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
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: -0.08% 🇬🇧GBP: -0.18% 🇦🇺AUD: -0.19% 🇯🇵JPY: -0.41% 🇪🇺EUR: -0.42% 🇳🇿NZD: -0.42% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/768NGH3tot
  • #Gold just hit a fresh multi-month low as the precious metal dropped to trade around the $1,680 level. The metal broke through support alongside the rise in yields in February, falling from around $1,800 to its current lows. $XAU $GLD https://t.co/oJvQqE5gfR
  • Indices Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Germany 30: 3.35% France 40: 2.17% FTSE 100: 1.38% Wall Street: 1.31% US 500: 0.88% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/fLfJGdE5Hl
  • Hey traders! Get your Monday market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/QO6zl1auQk
  • Really great article - apposite on International Women's Day but also a great read on the other 364 days of the year. @DailyFX h/t Weld Royal and Izaac Brook https://www.dailyfx.com/forex/fundamental/article/special_report/2021/03/08/Three-Women-Leaders-Changing-Finance-Economics-and-Business.html
  • $USDCHF has risen to fresh seven month highs today as the pair continues to trade above the 0.9300 level, at its highest levels since July of 2020. $USD $CHF https://t.co/spI5eIP3NM
  • Germany 30 IG Client Sentiment: Our data shows traders are now at their least net-long Germany 30 since Jan 09 when Germany 30 traded near 14,102.20. A contrarian view of crowd sentiment points to Germany 30 strength. https://www.dailyfx.com/sentiment https://t.co/kBUVfEOnTp
  • Commodities Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Silver: 0.07% Gold: -0.74% Oil - US Crude: -1.36% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/wUkbYkPr1x
  • 🇺🇸 Wholesale Inventories MoM (JAN) Actual: 1.3% Expected: 1.3% Previous: 0.6% https://www.dailyfx.com/economic-calendar#2021-03-08
  • 🇺🇸 Wholesale Inventories MoM (JAN) Actual: 1.3% Expected: 1.3% Previous: 1.3% https://www.dailyfx.com/economic-calendar#2021-03-08
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