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
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
Bullish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • RT @KyleR_IG: Restrictions to be eased in Victoria as the state records three new COVID-19 cases https://t.co/i7ED0r6zuP
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.88% Silver: -0.04% Gold: -0.20% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/JOgCXf4qhk
  • 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/AeBDanqM4V
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.19% 🇦🇺AUD: 0.06% 🇨🇦CAD: 0.04% 🇬🇧GBP: -0.04% 🇪🇺EUR: -0.05% 🇨🇭CHF: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/LIX3ToP9Bc
  • IG Client Sentiment Update: Our data shows the vast majority of traders in USD/CHF are long at 75.86%, while traders in France 40 are at opposite extremes with 82.70%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/fvWYlP8HEP
  • Dow Jones Retreats Ahead of FOMC, Nikkei 225 and ASX 200 Open Lower https://www.dailyfx.com/forex/market_alert/2021/06/16/Dow-Jones-Retreats-Ahead-of-FOMC-Nikkei-225-and-ASX-200-Open-Lower.html https://t.co/2sjz9ZpHgH
  • 🇦🇺 Westpac Leading Index MoM (MAY) Actual: -0.06% Previous: 0.19% https://www.dailyfx.com/economic-calendar#2021-06-16
  • MSCI #EmergingMarkets Index (EEM), which is heavily weighed in Chinese stocks, has been struggling to breach the 54.97 - 55.34 inflection zone A hawkish #Fed (especially amid ebbing #PBOC liquidity measures), could risk weighing the index Breach under 20-day SMA exposes MAR low https://t.co/4WQED01FWV
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/Lt3Z0TODqu
  • Natural gas spot prices have been on the rise, recapturing a key trendline, following the EIA’s Short-Term Energy Outlook. Where can prices head from here? Find out from @FxWestwater here:https://t.co/yK48nZD1ag https://t.co/CPBSrdO485
Trade War Fears May Weaken Nikkei 225, USD/JPY Eyes 2016 Support

Trade War Fears May Weaken Nikkei 225, USD/JPY Eyes 2016 Support

Daniel Dubrovsky, Strategist

Asia Pacific Market Open – Trade War Fears, Euro, Italian Budget, USD/JPY, Nikkei 225

  • Anti-risk Japanese Yen gained ground as market remained in a sour mood as anticipated
  • Euro fell on Italy budget concerns, AUD & NZD recover amidst S&P 500 paring losses
  • USD/JPY prices descend under key rising support, eyeing trend line from March 2016 next

See our study on the history of trade wars to learn how it might influence financial markets!

The anti-risk Japanese Yen gained broadly against its major counterparts to start the beginning of this week as expected, boosted amidst further declines in global benchmark stock indexes. Losses picked up pace as European markets came online and Italian 10-year government bond yields soared to their highest since 2014.

Concerns seemed to have stemmed from Italy as EU Commissioners noted a ‘significant deviation’ of budget targets, referencing the 2.4% deficit proposed by the anti-establishment parties. The DAX and Euro Stoxx 50 finished the day 1.36% and 1.07% lower. This also boded ill for the Euro which underperformed after a couple of days of correction.

While Wall Street edged cautiously lower, the S&P 500 fell only about 0.04%, there was a recovery in stocks towards the latter half of the day. This allowed pro-risk currencies such as the Australian and New Zealand Dollars to end the session on an upbeat. Banks and consumer staples helped to compensate for declines in tech shares.

Rising trade war tensions between China and the US over the past 24 hours could add further weight against APAC stocks on Tuesday. Secretary of State Michael Pompeo noted ‘fundamental disagreement’ during his meeting with China’s foreign minister. We are already seeing Nikkei 225 futures edge cautiously lower with the Japanese Yen gaining.

Speaking of, USD/JPY has breached a near-term rising support line. This has opened the door to a more lasting reversal which may see prices test the rising trend line from March 2016 next.

What Else to Expect Ahead?

New Zealand Dollar Fundamental Outlook

Australian Dollar Technical Outlook

Analyst Pick

AUD/NZD Long at 1.09168

US Trading Session

Trade War Fears May Weaken Nikkei 225, USD/JPY Eyes 2016 Support

Asia Pacific Trading Session

Trade War Fears May Weaken Nikkei 225, USD/JPY Eyes 2016 Support

** All times listed in GMT. See the full economic calendar here

FX Trading Resources

--- Written by Daniel Dubrovsky, Junior 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