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
Oil - US Crude
Bullish
Wall Street
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
Gold
Bearish
GBP/USD
Bearish
USD/JPY
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
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/ZDuee58Abe
  • 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/niJL2W2yXV
  • 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/0rNbbrd58e
  • 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/zPzJAxBJxt
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/uf6KEYTes5
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/gRjdVfbg66
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/mLLGqYUygY
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/HUYJzEkYiT
  • #Gold prices put in a major breakout last month and, so far, buyers have held the line. But a really big Fed meeting is on the calendar for this week. Can Gold bulls hold? Get your market update from @JStanleyFX here: https://t.co/NGRTSfceOW https://t.co/QkSUORIQE2
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/PHK2sqB1jV
US Dollar Rally Continues to Build, Nine Gains in 11 Days

US Dollar Rally Continues to Build, Nine Gains in 11 Days

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- The US Dollar rally continues unabated, now up for the ninth time in 11 sessions, as the DXY Index moves up to three-month highs.

- A quieter news flow overnight marked by the May Labor Day holiday keeping most markets around the world closed; US ISM Manufacturing due later today to shape expectations for Friday's Nonfarm Payroll report.

- Sentiment for the US Dollar is starting to turn more bearish as retail traders sell.

For longer-term technical and fundamental analysis, and to view DailyFX analysts’ top trading ideas for 2018, check out the DailyFX Trading Guides page.

The US Dollar (via the DXY Index) is trading at anear four-month high as its month-end rally has continued into May. Many major financial markets were closed today due to the May Labor Day, including Germany, France, Spain, China, and Hong Kong, keeping a lid on the newswire, letting greenback run continue unabated. Gains have now accumulated in nine of the past 11 trading sessions.

The big news piece of the past 24-hours, given the void created by the holiday, has been the development that the Trump administration is delaying implementation of the proposed aluminum and steel tariffs on Canada, the EU, and Mexico until June 1. As previously discussed, the imposition of tariffs would negatively impact the US economy and the US Dollar, thus news of their delay (perhaps permanently) is seen as a positive for the greenback.

Notably, EUR/USD's losses have seen it drop through the 1.2070/90 zone (resistance in August and September 2017 and January 2018), leaving it exposed to more downside as bearish momentum accelerates. Similarly, GBP/USD has dropped back to the trendline originating in January 2017 as BOE May rate hike odds have absolutely disintegrated over the past two weeks, down to 17% after peaking at 85% in mid-April.

Looking ahead to the calendar, the April US ISM Manufacturing survey kicks off a trio of releases this week that will shape expectations ahead of the April US Nonfarm Payrolls report on Friday (ADP Employment on Wednesday and ISM Services on Thursday round out the trio).

But before speculation around the US jobs report can begin in earnest, traders will have to contend with the May FOMC meeting tomorrow. While no change in rates is expected, given recent gains in inflation and the prospect for strong economic growth through mid-2018, it is widely expected that the FOMC's policy statement will have a hawkish hue that keeps June in line for a 25-bps rate hike (when a new Summary of Economic Projections is released).

See the above video for technical considerations in the DXY Index, EUR/USD, USD/JPY, GBP/USD, AUD/USD, NZD/USD, Gold, and the S&P 500.

Read more: FX Markets to Focus on RBA & FOMC, Eurozone GDP & CPI, US NFPs

FX TRADING RESOURCES

Whether you are a new or experienced trader, DailyFX has multiple resources available to help you: an indicator for monitoring trader sentiment; quarterly trading forecasts; analytical and educational webinars held daily; trading guides to help you improve trading performance, and even one for those who are new to FX trading.

--- Written by Christopher Vecchio, CFA, 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