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
Oil - US Crude
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
More View more
Real Time News
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/rFlQtyQS81
  • Canadian Dollar snapped a three-week losing streak after USD/CAD stalled at key technical resistance. Get your CAD weekly forecast from @MBForex here: https://t.co/BPHuKecwnz https://t.co/73OmuCKfU9
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/KzhQnGiLyt
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/cuneuJNZlH
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/danCiP5vqK
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/JhYoQ7I19K
  • The Nasdaq 100 index is aiming to breach a key resistance level at 14,950 for a second time. A successful attempt may open the door to further gains, although the MACD indicator flags signs of weakness. Get your equities forecast from @margaretyjy here: https://t.co/BEYupi32qB https://t.co/PWeXE8tZVY
  • 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/t34kotPE8R
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/lM1OIJdjhr
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/6qGEVjDlN6
Dow Jones Forecast Bleak as Trump China Tariff Threat Boosts US Dollar

Dow Jones Forecast Bleak as Trump China Tariff Threat Boosts US Dollar

Daniel Dubrovsky, Strategist

Dow Jones, S&P 500, Wall Street, US Dollar, Trade War, Coronavirus – Asia Pacific Market Open

  • Dow Jones at risk following Trump retaliatory tariff threats against China
  • Haven-linked US Dollar gained, may rise further if sentiment deteriorates
  • Amazon and Apple shares declined in afterhours trade after earnings data

Dow Jones, S&P 500 Sink as US Dollar Gains After Trump-China Tariff Threat

The Dow Jones and S&P 500 could be vulnerable following a pessimistic day on Wall Street, opening the door for the haven-linked US Dollar to recover some lost ground. During the North American session, reports crossed the wires that the US was crafting retaliatory steps against China over how the nation handled the outbreak of the coronavirus.

After the Dow Jones and S&P 500 closed -1.17% and -0.92% lower respectively, President Donald Trump said that he could use tariffs in response to China. This seemed to reignite fears of a trade war at a time when global growth is being ravaged by social distancing measures to help cope with the coronavirus. Wall Street futures pointed notably lower heading into Friday’s Asia Pacific trading session – see chart below.

Further compounding the deterioration in sentiment were downbeat earnings reports from tech giants Amazon and Apple. Their stocks are down about -4.79% and -2.48% respectively in afterhours trade. Amazon warned of possible losses in the second quarter as earnings missed estimates. Apple meanwhile did not offer forward guidance as earnings did beat expectations.

Confirmed US virus cases grew 3.83% over the past 24 hours, the most in almost a week. It was reported that after easing social distancing guidelines, Texas confirmed over 1k infections which was the most since April 10. The markets may have interpreted that as a risk from the standpoint that if cases continue growing, lockdown measures could be reinforced and thus prolonging the drag in economic activity.

What are some unique aspects of trading forex?

S&P 500 Futures and AUD/USD Sink on Trump-China Tariff Threats

Dow Jones Forecast Bleak as Trump China Tariff Threat Boosts US Dollar

Chart Created in TradingView – Wall Street Index Averages: S&P 500, Dow Jones and Nasdaq Composite futures

Friday’s Asia Pacific Trading Session

Dow Jones and S&P 500 futures are pointing notably lower heading into Friday’s Asia Pacific trading session. That could spell a somewhat pessimistic tone to come, placing the Australian Dollar at risk. This may also bode well for the US Dollar while boosting the Japanese Yen. A lack in prominent economic event risk places the focus for foreign exchange markets on market mood.

Wall Street Technical Analysis

My Wall Street index – which averages S&P 500, Dow Jones and Nasdaq Composite futures – is attempting to break under key rising support from early April – red line below. This follows a false breakout through resistance at 12094. A drop through 11888 with confirmation could open the door to a reversal towards 11451. If this is the case, there could be a deterioration in broad market sentiment ahead.

Wall Street Index – 4-Hour Chart

Dow Jones Forecast Bleak as Trump China Tariff Threat Boosts US Dollar

Chart Created in TradingView – Wall Street Index Averages: S&P 500, Dow Jones and Nasdaq Composite futures

--- 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