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.

Free Trading Guides
EUR/USD
Bullish
GBP/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
USD/JPY
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
Bullish
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • The Australian Dollar and New Zealand Dollar tend to rise with stocks. They have recently fallen despite gains in the #SP500. What does this mean for $AUDUSD and $NZDUSD ahead? #AUD #NZD #RBA #RBNZ - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/01/17/AUDUSD-NZDUSD-Outlook-Looks-Past-Stocks-to-Rate-Cut-Bets.html?CHID=9&QPID=917702 https://t.co/ddf2fV7Kyl
  • A few snippets from today's commentary. Check out the link below for the full story (via @DailyFX). https://t.co/I31tuq764r https://t.co/x0BaiOFA1P
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/e2YrN3dBrl
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.00%, while traders in France 40 are at opposite extremes with 79.59%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/UL7hqSD2Ki
  • US Dollar Forecast: $USD Lacking Impetus Ahead of Consumer Sentiment #Forex traders shift focus away from US-China trade deal headlines - perhaps toward the monthly release of #ConsumerSentiment data for volatility and clues on the Greenback's next move https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2020/01/16/us-dollar-forecast-usd-lacking-impetus-ahead-of-consumer-sentiment.html
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.11% 🇦🇺AUD: -0.02% 🇯🇵JPY: -0.03% 🇨🇭CHF: -0.05% 🇬🇧GBP: -0.06% 🇨🇦CAD: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Kxcb9EtIWb
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.45% France 40: 0.26% Wall Street: 0.07% US 500: 0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/I5YIsKQAog
  • 🇯🇵 JPY Tertiary Industry Index (MoM) (NOV), Actual: 1.3% Expected: 1.0% Previous: -5.2% https://www.dailyfx.com/economic-calendar#2020-01-17
  • The $JPY has weakened as a bounce-back in risk appetite saps haven-asset demand. However, the old uptrend line still provides clear resistance. Get your market update from @DavidCottleFX HERE:https://t.co/IMhgQ9jbF9 https://t.co/I7087olftk
  • Heads Up:🇯🇵 JPY Tertiary Industry Index (MoM) (NOV) due at 04:30 GMT (15min), Actual: N/A Expected: 1.0% Previous: -4.6% https://www.dailyfx.com/economic-calendar#2020-01-17
Dollar Sold as Risk Appetite Recovers Ahead of US GDP Report

Dollar Sold as Risk Appetite Recovers Ahead of US GDP Report

2010-05-27 05:10:00
Ilya Spivak, Sr. Currency Strategist
Share:

Key Overnight Developments

• New Zealand Posts First Annual Trade Surplus in Eight Years
• Japan’s Annual Exports Rise for Fifth Month on Asian Demand
Euro, Pound Soar Against US Dollar as Risky Assets Rebound

Critical Levels

euroopen052720101

The Euro and the British Pound soared 0.8 and 0.5 percent respectively against the US Dollar as stocks pushed higher in Asian trade, sapping demand for the safety-linked currency. We remain short EURUSD at 1.4881.

Asia Session Highlights

euroopen052720102

New Zealand’s Trade Balance showed a surplus of NZ$161 million in the year to April, the first positive reading since July 2002, as exports surged the most in over a year while imports fell for the second consecutive month. Overseas sales added 9 percent from a year ago – the most since March 2009 – while inbound shipments declined 0.2 percent over the same period. Shipments to South Korea, Taiwan and China led the increase, with more of the same likely ahead with a survey of economists polled by Bloomberg calling for growth the three East Asian economies to broadly outpace that of the G10. Exports account for close to 30 percent of New Zealand’s economy, with continued firmness here promising to boost growth as well as the outlook for monetary tightening. Indeed, a Credit Suisse gauge of interest rate expectations calls for the RBNZ to add 147 basis points to benchmark borrowing costs over the next 12 months, the most among its major counterparts. That said, an index tracking the price of New Zealand’s top export commodities on global markets compiled by ANZ Bank has moved in lock-step with the MSCI World Stock index – a proxy for risk sentiment – hinting that any substantial downturn in confidence across the world’s financial markets could meaningfully undermine the island nation’s terms of trade.

Meanwhile, Japan’s Trade Balance surplus narrowed to 742.3 billion yen in April from a revised 952 billion in the previous month as a 3.4 percent upswing in imports outpaced a 2.3 percent gain in exports. Looking past month-to-month volatility however, the report seemed broadly encouraging as annualized overseas sales added 40.4 percent, topping economists’ expectations and marking the fifth consecutive increase. As with New Zealand, shipments to Asia led the increase and promise to continue doing so as the region’s top economies outpace their G10 counterparts. That said, Japan’s trading terms are also sensitive to investors’ sentiment, with a flare-up in risk aversion likely to drive the Yen higher as traders unwind carry trades financed cheaply in the low-yielding currency, making the country’s exports more expensive relative to its competitors.

Euro Session: What to Expect

euroopen052720103

The docket of scheduled event risk looks fairly tame, with traders likely to focus on the second revision of US Gross Domestic Product figures set to cross the wires late into the session. Expectations suggest output growth will be upgraded to reflect an annualized 3.4 percent expansion in the first quarter, up from the 3.2 percent gain reported in the first round of preliminary figures. Even more encouraging, the increase is expected to be driven by an upward revision to private consumption growth, hinting that the foundation for a sustainable recovery is taking firming in the world’s largest consumer market. Asian stock exchanges and US equity index futures soared ahead of the release, with the latter trading higher in excess of 1 percent, hinting at buoyant risk appetite heading into European hours that promises to weigh on the safety-linked US Dollar and Japanese Yen.

Preliminary German Consumer Price Index figures are expected to show the annual inflation rate accelerated to 1.2 percent in May, the highest in 17 months. The outcome is unlikely to stir much of a reaction however with price growth well below the European Central Bank’s 2 percent target level and policymakers surely in no position to raise rates given the sovereign credit meltdown on the currency bloc’s southern periphery. In fact, the central bank moved ahead with its own version of quantitative easing earlier this month.

Elsewhere on the calendar, first-quarter Swiss Employment figures and May’s UK CBI Distributive Trades survey of retail activity are set to cross the wires.


For real time news and analysis, please visit http://www.dailyfx.com/real_time_news

To receive future articles by email, please contact Ilya at ispivak@dailyfx.com

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

DISCLOSURES

News & Analysis at your fingertips.