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
EUR/USD
Bullish
Oil - US Crude
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
Wall Street
Bullish
Gold
Mixed
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
USD/JPY
Bearish
More View more
Real Time News
  • Forex trading, which is the act of exchanging fiat currencies, is thought to be centuries old – dating back to the Babylonian period. Learn about the history of Forex here:https://t.co/ePTJlbUP7c https://t.co/fA7G42tGcH
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/DmhBkd4B0k https://t.co/8cM3NQIvom
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/tEpCHQDoVW
  • A punny excerpt: “Already the exchanges between Mr. Barnier and his counterpart David Frost, have – apropos to his name – sent a chilling message about bilateral trade talks”. https://t.co/OkFCvUZs2H
  • #BritishPound May Fall on #Virus-Hit GDP Data, #Brexit Stalemate ⬇️ https://www.dailyfx.com/forex/fundamental/forecast/weekly/gbp/2020/08/08/British-Pound-May-Fall-on-Virus-Hit-GDP-Data-Brexit-Stalemate.html
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/BuFKivwj2h
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/QXaLbmFSjd
  • The anti-risk Japanese #Yen may rise versus currencies like the $AUD and $NZD on US-China tensions and fiscal stimulus woes which sank the Nasdaq 100 at the end of last week. Get your #currencies update from @ddubrovskyFX here: https://t.co/Kw0fYCHEcw https://t.co/jiQBPpzat3
  • The #Dollar is down than 3% year-to-date with the index responding to trend support at multi-year lows. Here are the levels that matter on the $DXY weekly technical chart. Get your #currencies update from @MBForex here: https://t.co/MVnF5VDoeN https://t.co/TP2k8u9sXN
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/ioGWvplvt7
Forex Analysis: Dollar, Yen Fall as Markets React to Fiscal Cliff Deal

Forex Analysis: Dollar, Yen Fall as Markets React to Fiscal Cliff Deal

2013-01-02 08:14:00
Ilya Spivak, Head Strategist, APAC
Share:

The safe-haven US Dollar and Japanese Yen tumbled as risk appetite swelled after US lawmakers reached a last-minute deal avoiding the dreaded “fiscal cliff”.

Talking Points

  • US Dollar, Yen Plunge as Risk Appetite Swells on “Fiscal Cliff” Compromise
  • Status-Quo Eurozone PMI, German CPI Data Unlikely to Derail Momentum
  • Risk-On Mood May Find Added Fuel in December’s ISM Manufacturing Data

The US Dollar and Japanese Yen plunged overnight after the US Congress reached a last-minute deal averting the so-called “fiscal cliff”, scattering fears of a sharp austerity shock in the world’s largest economy and denting demand for the go-to safe haven currencies. The Senate voted in favor of the compromise measure by an overwhelming 89-8 margin in the early hours of Tuesday morning in Washington, DC. The House of Representatives followed suit by the evening, passing the measure with a 257-167 vote.

The so-called American Taxpayer Relief Act of 2012 delayed “sequestration” budget cuts created in 2011 by two months to give additional time for negotiation. Meanwhile, a broad-based increase in taxes was averted, instead allowing rates on incomes over $400,000 for individuals and $450,000 for families to increase from 35 to 39.6 percent. The bill also marked a phase-out of tax deductions and credits on incomes over $250,000 and the expiry of the payroll tax cut put in place in 2010.

European stock index futures are trading sharply higher in late Asian trade, hinting the risk-on mood is likely to carry forward as traders return from the New Year holiday. Final revisions of December’s Eurozone Manufacturing PMI data set and a preliminary look at German CPI headline the economic calendar. No major changes are expected on either front, seemingly leaving little to stand in the way of existing momentum. The US ISM Manufacturing report may reinforce the chipper mood later in the day, with forecasts pointing to a return to expansionary territory with a print at 50.4 in December after a disappointing 49.5 result in the prior month.

Asia Session: What Happened

GMT

CCY

EVENT

ACT

EXP

PREV

1:00

CNY

Manufacturing PMI (DEC)

50.6

51.0

50.6

22:30

AUD

AiG Performance of Manufacturing Index (DEC)

44.3

-

44.3 (R+)

23:00

AUD

RPData-Rismark House PX Actual (DEC)

-0.3%

-

0.0%

23:44

CNY

Leading Index (NOV)

100.21

-

100.37 (R-)

5:30

AUD

RBA Commodity Price Index (DEC)

89.2

-

88.3 (R+)

5:30

AUD

RBA Commodity Index SDR (YoY) (DEC)

-8.0%

-

-10.3% (R+)

Euro Session: What to Expect

GMT

CCY

EVENT

EXP

PREV

IMPACT

8:45

EUR

Italian PMI Manufacturing (DEC)

45.3

45.1

Low

8:50

EUR

French PMI Manufacturing (DEC F)

44.6

44.6

Low

8:55

EUR

German PMI Manufacturing (DEC F)

46.3

46.3

Medium

9:00

EUR

Euro-zone PMI Manufacturing (DEC F)

46.3

46.3

Medium

9:30

GBP

PMI Manufacturing (DEC)

49.1

49.1

Medium

13:00

EUR

German CPI (MoM) (DEC P)

0.7%

-0.1%

High

13:00

EUR

German CPI (YoY) (DEC P)

1.9%

1.9%

High

13:00

EUR

German CPI - EU Harmonised (YoY) (DEC P)

1.9%

1.9%

Medium

13:00

EUR

German CPI - EU Harmonised (MoM) (DEC P)

0.7%

-0.2%

Medium

Critical Levels

CCY

SUPPORT

RESISTANCE

EURUSD

1.3181

1.3301

GBPUSD

1.6220

1.6366

--- 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, please CLICK HERE

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

DISCLOSURES

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.