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
More View more
Real Time News
  • AUD/USD is little changed from the start of the week following the limited reaction to the Reserve Bank of Australia (RBA) Minutes. Get your $AUDUSD market update from @DavidJSong here:https://t.co/t44yC8zG0K https://t.co/AJCTyiAWjx
  • China's Anqing City of Anhui province says the property firm linked to Evergrande failed to make payment for land site
  • The updated dot plot will be a major focus for today’s FOMC announcement — perhaps even more so than taper timeline language. This is because Fed Chair Powell’s speech at Jackson Hole emphasized the decoupling of balance sheet normalization from future rate liftoff. $USD $DXY https://t.co/L1PFXmnK3g
  • UK energy supplier collapses now affect about 1.5mln households
  • It's #FOMC day and the markets are clearly tuned in. How will markets trade around the policy update? DailyFX's @JohnKicklighter discusses below! https://t.co/UP2VNEEqm5
  • 🇺🇸 Existing Home Sales MoM (AUG) Actual: -2% Previous: 2.2% https://www.dailyfx.com/economic-calendar#2021-09-22
  • 💶 Consumer Confidence Flash (SEP) Actual: -4 Expected: -5.8 Previous: -5.3 https://www.dailyfx.com/economic-calendar#2021-09-22
  • Heads Up:🇺🇸 Existing Home Sales MoM (AUG) due at 14:00 GMT (15min) Previous: 2% https://www.dailyfx.com/economic-calendar#2021-09-22
  • Heads Up:💶 Consumer Confidence Flash (SEP) due at 14:00 GMT (15min) Expected: -5.8 Previous: -5.3 https://www.dailyfx.com/economic-calendar#2021-09-22
  • LIVE NOW: Join Technical Strategist @MBForex for his Mid-Week Market Update to review the setups we're tracking into the #Fed! https://t.co/NG58ycm07j
US Dollar Suffers, Australian Dollar and Japanese Yen Shine - US Market Open

US Dollar Suffers, Australian Dollar and Japanese Yen Shine - US Market Open

Justin McQueen, Strategist

USD, Oil, AUD Analysis & News

  • US Dollar Suffers Easing Across the Board
  • Oil Prices Remain Volatile
  • Equities Extend Gains

Equities: Global equity markets are extending on their gains with US equity futures rising over 1%. As New Zealand announced that it will unwind its lockdown measures, it is becoming more and more evident that the impact of the coronavirus may have passed its peak. As such, with governments and central banks also propping up their economies there is seemingly a lack of enticement for bearish market participants. The absence of a notably negative catalyst could see market sentiment continue to improve.

Commodities: Oil prices are once again stealing the headlines given that front-month futures remain volatile. Today we looked at whether oil prices could go negative again. That said, there has also been a notably limited response to the precipitous fall in WTI front month futures with commodity currencies holding steady.

Currencies: Broad-based Dollar selling has been the main theme across the FX space. Easing concerns over a USD shortage has been among the key factors behind the pullback with the US Dollar 3-month libor continuing to head lower. USD/JPY made a firm break below the 107.00 handle to trade at its lowest level since mid-March. Elsewhere, EUR/USD is back to its 1-week peak of 1.0885, which we see as a key inflection point in the pair where a sustained may see a reassessment of the near-term bearish outlook.

Aside from Dollar weakness, the New Zealand Dollar has been among the underperformers after a local bank announced expectations that the RBNZ will go negative on interest rates. This is a tool that the Governor recently stated was on the table and thus keeps AUD/NZD supported.

What Next: US Confidence, API crude oil inventories at 2130BST.

Brand New Economic Calendar

US Dollar Suffers, Australian Dollar and Japanese Yen Shine - US Market OpenUS Dollar Suffers, Australian Dollar and Japanese Yen Shine - US Market Open

Source: Refinitiv, DailyFX

WHAT’S DRIVING MARKETS TODAY

  1. British Pound (GBP) Latest: Caught Between Oil Woes and Lockdown Hopes by Martin Essex, MSTA, Analyst
  2. Can Oil Prices Go Negative Again? - Cross Asset Correlation” by Justin McQueen, Market Analyst
  3. Dow Jones & S&P 500 Have Room to Rally, but Risk/Reward Going South by Paul Robinson, Market Analyst

--- Written by Justin McQueen, Market Analyst

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES