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.



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
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
Oil - US Crude
Wall Street
More View more
Real Time News
  • Take a closer look visually at the most influential global importers and exporters here:
  • Crude Oil Prices Aiming Higher on OPEC Surprise, Inflation Expectations - $CL #Crudeoil #OOTT #OPEC
  • Given the size of the rally in the eleven months preceding the beginning of the current decline a broader sell-off looks warranted. Get your market update from @PaulRobinsonFX 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:
  • 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:
  • Rising yields and US Dollar creates a weak environment for gold, which trades at a 9-month low. Get your market update from @JMcQueenFX here:
  • RT @FxWestwater: US Dollar Fundamental Forecast: US Dollar Eyes Inflation Data After NFP Boost Link: $DXY https://…
  • 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:
  • The British Pound continues to face downside pressure as corrective trades continue. Get your market update from @HathornSabin 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:
USD Rose as CPI Fueled Bond Yield Recovery, AUD Eyeing China Trade

USD Rose as CPI Fueled Bond Yield Recovery, AUD Eyeing China Trade

Daniel Dubrovsky, Strategist

Asia Pacific Market Open Talking Points

  • US CPI report cooled Fed frets about muted inflationary pressures
  • USD rallied alongside government bond yields as gold prices fell
  • S&P 500 wobbled, Australian Dollar eyeing Chinese trade balance

Not sure where the US Dollar is heading next? We recently released the third quarter US Dollar fundamental and technical forecast!

US CPI Beat Puts Fed’s Fret on Low Inflation In Focus

Wednesday’s testimony from Fed Chair Jerome Powell and the FOMC meeting minutes helped rekindle aggressive easing bets which boosted equities at the expense of the US Dollar. A couple of concerns to the central bank’s outlook included uncertainties such as trade wars and muted inflationary pressures. In fact, during his second day of testimony to Congress yesterday, Mr Powell continued fretting about the latter.

Namely, he noted that the jobless-inflation links are “weaker and weaker”, referring to the seemingly diminishing relevance of the Philips Curve. It is an economic model that outlines the potential inverse relationship between unemployment and the rate of inflation. In short, a tighter labor market with fewer available workers for hire should help push up wages which ought to lead to higher prices.

Well, markets were suddenly awoken when the latest US CPI report crossed the wires and beat expectations. Excluding food and energy, prices rose 2.1% y/y in June versus 2.0% expected and prior. While the headline rate dropped down to 1.6% from 1.8% as anticipated, both the month-over-month readings unexpectedly surprised to the upside. This counters the trend of US economic data tending to disappoint as of late.

Taking a look at the chart below, we can see that the US Dollar proceeded to soar alongside rising local government bond yields. Yet, this only worked to diminish bets of a 50bps rate cut from the Fed at this month’s interest rate decision. Odds of just one are still fully priced in by markets. The Greenback did end the day little changed due to losses during the first half of the day, but anti-fiat gold prices suffered.

Chart of the Day – S&P 500, US Dollar and Bond Yields

USD Rose as CPI Fueled Bond Yield Recovery, AUD Eyeing China Trade

*Charts Created in TradingView

Friday’s Asia Pacific Trading Session

The S&P 500 wobbled as its path to the upside these past 24 hours was a roller-coaster ride. Momentum to the upside is still fading and this could precede a turn lower. S&P 500 futures are little changed heading into the remainder of the week, hinting at a mixed start for Friday’s Asia Pacific trading session. Risks to the outlook for sentiment include the US escalating trade tensions with Europe and India.

In addition, US President Donald Trump reminded markets that the US-China trade truce should not be taken for granted. He said that China is “letting us down not buying agricultural products” on Thursday. Speaking of the world’s second-largest economy, at an unspecified time today, China is going to release June’s trade report which the Australian Dollar could be closely watching.

FX Trading Resources

--- Written by Daniel Dubrovsky, Currency Analyst for

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.