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.

Free Trading Guides
EUR/USD
Mixed
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
GBP/USD
Bearish
USD/JPY
Bullish
Gold
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
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
Bitcoin
Mixed
More View more
Real Time News
  • $EURUSD Daily Pivot Points: S3: 1.0966 S2: 1.1041 S1: 1.1085 R1: 1.116 R2: 1.119 R3: 1.1264 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • The British Pound’s relief rally may still have some room to run: volatility in the $GBP has dropped back to levels typically associated with periods of ‘positive developments’ in the #Brexit process. Get your market update from @CVecchioFX here:https://t.co/uzXRd8y4ck https://t.co/Nxf6opYgLd
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 1.31% 🇨🇦CAD: 0.12% 🇨🇭CHF: 0.09% 🇪🇺EUR: -0.09% 🇳🇿NZD: -0.11% 🇦🇺AUD: -0.48% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/z0x9cPG1TN
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Gold: 0.40% Silver: 0.09% Oil - US Crude: -0.47% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/fpuNos9jTO
  • RT @bbands: Most crypto currencies are at or near Bollinger Band Squeeze levels. Time to pay attention.
  • Spot FX Update: $EUR 1.1119 $JPY 109.3505 $GBP 1.3337 $CAD 1.3182 $CHF 0.9842
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.07%, while traders in France 40 are at opposite extremes with 78.85%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/rBitc06izt
  • Stocks in the #Dow Jones and S&P 500 are soaring alongside the Chinese Yuan as Beijing confirms trade negotiators have reached a partial deal in text with Washington. Get your market update from @RichDvorakFX here: https://t.co/v8Dy0Es2MY https://t.co/1f6xgxkXK0
  • Poll: Looking ahead to these final weeks of 2019, has the announced US-China phase 1 'deal' and UK election laying a clearer path for Brexit set global markets back on a course for sustained risk appetite (continued S&P 500 climb)?
  • @DailyFXTeam Something to note here is that PM Trudeau has pledged middle-class tax cuts (fiscal stimulus) which could dent #BoC easing bets. If his minority government can get it through, could offer a relief rally for #CAD as my majors-based index failed to breach support from 2018 $USDCAD https://t.co/oU1rEa67Wi
FX Headlines: Franc, Yen Weaken on Recovery Outlook

FX Headlines: Franc, Yen Weaken on Recovery Outlook

2011-03-25 13:30:00
Christopher Vecchio, CFA, Sr. Currency Strategist
Share:

Typically viewed as safe haven currencies, the Swiss Franc and Japanese Yen declined against a basket of major currencies as traders ramped up bets that the major economies would be able to withstand recent economic woes and continue on the path to recovery. Despite increased headwinds to the recovery – the natural disasters in Japan, spreading turmoil in the Middle East and North Africa region, further sovereign debt issues in Europe, and rising inflationary pressures around the globe – it is clear that broader market sentiment believes the recovery remains on the right path.

FX_Headlines_Franc_Yen_Weaken_on_Recovery_Outlook_body_Picture_1.png, FX Headlines: Franc, Yen Weaken on Recovery OutlookFX_Headlines_Franc_Yen_Weaken_on_Recovery_Outlook_body_Picture_7.png, FX Headlines: Franc, Yen Weaken on Recovery OutlookFX_Headlines_Franc_Yen_Weaken_on_Recovery_Outlook_body_Picture_4.png, FX Headlines: Franc, Yen Weaken on Recovery Outlook

Fundamental Headlines

NATO Takes on No-Fly Zone - WSJ

U.S. Economy Grew 3.1% in Fourth Quarter, Revised From 2.8% - Bloomberg

Reactor Core May Be Breached at Damaged Fukushima Plant - Bloomberg

Barclays at Centre of Libor Inquiry – Financial Times

Activists Plan ‘Day of Rage’ in Bahrain - CNBC

USDJPY: The USD/JPY pair advanced in the overnight session as the markets adjusted their view of how funds would be sent back to Japan. Following a report by the Finance Ministry in Tokyo which showed that purchases of foreign assets exceeded sales of foreign assets by ¥291 billion, the Yen fell against a basket of major currencies. It appears that speculation on the repatriation of funds back to Japan may be a bit overblown, as investors remain net buyers of bonds, no sellers. Similarly, downward pressure remains on the Yen, as the Bank of Japan is unlikely to raise interest rates any time soon, amid the deflationary environment and the necessity to boost exports in order to help propel a recovery forward.

Taking a look at price action, a key level at 81.073 appears to be a level of resistance, as the pair has been unable to hold above this point for consecutive days. After the USD/JPY pair’s decline last week following the earthquake and tsunami on repatriation rumors, the pair has held above its 0.00 Fibo retracement at 80.242 on its September 15 to November first move. Cutting off the candlestick wicks on the daily chart ad smoothing the data from March 15 to March 21, in order to account for the Bank of Japan liquidity injection as well as the combined forex intervention, it appears that the USD/JPY pair is holding above its range bottom of a descending channel, but is failing to break above its 20-SMA. If the repatriation scenario appears to have been overblown, the Yen could see further declines across the board as speculators wind down their bets of a stronger Pacific Rim currency.

Written by Christopher Vecchio, DailyFX Research.

To contact the author of this report, please send inquiries to: research@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.