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
  • So much for that Evergrande recovery. Shares of the troubled Chinese property developer are down approximately -12% today following yesterday's impressive rally (biggest in a year) https://t.co/Nome25d9Bt
  • Retail trading platform Robinhood announces hire of new Chief Compliance Officer amid regulatory scrutiny
  • There is a ridiculous number of scheduled Fed speeches on the docket next week. Powell specifically will be speaking multiple times including at an ECB hosted forum on central banking (which also has a panel with Fed, ECB, BOE and BOJ heads)
  • USD Ascending Triangle, Bullish for Q4 - #DXY chart on @TradingView https://t.co/iCnRSo9N4V
  • Credit rating agency Standard & Poor's is due to give its sovereign credit rating update on Germany today ahead of weekend national elections
  • RT @BIS_org: Since the early 1990s, changes in the #MonetaryPolicy stance have affected a rather narrow set of prices – mostly in the servi…
  • Huawei's CFO Meng Wanzhou reached deal with the US Dept of Justice to return her to China - Dow Jones
  • Cleveland Fed President Loretta Mester says: - sees US GDP in 2022 between 3.75 and 4% - Supports tapering in November and concluding over the first half of 2022 - After liftoff, accommodative policy needed for some time
  • Fed Chairman Jerome Powell doesn't comment on the growth forecast or monetary policy in his introductory remarks
  • Kansas City Fed President Esther George says: - The labor market friction is fading barring a resurgence of virus - A 'normal' economy is likely to remain elusive for some time - Asset buying effects complicate the judging rate change plan
Yen Drops on Dovish Kuroda Comments. Is the Euro Next?

Yen Drops on Dovish Kuroda Comments. Is the Euro Next?

Ilya Spivak, Head Strategist, APAC

Talking Points:

  • Yen drops after Kuroda says BOJ will not hesitate to expand stimulus
  • Dovish comments from ECB’s Coeure may put Euro under pressure
  • US Dollar may correct lower as PCE data cools Fed rate speculation

The Yen underperformed in otherwise quiet overnight trade as Japan’s benchmark Nikkei 225 stock index advanced, sapping demand for the anti-risk currency. The move may reflect optimism after BOJ Governor Haruhiko Kuroda said the central bank will not hesitate to expand stimulus if needed at the Jackson Hole Symposium over the weekend. Kuroda added that officials are “still far away” from the lower bound limiting scope for easing.

It remains to be seen if the Euro falls prey to a similar dynamic when regional markets come online. ECB Governing Council member Benoit Coeure said policymakers may need to “dive deeper” to fulfill their price stability mandate, implying that greater accommodation may be on the horizon. A meaningful response did not materialize in Asia.

Looking ahead, speculation about the direction of Federal Reserve monetary policy return to the spotlight as the US central bank’s favored PCE inflation figures cross the wires. The core year-in-year rate is expected to edge lower to 1.5 percent in July from 1.6 percent in the prior month. While the downtick was telegraphed in the analogous CPI report, a soft print may still pour a bit of cold water on rate hike bets stoked by Friday’s hawkish comments from Fed Chair Yellen and weigh on the US Dollar, if only in the near term.

Is picking price direction most important for successful trading? See our study to find out!

Asia Session

GMT

CCY

EVENT

ACT

EXP

PREV

01:00

AUD

HIA New Home Sales (MoM) (JUL)

-9.7%

-

8.2%

European Session

GMT

CCY

EVENT

EXP

PREV

IMPACT

08:00

CHF

Total Sight Deposits (AUG 26)

-

514.1b

Low

08:00

CHF

Domestic Sight Deposits (AUG 26)

-

436.1b

Low

Critical Levels

CCY

Supp 3

Supp 2

Supp 1

Pivot Point

Res 1

Res 2

Res 3

EUR/USD

1.0920

1.1080

1.1139

1.1240

1.1299

1.1400

1.1560

GBP/USD

1.2866

1.3023

1.3080

1.3180

1.3237

1.3337

1.3494

--- 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