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
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • The Canadian Dollar rally has taken USD/CAD into a key near-term support zone and we’re looking for a reaction down here today. Get your $USDCAD technical analysis from @MBForex here: https://t.co/xfYtytf4wF https://t.co/qfWjha3h37
  • Gold Price Outlook: Gold Goes Overbought, Finds Fibonacci Resistance https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/06/01/Gold-Price-Outlook-Gold-Goes-Overbought-JS-Finds-Fibonacci-Resistance.html https://t.co/dDQOzcMPxc
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 1.93% 🇨🇦CAD: 1.44% 🇳🇿NZD: 1.42% 🇪🇺EUR: 0.26% 🇯🇵JPY: 0.20% 🇨🇭CHF: 0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/GhC3QOpAvG
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 2.19% Gold: 0.56% Oil - US Crude: 0.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/WWjnR6G4UC
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.70%, while traders in US 500 are at opposite extremes with 77.26%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Pw2G0PKgZJ
  • The US Congressional Budget Office has updated its economic forecasts. Says it could take 10 years to recover from the Coronavirus impact, reducing real GDP by potentially 3% or $7.9tln through 2030
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: France 40: 0.72% Germany 30: 0.63% FTSE 100: 0.43% US 500: -0.02% Wall Street: -0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/TM0YYxRxZz
  • The $USDCAD's tumble today is the third largest since Dec 1, 2017. Not even a targeted trade war or extreme risk swing day https://t.co/oFBpMxmUDv
  • #Crypto update: $BTC +0.8% $BCH -0.7% $LTC +0.7% $XRP -1.6% $ETH +1%
  • #Nasdaq 100 may look to continue its upward trajectory. As the de facto leader of equity indices, the tech-heavy index has returned to within just 3% of its all-time high. Get your #Nasdaq market update from @PeterHanksFX here: https://t.co/mBSjd4bhBE https://t.co/5QUkJ8Z0mx
Euro to Look Past PMI Data, US Dollar May Rise on Fed Comments

Euro to Look Past PMI Data, US Dollar May Rise on Fed Comments

2016-05-23 03:06:00
Ilya Spivak, Head Strategist, APAC
Share:

Talking Points:

  • Yen gains as stocks fall, Aussie & NZ Dollars rise on fading rate cut bets
  • Upbeat Eurozone PMIs unlikely to help Euro but may boost risk appetite
  • Hawkish Fed-speak may cap risk-on momentum, send US Dollar upward

The Japanese Yen traded higher in overnight trade as Asian stocks declined, boosting support for the anti-risk currency. Interestingly, the risk-off mood did not extend to the typically sentiment-sensitive Australian and New Zealand Dollars. Both currencies edged upward alongside front-end bond yields, hinting at ebbing RBA and RBNZ rate cut speculation as the catalyst for gains.

The preliminary set of May’s Eurozone PMI figures headlines the economic calendar in European trading hours. The regional composite gauge is expected to rise to 53.2, implying the pace of manufacturing- and services-sector activity growth accelerated to the highest in four months. News-flow from the single currency area has increasingly improved relative to forecasts since early March, opening the door for an upside surprise.

Firm PMI outcomes are unlikely to mean much for the Euro in as much as they are unlikely to alter the ECB’s overtly dovish posture. The prospect of improving growth dynamics in what is collectively the world’s largest economy may boost risk appetite however, especially considering recent worries about broadly sluggish global performance. That may cap Yen gains but offer continued support to commodity-bloc FX.

Fed-speak comes back into the spotlight later in the day, with comments from James Bullard and John Williams – Presidents of the Fed’s St. Louis and San Francisco branches, respectively – due to cross the wires. Williams has already established himself as relatively hawkish vis-à-vis an interest rate hike in June or July last week. Bullard’s posture in recent months suggests he is likely to follow suit. This may cap any risk-on momentum while boosting the US Dollar.

Check out the latest standings for the FXCM $10k trading contest HERE.

Asia Session

GMT

CCY

EVENT

ACT

EXP

PREV

23:50

JPY

Trade Balance (APR)

¥823.5b

¥540.0b

¥754.2b

23:50

JPY

Trade Balance Adjusted (APR)

¥426.6b

¥274.1b

¥295.3b

23:50

JPY

Exports (YoY) (APR)

-10.1%

-9.9%

-6.8%

23:50

JPY

Imports (YoY) (APR)

-23.3%

-19.2%

-14.9%

2:00

JPY

Nikkei Japan PMI Mfg (MAY P)

47.6

-

48.2

4:30

JPY

All Industry Activity Index MoM (MAR)

-

0.5%

-1.2%

5:00

JPY

Supermarket Sales (YoY) (APR)

-

-

-0.3%

5:00

JPY

Leading Index CI (MAR F)

-

-

98.4

5:00

JPY

Coincident Index (MAR F)

-

-

111.2

European Session

GMT

CCY

EVENT

EXP

PREV

IMPACT

7:00

EUR

Markit France Mfg PMI (MAY P)

49.0

48.0

Medium

7:00

EUR

Markit France Services PMI (MAY P)

50.6

50.6

Medium

7:00

EUR

Markit France Composite PMI (MAY P)

50.4

50.2

Medium

7:00

CHF

Money Supply M3 (YoY) (APR)

-

1.8%

Low

7:00

CHF

Total Sight Deposits

-

492.8b

Low

7:00

CHF

Domestic Sight Deposits

-

419.0b

Low

7:30

EUR

Markit/BME Germany Mfg PMI (MAY P)

52.0

51.8

High

7:30

EUR

Markit Germany Services PMI (MAY P)

54.6

54.5

High

7:30

EUR

Markit/BME Germany Composite PMI (MAY P)

53.9

53.6

High

8:00

EUR

Markit Eurozone Mfg PMI (MAY P)

51.9

51.7

High

8:00

EUR

Markit Eurozone Services PMI (MAY P)

53.2

53.1

High

8:00

EUR

Markit Eurozone Composite PMI (MAY P)

53.2

53.0

High

Critical Levels

CCY

Supp 3

Supp 2

Supp 1

Pivot Point

Res 1

Res 2

Res 3

EUR/USD

1.1137

1.1178

1.1201

1.1219

1.1242

1.1260

1.1301

GBP/USD

1.4280

1.4407

1.4455

1.4534

1.4582

1.4661

1.4788

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

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

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

DISCLOSURES

News & Analysis at your fingertips.