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
GBP/USD
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
More View more
Real Time News
  • Heads Up:🇨🇳 Industrial Profits (YTD) YoY (AUG) due at 01:30 GMT (15min) Previous: 57.3% https://www.dailyfx.com/economic-calendar#2021-09-27
  • RT @FxWestwater: Australian Dollar Forecast: $AUDUSD Action May Swing on Chinese Industrial Profits Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/09/26/Australian-Dollar-Forecast-AUDUSD-Action-May-Swing-on-Chinese-Industrial-Profits.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://…
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/YTdM3KVtUk
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHHGbZ https://t.co/Bnih4YvTdg
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZ5LG7
  • (Weekly Fundy) Crude Oil May Rise as Covid Case Growth Slows. WTI Eyes OPEC Outlook, Evergrande #CrudeOil #WTI #OPEC #Evergrande https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/09/26/Crude-Oil-May-Rise-as-Covid-Case-Growth-Slows-WTI-Eyes-OPEC-Outlook-Evergrande.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/76e2aGf3p0
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4Cnoc1dk0 https://t.co/NhsMS1EY4b
  • We are heading into the final trading days for the month of September and event risk thins out amid the $SPX's rebound. This is what history says for the 39th week of the year and here is my take on the variable factors: https://www.dailyfx.com/forex/video/daily_news_report/2021/09/25/SP-500-and-Dollar-Have-Different-Views-for-Last-Week-of-September.html https://t.co/4OBVmrvI7I
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://www.dailyfx.com/free-trading-guides?ref-author=social#forecastschoices=AUD?QPID=30472&CHID=9 https://t.co/LHJi7CNFmM
  • $EURUSD https://t.co/KZyXX6p2oI
FOREX: Dollar Weakness to Continue, Merkel / Lagarde Meeting on Tap

FOREX: Dollar Weakness to Continue, Merkel / Lagarde Meeting on Tap

Ilya Spivak, Head Strategist, APAC

Talking Points

  • US Dollar Slumps as Stocks Rise in Asia, Denting Safety Demand
  • Merkel/Lagarde Meeting, Greek Bill Sale Lead European Calendar
  • S&P 500 Index Futures Hint Recovery in Risk Appetite to Continue

The US Dollar (ticker: USDollar) traded broadly lower in overnight trade, down as much as 0.3 percent on average against its leading counterparts, as gains on Asian stock exchanges sapped demand for the safe-haven currency. The MSCI Asia Pacific regional equity benchmark index rose 1.1 percent after US Consumer Credit rose to $20.4 billion – the highest in at least 4 years – while Chinese Imports grew at the slowest pace in 26 months. The former release suggested demand was picking up in Asia’s go-to export market while the latter hinted Beijing may press forward with additional reserve ratio requirement cuts after reducing the rate to 21 percent in December. Not surprisingly, the stocks-correlated Australian, New Zealand and Canadian Dollars outperformed.

Looking ahead, the economic calendar is quiet in European hours. Greece will sell €1.25B in 182-day bills, but the short tenor of the securities on offer and the already well-established predicament facing Athens at least over the near term is likely to keep the outcome from being particularly market-moving. Indeed, Eurozone debt crisis have been focused on larger economies (Spain, Italy and to some extent France) too big to be bailed with existing rescue facilities, of which Greece is clearly not a part. A meeting between German Chancellor Angela Merkel and IMF Managing Director Christine Lagarde may prove to be more interesting. The German leader met with her French counterpart yesterday, where the two said they may complete new budget rules for the Euro area by the January 30 European Union summit, one month ahead of schedule.

On balance, while yesterday’s Merkel/Sarkozy meeting was not a game-changer in that traders learned little in terms concrete policy prescriptions for containing the debt crisis, the outcome likewise didn’t add anything substantially more negative into the equation. Expectations of a similar outcome to the Merkel/Lagarde outing combined with hopeful sentiment ahead of the fourth-quarter corporate earnings reporting season against a backdrop of improving US economic data appear to be fueling profit-taking on risk-aversion bets. This seems likely to continue weighing on the US Dollar over the near term after net speculative long positions on the go-to safe haven currency held near the highest in close to three months last week. Indeed, S&P 500 stock index futures are pushing firmly higher in late Asian trade, hinting the pick-up in risky assets is likely to continue.

Asia Session: What Happened

GMT

CCY

EVENT

ACT

EXP

PREV

21:45

NZD

Building Permits (MoM) (NOV)

-6.4%

3.3%

10.7%

23:00

NZD

QV House Prices (YoY) (DEC)

2.4%

-

1.7%

0:01

GBP

RICS House Price Balance (DEC)

-16.0%

-19.0%

-17.0%

0:01

GBP

BRC Sales Like-For-Like (YoY) (DEC)

2.2%

0.5%

-1.6%

0:30

AUD

Building Approvals (MoM) (NOV)

8.4%

6.0%

-10.0% (R+)

0:30

AUD

Building Approvals (YoY) (NOV)

-18.9%

-19.8%

-29.9% (R-)

3:00

CNY

Trade Balance ($) (DEC)

16.52B

8.80B

14.53B

3:00

CNY

Imports (YoY) (DEC)

11.8%

18.0%

22.1%

3:00

CNY

Exports (YoY) (DEC)

13.4%

13.4%

13.8%

Euro Session: What to Expect

GMT

CCY

EVENT

EXP

PREV

IMPACT

7:30

EUR

Bank of France Business Sentiment (DEC)

95

95

Low

7:45

EUR

French Manufacturing Production (YoY) (NOV)

-0.1%

2.6%

Low

7:45

EUR

French Industrial Production (MoM) (NOV)

-0.1%

0.0%

Low

7:45

EUR

French Industrial Production (YoY) (NOV)

-0.4%

1.8%

Low

7:45

EUR

French Manufacturing Production (MoM) (NOV)

-0.4%

0.0%

Low

10:00

EUR

Greece to Sell €1.25B in 182-day Bills

-

-

Medium

19:00

EUR

Germany’s Merkel, IMF’s Lagarde Meet in Berlin

-

-

High

Critical Levels

CCY

SUPPORT

RESISTANCE

EURUSD

1.2692

1.2859

GBPUSD

1.5413

1.5515

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow me on Twitter at @IlyaSpivak

To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to ispivak@dailyfx.com

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

DISCLOSURES