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
Bearish
Oil - US Crude
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
Wall Street
Bearish
Gold
Bullish
GBP/USD
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
USD/JPY
Bearish
More View more
Real Time News
  • Heads Up:💶 ECB President Lagarde Speech due at 08:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-18
  • Heads Up:💶 Eurogroup Video Conference due at 08:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-18
  • Chinese Foreign Ministry: Noticed Report on US halting Huawei supply Urge US to withdraw wrong decision US Huawei move damaging internet supply chains - BBG
  • Canadian Dollar Outlook: USD/CAD Rebound May Continue Ahead of BoC - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2021/01/18/Canadian-Dollar-Outlook-USDCAD-Rebound-May-Continue-Ahead-of-BoC.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $CAD $USDCAD https://t.co/xfAI9M7wi0
  • 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/cP7ZhDHoNA
  • Heads Up:🇨🇳 FDI (YTD) YoY (DEC) due at 07:00 GMT (15min) Previous: 6.3% https://www.dailyfx.com/economic-calendar#2021-01-18
  • Wall Street Futures Update: Dow Jones (-0.133%) S&P 500 (-0.193%) Nasdaq 100 (-0.184%) [delayed] -BBG
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/dPj0seqzQS
  • An upbeat China Q4 GDP reading sent mainland and HK stocks higher, but failed to lift stocks in the rest of Asia: - CSI 300 (+1.20%) - Shanghai Composite (+0.91%) - Hang Seng (+0.65%) - Nikkei 225 (-1.01%) - ASX 200 (-0.78%) - Straits Times (-0.80%)
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in NZD/USD are at opposite extremes with 68.27%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/dNtaWoHOAB
Profit Taking Driving USD, FX Ahead of Holiday Liquidity Drain

Profit Taking Driving USD, FX Ahead of Holiday Liquidity Drain

2016-11-22 12:34:00
Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- DXY Index rally pausing, trading back to the highs seen in March and December 2015.

- Several key events tomorrow appear for one last hurrah before US Thanksgiving Holiday: Euro-Zone PMIs; UK Autumn Statement; US Durable Goods; and US FOMC Minutes.

- Political risk in Europe is heating up after Brexit and the US Presidential elections.

FX markets are starting to quiet down already as traders prepare for the mid-week liquidity drain around the US Thanksgiving holiday. The US Dollar, which has been on an absolute tear over the past two weeks, may see a pause the next few days as a result of the holiday: traders prefer to take profits and square their books before stepping away for an extended period of time.

For now, the key area to watch for support in DXY Index comes at 101.35/55, carved out between the daily 8-EMA and the former highs from March and December 2015. Given that both nominal US yields and inflation expectations are rising in the US, it appears that the recent greenback rally is the real deal. As such, pullbacks in DXY around the holiday this week should be viewed as opportunities to re-enter long positions.

Necessarily, if DXY is still poised for upside, then it's time to put EUR/USD into focus. The big picture: it's in the midst of an historic streak of price consolidation, but it appears to be coming to an end. Read our Q4'16 forecast, "EUR/USD Coil Grows Tighter as Central Banks, Politicians Face Credibility Deficit."

As markets wind down the next two days, don't dismiss the calendar. While today is a bit lackluster going forward, tomorrow has a good deal of excitement, holiday on the horizon or otherwise: Euro-Zone PMI data in the morning will be the best gauge for sentiment after the US elections; the UK Autumn Statement will help shape expectations for either a 'soft' or a 'hard' Brexit; and the November US FOMC minutes will be used as fodder to justify tighter policy at the meeting next month.

See the above video for a technical review of the DXY Index, EUR/USD, GBP/USD, EUR/GBP, USD/JPY, USD/CAD, and Crude Oil.

Read more: Rising Euro-Zone, US Political Risks Driving EUR/USD in Short-term

--- Written by Christopher Vecchio, Senior 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