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
More View more
Real Time News
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/FFMy5O9YoY
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZBx7g https://t.co/jZHcyAZ5SU
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfV5wS6 https://t.co/Iw9haaHAnn
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sr63f https://t.co/raO3gCGqQ6
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/rWVlBs6H3c
  • The update to the US Consumer Price Index (CPI) is likely to sway the US Dollar during the Federal Reserve’s blackout period as the central bank braces for a transitory rise in inflation. Get your weekly $USD forecast from @DavidJSong here: https://t.co/JTuP7CLlyi https://t.co/tOvqn3Gdpc
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/s5dn4ZKnku
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACyvdZ https://t.co/6VjW5FEiQW
  • Global stocks bounce back from recent pullback as key resistance levels lie ahead. Get your weekly equities forecast from @HathornSabin here: https://t.co/wXSWo1JygD https://t.co/vWVaSEQTXT
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/9kfBu04auM
Currencies Take Cues from Sentiment Trends in Brexit Aftermath

Currencies Take Cues from Sentiment Trends in Brexit Aftermath

Ilya Spivak, Head Strategist, APAC

Talking Points:

  • US Dollar, Yen gain as NZ Dollar weakens amid corrective price action
  • Markets to overlook UK GDP, Eurozone CPI as Brexit clouds policy bets
  • Risk trends set to define G10 FX price action as markets digest volatility

The major currencies were little-changed in overnight trade, with markets seemingly settling into consolidation mode. The US Dollar and Japanese Yen corrected modestly higher having broadly underperformed against their top counterparts yesterday. The New Zealand Dollar dutifully pulled back having led the way higher in the prior session. Haven currencies retreated while higher-yielding alternatives found strength alongside stock prices on Wednesday as risk appetite recovered amid a lull in fresh fodder feeding Brexit-inspired volatility.

The final revision of first-quarter UK GDP figures and June’s flash Eurozone CPI data headline the economic calendar in European hours. The former is seen confirming that the economy added 0.4 percent in the three months through March. The latter is expected to show the headline year-on-year inflation rate registered flat, a nominal improvement after four months of deflation. Neither outcome is likely to inspire a strong reaction from price action considering central banks on both sides of the English Channel have their hands tied by Brexit-linked uncertainty in the near term.

This puts the spotlight on central bank commentary. Comments from Bank of England Governor Mark Carney may offer greater detail on how the post-Brexit reaction thus far fit into the BOE’s scenario analysis and hint at what the near-term policy response could look like. Separately, remarks from St. Louis Fed President James Bullard could help illuminate the thinking on the FOMC about knock-on effects from the UK’s decision to leave the EU on the path of interest rate hikes.

The probability of hearing trend-defining commentary seems low. Federal Reserve and BOE officials have almost certainly decided on a wait-and-see approach for now, waiting to assess the referendum’s impact on progress toward their policy objectives. With that in mind, the broadly consolidative tone in sentiment trends is likely to persist and set the tone for G10 FX.

How are traders positioned in the British Pound after last week’s volatility? Find out here!

Asia Session

GMT

CCY

EVENT

ACT

EXP

PREV

22:45

NZD

Building Permits (MoM) (MAY)

-0.9%

-

6.8%

23:05

GBP

GfK Consumer Confidence (JUN)

-1

-2

-1

23:50

JPY

Loans & Discounts Corp (YoY) (MAY)

2.58%

-

3.05%

23:50

JPY

Industrial Production (MoM) (MAY P)

-2.3%

-0.2%

0.5%

23:50

JPY

Industrial Production (YoY) (MAY P)

-0.1%

1.9%

-3.3%

01:00

NZD

ANZ Activity Outlook (JUN)

35.1

-

30.4

01:00

NZD

ANZ Business Confidence (JUN)

20.2

-

11.3

01:30

AUD

Job vacancies (MAY)

-1.9%

-

2.7%

01:30

AUD

Private Sector Credit (MoM) (MAY)

0.4%

0.5%

0.5%

01:30

AUD

Private Sector Credit (YoY) (MAY)

6.5%

6.7%

6.7%

03:00

NZD

M3 Money Supply (YoY) (MAY)

7.3%

-

7.8%

04:00

JPY

Vehicle Production (YoY) (MAY)

1.7%

-

-9.7%

05:00

JPY

Housing Starts (YoY) (MAY)

9.8%

4.8%

9.0%

05:00

JPY

Annualized Housing Starts (MAY)

1.017m

0.973m

0.995m

European Session

GMT

CCY

EVENT

EXP

PREV

IMPACT

06:00

EUR

German Retail Sales (MoM) (MAY)

0.6%

-0.3%

Medium

06:00

EUR

German Retail Sales (YoY) (MAY)

2.5%

2.3%

Medium

07:00

CHF

KOF Leading Indicator (JUN)

102.6

102.9

Low

07:55

EUR

German Unemployment Change (000's) (JUN)

-5k

-11k

Medium

07:55

EUR

German Unemployment Claims Rate SA (JUN)

6.1%

6.1%

Medium

08:30

GBP

GDP (QoQ) (1QF)

0.4%

0.4%

High

08:30

GBP

GDP (YoY) (1QF)

2.0%

2.0%

High

08:30

GBP

Current Account Balance (1Q)

-28.0b

-32.7b

Low

08:30

GBP

Index of Services (MoM) (APR)

0.2%

-0.1%

Low

08:30

GBP

Index of Services (3M/3M) (APR)

0.4%

0.6%

Low

08:30

GBP

Total Business Investment (QoQ) (1QF)

-

-0.5%

Low

08:30

GBP

Total Business Investment (YoY) (1QF)

-

-0.4%

Low

09:00

EUR

Eurozone CPI Estimate (YoY) (JUN)

0.0%

-0.1%

High

09:00

EUR

Eurozone CPI Core (YoY) (JUN A)

0.8%

0.8%

High

Critical Levels

CCY

Supp 3

Supp 2

Supp 1

Pivot Point

Res 1

Res 2

Res 3

EURUSD

1.0939

1.1020

1.1073

1.1101

1.1154

1.1182

1.1263

GBPUSD

1.2925

1.3171

1.3300

1.3417

1.3546

1.3663

1.3909

--- 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