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
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
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Mixed
GBP/USD
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
USD/JPY
Bearish
More View more
Real Time News
  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:https://t.co/eILWbFgHRE https://t.co/zdvmFNiqLD
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.14% Gold: -0.27% Silver: -0.45% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/5KtqG4d8Ym
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.15% 🇯🇵JPY: 0.04% 🇪🇺EUR: -0.08% 🇨🇦CAD: -0.09% 🇬🇧GBP: -0.15% 🇦🇺AUD: -0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/tTYWvu60SE
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.25% US 500: -0.35% Wall Street: -0.36% France 40: -0.40% Germany 30: -0.57% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/cyYqs9hGYZ
  • 🇫🇷 Business Confidence (OCT) Actual: 93 Expected: 96 Previous: 96 https://www.dailyfx.com/economic-calendar#2020-10-22
  • Heads Up:🇫🇷 Business Confidence (OCT) due at 06:45 GMT (15min) Expected: 96 Previous: 96 https://www.dailyfx.com/economic-calendar#2020-10-22
  • 🇩🇪 GfK Consumer Confidence (NOV) Actual: -3.1 Expected: -2.8 Previous: -1.7 https://www.dailyfx.com/economic-calendar#2020-10-22
  • What are some trading mistakes @nickcawley1 made during his career and what did he learn from them? Find out:https://t.co/y3cckNW22W https://t.co/DWXPd1Fa8E
  • 🇳🇴 Unemployment Rate (AUG) Actual: 5.3% Expected: 5.1% Previous: 5.2% https://www.dailyfx.com/economic-calendar#2020-10-22
  • 🇩🇪 GfK Consumer Confidence (NOV) Actual: -3.1 Expected: -2.8 Previous: -1.6 https://www.dailyfx.com/economic-calendar#2020-10-22
US Dollar Held Gains Post Fed Cut, Japanese Yen May Look Past BoJ

US Dollar Held Gains Post Fed Cut, Japanese Yen May Look Past BoJ

2019-09-18 23:30:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open Talking Points

  • US Dollar rose as Fed underwhelmed dovish expectations
  • Equities recovered, Powell left door open to extensive cuts
  • Japanese Yen may look past BoJ for US-China trade talks

Find out what the #1 mistake that traders make is and how you can fix it!

US Dollar Gains Despite Fed Rate Cut

The US Dollar outperformed its major counterparts on Wednesday after the Federal Reserve delivered a rate cut that was accompanied with less-dovish-than-anticipated commentary. The markets were initially left disappointed – as anticipated - when it was revealed that officials were split on the need for more easing. Wall Street immediately turned red, but losses were trimmed afterward when Chair Jerome Powell spoke.

There, Mr Powell noted that should the economy weaken, more extensive cuts could be needed. He mentioned trade policy weighing on their outlook. Still, local government bond yields held onto their gains as well as the Greenback. Consequentially, the pro-risk Australian and New Zealand Dollars underperformed as they are USD’s liquid competitors for those seeking relatively high rates of return.

Thursday’s Asia Pacific Trading Session

With the tepid performance in the S&P 500 on Wednesday (+0.03%), Asia Pacific benchmark stock indexes could be looking at a mixed start as the focus now turns to the next round of US-China trade talks. Officials from the latter have arrived in the former for negotiations this week. This is also what the NZD will be closely watching after a set of better-than-expected second quarter New Zealand GDP data.

Focusing on the upcoming Thursday Asia Pacific trading session, we do have the Bank of Japan interest rate decision which is due at an unspecified time. Policymakers are not expected to adjust their monetary policy setting tools. As such, the anti-risk Japanese Yen may look past the BoJ for developments in market mood. The Australian Dollar is also awaiting August’s round of domestic employment data.

Join me at 1:15 GMT as I cover AUD/USD and its reaction to the Australian jobs report

US Dollar Technical Analysis

Despite gains in the US Dollar over the past 24 hours, the DXY still finds itself in consolidation mode. Though the index still remains in a slow and steady uptrend from the beginning of the year. It is being upheld by a rising channel of support from June – red parallel lines on the chart below. That may eventually pave the way for another retest of resistance which appears to be a range between 99.08 – 99.37.

DXY Daily Chart

US Dollar Held Gains Post Fed Cut, Japanese Yen May Look Past BoJ

Chart Created in TradingView

FX Trading Resources

--- Written by Daniel Dubrovsky, 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