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
EUR/USD
Mixed
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
Mixed
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.37%, while traders in NZD/USD are at opposite extremes with 73.40%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/104D8ytLwb
  • BNP Paribas sees Brent crude oil averaging $44/bbl in 2020 and $59/bbl in 2021
  • 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/OjTZOQEytM https://t.co/1TOiApxfjp
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Gold: -0.44% Oil - US Crude: -1.23% Silver: -1.39% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/mBBDXIGnyn
  • US is considering curbing special exemptions for Chinese firms, according to Politico
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: -0.06% 🇨🇭CHF: -0.22% 🇨🇦CAD: -0.23% 🇯🇵JPY: -0.29% 🇳🇿NZD: -0.39% 🇦🇺AUD: -0.58% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/rst0kqdDrJ
  • Coming up at half past the hour. Please join me if you can... https://t.co/R2GcBc8KXS
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: US 500: -0.79% Wall Street: -1.00% France 40: -1.13% FTSE 100: -1.35% Germany 30: -1.52% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/u3dcuMGQBh
  • Since mid-June USD/CAD has consolidated in a well-defined zone. Will today’s Fed members speeches (14:00- 18:00 and 19:00 UK) push the pair in a clear direction? #USDCAD, #USD, #Fed https://t.co/SxjnwNupP2
  • Join @MartinSEssex 's #webinar at 6:30 AM ET/10:30 AM GMT to learn more about trading #sentiment Register here: https://t.co/XUUPRdY06p https://t.co/KsjQit31hK
DXY Index Advance Checked by Early-October High

DXY Index Advance Checked by Early-October High

2018-10-23 12:12:00
Christopher Vecchio, CFA, Senior Strategist
Share:

Talking Points:

- The Japanese Yen is the top performer today as global equity markets have quickly moved back to or through their early-October lows, a sign that risk appetite is receding once again.

- Progress made around Brexit - UK PM Mays says the deal is "95% done" - helping keep the British Pound afloat while concerns over Italy's budget and the US-China trade war are hampering other major currencies.

- Retail trader positioning is bearish on the US Dollar, which bodes well for price action in the coming days.

Looking for longer-term forecasts on the US Dollar? Check out the DailyFX Trading Guides.

The US Dollar (via the DXY Index) has advanced to but has been thus far unable to break through its early-October high, even as global risk appetite takes a hit once again. Unlike the selloff in stocks earlier in the month, this time US Treasury bond yields are moving lower, a combination that has favored the Japanese Yen (which entered the week on strong footing).

With respect to the concerns influencing price action on Tuesday, there's no new story to tell: Brexit continues to dominate trading in the British Pound; the Italian budget saga is dictating movement in the Euro, even as the European Central Bank meeting approaches this Thursday; and perception of the US-China trade war is driving bond, currencies, and stocks all across Asian markets.

While there haven't been any significant developments to report, that in and of itself may be seen as problematic: considerable time has passed without any readily available solutions having presented themselves. It seems like market participants are getting to the precipice of throwing in the towel.

All in all, an environment in which stocks are weak, bonds are strong (yields down), and the US Dollar is lower, both Gold and the Japanese Yen stand to outperform. With respect to Gold prices, it's worth noting that 1236.37 is being tested today, the December 2017 low that has been resistance ever since the breakdown in mid-July. That's as significant a flashing red light that market conditions have changed as one could hope for at this juncture.

DXY Index Price Chart: Daily Timeframe (January to October 2018) (Chart 2)

DXY Index Advance Checked by Early-October High

Despite the DXY Index advance being checked by the early-October high near 96.16, the improved technical posture still points higher into the second half of this week. Price remains above its daily 8- 13-, and 21-EMA envelope, and the moving averages are still in sequential fashion. Both daily MACD and Slow Stochastics are trending higher in bullish territory. Such price action suggests that today may be merely a pause before a bullish breakout opportunity ahead.

Read more: FX Week Ahead: BOC on Wednesday, ECB on Thursday, Q4’18 US GDP on Friday

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

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.