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.



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
Wall Street
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
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here:
  • While the meetings of central bankers in the US, Japan and the UK will be front, left and center of traders’ minds this coming week, it would be wise not to ignore next Sunday’s German Federal Election. Get your euro forecast from @MartinSEssex here:
  • Take a closer look visually at the most influential global importers and exporters here:
  • 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:
  • 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:
  • 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:
  • 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:
  • 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:
  • 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:
  • 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:
US Dollar Funding Stress May Be Checked with Fed FIMA Scheme

US Dollar Funding Stress May Be Checked with Fed FIMA Scheme

David Cottle, Analyst

Federal Reserve Foreign and International Repurchase Program, Talking Points:

  • The Fed’s latest coronavirus mitigation program is a powerful backstop for Dollar funding
  • It offers markets reassurance that the Fed accepts responsibility for credit beyond US shores
  • Coupled with existing Dollar swap lines that makes a big difference

Growth correlated assets such as stocks, commodity currencies and energy have been beaten down by the coronavirus’ spread, which it’s clearly beyond the power of any authority to quickly halt. However, the Federal Reserve’s latest remedy program will at least offer these markets hope that US Dollar funding problems won’t metastasize into broader credit collapse.

The latest in an alphabet soup of plans, the Foreign and International Monetary Authorities Repurchase Program (FIMA) announced this week will allow central banks to instantly but temporarily convert their holdings of US Treasury bills into Dollars which can then be lent into their economies.

This is hugely important because the impulse to fly into the US Dollar in times of trouble has seen among other things a massive outflow of funds from emerging markets where many businesses have Dollar-denominated debt to pay. The sight of offshore US Dollar funding starting to dry up had many investors around the world on watch for a ‘credit event.’

Now FIMA sits alongside previously announced Dollar swap lines with other major central banks. It ought to be a powerful tool for snuffing out any smoldering credit brushfires before they kindle a more powerful and hard-to-fight conflagration.

Credit No Magic Wand In Locked-Down Markets

Of course, it’s not perfect. Nothing can be. Ultimately credit will only achieve so much in a forcibly stunted economic world where agents are not free to engage with customers. Moreover, it’s not going to be much help to countries short of Treasury collateral (although it may in passing encourage many of them to rethink that shortage).

But the Fed’s public acceptance of its responsibility to shore up not only the US system, but global Dollar demand, is a huge weight off the minds of investors.

The announcement of FIMA has not prevented strongly growth-correlated markets such as the Australian Dollar from heading lower this week. It can’t, the coronavirus remains very much in charge of sentiment, and will for some time.

Australian Dollar Vs US Dollar, Daily Chart

However, the Aussie remains like its peers well above this month’s lows in the wake of the FIMA announcement. It’s far from certain that those lows would not have been revisited, and perhaps even abandoned to the downside, without the Fed’s timely backstop.

Investors can not keep an eye on the US central bank’s weekly updates on FIMA take-up here. Lending under the facility will begin on April 6.

Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

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