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
  • 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/9Bjkh5413e
  • 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
US Dollar Rally Stalls but Uptrend to Remain in Place

US Dollar Rally Stalls but Uptrend to Remain in Place

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- The US Treasury 2-year note yield hit its highest level since early-2008, while the 10-year note yield crept back above 3.000%.

- US Dollar momentum remains firmly to the topside, despite taking a breather thus far today.

- Retail traders remain net-long EUR/USD and GBP/USD, signs that they may still fall further yet.

Looking to learn more about how central banks impact FX markets? Check out the DailyFX Trading Guides.

The US Dollar (via the DXY Index) ran up to a fresh four month high earlier today before reversing course at the start of the European trading session. A quiet economic calendar did little to distract traders from the headlines regarding the US withdrawal from the Iran nuclear deal, which has seen Crude Oil move to a fresh yearly high and highest level since November 2014.

While market participants are still understanding the ramfications of the US withdrawal from the Iran nuclear deal, there seemingly has been little direct impact on risk appetite: US equity futures continue to point higher; the US Treasury 2-year note yield hit a fresh 2018 high and is at its highest level since January 2008; the US Treasury 10-year note yield move back above 3.000%; and the Japanese Yen has sold off meaningfully.

With regards to the yield aspect of the story, the continued push higher in rates is exerting itself more and more as an influence over the US Dollar again. While the greenback is taking a bit of a breather today, buying dips remains the best course of action while the 'higher yield story' is still in vague.

Add in the implied large net-short position against the US Dollar in the futures market (implied by British Pound and Euros net-long positioning), and the potential for more US Dollar upside persists in the near-term.

Price Chart 1: DXY Index Daily Timeframe (August 2017 to May 2018)

US Dollar Rally Stalls but Uptrend to Remain in Place

From a technical perspective, US Dollar bullish momentum remains strongly to the topside. Price is above the daily 8-, 13-, and 21-EMAs in sequential order, while both MACD and Slow Stochastics are trending higher. This reinforces the fundamental outlook for the US Dollar at present time is to buy dips.

Read more: US Dollar Hits Pause after FOMC, Awaits Clues for April NFP

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