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
Bullish
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
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/J8WZ1JYXnX https://t.co/4mDGc8Bfd5
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/7Yd5Tzua0d
  • Do you know the difference between investing and trading? Because while the goal might seem the same, they're very different things . Learn more here.https://t.co/fG6fNEPj9q https://t.co/A0W3CA5EWh
  • The Canadian Dollar remains supported amid elevated crude oil prices. Don’t be surprised if the Bank of Canada disappoints aggressive hawkish expectations. Earnings season is a wildcard. Get your weekly Loonie forecast from @ddubrovskyFX here: https://t.co/iyb5OmW2S4 https://t.co/Oh35VUg9Gr
  • Rather than focusing on earning a specific number of pips per day, traders need to focus on what can be controlled. In trading terms this relates to following a strategy perfectly, with no emotion or hesitation. Learn more here: https://t.co/6ZH026QLRN https://t.co/jQ9HH9KuWy
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0uF2Ct https://t.co/VXiNCuR3bF
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cBMUg9 https://t.co/9SC4I69oi7
  • The European Central Bank will consider it a job well done if there is no movement in EUR/USD or the Euro crosses before, during or after Thursday’s policy announcements by its Governing Council. Get your weekly Euro forecast from @MartinSEssex here: https://t.co/TCTonpE9Ik https://t.co/qq6TTaPtLE
  • Further your forex knowledge and gain insights from our expert analysts @ddubrovskyFX and @FxWestwater on JPY with our free Q4 market analysis guide, available for free today.https://t.co/mzeJ5x73N3 https://t.co/zll2sxL4ja
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/Js6SNdNj9y
JPY May Rise if OECD, World Bank Forecasts Shatter Growth Prospects

JPY May Rise if OECD, World Bank Forecasts Shatter Growth Prospects

Dimitri Zabelin, Analyst

Japanese Yen, Brexit, World Bank, OECD, British Pound, ECB – TALKING POINTS

  • Japanese Yen could nurse losses if OECD and World Bank forecasts undermine optimism
  • ECB parliamentary hearing, finance minister meeting may pull Euro in opposite directions
  • Brexit worries could accentuate selling pressure in GBP, Japan stimulus package on deck

Europe: ECB, Brexit & Eurozone Finance Minister Meeting on Deck

At the start of the week, ECB President Christine Lagarde will be attending a hearing at the European Parliament. Last week, monetary authorities did not change interest rates, but their announcement of an additional 600b euros to the Pandemic Emergency Purchase Programme (PEPP) helped to quell angst about regional financial stability. The Euro subsequently rallied while yields for sovereign Mediterranean debt fell. Commentary from the President could elicit another similar market reaction.

EUR/USD, Italian 10-Year Bond Yield, EUR/CHF – 4-Hour Chart

Chart showing EUR/USD, EUR/CHF

EUR/USD chart created using TradingView

Meanwhile, Brexit talks continue to deteriorate and pressure the politically-sensitive British Pound. On Friday, EU chief negotiator Michel Barnier said no significant progress had been made in talks this week, and an intensive round of debate will likely occur in the fall. Prolonged political uncertainty will likely drag GBP through the mud as the UK wrestles with Covid-19. UK officials have said they will not ask for an extension of the transition period beyond the June 30 deadline.

Eurozone finance ministers will be meeting this week to discuss the region’s recovery package and succession for the Eurogroup presidency. France and Germany have recently put forward a 500b euro recovery fund that will provide grants to regions and sectors hit hardest by Covid-19. While the news initially helped to push the Euro higher, friction among policymakers could send a chilling message about timely implementation which could undermine the currency’s gains.

Asia: Japan’s Stimulus Package

Japanese Prime Minister Shinzo Abe’s government will submit another budget to parliament in an effort to stimulate the virus-hit economy. If the measures are well-received and convince investors that they can help restore economic activity, local equity markets may rise at the expense of the Japanese Yen. Conversely, a disappointment in the proposed policies could put a premium on the anti-risk JPY and punish stocks.

Economic Forecasts by World Bank, Organization for Economic Cooperation and Development

The World Bank and Organization for Economic Cooperation and Development will be releasing their seminal Global Economic Prospects and Economic Outlook reports, respectively. The analysis therein is expected to carry gloomy undertones as the coronavirus continue to hammer global growth prospects and undermine financial stability. Elevated oscillations in FX markets may arise if the outlook is darker than expected.

Chart showing JPY Index

World Bank President David Malpass says he anticipates “a deep global recession accompanied by a collapse in global trade tourism and commodity prices, and extraordinary market volatility”. In the past few weeks, market dynamics have shown that investors’ risk appetite is strong. However, a cool down in what appears to be overheated equity markets could see capital flow into the anti-risk JPY.

--- Written by Dimitri Zabelin, Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitriTwitter

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

DISCLOSURES