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
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/H9fW9ewiQd
  • Get your snapshot update of the of market open and closing times for each major trading hub around the globe here: https://t.co/BgZLFljIhZ https://t.co/yLt0ldtMsV
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/ZwwuTzTeac
  • What's the difference between leading and lagging indicators? Find out from here: https://t.co/vGx8HCagF5 https://t.co/4DGXwA8vqs
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/mAMhWbV6Jy
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/E9ZmJvqO0z
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/fqxw1AoKc1
  • Gold snapped a two-week losing streak but keeps price within the broader August downtrend. These are the levels that matter on the $XAUUSD weekly chart. Get your market update from @MBForex here: https://t.co/B3Jct6mIBD https://t.co/xTGIM2hRBv
  • $GBPUSD continues to move higher, despite Friday’s weakness, as vaccination hopes continue to fuel positive sentiment despite ongoing lockdown fears and downbeat UK data. Get your market update from @nickcawley1 here: https://t.co/S8UoHzOwFN https://t.co/qI6UZdggvM
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/6wxX6oQurn
US Dollar Outlook in Focus as Virus Deaths Rose, S&P 500 Erased Gap

US Dollar Outlook in Focus as Virus Deaths Rose, S&P 500 Erased Gap

Daniel Dubrovsky, Analyst

US Dollar, S&P 500, Dow Jones, Australian Dollar, Coronavirus – Asia Pacific Market Open

US Dollar Weakens Despite Pessimistic Shift on Wall Street

The haven-linked US Dollar was the worst-performing major currency on Tuesday despite a pessimistic shift in markets into the end of the session. The Greenback lost most of its ground during Asia Pacific and European hours as sentiment broadly improved. This may have been fueled by what seemed to be stabilizing coronavirus cases in Europe and in the United States as local policymakers hinted at further fiscal support.

Despite the Dow Jones and S&P 500 gapping 3.7% and 2.9% higher and then trading cautiously higher, they closed -0.12% and -0.16% respectively. While new infection rates slowed in New York state, both it and New Jersey reported their largest single-day rise in fatalities since the onset of the pandemic. The United Kingdom also saw its biggest increase yet in COVID-19 deaths.

Forex for Beginners
Forex for Beginners
Recommended by Daniel Dubrovsky
Forex for Beginners
Get My Guide

This may have poured cold water on rising speculation that parts of the West could be readying to reopen in the near term. White House Economic Adviser Larry Kudlow said that he is hoping that the nation is “only a few weeks away” from reopening the economy. The shift in market tone paused the drop in the US Dollar as the sentiment-linked Australian Dollar found resistance. Crude oil prices traded cautiously lower as some skepticism about the impact of production cuts from major producers lingered.

Wednesday’s Asia Pacific Trading Session

S&P 500 futures are pointing cautiously lower heading into Wednesday’s Asia Pacific trading session. A lack of key economic event risk places the focus for foreign exchange markets on risk trends. If regional equities trade lower, the US Dollar could regain some of its lost ground. This may come at the expense of the Australian Dollar. As China lifts the lockdown in Wuhan, all eyes will be watching on the rates of reported new cases.

Starts in:
Live now:
Jan 27
( 01:01 GMT )
Recommended by Daniel Dubrovsky
What Do Other Traders Buy/Sell Bets Say About Price Trends?
Register for webinar
Join now
Webinar has ended

US Dollar Technical Analysis

My majors based US Dollar index – which averages it against EUR, JPY, GBP and AUD – may be at risk to extending losses however. The Greenback has taken out another layer of rising support from the front end of March – red lines below. This is as falling resistance from last month’s top guides the USD lower – blue lines. That may spell cautious weakness to come from the Dollar on average in the medium term.

Majors-Based US Dollar Index 4-Hour Chart

US Dollar Outlook in Focus as Virus Deaths Rose, S&P 500 Erased Gap

Chart Created Using TradingView

--- 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