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
Mixed
Wall Street
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
Gold
Mixed
GBP/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
USD/JPY
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
  • ECB policymakers were out in force last week, saying they were watching Eurozone government bond yields, but yields rose anyway, and that’s positive for $EURUSD and the Euro crosses. Get your market update from @MartinSEssex here: https://t.co/nJdh9dA1HM https://t.co/peLh7zTTiz
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/vs7ypHHwya
  • The GBP rally vs USD came to an abrupt end and reversal; this sets cable up for more selling in the week ahead. Get your market update from @PaulRobinsonFX here: https://t.co/Ee9PSppnd2 https://t.co/uaiCiEHBMs
  • What are some trading takeaways from 2020, as we jump into the new year? Find out with your free guide here: https://t.co/e7udCTJlmf #DailyfxGuides https://t.co/OXUgYIl2ru
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/xncree8XaW
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/gGOU1RVQzq
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/wrI29FTN41
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/UzzC1bGzRJ
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/46bdHdOmOV
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/6FokpDbL65
US Dollar and Yen Up, British Pound Down as New Virus Strain Hits London

US Dollar and Yen Up, British Pound Down as New Virus Strain Hits London

Ilya Spivak, Head Strategist, APAC

US DOLLAR, BRITISH POUND, JAPANESE YEN, CORONAVIRUS, STIMULUS - TALKING POINTS:

  • US Dollar and Yen up, Pound down as new coronavirus strain hits London
  • US congressional leaders agree on a $900-billion fiscal stimulus proposal
  • Sentiment trends set to drive financial markets as the trading week begins
Advertisement

The US Dollar gapped sharply higher and the similarly anti-risk Japanese Yen advanced while the British Pound sank at the weekly trading open. The moves follow reports that a new strain of the coronavirus has swept London, pushing authorities to institute a full lockdown in the city and souring risk appetite across the global financial markets. The absence of progress on a Brexit deal probably didn’t help either.

Interestingly, news of agreement on a US fiscal stimulus package did not offset the broadly downbeat mood, although it is hard to say if the selloff might have been more aggressive without the accord. Republican and Democratic party leaders in the House and Senate said congressional negotiators have reached agreement on a US$900 billion spending plan.

The package includes a broad range of initiatives, such as direct payments of $600 for most Americans and $300/week in enhanced jobless benefits. $248 billion is set aside for forgivable loans to small businesses. Money is also earmarked for transportation (such as airlines, which have been hit especially hard by the pandemic), vaccine distribution and education.

US Dollar and Yen up, British Pound down as new coronavirus strain locks down London

Chart created with TradingView

Looking ahead, a barebones economic data docket is likely to give way to broader sentiment trends as the main driver of price action. Australian shares are tracking modestly lower in early trade and futures tracking Japan’s benchmark Nikkei 225 index are down ahead of the cash open, warning that a risk-off mood is likely to remain in play.

Having said that, contracts tracking bellwether US averages – notably, the broad S&P 500 index – are tracking relatively little-changed. This suggests that the level of conviction in the anti-risk move is relatively modest, opening the door for a reversal if the right set of catalysts presents itself. That may see the Greenback as well as the Yen struggle to build lasting upside follow-through.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Ilya Spivak
Traits of Successful Traders
Get My Guide

FX TRADING RESOURCES

--- Written by Ilya Spivak, Head APAC 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