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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • Long wick candles are recurrent within the forex market. This makes understanding the meaning behind these candles invaluable to any trader to comprehend the market dynamics during a specific period. Learn about the importance of extended wicks here:
  • Safe haven stocks also allow traders to diversify their portfolio and reduce risk. Learn if safe-haven stocks are made for you here:
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here:
  • but the next major point in my view to monitor will be 52.76 - at least in the short term.
  • #Brent having broken above the pre-OPEC drop off at 45.51 is a huge deal considering it failed to crack resistance there in August (leading to the invalidation of "uptrend 2") and the psychological significance of that level
  • The New Zealand Dollar looks poised to extend its push higher against its haven-associated counterparts on robust economic data and a less dovish stance from the RBNZ. Get your $NZD market update from @DanielGMoss here:
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2020? Find out from @JohnKicklighter here:
  • The Swiss Franc may continue higher against the US Dollar as technical pressure favors USD/CHF bears..Get your $USDCHF market update from @FxWestwater here:
  • The US Dollar lost ground to most ASEAN currencies as Emerging Market assets climbed despite US economic woes. USD/INR is eyeing third-quarter Indian GDP at the end of the week. Get your market update from @ddubrovskyFX here:
  • The global stock market can be categorized into specific groups or ‘stock market sectors’. Organizing the vast number of stocks in this way helps traders to view assets in a more manageable way. Get your stock market sectors basics here:
USD/JPY May Rise on Vaccine Hopes Despite Election Dispute, Chinese CPI Eyed

USD/JPY May Rise on Vaccine Hopes Despite Election Dispute, Chinese CPI Eyed

2020-11-10 01:00:00
Thomas Westwater, Contributor

USD/JPY, Post-Election Trades Unwind, Chinese Inflation Data – Talking Points

  • Markets aimed higher during risk-on U.S. session following vaccine headlines
  • US Dollar moves higher as post-election trades unwind on election clarity
  • USD/CNH at multi-year low; Chinese October inflation data on tap

Traders responded with overwhelming applause to start the week as Pfizer announced a groundbreaking step forward in their vaccine efforts against Covid. The U.S. trading session saw the Dow Jones Index and S&P 500 Index close 2.95% and 1.17% higher, respectively. In line with market sentiment, typical risk-on assets gave way to heavy selling pressure. Gold dropped over 5%. The haven-linked US Dollar, however, gained as the Japanese Yen sold off; a likely result of pre-election trades being unwound.

USD/JPY, Dow Jones Futures, Gold – 5 Min Chart

Gold, Dow Futures, USDJPY

Chart created with TradingView

In addition to Monday’s vaccine headline, markets likely reflected on U.S. election clarity. This followed now US President-Elect Biden’s path to victory gaining consensus from reporting agencies like AP and Fox News. Still, President Trump has yet to concede the election despite his challenger exceeding the 270 electoral votes required. Legal challenges are being pursued from the Trump administration, however, it remains unclear if there is a path, if any, to reverse the current vote count across several states.

U.S. 2020 Presidential Election Map

Election map

Source: ABC News

Assuming the current path plays out in the US political landscape, a Biden administration would still face an uphill battle implementing policy, including fiscal relief, against a Republican controlled Senate. Nevertheless, a wildcard lies with the runoff Senate races in Georgia, giving Democrats a possible opportunity to form a 50-50 split, allowing Vice President-Elect Kamala Harris to cast tie-breaking votes. This would bolster hopes of a larger stimulus deal for the US economy.

Tuesday’s Asia Pacific Trading Session

As traders continue to unwind pre-election trades that aimed to hedge volatility, risk-on market conditions will likely spill over into the Asia Pacific session. U.S. equity futures are pointing higher. On the currency front, the Japanese Yen is edging higher against the US Dollar, but the large chunk of the earlier move in USD/JPY remains intact.

DailyFX Economic Calendar

DFX economic calendar

Source: DailyFX

Tuesday’s trading session will have eyes on Chinese inflation data. The DailyFX Economic Calendar shows the YoY rate for October is expected to cross the wires at 0.8 percent, down from the prior month’s 1.7 percent. The Yuan has strengthened considerably in recent days, with USD/CNH dropping to 6.5472 earlier today, the lowest mark since June 2018.

Monday’s break lower in USD/CNH saw a key level of prior support/resistance from 2015 to 2018 hold near the 6.5430 level. Below that, a defined area of resistance from September 2017 could look to hold. There is some space to go until getting there where new areas of support could form. Traders may wait and see for price action to hold and consolidate before taking bets to the upside.

USD/CNH – Daily Chart

USDCNH price chart

Chart created with TradingView

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