition process. An Astra-Oxford coronavirus vaccine could be deployed as soon as next month following successful clinical trials, marking a third promising candidate in a month. https://t.co/blvE4cTHqu
  • 🇫🇮 Unemployment Rate (OCT) Actual: 7.4% Previous: 7.6% https://www.dailyfx.com/economic-calendar#2020-11-24
  • Heads Up:🇫🇮 Unemployment Rate (OCT) due at 06:00 GMT (15min) Previous: 7.6% https://www.dailyfx.com/economic-calendar#2020-11-24
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 94.04%, while traders in NZD/USD are at opposite extremes with 73.89%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/vXLz7kjiM8
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.63% 🇦🇺AUD: 0.40% 🇨🇦CAD: 0.30% 🇪🇺EUR: 0.08% 🇨🇭CHF: 0.06% 🇯🇵JPY: 0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/abCq8SaK0H
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.93% US 500: 0.83% Germany 30: 0.67% France 40: 0.63% FTSE 100: 0.48% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/2VKcUkmow6
  • The US Dollar extended breakouts against the Singapore Dollar and Malaysian Ringgit. USD/IDR and USD/PHP are more resilient as they idle around key support zones. Get your market update from @ddubrovskyFX here:https://t.co/SNMMCF4hh0 https://t.co/yVZlX5XALy
  • The Swiss Franc may continue higher against the US Dollar as technical pressure favors USD/CHF bears..Get your USD/CHF market update here:https://t.co/m2hAK8TiMS https://t.co/qjxm6K3qzT
  • The Japanese Yen looks set to continue moving higher against the British Pound. However, the higher-beta Australian and Canadian Dollars may claw back lost ground. Get your $JPY market update from @DanielGMoss here:https://t.co/nArIhBXFnK https://t.co/7tMcTgdV3v
  • Wall Street Futures Update: Dow Jones (+0.91%) S&P 500 (+0.79%) Nasdaq 100 (+0.56%) [delayed] -BBG
3 Signs of a Return to Risk

3 Signs of a Return to Risk

2013-10-11 14:06:00
Boris Schlossberg, Technical Strategist
Share:

Clearly motivated by the potential for a temporary debt resolution in the US, the dollar traded higher against major counterparts including the euro, British pound, and Japanese yen early Friday.

High-beta FX was mildly higher in today’s Asian and early-European sessions as risk appetite improved on hopes of a resolution to the US government shutdown and debt-ceiling debate. Republican lawmakers and President Obama had their first meeting on the matter, and although no compromise was reached, both parties are continuing to work on a negotiated solution. With the October 17 deadline looming, the pressure is on policymakers to come to some sort of agreement before the US government runs out of cash and faces the first-ever technical default on its sovereign obligations.

With public polls showing massive disapproval of the GOP tactics, the pressure on Republicans to come to the table has increased markedly, and investors appear to be much more confident that some sort of deal will be reached shortly.

With minimal data on the economic calendar, currencies took their cues from the Asian equity markets, where both the Nikkei and Shanghai indexes were up by more than 1%, boosting high-beta FX in the process. EURUSD cleared the 1.3550 resistance and popped some stops to trade as high as 1.3565, while GBPUSD touched the 1.6000 figure before retreating slightly.

However, the strongest expression of risk appetite was in USDJPY, which punched its way through 98.50. Just two days ago, the pair fell close to 96.50 as fears of a US default escalated.

Although investor sentiment has clearly improved, it needs to be noted that no deal has been done just yet, and both parties may still be too stubborn to compromise. As the weekend approaches, the pressure on Washington will only escalate, and investors will likely begin to lose patience if they see no progress toward resolving the crisis.

With today’s US retail sales data scrapped due to the shutdown, the market will see only the University of Michigan consumer confidence survey, which is likely to show a steep decline given the latest drop in the daily Gallup poll reading. However, it’s doubtful that markets will give this report much weight, as it will instead be viewed as more a protest vote than a true pullback in consumer sentiment.

If a tentative debt deal can indeed be reached before the end of the day, risk trades are likely to push higher with JPY crosses performing best and USDJPY likely targeting the 99.00 figure. If the situation remains unresolved, however, USDJPY could see some selling into the close as risk-aversion fears return.

Essentially, we end this week the same way we started it: with all eyes on Washington.

By Boris Schlossberg of BK Asset Management

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

DISCLOSURES