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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
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
  • - Unreal atmosphere - Shame about the result, but no complaints - Usyk masterclass - Heavyweight division blown wide open
  • The USD could still rally a bit from here, but has resistance not far ahead that it will need to overcome if it is to extend to a larger degree. Get your weekly $USD technical forecast from @PaulRobinsonFX here:
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here:
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here:
  • What is your forex trading style? Take the quiz and find out:
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here:
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here:
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here:
  • 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:
  • Sterling continues to contract into trend extremes and the focus is on a pending breakout in the weeks ahead. Get your weekly $GBP technical forecast from @MBForex here:
EUR/GBP Continuation, GBP/JPY Reversal Gathering Pace

EUR/GBP Continuation, GBP/JPY Reversal Gathering Pace

Christopher Vecchio, CFA, Senior Strategist

Talking Points

- Commentary from UK & EU officials increasingly pointing to a 'soft' Brexit.

- EUR/GBP breakdown comes days ahead of Italian referendum.

- Evidence piling up that GBP/JPY bottom is in.

The US Dollar is trading slightly lower across the board this morning (via DXY Index) as a series of data surprises from Europe and unexpected, diplomatic commentary regarding Brexit have boosted appeal for the Euro and the British Pound. Yet only one of these currencies' sources of strength may have true staying power.

Unfortunately, that currency isn't Euro. Despite some of the upbeat PMI figures and evidence that Euro-Zone unemployment has moved to a seven-year low, there's still the daunting Italian constitutional referendum on Sunday, which looks like it is going to fail - and threaten to send the Euro hurdling towards its 2011/2012 existential crisis abyss.

Even in the event that the Italian referendum passes, clearing the path for needed structural reforms (albeit at the expense of democracy, and in turn, giving the prime minister unprecedented legislative power), the Euro and Europe are far from out of the woods; the prospect of a Marine Le Pen French Presidency should keep markets on edge through the April and May elections.

The British Pound, on the other hand, may see that its positive influences have staying power. Our long-term view of Brexit has always been that, because parliamentary ratification of the June 23 Brexit vote would be necessary before Article 50 could be triggered, and that the vast majority of MPs were in favor of 'Remain,' that once Brexit took shape, it would be of the soft variety; that the UK could enter a relationship with the EU akin to what Switzerland has under EFTA or Norway under EEA.

Accordingly, today's comments from Brexit Secretary Davis and Eurogroup President Dijsselbloem seem to point in that very direction. Too much negativity may be baked into the GBP cake right now. As such, while the economic populist bug may have originated in the UK with Brexit, it has far worse consequences of its inspires fringe parties across Europe to upend the establishment and withdraw from the Euro-Zone and Euro.

Amid the rising yield environment, the US Dollar should remain well-supported in the foreseeable future; yet taking all of this into account reveals fundamentally appealing setups in EUR/GBP and GBP/JPY. See the above video for technical considerations in EUR/GBP and GBP/JPY, as well as in EUR/USD, USD/JPY, Gold, GBP/USD, AUD/USD, and DXY Index.

Read more: US Dollar Ready for More Gains versus Yen, Gold

--- Written by Christopher Vecchio, Senior Currency Strategist

To contact Christopher Vecchio, e-mail

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.