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
  • 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
  • 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/obH0RFLKhC
  • It was a big Q1 for $USDJPY but so far Q2 has been a far different tone. Which side will prevail? Get your market update from @JStanleyFX here: https://t.co/TxlD3zoglZ https://t.co/rUQnokAx30
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/ycjWjCETQJ
  • The RBA highlighting several key risks to the local economy in its semi-annual FSR may drive AUD lower against haven-associated currencies despite the expectation of strong Q1 GDP figures out of China. Get your market update from @DanielGMoss here: https://t.co/kLZ8DQxH3z https://t.co/KubqA24TLH
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/H19vRDCpUJ https://t.co/36Sy4DOnFD
USDOLLAR Index Technicals Turning - EUR/USD, USD/JPY Key

USDOLLAR Index Technicals Turning - EUR/USD, USD/JPY Key

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- EUR/USD presses below the trendline from the late-July lows.

- USD/JPY advance continues on the back of Kuroda commentary.

- August is typically a bad month for risk and a good month for the US Dollar - see the August forex seasonality report.

As we trudge our way through this last unofficial week of summer, it's inevitable that market volatility, in absence of event-driven news flow, will likely be tempered. As such, today feels like a repeat of yesterday thus far, with the USDOLLAR Index broadly, and its components individually, trading at or close to their levels from 24-hours ago.

While the slow, grinding environment may be frustrating for some, there are some important tenets to remember. First off, FX markets, more so than other asset classes, experience volatility clustering. B.B. Mandelbrot revealed this concept in 1963: "large changes tend to be followed by large changes, of either sign, and small changes tend to be followed by small changes."

As such, the axiom, "past performance does not predict future results" is insightful: just because it is quiet now in FX markets does not mean it will be quiet tomorrow or next week. After the recent jump in Fed rate hike expectations (they've cooled a bit, with December 2016 pricing a 61% chance of a rate hike today), markets should be particularly attuned to US economic data, as the Fed grapples with the propsect of raising rates in September.

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

Read more: US Dollar Posture Improves as December Rate Hike Odds Jump

--- 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