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
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
Wall Street
Bullish
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • The #FTSE 100 surged to its highest level since early June on Wednesday after the equity index pierced a longstanding technical barrier around 6,200. Get your #FTSE market update from @PeterHanksFX here:https://t.co/uFaYFaPGz2 https://t.co/mNnlGDksJn
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.30%, while traders in US 500 are at opposite extremes with 76.93%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/kZcqWecOdG
  • The $EURUSD's climb continues at an exceptional pace. It is on course for the biggest three-week rally since May 2015 (the bottoming after the 2014 collapse) https://t.co/AbDLQ07D95
  • ECB's Lagarde says we are at low point of this crisis today - BBG
  • US Treasury Yields: 2-Year: 0.194% 3-Year: 0.250% 5-Year: 0.400% 7-Year: 0.633% 10-Year: 1.393% 30-Year: 1.626% $TNX
  • Wonder when this’ll reverse 🤔 Highly recommend checking this piece out ⬇️ https://t.co/lrQDt3oLDZ
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: US 500: 0.02% FTSE 100: 0.01% Wall Street: 0.01% Germany 30: -0.09% France 40: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/lVtLGVVPJs
  • BOC's Gravelle says inflation targeting is not impeded by size of balance sheet $USDCAD
  • Bitcoin declined to a four-week low at $7,598 then reversed higher and closed later the weekly candlestick in the green with a 2.5% gain. Get your $BTC technical analysis from @malkudsi here: https://t.co/JLTBNlX1Wp https://t.co/r60ZMMsDjC
  • BOC's Gravelle says thoughts on 0.25% lower bound have not shifted - BBG
Dollar May Rise as UK Markets Return, Aussie at Risk on Budget News

Dollar May Rise as UK Markets Return, Aussie at Risk on Budget News

2012-05-08 04:56:00
Ilya Spivak, Head Strategist, APAC
Share:

Talking Points

  • US Dollar, Yen May Rise as UK Markets Return from Bank Holiday
  • Aussie at Risk if Government Spending Cuts Spur RBA Rate Cut Bets
  • Euro Volatility Unlikely on German Industrial Production Report

The return of UK markets from a bank holiday yesterday may prove to be the most significant driver of early price action as traders in the world’s top foreign exchange trading center prices in the weekend’s political developments in the Eurozone. FTSE 100 stock index futures are trading slightly lower ahead of the opening bell in London, hinting at a cautiously risk-averse tone that may underpin the safe-haven US Dollar and Japanese Yenagainst their leading counterparts.

Australia’s 2012-13 budget is also due to be unveiled by Treasurer Wayne Swan. The government has made a statement of delivering a surplus this time around after four years of deficits. Such a feat will require sharp spending cuts, which markets speculate will come in around 2.5 percent of GDP. Australian Prime Minister Julia Gillard has argued that retrenchment on the fiscal side will pave the way for the RBA to blunt the impact on growth with deeper rate cuts. With that in mind, the release may prove to weigh heavily on the Australian Dollar as the degree of austerity is made clear.

German Industrial Production figures amount to the only bit of data scheduled to cross the wires in European hours. Expectations call for output to rise 0.8 percent in March, a nominal improvement after a 1.3 decline recorded in the previous month. Looking past month-to-month volatility however, the reading will do little to disturb the overall down trend playing out for over a year now. As such, it seems unlikely to be meaningfully supportive for the Euro, particularly in light of the recent slump in manufacturing PMI readings.

Asia Session: What Happened

GMT

CCY

EVENT

ACT

EXP

PREV

23:01

GBP

BRC Shop Price Index (YoY) (APR)

1.3%

1.6%

1.5%

23:01

GBP

Lloyds Employment Confidence (APR)

-59

-58

23:01

GBP

RICS House Price Balance (APR)

-19%

-11%

-11% (R-)

1:30

AUD

Trade Balance (A$) (MAR)

-1587M

-1300M

-754M (R-)

Euro Session: What to Expect

GMT

CCY

EVENT

EXP

PREV

IMPACT

9:30

AUD

Australian Government Unveils 2012-13 Budget

-

-

High

10:00

EUR

German Industrial Production (MoM) (MAR)

0.8%

-1.3%

Medium

10:00

EUR

German Industrial Production (YoY) (MAR)

-1.2%

-1.0%

Medium

Critical Levels

CCY

SUPPORT

RESISTANCE

EURUSD

1.2982

1.3092

GBPUSD

1.6138

1.6220

--- 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

News & Analysis at your fingertips.