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
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Silver: 1.40% Gold: 1.08% Oil - US Crude: 1.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/4ZigI6JULT
  • Heads Up:🇺🇸 NAHB Housing Market Index (JAN) due at 15:00 GMT (15min) Expected: 86 Previous: 86 https://www.dailyfx.com/economic-calendar#2021-01-20
  • Heads Up:🇨🇦 BoC Monetary Policy Report due at 15:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-20
  • Heads Up:🇨🇦 BoC Interest Rate Decision due at 15:00 GMT (15min) Expected: 0.25% Previous: 0.25% https://www.dailyfx.com/economic-calendar#2021-01-20
  • $EURGBP dropped from 0.8890 to below 0.8860 this morning, pushing to its lowest level since May. $EUR $GBP https://t.co/5TotJhsKzT
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.74% US 500: 0.66% France 40: 0.47% Wall Street: 0.36% FTSE 100: 0.26% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/NvjQjChgXS
  • The @bankofcanada is widely expected to stand pat on monetary policy with the overnight rate to remain at 0.25% alongside no change in the current pace (CAD 4bn/week) or composition of QE purchase. Get your market update from @JMcQueenFX here:https://t.co/gK5wVUwxlG https://t.co/YbME7aXeeM
  • Reports of an explosion heard in Madrid - La Sexta TV Station
  • #Gold dropped quickly this morning, falling from $1,850 to below $1,835 before bouncing back. The precious metal is now trading around $1,850 again. $XAU $GLD https://t.co/gAs3ytl9g2
  • $EURGBP at risk of extended losses after breaking to the downside of a 12-month Symmetrical Triangle pattern and slashing through the support range at 0.8865 - 0.8875 A push towards 0.8670 - 0.8690 looks on the cards if sellers hurdle psychological support at 0.8800 $EUR $GBP https://t.co/zS9CyhUqMf
Gold Prices May Extend Drop, AUD/USD At the Mercy of China Q1 GDP

Gold Prices May Extend Drop, AUD/USD At the Mercy of China Q1 GDP

Daniel Dubrovsky, Analyst

Asia Pacific Market Open Talking Points

Trade all the major global economic data live as it populates in the economic calendar and follow the live coverage for key events listed in the DailyFX Webinars. We’d love to have you along.

FX News Tuesday

The British Pound underperformed against its major counterparts on Tuesday, pressured by the latest Brexit headlines. Reports crossed the wires that talks between UK Prime Minister Theresa May and Opposition Leader Jeremy Corbyn stalled, putting pressure on the nation after recently having gained a withdrawal extension until October 31. This leaves Sterling at risk if signs of negotiation limbo continues.

Weakness in GBP allowed for the US Dollar to gain ground after declining in the lead-up to Wall Street market open. Around this time, US front-end government bond yields started rallying shortly after the United Health released its earnings report. Its earnings per share (EPS) beat expectations and the company increased adjusted EPS estimates for the remainder of this year.

A combination of US Dollar gains and a rise in local bond yields acted as an adverse double whammy for anti-fiat gold prices. This is because the commodity has no interest-bearing qualities, leaving it vulnerable to a stronger Greenback and lower government bond prices. Technical warning signs do hint that it might be readying to extend losses from gold’s peak in February.

Gold Technical Analysis

XAU/USD dropped over 0.8% on Tuesday, extending its losing streak to four days which is the longest since early March. The precious metal has just barely cleared a range of support between 1285 and 1276. As such, this may open the door to further losses after the formation of a bearish Evening Star in late February. Near-term support appears to eb the rising trend line from August around 1260 at the time of this writing.

XAU/USD Daily Chart

Gold Prices May Extend Drop, AUD/USD At the Mercy of China Q1 GDP

Chart Created in TradingView

Wednesday’s Asia Pacific Trading Session

The pro-risk New Zealand Dollar is off to a troubling start on Wednesday following a worse-than-expected local inflation report that increased RBNZ rate cut bets. S&P 500 and Nikkei 225 futures also declined, perhaps on rising concerns of dovish turns in major central banks as global growth slows. This will next be tested on upcoming China first quarter GDP which I will be covering LIVE.

Data out of the world’s second-largest economy has been tending to increasingly outperform relative to economists’ expectations. If this is the case later today, this may inspire some market confidence and send equities higher after a mixed session on Wall Street overall. As such, the anti-risk Japanese Yen is at the mercy of equities and how market mood develops in the near-term.

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