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
Bearish
Gold
Bullish
Oil - US Crude
Bearish
Bitcoin
Bearish
More View more
Real Time News
  • The Australian Dollar and New Zealand Dollar tend to rise with stocks. They have recently fallen despite gains in the #SP500. What does this mean for $AUDUSD and $NZDUSD ahead? #AUD #NZD #RBA #RBNZ - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/17/AUDUSD-NZDUSD-Outlook-Looks-Past-Stocks-to-Rate-Cut-Bets.html?CHID=9&QPID=917702 https://t.co/ddf2fV7Kyl
  • A few snippets from today's commentary. Check out the link below for the full story (via @DailyFX). https://t.co/I31tuq764r https://t.co/x0BaiOFA1P
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/e2YrN3dBrl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.00%, while traders in France 40 are at opposite extremes with 79.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/UL7hqSD2Ki
  • US Dollar Forecast: $USD Lacking Impetus Ahead of Consumer Sentiment #Forex traders shift focus away from US-China trade deal headlines - perhaps toward the monthly release of #ConsumerSentiment data for volatility and clues on the Greenback's next move https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2020/01/16/us-dollar-forecast-usd-lacking-impetus-ahead-of-consumer-sentiment.html
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.11% 🇦🇺AUD: -0.02% 🇯🇵JPY: -0.03% 🇨🇭CHF: -0.05% 🇬🇧GBP: -0.06% 🇨🇦CAD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Kxcb9EtIWb
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.45% France 40: 0.26% Wall Street: 0.07% US 500: 0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/I5YIsKQAog
  • 🇯🇵 JPY Tertiary Industry Index (MoM) (NOV), Actual: 1.3% Expected: 1.0% Previous: -5.2% https://www.dailyfx.com/economic-calendar#2020-01-17
  • The $JPY has weakened as a bounce-back in risk appetite saps haven-asset demand. However, the old uptrend line still provides clear resistance. Get your market update from @DavidCottleFX HERE:https://t.co/IMhgQ9jbF9 https://t.co/I7087olftk
  • Heads Up:🇯🇵 JPY Tertiary Industry Index (MoM) (NOV) due at 04:30 GMT (15min), Actual: N/A Expected: 1.0% Previous: -4.6% https://www.dailyfx.com/economic-calendar#2020-01-17
European Currencies Lead Rally Against U.S. Dollar

European Currencies Lead Rally Against U.S. Dollar

2012-03-16 18:04:00
Christopher Vecchio, CFA, Sr. Currency Strategist
Share:

Fundamental Headlines

- Goldman Employee Reinforces Need for Volcker Rule – Bloomberg

- Traders Bet Fed Rate to Rise Year Before Late-2014 Pledge – Bloomberg

- Gasoline Pushes up Consumer Prices in February – Reuters

- Banks want Fed to Iron Out ‘Maiden’ – WSJ

- Pentagon Downplays China’s Rare-earths Controls – WSJ

European Session Summary

Trading in the Asian and European sessions was rather choppy last night with most currencies trading in a tight range against the U.S. Dollar. And until 12:30 GMT, the day could be hardly characterized as explicitly risk-on or risk-off, with the European currencies leading the majors and the commodity currencies barely changed against the safe havens, the Japanese Yen and the U.S. Dollar.

However, risk-appetite came back with a vengeance this morning following the United States’ February inflation print, one that necessarily allows hopes of quantitative easing to creep back into the picture. With core inflation starting to show signs of slowing down, it is likely that the hopes of quantitative easing are priced back into the markets slowly over the coming days and weeks. The next major checkup on this debate comes at the end of March, when the Federal Reserve releases the minutes from their meeting this week.

Taking a look at credit, sovereign debt was shaken up following the consumer price index release as market participants shifted out of safer credit and into riskier debt. Case and point: the German 10-year Bund was the worst performing European bond today while the Portuguese was the strongest. Similarly, U.S. Treasuries continued to erode, with the 10-year Note yield rising back to 2.301 percent, at the time this report was written. In fact, with the yields backing the European currencies rising (German Bunds, Swiss bonds, and U.K. Gilts) more than their Japanese and U.S. counterparts, it’s not surprising that the European currencies outpaced the safe havens.

GBPUSD 5-min Chart: March 16, 2012

European_Currencies_Lead_Rally_Against_U.S._Dollar_as_Yields_Rise_body_Picture_13.png, European Currencies Lead Rally Against U.S. Dollar

Charts Created using Marketscope – Prepared by Christopher Vecchio

Overall, on the back of rising yields, the British Pound was the top performing major currency, up 0.85 percent, at the time this report was written, against the U.S. Dollar. Likewise, the EURUSD had gained 0.70 percent, while the USDCHF lost 0.72 percent. The commodity currencies were also stronger against the Greenback and the Yen, though the Canadian Dollar was up a mere 0.15 percent [UPDATE: the USDCAD was unchanged at 18:02 GMT].

24-Hour Price Action

European_Currencies_Lead_Rally_Against_U.S._Dollar_as_Yields_Rise_body_Picture_7.png, European Currencies Lead Rally Against U.S. DollarEuropean_Currencies_Lead_Rally_Against_U.S._Dollar_as_Yields_Rise_body_Picture_1.png, European Currencies Lead Rally Against U.S. Dollar

Key Levels: 14:25 GMT

European_Currencies_Lead_Rally_Against_U.S._Dollar_as_Yields_Rise_body_Picture_4.png, European Currencies Lead Rally Against U.S. Dollar

Thus far, on Friday, the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) is trading lower, at 9974.43 at the time this report was written, after opening at 10031.16. The index has traded mostly lower, with the high at 10044.97 and the low at 9964.05.

--- 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.