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
Oil - US Crude
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
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/rFlQtyQS81
  • Canadian Dollar snapped a three-week losing streak after USD/CAD stalled at key technical resistance. Get your CAD weekly forecast from @MBForex here: https://t.co/BPHuKecwnz https://t.co/73OmuCKfU9
  • 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/KzhQnGiLyt
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/cuneuJNZlH
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/danCiP5vqK
  • 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/JhYoQ7I19K
  • The Nasdaq 100 index is aiming to breach a key resistance level at 14,950 for a second time. A successful attempt may open the door to further gains, although the MACD indicator flags signs of weakness. Get your equities forecast from @margaretyjy here: https://t.co/BEYupi32qB https://t.co/PWeXE8tZVY
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/t34kotPE8R
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/lM1OIJdjhr
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/6qGEVjDlN6
FOMC, BOJ Make One Thing Clear: Don't Take Brexit Lightly

FOMC, BOJ Make One Thing Clear: Don't Take Brexit Lightly

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- Both Fed and BOJ withhold action to wait for Brexit.

- Any policy could be unwound by next Thursday depending on vote.

- FX volatility set to remain high with the Brexit vote next week - it's the right time to review risk management principles to protect your capital.

The US Dollar is posting some modest strength today, even as USD/JPY has slid to fresh yearly lows below ¥105.00. This is not a good sign for risk assets (the German DAX and Japanese Nikkei 225 come to mind), particularly in context for the reason why: the world's most influential central banks are increasingly uncertain about the future.

Consider the Federal Reserve: rate hikes are desired. Yet raising rates yesterday, with the June 23 UK-EU referendum next week, could be a trap for Fed credibility; if they hike and a Brexit transpires, they would quickly have to backtrack. Same goes for the Bank of Japan: a weaker Japanese Yen is desired. Yet using their ammunition to weaken the Yen now could mean that their entire efforts would be unwound by next week, a trap for BOJ credibility.

For the Fed, it makes sense to wait now that recent US labor market data has slowed and longer-run inflation expectations have become unmoored. Likewise, for the BOJ, in the event that a Brexit does happen, it's very likely that the Japanese Yen becomes the global safe haven almost instantaneously.

In such an environment, it would actually be easier for Japanese finance and monetary officials to get approval from the international community to intervene to weaken the Yen - it'd be seen as a 'necessary precaution.' The BOJ may have disappointed last night, but the intervention threat in the Yen is growing as the June 23 vote approaches.

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

Read more: Osborne Hints at More Austerity as ’Leave’ Outlines Path After Brexit

--- 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