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
Bullish
Oil - US Crude
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
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/lvIUu5FHoq
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/bpKdIqGxsn
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/jmcAIW4w5k
  • 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/M9isuvnzqF
  • The British Pound is giving back some of its multi-month gains with some pairs testing notable support despite a positive fundamental backdrop. Get your market update from @nickcawley1 here: https://t.co/6Ct5R0H41F https://t.co/c4rXmMjMrv
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/4dhCP5pnxM
  • Gold is facing the neckline of a Double Bottom Pattern after bouncing off a confirmed longer-term trendline. Is a bullish reversal in order? Get your market update from @FxWestwater here: https://t.co/kLXZewWBMd https://t.co/w1Nu0z569m
  • 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/Gn41XsGktg
  • Rollover is the interest paid or earned for holding a currency spot position overnight. Learn how to earn rollover interest on your open positions here: https://t.co/SRsG8CxjEn https://t.co/2AR1qgx0tz
  • The New Zealand Dollar is in a tricky spot. On one hand, rising stocks can propel NZD. On the other, a dovish RBNZ ahead could cool bond yields as the government tackles soaring housing costs. Get your market update from @ddubrovskyFX here: https://t.co/5rjm2gr3EL https://t.co/aLwhWHMPqz
Managing USD Expectations with EUR/USD, USD/CAD (but not USD/JPY)

Managing USD Expectations with EUR/USD, USD/CAD (but not USD/JPY)

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- USDOLLAR Index attempts to move higher, but be cautious.

- 'Not all USD-pairs are created equal' - ie USDJPY is not ideal.

- Reminder that July forex seasonals in QE era work against USD.

For the second day in a row the European economic calendar was particularly barren, but event risk traders will find solace in several potentially market moving data releases out of the United States this morning.

Considering the importance of inflation to the Federal Reserve's 'lower for longer' interest rate policy, the 12:30 GMT release of the June US Consumer Price Index is probably the most important event on the calendar this morning (ancillary US housing data is due at 14:00 GMT).

In recent weeks, Fed Chair Yellen has described the recent uptick in price pressures as 'noisy,' if only to downplay the likelihood that the Fed will hike interest rates in the first half of 2015. However, with the US labor market exceeding even the Fed's optimistic projections, further upside inflation pressures will only incentivize traders to position themselves for higher short-term rates in the near-future.

While the USDOLLAR Index may be ticking higher the past several days, it's worth pointing out that 'all USD-pairs are not created equal.' We say that because, on a relative basis, there are still some currencies outperforming the US Dollar, or at least keeping pace (see: USDJPY's 2% range over the past five months).

Instead, as the technical video above outlines, it's important to be selective with USD-pair exposure. If the buck weakens, attention should immediately turn to USDJPY. But if the greenback is to get stronger, EURUSD (breaking its July 2012-July 2013 uptrend) and USDCAD (attempting to break through the March-June downtrend) are both better positioned to express USD strength.

Read more: EUR/USD Breakdown, GBP/CAD, USD/CAD Breakouts Eyed this Week

--- 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, please fill out this form

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

DISCLOSURES