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
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
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
  • 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
  • Based on how US-China tensions and fiscal talks ended this past week, is the Japanese #Yen readying to push higher ahead? Check out the latest #JPY fundamental outlook here - https://www.dailyfx.com/forex/fundamental/forecast/weekly/jpy/2020/08/10/Yen-May-Rise-as-Nasdaq-100-Falls-on-US-China-Tensions-Fiscal-Woes.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/2Km23bVAy2
  • Tech leading the S&P 500 towards record highs, however, China risks rise. FTSE 100 hovers in a lower range. Get your #equities update from @JMcQueenFX here: https://t.co/IJAABNhxjs https://t.co/ZZ6njsuf5O
  • We are heading into the peak of summer yet there are some unexpected trends in key plays. Will complacency or fundamental instability win out? My weekend video: '#Dollar, S&P 500, #Gold - The Potential for Trend, Reversal or Congestion' https://www.dailyfx.com/forex/video/daily_news_report/2020/08/08/Dollar-SP-500-Gold---The-Potential-for-Trend-Reversal-or-Congestion-.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/7KoypvTwcL
Forex Analysis: Yen Poised to Extend Overnight Gains on Risk Aversion

Forex Analysis: Yen Poised to Extend Overnight Gains on Risk Aversion

2013-01-07 07:47:00
Ilya Spivak, Head Strategist, APAC
Share:

The Japanese Yen appears poised to extend a recovery started at the open of the trading week as risk aversion grips financial markets anew.

Talking Points

  • Japanese Yen Outperforms in Asia, More of the Same Likely This Week
  • Australian, Canadian Dollars Vulnerable on Returning Risk Aversion
  • Soft Eurozone PPI May Weigh on Euro Ahead of ECB Policy Decision

The Japanese Yen outperformed in overnight trade as Asian stocks declined, driving demand for safety-linked currencies. The MSCI Asia Pacific equity index fell 0.3 percent. The newswires attributed the move to profit-taking after the benchmark regional gauge hit a 17-month high last week.

Broadly speaking, a short lull in headline-driving event risk will give financial markets an opportunity for some reflection in the week ahead.The most significant lingering uncertainty over the coming months remains the outlook for US economic growth and there is much to consider in the aftermath of last week’s volatility

On one hand, risk appetite reacted favorably to a last-minute agreement averting the so-called “fiscal cliff”, but the reaction seemed overdone. While the smaller-scale tax hike baked into the accord is preferable to a far larger and broader increase that would have been triggered without a deal, it is nonetheless a headwind from an economic growth perspective.

Meanwhile, fears of an early end to the Fed’s stimulus efforts after the release of minutes from December’s FOMC sit-down seem likewise overblown. The adoption of the “Evans rule” linking rates to explicit inflation and unemployment targets was already mildly hawkish in that it set a firm exit strategy. However, even if the Fed halts asset purchases by mid-year, it will expand its balance sheet by close to $0.5 trillion.

On balance, the fiscal side of the equation seems to carry a greater degree of near-term uncertainty than the monetary one. That suggests the path of least resistance likely favors risk aversion. Near-term correlation studies suggest such a scenario is likely to prove most damaging for the Australian and Canadian Dollars while producing outsize gains for the Yen.

The economic calendar is relatively quiet in European hours. November’s Eurozone PPI figures are expected to put the year-on-year wholesale inflation rate at 2.4 percent, the lowest in four months. A particularly soft reading may weigh on the Euro ahead of this week’s ECB monetary policy announcement.

Asia Session: What Happened

GMT

CCY

EVENT

ACT

EXP

PREV

23:50

JPY

Monetary Base (YoY) (NOV)

11.8%

-

5.0%

23:50

JPY

Loans & Discounts Corp (YoY) (DEC)

0.44%

-

0.26%

0:01

GBP

Lloyds Employment Confidence (DEC)

-42

-

-42

5:00

JPY

Vehicle Sales (YoY) (DEC)

-3.4%

-

-3.3%

Euro Session: What to Expect

GMT

CCY

EVENT

EXP

PREV

IMPACT

8:00

GBP

Halifax House Prices sa (MoM) (DEC)

0.0%

1.0%

Low

8:00

GBP

Halifax House Prices 3Mths/Year (DEC)

-0.6%

-1.3%

Low

8:00

CHF

Foreign Currency Reserves (DEC)

423.0B

427.4B

Low

9:30

EUR

Euro Zone Sentix Investor Confidence (JAN)

-14.2

-16.8

Low

10:00

EUR

Euro Zone PPI (YoY) (NOV)

2.4%

2.6%

Medium

10:00

EUR

Euro Zone PPI (MoM) (NOV)

-0.2%

0.1%

Medium

Critical Levels

CCY

SUPPORT

RESISTANCE

EURUSD

1.2960

1.3106

GBPUSD

1.5964

1.6115

--- 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.