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
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
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
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: 🇯🇵JPY: 0.17% 🇨🇭CHF: 0.14% 🇦🇺AUD: -0.05% 🇨🇦CAD: -0.08% 🇳🇿NZD: -0.13% 🇬🇧GBP: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/cSsg7l8b4x
  • Indices Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.05% Wall Street: 0.01% US 500: 0.01% France 40: -0.02% FTSE 100: -0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/CyoJBdYbGT
  • Commodities Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Gold: 0.01% Silver: -0.22% Oil - US Crude: -0.93% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/cZeVIxiAJm
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.32%, while traders in NZD/USD are at opposite extremes with 75.03%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/fmCBX0W0w3
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Gold: 0.07% Silver: -0.21% Oil - US Crude: -0.93% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/MBlfthkrSp
  • Heads Up:🇲🇽 Monetary Policy Meeting Minutes due at 15:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-11-26
  • What are some key influences Black Friday has on the economy and stock markets? Find out: https://t.co/KIsvaIWZDN https://t.co/NS7o4MrEok
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.06% US 500: 0.04% Wall Street: 0.01% France 40: -0.03% FTSE 100: -0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/zTLPlL868T
  • 🇨🇦 Average Weekly Earnings YoY (SEP) Actual: 6.9% Previous: 7.9% https://www.dailyfx.com/economic-calendar#2020-11-26
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.45%, while traders in NZD/USD are at opposite extremes with 74.75%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/rb0KHIpnDO
US Dollar and Yen Aim Higher as Stocks Drop, Trump Talks Tariffs

US Dollar and Yen Aim Higher as Stocks Drop, Trump Talks Tariffs

2020-05-04 01:15:00
Ilya Spivak, Head Strategist, APAC
Share:

US DOLLAR, YEN, STOCKS, TRUMP, TRADE WAR – Talking Points:

  • US Dollar, Yen rise as APAC stocks follow Wall Street lower
  • Markets might be shifting focus to global recession impact
  • Comments from Trump town hall revive trade war worries

Financial markets started the trading week in a downbeat mood. Futures tracking the bellwether S&P 500 stock index gapped lower, with sentiment-linked assets including the Australian and New Zealand Dollars down in tandem. The anti-risk US Dollar and Japanese Yen tracked higher.

The move seems to echo Friday’s dour tone on Wall Street, where shares faced the heaviest selling pressure in a month. It is difficult to ignore that the about-face in sentiment occurred at the April-to-May handoff. I am typically dubious of seasonal “patterns”, but a kind of monthly reset is perhaps not so outlandish.

Much of April was spent focusing on the imminent threat of a credit crunch and the Fed’s heroic efforts to prevent one. They seemed to have succeeded for now, driving the TED spread measure of funding stress lower and punishing the Greenback while lifting investors’ spirits in the process.

It is conceivable that the calendar turn to May might have flipped a kind of mental switch for investors, shifting the focus from near-term credit risk to the near-certainty of global recession and its long-term consequences. The recent spate of gloomy economic data and corporate earnings guidance supports this narrative.

US Dollar and Yen Aim Higher as Stocks Drop, Trump Talks Tariffs

Chart created with TradingView

Soundbites from a virtual Fox News town hall with US President Trump may be boosting risk aversion. He said that a ‘strong’ report from US intelligence on the origins of Covid-19 is due Monday, adding that “tariffs would be the ‘ultimate punishment’ for China”. That may be reviving trade war worries.

Looking ahead, a relatively quiet day for scheduled event risk seems likely to keep sentiment trends at the forefront. Asia Pacific stock benchmarks like the Australia’s ASX 200 and Japan’s Nikkei 225 already face heavy selling and futures tracking their European and US counterparts signal more of the same ahead.

Building Confidence in Trading
Building Confidence in Trading
Recommended by Ilya Spivak
Building Confidence in Trading
Get My Guide

RESOURCES FOR TRADERS

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES