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
EUR/USD
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
Wall Street
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here:https://t.co/vg7w10la3j https://t.co/nUvvI3WQpx
  • Australian Dollar is up fractionally this week with Aussie stalling just below the yearly range highs. Here are the levels that matter on the $AUDUSD technical chart. Get your #currencies update from @MBForex here: https://t.co/jYzBK1qH4s https://t.co/gYj4tFbsGS
  • What is the road ahead for equities this coming week? Check out my fundamental outlook below! #DowJones #SP500 #DAX30 #FTSE100 https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2020/07/11/Dow-Jones-SP-500-DAX-30-FTSE-100-Outlook-Stocks-Week-Ahead.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/HjIBDKqwvO
  • #Gold price gains seem to depend on monetary stimulus expansion and may turn lower as contraction of the Federal Reserve’s balance sheet underpins the US Dollar. Get your #metals update from @DanielGMoss here: https://t.co/8NHLc8jdhw https://t.co/0YYKXqtY9V
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/OjTZOQEytM https://t.co/DDCWX1In7k
  • The US Dollar is pressured as rising coronavirus cases fail to dent 2021 GDP bets. Could the Singapore Dollar, Indonesian Rupiah, Philippine Peso and Malaysian Ringgit rise? Find out from @ddubrovskyFX here:https://t.co/u1qhaIGGoC https://t.co/kvFgxQjLb0
  • The ASX 200 and AUD/JPY are at risk of losses as cases of Covid-19 continue to climb in Victoria, Australia’s second-most populous state. Get your #ASX market update from @DanielGMoss here: https://t.co/O0LNvhy4eY https://t.co/mS9vLeVU5Y
  • The Dow Jones could fall based on positioning signals, will the growth-linked Australian Dollar and Canadian Dollar follow? If so, what are the technical barriers ahead? Find out from @ddubrovskyFX here:https://t.co/yJrlR5C00P https://t.co/W45z2yNjr0
  • Further gains in USD/IDR could be curbed as USD/PHP establishes a floor around 2017 lows. USD/MYR may fall next as USD/SGD fast approaches a key falling trend line.Get your #ASEAN currencies market update from @ddubrovskyFX here:https://t.co/9JgZm2n8Fl https://t.co/Yg6WSFxt8T
  • The New Zealand Dollar is aiming higher, with NZD/USD eyeing fresh yearly highs while AUD/NZD may be carving out a bearish Head and Shoulders chart pattern. Get your $NZDUSD market update from @DanielGMoss here:https://t.co/osFxXvq5xF https://t.co/zcmqsFR9tg
U.S. Dollar Momentum Builds as Greek Concerns Linger

U.S. Dollar Momentum Builds as Greek Concerns Linger

2012-02-22 14:48:00
Christopher Vecchio, CFA, Senior Strategist
Share:

Fundamental Headlines

- Greek Bailout Wins Two Cheers from Wary Investors – Bloomberg

- Obama Readies Plan to Cut Corporate Tax Rate – Bloomberg

- Iran Defiant as U.N. Nuclear Talks Fail – Reuters

- Fitch Downgrades Greece – WSJ

- Despite Pact, Unease Lingers for Greece – WSJ

European Session Summary

The move to risk-aversion continues, even as the EURUSD has steadied following the second Greek bailout yesterday. Indeed, higher yielding currencies and risk-correlated assets have continued to weaken this week, with the commodity currencies posting a second day of losses. Price action to the downside today has been capped by better than expected data out of China and better than expected industrial data from the Euro-zone.

However, despite two “better” data prints, data elsewhere and developments out of Greece have tempered market enthusiasm of a continued rally. Manufacturing and service surveys from France, Germany, and the broader Euro-zone all disappointed to the downside, lending to the notion that the Euro-zone is headed for a recession. I continue to maintain this bias, and believe that the sovereign debt crisis, which has seen severe austerity measures implemented across the Euro-zone, will only exacerbate the downturn across the continent.

In regards to Greece, Fitch Ratings cut the country’s long-term sovereign debt rating to C from CCC. Fitch noted that the new rating indicates “that default is highly likely in the near-term.” This is, of course, unsurprising and expected, considered the measures set forth by Euro-zone leaders to solve the debt crisis – adding more debt to an already overbearing debt burden – will only make matters worse. Although there was little reaction following the downgrade, it only will increase speculation that other rating agencies will follow suit, adding evidence that a Greek default will be detrimental to market sentiment, ultimately raising questions about the viability of the debt-reduction measures implemented in other periphery nations.

GBPUSD 5-min Chart: February 22, 2012

U.S._Dollar_Momentum_Builds_as_Greek_Concerns_Linger_body_Picture_10.png, U.S. Dollar Momentum Builds as Greek Concerns Linger

Charts Created using Marketscope – Prepared by Christopher Vecchio

Overall, the Swiss Franc was the top performing currency on the day, posting a meager 0.07 percent gain against the U.S. Dollar. Aside from the Franc, the Euro and the U.S. Dollar were the next best performers, with the EURUSD flat on the day. The British Pound has been the worst performing currency thus far, posting a 0.79 percent decline against the Greenback following the Monetary Policy Committee’s minutes this morning, which suggested that some additional easing by the Bank of England may be coming in the future.

24-Hour Price Action

U.S._Dollar_Momentum_Builds_as_Greek_Concerns_Linger_body_Picture_7.png, U.S. Dollar Momentum Builds as Greek Concerns LingerU.S._Dollar_Momentum_Builds_as_Greek_Concerns_Linger_body_Picture_1.png, U.S. Dollar Momentum Builds as Greek Concerns Linger

Key Levels: 14:10 GMT

U.S._Dollar_Momentum_Builds_as_Greek_Concerns_Linger_body_Picture_4.png, U.S. Dollar Momentum Builds as Greek Concerns Linger

Thus far, on Wednesday, the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) is trading higher, at 9887.42 at the time this report was written, after opening at 9843.12. The index has traded mostly higher, with the high at 9894.11 and the low at 9834.68. This is only the index’s third advance of two days or more this year.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, send an e-mail with subject line "Distribution List" to cvecchio@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.