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
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
Oil - US Crude
Mixed
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
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
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.44% Silver: 0.44% Gold: 0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/XSXYSS6tMi
  • 🇺🇸 Markit Manufacturing PMI Flash (APR) Actual: 60.6 Expected: 60.5 Previous: 59.1 https://www.dailyfx.com/economic-calendar#2021-04-23
  • Heads Up:🇺🇸 New Home Sales MoM (MAR) due at 14:00 GMT (15min) Expected: 12% Previous: -18.2% https://www.dailyfx.com/economic-calendar#2021-04-23
  • On Capital Gains Tax , DC sources says final bill likely to bring rate to high 30s not full 43% - Fox
  • The FTSE ran aground above 7000, an area of big focus. Further retracing looks to be in the cards. Get your #FTSE market update from @PaulRobinsonFX here:https://t.co/7igqha5hFj https://t.co/vG4EzjYdi6
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: US 500: 0.12% Wall Street: -0.13% FTSE 100: -0.48% France 40: -0.58% Germany 30: -1.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/XrNsCuQLbT
  • Heads Up:🇺🇸 Markit Manufacturing PMI Flash (APR) due at 13:45 GMT (15min) Expected: 60.5 Previous: 59.1 https://www.dailyfx.com/economic-calendar#2021-04-23
  • #Bitcoin has continued to head lower today, falling below the 50,000 level for the first time since early March. The crypto found support around 48,000 and is now trading slightly higher. $BTC https://t.co/cmjkELfJVR
  • It took 108 days for Dogecoin ($DOGEUSD) to advance approximately 9000% (to April 19) and only 4 days to reverse approximately 60% of the gains to today's intraday low https://t.co/YCAp8gJAcK
  • $USDJPY has taken out the 38.2% Fib of the 2021 range and in the process is cementing the 10th consecutive daily decline - what will be the longest consistent slide since August 2011 https://t.co/gJPqiQGX2G
US Dollar Clings onto Gains at the Start of Key Week

US Dollar Clings onto Gains at the Start of Key Week

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- The DXY Index is barely higher at the start of the week, holding onto gains as little progress was made on either the Brexit or Italian budget fronts over the holiday week.

- Meanwhile, traders are hoping for a deal at the G20 meeting this week to resolve tensions in the US-China trade war.

- Retail traders continue to fade advances by the US Dollar, leaving EUR/USD and GBP/USD with bearish outlooks.

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

The US Dollar (via the DXY Index) has started the week off on slightly firmer ground, up by less than +0.1% at the time this report was written. The return of liquidity to markets has produced cautious trading conditions as some of the pre-holiday week issues continue to linger: Brexit appears ready to go off the rails at any moment; the Italian budget saga persists; and energy markets remain in meltdown mode.

While the US Dollar has been arguably a bystander to many of the significant trends that have emerged in recent weeks, the coming few days should see the greenback reassert itself as a prime driver in FX markets. Even though the first two days of the week are quiet on the economic calendar - not dissimilar from the other major currencies - the second half of the week promises several significant developments to transpire.

On Thursday, the November FOMC meeting minutes will be of interest given the recent move in energy markets. The combined impact of a stronger US Dollar (the DXY Index is just off yearly highs) and plunging Crude Oil prices portends to a softer inflation environment in the near-future, which may given the Fed reason to reassess its rate hike cycle (the speech by Fed Chair Jerome Powell on Wednesday may also hint of this shifting perspective). This is a significant risk to the US Dollar, as we first noted in the "Markets after the US Midterms" special report: rates markets are pricing in the end to the Fed hike cycle in 2019.

The main attraction for the week comes on Friday, however, when the G20 conference convenes in Buenos Aires, Argentina. US President Donald Trump and Chinese President Xi Jingping are due to meet on the sidelines in what is perceived to be an effort to end the US-China trade war. We've seen a lot of false starts to end the disputes, and it's possible that this is another 'buy the rumor, sell the news' type of situation. But with the economic impact starting to become more evident for both China and the US, now may be the time to strike the iron.

DXY Index Price Chart: Daily Timeframe (January to November 2018) (Chart 1)

US Dollar Clings onto Gains at the Start of Key Week

The technical structure for the US Dollar remains bullish, even if the fundamental outlook has soured; it may just be a matter of time before price action begins to reflect the changing underlying fundamentals. Even though price is still above its daily 8-, 13-, and 21-EMA envelope, both Slow Stochastics and daily MACD continue to decline, suggesting a loss of upside momentum. Failure below the November 20 outside engulfing bar at 96.04 would signal the turn.

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