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. See our updated Privacy Policy here.

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
Oil - US Crude
Bullish
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
Bearish
GBP/USD
Bearish
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
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/0rNbbrd58e
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/zPzJAxBJxt
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/uf6KEYTes5
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/gRjdVfbg66
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/mLLGqYUygY
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/HUYJzEkYiT
  • #Gold prices put in a major breakout last month and, so far, buyers have held the line. But a really big Fed meeting is on the calendar for this week. Can Gold bulls hold? Get your market update from @JStanleyFX here: https://t.co/NGRTSfceOW https://t.co/QkSUORIQE2
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/PHK2sqB1jV
  • Top event risk for more than just the Dow and Dollar this week is the Wednesday #FOMC rate decision. What the markets expect sets the tone for how the event impacts price action. My run down of the week and Fed decision: https://www.dailyfx.com/forex/video/daily_news_report/2021/06/12/Dollar-and-SP-500-Breaks-Must-Abide-the-FOMC-Decision-This-Week.html https://t.co/Huvth4f706
  • What suits your style of trading stocks or commodities? Find out what are the differences in these two markets here: https://t.co/BnA07cMV0s https://t.co/AkE7bFRWAt
Commodity Currencies Slide as U.S. Dollar Regains Footing

Commodity Currencies Slide as U.S. Dollar Regains Footing

Christopher Vecchio, CFA, Senior Strategist

Fundamental Headlines

- Bernanke Stands to Gain Financial-Market Experts with Nominees – Bloomberg

- Housing Starts in U.S. Fell in February from Three-Year High – Bloomberg

- Reluctant Russia wakes up to Energy Waste – Reuters

- Dollar Reigns as China Concerns Crank Up – WSJ

- GOP’s Budget Targets Taxes – WSJ

European Session Summary

If Monday was supposed to set the tone for the week, Tuesday missed that memo. After holding to tight ranges yesterday, all of the major currencies took a turn lower against the U.S. Dollar in the Asian and European sessions. In fact, after the Reserve Bank of Australia’s minutes from their recent policy meeting were released, the Australian Dollar began its tumble for what has been its worst performing day since January 3.

However, it was not merely the RBA’s minutes that have led to the Aussie’s precipitous (and other risk-correlated assets, for that matter) decline in the overnight. Concerns out of China on growth prospects this year have boosted U.S. Dollar demand substantially. According to Bloomberg News, BHP Billiton Ltd. said that Chinese steel production is slowing, a sign that emerging markets may be facing headwinds.

Taking a look at credit, it’s evident that some concerns out of Europe are weighing on risk-appetite as well. Mainly, the German 10-year Bund rallied ahead of the North American open, with the yield falling to 2.035 percent. The Italian and Spanish 10-year yields climbed slightly, moving up to 4.862 percent and 5.181 percent, respectively. The outliers on the day are the performances of Portuguese bonds, which have strengthened substantially (the 10-year by 40.3-basis points); it’s clear that exogenous forces (i.e. the European Central Bank) are active in the market.

AUDUSD 5-min Chart: March 20, 2012

Commodity_Currencies_Slide_as_U.S._Dollar_Regains_Footing_body_Picture_10.png, Commodity Currencies Slide as U.S. Dollar Regains Footing

Charts Created using Marketscope – Prepared by Christopher Vecchio

Overall, the Australian and New Zealand Dollars were the worst performing currencies, down 1.33 percent each, respectively, at the time this report was written. As noted earlier, this has been the worst performance by the AUDUSD since January 3. The Canadian Dollar was also under pressure on the Chinese concerns, losing 0.82 percent against the U.S. Dollar. The European currencies have held up nicely in the face of a stronger U.S. Dollar, with the Euro and the Swiss Franc down 0.08 percent each, while the British Pound was down 0.17 percent at the time of writing.

24-Hour Price Action

Commodity_Currencies_Slide_as_U.S._Dollar_Regains_Footing_body_Picture_7.png, Commodity Currencies Slide as U.S. Dollar Regains FootingCommodity_Currencies_Slide_as_U.S._Dollar_Regains_Footing_body_Picture_1.png, Commodity Currencies Slide as U.S. Dollar Regains Footing

Key Levels: 14:05 GMT

Commodity_Currencies_Slide_as_U.S._Dollar_Regains_Footing_body_Picture_4.png, Commodity Currencies Slide as U.S. Dollar Regains Footing

Thus far, on Tuesday, the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) is trading higher, at 10000.25 at the time this report was written, after opening at 9946.97. The index has traded mostly higher, with the high at 10011.82 and the low at 9940.54.

--- 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