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
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
More View more
Real Time News
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/lccPTTlvj0
  • GBP/USD’s consolidation could end soon if price breaks out of a symmetrical triangle in play since July. At this time, a downside breakout is likely following the appearance of a death cross. Get your weekly $GBP forecast from @DColmanFX here: https://t.co/WIKdSesfkJ https://t.co/Fx0qr32xgI
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/IRS9MaA7h8
  • The Federal Reserve rate decision is likely to sway the near-term outlook for the price of gold as the central bank appears to be on track to scale back monetary support. Get your weekly gold forecast from @DavidJSong here: https://www.dailyfx.com/forex/fundamental/forecast/weekly/CHF/2021/09/18/Gold-Price-Outlook-Hinges-on-Fed-Rate-Decision-Forward-Guidance.html https://t.co/dWWxtErjK0
  • 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: https://t.co/arxYmtQeUn https://t.co/4qxwiJsV1K
  • 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: https://t.co/CNtqrKWDBY https://t.co/stMPuq0VXR
  • 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: https://t.co/7t4BzmLg8w https://t.co/v6RGICQvge
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/rws9LHJV3E
  • RT @FxWestwater: Japanese Yen Forecast: JPY Crosses Eye BoJ, CPI as Haven Flows Bolster Yen Strength Link: https://www.dailyfx.com/forex/fundamental/forecast/weekly/jpy/2021/09/18/Japanese-Yen-Forecast-JPY-Crosses-Eye-BoJ-CPI-as-Haven-Flows-Bolster-Yen-Strength.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr 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: https://t.co/9S5tXIs3SX https://t.co/FVisZuTP6M
USDSGD Eyes G20 Trade Talks, Rupee at Risk as Pompeo Visits India

USDSGD Eyes G20 Trade Talks, Rupee at Risk as Pompeo Visits India

Daniel Dubrovsky, Strategist

ASEAN Fundamental Outlook

  • USDSGD may rise on G20 leaders summit, markets eyeing US-China trade talks
  • The Rupee is at risk to retaliatory US tariffs as Mike Pompeo makes a trip to India
  • USDMYR also eyeing Malaysian CPI data, softer outcome may fuel rate cut bets

Trade all the major global economic data live and interactive at the DailyFX Webinars. We’d love to have you along.

US Dollar Falls on Fed as ASEAN FX Rise

The US Dollar, looking at DXY, had its worst week since February 2018 as the markets all but fully priced in a rate cut from the Federal Reserve next month. This occurred after the central bank left rates unchanged this past week and median forecasts showed a 50 basis point downshift in the long-run federal funds rate outlook. Yet, a clear signal to cut rates next month seemed notably absent from Chair Jerome Powell.

Still, this allowed for ASEAN currencies, such as the Singapore Dollar, to outperform against the Greenback. Add to this an unexpected rate hold from the Philippine central bank, which extended declines in USDPHP. Governor Benjamin Diokno said that a “prudent pause” will allow them to “assess the situation” after inflation unexpectedly accelerated in May. He still opened the door for more cuts ahead.

A rate hold by the Bank of Indonesia was less surprising, but it delivered cuts in reserve ratio requirements for lending institutions. The central bank is intervening in the foreign exchange market. Their optimal range this year is USDIDR between 14000 and 14400. Meanwhile, the Indian Rupee didn’t rise as much. The minutes of the June RBI meeting showed that Governor Shaktikanta Das said that growth impulses have weakened.

USDSGD Eyes G20 Trade Talks, Rupee at Risk as Pompeo Visits India

USDSGD, USDPHP, USDMYR Look to G20 Leaders Summit

A notable risk clouding the global growth outlook, and extending to the Fed, is uncertainty surrounding the US-China trade war. US President Donald Trump and his Chinese counterpart Xi Jinping are expected to meet at this week’s G20 summit in Osaka, Japan. If talks head in the wrong direction, the US may impose an additional $325b in Chinese import tariffs at a rate of 25%.

On top of the current levies in place, that would encompass nearly all goods the nation buys from China, and would warrant a supportive Fed. US Vice President Mike Pence hinted that there are “positive signs” of progress with China. But, this cannot be taken for granted given Trump’s sudden shift in tone back in May that sent stock markets falling again. If there is risk aversion, the Dollar may benefit from haven demand.

Should talks improve otherwise, this may cool bets of near-term easing from the Fed. That risks sinking sentiment given such aggressive easing priced in by the markets. That will also be balanced by how key US economic data performs such as GDP and core PCE. Data has been tending to increasingly underperform relative to expectations. We will also get a speech from Mr Powell, who may get asked about July’s rate decision.

USDINR Eyes US-India Trade Tensions

USDIDR eyes US Secretary of State Michael Pompeo visiting India on Monday. He is scheduled to meet with Subrahmanyam Jaishankar, India’s Minister of External Affairs. Prime Minister Narendra Modi recently retaliated with tariffs against the US after Trump ended preferential treatment status for about $6b in goods purchased from India. If Washington escalates tensions, this will likely sink the Rupee.

USDMYR Awaits Malaysian CPI

Meanwhile, the Malaysian Ringgit also looks to May’s inflation report. CPI is anticipated to tick slightly higher to 0.3% y/y from 0.2% prior. Keep in mind that the central bank of Malaysia cut rates at its last monetary policy announcement in May. A softer-than-expected inflation outcome may bolster the case of further easing, sending USDMYR to the upside.

FX Trading Resources

--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES