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
Oil - US Crude
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
More View more
Real Time News
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/rFlQtyQS81
  • Canadian Dollar snapped a three-week losing streak after USD/CAD stalled at key technical resistance. Get your CAD weekly forecast from @MBForex here: https://t.co/BPHuKecwnz https://t.co/73OmuCKfU9
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/KzhQnGiLyt
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/cuneuJNZlH
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/danCiP5vqK
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/JhYoQ7I19K
  • The Nasdaq 100 index is aiming to breach a key resistance level at 14,950 for a second time. A successful attempt may open the door to further gains, although the MACD indicator flags signs of weakness. Get your equities forecast from @margaretyjy here: https://t.co/BEYupi32qB https://t.co/PWeXE8tZVY
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/t34kotPE8R
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/lM1OIJdjhr
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/6qGEVjDlN6
Dollar, Yen Vulnerable as Risk Appetite Recovery Aims to Continue

Dollar, Yen Vulnerable as Risk Appetite Recovery Aims to Continue

Ilya Spivak, Head Strategist, APAC

Talking Points

  • Dollar, Yen Sold on Waning Haven Demand as Stocks Rise in Asia
  • Soft UK, Eurozone Economic Data Unlikely to Derail Risk-On Tone
  • Australian Dollar Outperforms as RBA Stays in Wait-and-See Mode

The US Dollar and the Japanese Yen declined in overnight trade as Asian stocks advanced, denting demand for the go-to haven currencies. The MSCI Asia Pacific regional benchmark stock index rose 0.6 percent, bolstered by reports of German support for ECB efforts to trim periphery borrowing costs. Arguments in favor of further QE from the Fed’s Eric Rosengren and John Williams, Presidents of the central bank’s Boston and San Francisco branches respectively, were likewise supportive.

The Australian Dollar narrowly outperformed after the Reserve Bank of Australia left the benchmark interest rate unchanged at 3.5 percent, as expected. The statement accompanying the policy announcement continued to project a wait-and-see posture, hinting RBA Governor Glenn Stevens and company are in no hurry to resume the easing cycle.

An update on European economic growth environment comes in the form of UK Industrial Production and Italian GDP figures in the hours ahead. The former release is expected to show output fell 3.5 percent in June, marking the sharpest monthly drop in a decade, while the latter confirms the Eurozone’s third-largest economy shrank for a third consecutive quarter. Separately, German Factory Orders are expected to slip 0.8 percent, reinforcing fears of spreading malaise from the periphery and into the core of the currency bloc.

While certainly not supportive, these outcomes reinforce already well-established expectations of a downturn in regional European growth rather than offer something new into the equation. With that in mind, it seems unlikely that the day’s data set has scope to generate meaningful risk aversion. Indeed, S&P 500 stock index futures are pointing firmly higher, hinting the risk-on mood noted overnight is likely to carry forward.

Asia Session: What Happened

GMT

CCY

EVENT

ACT

EXP

PREV

22:45

NZD

Average Hourly Earnings (QoQ) (2Q)

0.2%

0.5%

1.3%

22:45

NZD

Private Wages ex Overtime (QoQ) (2Q)

0.5%

0.6%

0.5%

22:45

NZD

Labor Cost Private Sector (QoQ) (2Q)

0.5%

0.5%

0.5%

23:01

GBP

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

0.1%

-0.2%

1.4%

23:50

JPY

Official Reserve Assets ($) (JUL)

1272.8B

-

1270.6B

4:30

AUD

RBA Rate Decision (AUG 7)

3.50%

3.50%

3.50%

Euro Session: What to Expect

GMT

CCY

EVENT

EXP/ACT

PREV

IMPACT

5:45

CHF

Unemployment Rate s.a. (JUL)

2.9% (A)

2.9%

Medium

5:45

CHF

Unemployment Rate (JUL)

2.7% (A)

2.7%

Medium

7:00

CHF

Foreign Currency Reserves (JUL)

406.5B (A)

365.1B

Low

7:15

CHF

Consumer Price Index (MoM) (JUL)

-0.5% (A)

-0.3%

Medium

7:15

CHF

Consumer Price Index (YoY) (JUL)

-0.7% (A)

-1.1%

Medium

7:15

CHF

CPI - EU Harmonised (YoY) (JUL)

-0.3% (A)

-1.2%

Medium

7:15

CHF

CPI - EU Harmonised (MoM) (JUL)

-0.8% (A)

-0.2%

Medium

8:00

EUR

Italian Industrial Production sa (MoM) (JUN)

-1.0%

0.8%

Low

8:00

EUR

Italian Industrial Production nsa (YoY) (JUN)

-

-6.8%

Low

8:00

EUR

Italian Industrial Production wda (YoY) (JUN)

-6.5%

-6.9%

Low

8:30

GBP

Industrial Production (MoM) (JUN)

-3.5%

1.0%

Medium

8:30

GBP

Industrial Production (YoY) (JUN)

-5.3%

-1.6%

Medium

8:30

GBP

Manufacturing Production (MoM) (JUN)

-4.3%

1.2%

Low

8:30

GBP

Manufacturing Production (YoY) (JUN)

-5.7%

-1.7%

Low

9:00

EUR

Italy to Approve Spending Cuts

-

-

-

9:00

EUR

Italian GDP s.a. and w.d.a. (QoQ) (2Q P)

-0.8%

-0.8%

Medium

9:00

EUR

Italian GDP s.a. and w.d.a. (YoY) (2Q P)

-2.5%

-1.4%

Medium

10:00

EUR

German Factory Orders n.s.a. (YoY) (JUN)

-7.0%

-5.4%

Medium

10:00

EUR

German Factory Orders s.a. (MoM) (JUN)

-0.8%

0.6%

Medium

Critical Levels

CCY

SUPPORT

RESISTANCE

EURUSD

1.2347

1.2449

GBPUSD

1.5545

1.5664

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

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya 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