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
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
More View more
Real Time News
  • 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/Q3Yfe6TMLw
  • 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/6inC94w5K4
  • All eyes on the Fed on Wednesday as investors weigh on chances of a taper announcement. Get your weekly equities forecast from @HathornSabin here: https://t.co/Cv06XcvldF https://t.co/I12g2YPkdE
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/KsPiWBysiR
  • 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/iUvhLfQgcK
  • The US Dollar caught a bid in the late part of last week to set a fresh September high. FOMC is around the corner, are bulls going to be able to push for another fresh high? Get your weekly US Dollar forecast from @JStanleyFX here: https://t.co/ZkDHyV1VhM https://t.co/w5sPChKdNx
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/bde30KM8OE
  • The Australian Dollar remains vulnerable to most of its major counterparts, with AUD/USD and AUD/JPY resuming losses. Did AUD/NZD bottom? AUD/CAD may consolidate. Get your weekly Australian Dollar forecast from @ddubrovskyFX here: https://t.co/sjh91mjtXs https://t.co/dGT067zKnH
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/VLZQhrQTAf
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/j5xDAG6LLb
EUR/USD, USD/JPY Ready for Yellen, Draghi Jackson Hole Speeches

EUR/USD, USD/JPY Ready for Yellen, Draghi Jackson Hole Speeches

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- Below 1.3335, EURUSD is exposed to 1.3095.

- If rejected at 103.85/90, USDJPY needs to hold 103.05/10.

- US Dollar strength in August shouldn't surprise - it's a seasonally strong month.

With no Wall Street economists invited to this year's Jackson Hole Economic Policy Symposium, market participants widely expect that the high-minded conference will take on a more academic tone.

Considering that the main focus of the conference is labor market recovery, the context of current times - traders waiting with baited breath for each Nonfarm Payrolls report - there is still significant scope for Fed Chair Yellen's speech to make waves in markets.

With the unemployment rate at 6.2% after having been as low as 6.1% in June, the U3 rate is on track to meet or beat the Fed's expectations. Claims continue to drop, and quit rates are at their highest levels in five years. On the contrary, long-term unemployment an issue and wage growth exceptionally weak.

In conjunction with signs of other major economies starting to flail (all of Europe, Japan) and rising geopolitical concerns that could act as a coolant to risk appetite or even global trade, Chair Yellen is likely to embrace a dovish tone today, highlighting the underutilization of the US labor markets.

EUR/USD, USD/JPY Ready for Yellen, Draghi Jackson Hole Speeches

US yields have been falling for some time now and the yield curve has undergone quite a bit of flattening this year (the 2s10s spread has narrowed from +264.8-bps on December 31, 2013 to +192.0-bps today), showing the market has fallen in step with the Fed's demands for lower yields for longer.

Any hint of a pivot away from this ultra accommodative stance and towards and accelerated rate hike schedule could easily spook the markets.

See the technical video for considerations specifically for EURUSD, USDJPY, and USDCAD.

Read more: EUR/USD Slide Continues but EUR Weakness Elsewhere Questionable

--- Written by Christopher Vecchio, Currency Strategist

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