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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
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
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true.Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/yZzArpGs2h
  • GBP turbulence persists as investors eye the next round of EU-UK Brexit negotiations. Cautious optimism signals a deal is near. Get your #currencies update from @JMcQueenFX here: https://t.co/WjU4oYpmf7 https://t.co/VcNnCjm0B2
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/AiLoS7DrEQ
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/HicBmGrokK
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:https://t.co/7kPzAoNoLG https://t.co/5lbyBJeeA7
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/lAFyv1gM0P https://t.co/ubLimoYAcr
  • What is the outlook for financial markets ahead of the first presidential debate and how are Democratic nominee Joe Biden and President Donald Trump doing in the polls? Find out from @ZabelinDimitri here:https://t.co/QQwAZTxZFg https://t.co/4cRhRCiv3C
  • The US Dollar could gain as it forms bullish technical formations against the Singapore Dollar and Malaysian Ringgit. USD/PHP may have bottomed, will USD/IDR rise next? Find out from @ddubrovskyFX here:https://t.co/3UIKmbLIvD https://t.co/PY2YyH4vkQ
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your $USDINR market update from @ddubrovskyFX here:https://t.co/3wsYlSxd26 https://t.co/z2qB9p8IgX
  • A proxy of #EmergingMarket capital flows hit its lowest since July, falling with the #SP500 after some divergence This is as #USD gained against its developing FX counterparts, highlighting potential risk of a spillover outwards Stay tuned for next week's #ASEAN fundy outlook! https://t.co/kAvpnb0EXO
Reverberating Aftershocks From Fed Policy Shuts Down AUD and JPY

Reverberating Aftershocks From Fed Policy Shuts Down AUD and JPY

2013-06-20 16:28:00
Kevin Jin,
Share:

THE TAKEAWAY: USD strongly gains after yesterday’s FOMC meeting > AUDUSD hits lowest level since September 2010 > USDJPY accelerates towards ¥98.00.

The USD continues its strong gains today after unexpectedly hawkish FOMC commentary hints that QE tapering may occur by the end of the year. The Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) gains +78 (+0.731%) on the day to 10741 at the time of writing. This is the index’s highest reading since June 6. Bonds continue their losses as 10YR US treasury yields increase +3.6bps (+1.53%) to 2.389% at the time of writing. Yields reached a high of 2.469% during European hours but yields declined after New York trading commenced.

Commodities are sharply lower across the board today: Gold -4.01% (to 1297.11); Silver -6.47% (to 20.03); WTI -2.73%; Brent -2.96% at the time of writing. Equities are also globally lower among developed and emerging markets: S&P 500 -1.66%; Euro Stoxx -3.41%; Nikkei -1.74%; BSE Sensex -2.74%; Jakarta Composite -3.68% at the time of writing.

Several pieces of data were released today. From Asia, Chinese Flash Manufacturing data showed a contraction (actual: 48.3; Bloomberg News survey expected: 49.1). China also faces a very tight credit situation as Overnight Shibor (Chinese Libor) makes record highs. Out of Europe, the Swiss National Bank maintains the 1.2000 EURCHF floor. Eurozone PMI readings beat expectations (actual: 48.9; Bloomberg News survey expected: 48.1) but the market seems to be more focused on pricing the FOMC decision with the EURUSD extending falls. In North America, the US Philly Fed Survey beat Bloomberg News survey expectations of -2.0, coming in at +12.5. US Initial Jobless Claims (JUN 15) came in worse than Bloomberg News expectations of 340K, coming in at 354K. This caused a decline in the USD but price action was not strong enough to halt the upwards trend.

AUDUSD 15-minute Chart: June 20, 2013

Reverberating_Aftershocks_From_Fed_Policy_Shuts_Down_AUD_and_JPY_body_Picture_4.png, Reverberating Aftershocks From Fed Policy Shuts Down AUD and JPY

Charts Created using Marketscopeprepared by Kevin Jin

The AUDUSD is a heavy decliner today, falling -95 pips (-1.024%) to $0.9183 at the time of writing. This marks the lowest level since September 2010 as falling gold prices, bearish Chinese news, and risk-off sentiment add fuel to Aussie bears. The currency moved lower throughout Asian trading until making a low of .9162 soon after London Open. The red horizontal line above is the weekly S2 pivot level and it served as rough support for the AUDUSD at .9178. There was a rough +40 pip rally towards New York Open, but this was quickly sold off and the pair remains around the S2 pivot at the time of writing.

GBPUSD 15-minute Chart: June 20, 2013

Reverberating_Aftershocks_From_Fed_Policy_Shuts_Down_AUD_and_JPY_body_Picture_3.png, Reverberating Aftershocks From Fed Policy Shuts Down AUD and JPY

Charts Created using Marketscopeprepared by Kevin Jin

The GBPUSD declines -15 pips (-0.097%) to $1.5457 at the time of writing. Most of the selling occurred during Asian hours and the pair regained much of its losses soon into London trading and managed to hold its prices through London close. The cable remains range-bound between 1.5491 – its Asian session high—and 1.5430 through most of today’s trading.

EURUSD 15-minute Chart: June 20, 2013

Reverberating_Aftershocks_From_Fed_Policy_Shuts_Down_AUD_and_JPY_body_Picture_2.png, Reverberating Aftershocks From Fed Policy Shuts Down AUD and JPY

Charts Created using Marketscopeprepared by Kevin Jin

The EUR/USD is also down today, falling -75 pips (-0.564%) to $1.3205 at the time of writing. The pair declined throughout all of Asian trading and through most of London hours until finally rebounding towards London close. The low was made at 1.3160 and the pair currently moves up towards the weekly S1 pivot of 1.3215, which served as resistance for most of London hours.

USDJPY 15-minute Chart: June 20, 2013

Reverberating_Aftershocks_From_Fed_Policy_Shuts_Down_AUD_and_JPY_body_Picture_1.png, Reverberating Aftershocks From Fed Policy Shuts Down AUD and JPY

Charts Created using Marketscopeprepared by Kevin Jin

The USDJPY remains as one of the most interesting pairs to watch as the pair continues its long-term rise. The USDJPY fell through the psychologically important ¥100.00 level on June 3 and declined to as low as 93.77 on June 13. However, the FOMC meeting yesterday provided the USDJPY enough power to reach its current 98.13 level as people are again becoming bullish on USDJPY. The pair traded up to 98.27 before giving back some of those gains. The pair remains range bound at the time of writing, between the 98.27 high and the weekly R1 pivot providing support at 97.65.

--- Written by Kevin Jin, DailyFX Research

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

DISCLOSURES