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.

Free Trading Guides
EUR/USD
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
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • RT @arwaib: BREAKING: Jets flying over Baghdad right now after reports of expected #US response to earlier rocket attacks that slammed in e…
  • RT @ForexLive: China confirmed #coronavirus cases: Jan 17: 41 Jan 19: 62 Jan 20: 201 Jan 21: 291 Jan 22: 440 Jan…
  • #JPY, #USD #gold up with bond futures, #crudeoil down with S&P 500 stock futures as #coronarovirus fears grip markets at weekly trading open. Backstory here - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/01/26/Japanese-Yen-US-Dollar-May-Gap-Higher-as-Week-Starts-on-Virus-Fears.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr (via @ddubrovskyFX) https://t.co/bq96FHKBNs
  • RT @conorsen: @selling_theta @LJKawa https://t.co/vVfmLgHd9b
  • RT @iv_technicals: So you thought it was all contained, right?! Mhm. Cool stuff. https://t.co/PShm600IPS
  • RT @globaltimesnews: #Hubei Province reported 371 new cases of #WuhanCoronavirus and 24 new deaths on Jan 26 local time; total infection ca…
  • What is market volatility and what does a market event volatility look like? Find out from @PaulRobinsonFX here: https://t.co/vg7w10la3j https://t.co/QpD4VP4vDc
  • The last time the $USDJPY suffered this large of a bearish gap in a bearish slide (this one still nascent), was back in May: https://t.co/hTxfyVFiox
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EST on DailyFX! - https://t.co/RgnsklZ2Gl
  • Japanese Yen, US Dollar May Gap Higher as Week Starts on Virus Fears $USDJPY #USD #coronarovirus - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/01/26/Japanese-Yen-US-Dollar-May-Gap-Higher-as-Week-Starts-on-Virus-Fears.html?CHID=9&QPID=917702 https://t.co/RwVEF3rrO6
US Dollar Drop Eyes Support as the Euro and British Pound Rise

US Dollar Drop Eyes Support as the Euro and British Pound Rise

2019-12-06 00:00:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open Talking Points

  • US Dollar continues its descent against the Euro and British Pound
  • Treasury bill auction might have reflected US-China deal skepticism
  • S&P 500 and USD awaiting today’s local non-farm payrolls report

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

US Dollar Continues Descent, Especially Against the British Pound and Euro

The US Dollar extended its slump on Thursday as it headed for its worst weekly performance since the middle of October. It has been particularly losing ground against its liquid European counterparts such as the British Pound and Euro. The former has been gaining ground alongside prospects of a UK Conservative majority at next week’s general election. That would raise prospects of passing Boris Johnsons’ Brexit deal.

The USD extended its decline during the Wall Street trading session where the price of treasuries at the very front-end of the maturity spectrum rose. At auction, demand for 4-week bills increased to the most since July (as reflected in the bid/cover ratio) as yields declined from 1.62 to 1.50 percent. That was the lowest return since the beginning of 2018 as investors prioritized preserving capital ahead of near-term noise.

After all, the December 15 deadline for President Donald Trump to decide on further tariffs against China is nearing. He noted that “we will have to see” and that talks are “moving along well”. Today’s bond auction seems to have reflected some skepticism from investors. Hours after Trump’s comments, reports from the Dow Jones crossed the wires that the two countries remain at odds over the value of agricultural purchases.

Friday’s Asia Pacific Trading Session

Friday’s Asia Pacific trading session is a light economic docket, placing the focus for foreign exchange markets on risk trends. S&P 500 futures are little changed, pointing to a mixed start into the end of the week. Traders may be hesitant to commit to directional bias ahead of key data from North America. Later in the day, US and Canadian employment figures will cross the wires.

US Dollar Technical Analysis

My majors-based US Dollar index accelerated its descent after breaching a rising trend line – as expected. That has brought the Greenback closer to revisiting key rising support from September 2018. The key psychological barrier just under it also includes lows from Junes at 1.2792. If prices fail to breach these boundaries, the USD could be due for a bounce ahead.

Chart of the Day – Majors-Based USD Index

US Dollar Drop Eyes Support as the Euro and British Pound Rise

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

News & Analysis at your fingertips.