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
EUR/USD
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
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
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
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • 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/FqAsp91Gia
  • 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/cKOUmtj7Dj
  • 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/TnL91f7sl7
  • Human error in the forex market is common and often leads to familiar trading mistakes. These trading mistakes crop up particularly with novice traders on a regular basis. Learn about the top ten trading mistakes and how you can avoid them here: https://t.co/i8E2AXtzF3 https://t.co/cDcjl3Ue09
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/KWOX5wSipe
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/cwSWCpKtaj
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/zu5hMovbz6
  • 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/QMKyTBOKNG
  • 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/aRkGoNvj6D
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/ltVTNO2sjT
Risk Starts Week Lower as USD, JPY Gain Traction

Risk Starts Week Lower as USD, JPY Gain Traction

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- Japanese Yen top performer as global equity markets extend losses.

- Reach for liquidity evident with stereotypical 'safe havens' gaining favor.

- As market volatility is set to rise with summer ending, it's a good time to review risk management principles.

An incredibly quiet start to the week should not be taken lightly, as market participants are proving plenty jittery in the run-up to the September 20-21 FOMC and BOJ rate decisions. For risk assets like equities, price action the past few days has been anything but comforting: on Friday, for the first time ever, the S&P 500 went from being within 0.5% of an all-time high to closing at a two-month low.

Part of the reason for concern may be due to the notion that the Federal Reserve will be raising rates next week, a problem for some given the slowed cadence of US economic data. Accordingly, with three Fed speakers today, interest rate and FX markets should prove highly sensitive to any potential clues regarding what the Fed will do next Wednesday.

Along those lines, you can probably ignore the first two Fed speakers of the day, Lockhart and Kashkari. No offense to either, but as non-voting members, their opinions are immaterial in comparison to Fed Governor Brainard, set to speak at 17:15 GMT today. Perceived as a more dovish FOMC member, Brainard's speech will be viewed as a litmus test for the FOMC's appetite to raise rates next week: if Brainard comes out optimistic and confident, it could suggest that there is unity among policymakers to hike rates.

If so, look for Fed funds futures implied probabilities to move quickly, as too will the US Dollar (it being particularly devoid of any other meaningful drivers today). Coming into this week, there was a 30% chance of a 25-bps rate hike in September, and a 60% chance of a hike by December.

See the above video for a technical review of the USDOLLAR Index, EUR/USD, GBP/USD, AUD/USD, USD/JPY, and USD/CAD.

Read more: Euro Weakness May be Forthcoming as ECB Signals More Easing to Come

--- 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