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
Wall Street
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
More View more
Real Time News
  • 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/1mnOXUuBpt https://t.co/GQB0ic9Ahe
  • 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/lx3cMSpZNc
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfUNW0y https://t.co/n4NXZUovb0
  • Scoping out next week for trading the market, there are a range of high profile influences including September PMIs, Evergrande and a range of central bank decisions. Top listing on my docket is the #FOMC with my scenarios below. Full analysis: https://www.dailyfx.com/forex/video/daily_news_report/2021/09/18/SP-500-and-Dollar-on-the-Hook-for-Breaks-with-Evergrande-Fed-and-September-Trade-Ahead.html https://t.co/ZdoMJS9fp5
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/Q3Yfe6TMLw
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/6inC94w5K4
  • All eyes on the Fed on Wednesday as investors weigh on chances of a taper announcement. Get your weekly equities forecast from @HathornSabin here: https://t.co/Cv06XcvldF https://t.co/I12g2YPkdE
  • 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/KsPiWBysiR
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/iUvhLfQgcK
  • The US Dollar caught a bid in the late part of last week to set a fresh September high. FOMC is around the corner, are bulls going to be able to push for another fresh high? Get your weekly US Dollar forecast from @JStanleyFX here: https://t.co/ZkDHyV1VhM https://t.co/w5sPChKdNx
US Dollar Sinks as Global Trade War Woes May Fuel Yen Price Ahead

US Dollar Sinks as Global Trade War Woes May Fuel Yen Price Ahead

Daniel Dubrovsky, Strategist

Asia Pacific Market Open Talking Points

  • US Dollar depreciated as global trade tension woes fueled 2020 Fed rate cut expectations
  • US-China trade deal by mid-December in question as Trump eyes Europe, South America
  • Anti-risk Japanese Yen may rise as Asia stocks fall, AUD/USD may fall on AU GDP data

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

Haven-Linked US Dollar Declined Despite Risk Aversion

The US Dollar failed to capitalize on haven demand as global markets slowly woke up to the reality that trade tensions remain unresolved between the world’s largest economies despite constant touting from Washington. Over the past 24 hours, President Donald Trump backpedaled on rising hopes of a US-China trade deal by mid-December, opening the door to a possible delay until after the 2020 Presidential Election.

This crossed the wires during the European trading session, sending the Euro Stoxx 50 and FTSE 100 tumbling 0.43 and 1.75 percent respectively. Their declines may have also been amplified by threats from France that the EU would retaliate if the US proceeds with $2.4b in tariffs against French goods over digital taxes. Trump is also weighing targeting Brazil and Argentina with steel and aluminum tariff threats.

Investor unease spread into the Wall Street trading session with gaps to the downside in the S&P 500 and Dow Jones Industrial Average. This depressed local bond yields and fueled 2020 Fed easing speculation. For the time being, it seems the depreciation in the Greenback could be tied to fading return prospects. But this could change if a global selloff in equities picks up pace, pushing a higher focus on preserving capital.

Wednesday’s Asia Pacific Trading Session

Ahead, Asia Pacific benchmark stock indexes could follow the S&P 500 lower as risk aversion spreads into regional bourses. That could offer more lift to the anti-risk Japanese Yen as it outperforms against the sentiment-linked Australian and New Zealand Dollars. A decline in bond yields may add further upside momentum to anti-fiat gold prices, which have been on the rise this week on bullish technical cues.

Speaking of the Australian Dollar, heightened volatility could be due ahead as the currency awaits local GDP data. This follows yesterday’s RBA rate decision, where the currency received a boost as the central bank envisioned a turning point in the economy. Yet, local economic newsflow has been tending to underperform relative to expectations, opening the door to a downside surprise and weakness in AUD/USD.

Join Analyst Dimitri Zabelin for LIVE coverage of Australian GDP starting at 00:15 GMT!

US Dollar Technical Analysis

Against an average of its major counterparts, the US Dollar appears to be heading for another attempt to breach key support (1.2831 – 1.2854) on the chart below. This followed a break under the near-term rising support line from November. Yet, the dominant uptrend could be kept intact by a key rising support channel going back to September 2018.

Join me later today at 1:00 GMT as I uncover what else trader positioning is having to say about the outlook for financial markets!

Chart of the Day – Majors-Based US Dollar Index

US Dollar Sinks as Global Trade War Woes May Fuel Yen Price Ahead

Chart Created Using 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