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  • US Indices are rebounding from last week's sell off today. The Dow is leading the way, rising to a fresh all-time high. The Nasdaq remains negative for the day. DOW +2.00% NDX -0.55% SPX +0.91% RUT +1.70% $DIA $QQQ $SPY $IWM
  • Another look at the deviation in 'internal' interest in US equities: the candle is the Nasdaq 100 to S&P 500 ratio ($NDX-$SPX) overlaid with the S&P 500 itself in blue https://t.co/m2WK4Q2Bs5
  • A notable deviation in direction from the tech-heavy Nadex composite (candle) overlaid with the S&P 500 in blue. The 5-day correlation is still holding up but will start deviating fast at this pace https://t.co/VYY5imk1yS
  • $USD has been pretty strong over the past couple of weeks and to a lesser degree, so far in 2021 but we've only retraced about 23.6% of that massive sell-off that started last March $DXY https://t.co/t5KRSYu0TP
  • EUR/USD trades to a fresh yearly low (1.1857) as longer-dated US Treasury yields continue to push above pre-pandemic levels. Get your $EURUSD market update from @DavidJSong here:https://t.co/XWIah8irtj https://t.co/GIXPFZz2qQ
  • USD/MXN has continued to rip in 2021, flying in the face of the bearish trend from 2020. Get your $USDMXN market update from @JStanleyFX here:https://t.co/uePriXERH8 https://t.co/qRjLbgglov
  • $USDMXN strong breakout from the falling wedges that had built coming into this year. Prices now finding resistance at 50% marker of the 2017-2020 major move whether looking for usd strength or weakness, there's attractive items on $USDMXN for either https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/03/08/Mexican-Peso-Price-Forecast-MXN-USDMXN-USD-MXN-Breakout-to-Fibonacci-Resistance.html https://t.co/7TwqgZDXfH https://t.co/ocsiEw3IwC
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.37%, while traders in Germany 30 are at opposite extremes with 81.20%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/2V8w40M0zN
  • Commodities Update: As of 17:00, these are your best and worst performers based on the London trading schedule: Silver: -0.10% Gold: -1.18% Oil - US Crude: -1.45% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/710wPcmn9S
  • Lord Frost accuses the EU of ‘ill will’ as Brexit row rumbles on. @bankofengland governor Andrew Bailey gives his latest thoughts on the economy. Get your market update from @nickcawley1 here:https://t.co/Z4gAzLjtjx https://t.co/MyIHkCORSH
Get Ready for FOMC, Brexit Referendum Next Two Weeks

Get Ready for FOMC, Brexit Referendum Next Two Weeks

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- AUD/USD, EUR/USD key reversals give USD near-term bullish bias.

- USD/JPY easing back weighs on risk assets - equities lower.

- With FX volatility edging higher again, it's the right time to review risk management principles to protect your capital.

Enjoy your last stress-free (relatively speaking) weekend for the next few weeks. Indeed, with the Federal Reserve's June rate decision on Wednesday - one which has seen rate expectations swing around 25% the past week - and the UK's EU referendum on Thursday, June 23, market volatility is very likely to ratchet up. Most asset classes haven't seen a pick up in volatility, but as everyone knows, past performance is not indicative of future results.

Being in the market right now is like sitting on the beach after a day in the sun, but knowing full-well that there are dark storm clouds approaching quickly on the horizon; it's a matter of time before the downpour begins. Market sensitivity to FOMC meetings with new staff projections and a Fed Chair press conference is always higher than in normal meetings otherwise; and the absolute decimation of June rate expectations leaves plenty of room for the Fed to surprise with misconstrued hawkish language that could drive risk markets into a tailspin.

After FOMC? Any calm in the market will just be the eye of the storm - the battle is only half over. The June 23 UK's EU referendum is poised to bring higher levels of volatility across GBP-crosses the next two weeks, with annualized measures of two- and three-week volatility pricing in +/- 1.2-2.1% daily moves through the referendum. If you haven't reviewed your risk management principles leading up to the Brexit referendum, you should do so as soon as possible - now's not the time to be clever.

See the video (above) for technical considerations in EUR/USD, GBP/USD, USD/JPY, AUD/USD, and the USDOLLAR Index.

Read more: Potential Key Reversals Forming in AUD/USD, EUR/USD

--- Written by Christopher Vecchio, Currency Strategist

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

Follow him on Twitter at @CVecchioFX

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

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