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
  • ✨FOMC Live Webinar | DailyFX Asia @DailyFXasia 🆓Register For Free ✏️Language: Chinese ⏱️Time: 2021/07/29 01:50 (GMT+8) ✏️Details: https://t.co/tSKSj8Ddrs Feel free to join in, if you are interested in July FOMC Meeting 😄
  • Hang Seng Index closes at the lowest level since November 2020 (down 4.2%) https://t.co/rq4X0y6x6d
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.15%, while traders in Wall Street are at opposite extremes with 79.41%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/je3A326jac
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/HKW6WZ231e
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Gold: 0.00% Silver: -0.22% Oil - US Crude: -0.52% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/UoSa7DEKmR
  • Risk sentiment deteriorates further as Hang Seng falls 5.3%. Tech sector under heavy pressure as Tencent drops over 10% https://t.co/KDokhp03cr
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.23% 🇨🇭CHF: -0.16% 🇬🇧GBP: -0.18% 🇨🇦CAD: -0.24% 🇦🇺AUD: -0.44% 🇳🇿NZD: -0.51% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/pHuDG2Mp82
  • Heads Up:🇯🇵 BoJ Gov Kuroda Speech due at 07:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-07-27
  • Covid cases in Tokyo have reportedly exceeded 3000/day, hitting a new record (Jiji) $JPY
  • ✨FOMC Live Webinar | DailyFX Asia @DailyFXasia 🆓Register For Free ✏️Language: Chinese ⏱️Time: 2021/07/29 01:50 (GMT+8) ✏️Details: https://t.co/tSKSj8lCzU Feel free to join in, if you ae interested in July FOMC Meeting 😄
US Dollar Pullback May Continue on ISM, ADP Data

US Dollar Pullback May Continue on ISM, ADP Data

Ilya Spivak, Head Strategist, APAC

Talking Points:

  • US Dollar sellers inspired by December’s FOMC meeting minutes
  • ISM, ADP may keep USD under fire amid “Trump trade” unwind
  • British Pound may find an upside catalyst in upbeat UK PMI data

The US Dollar traded lower overnight, touching a two-week low against its top counterparts. The currency began to retreat earlier in the week having hit a 14-year high on the eve of 2017. The move has mirrored a pullback in US Treasury bond yields. This hints that traders are reducing exposure to the so-called “Trump trade”, which envisions a steep Fed rate hike path courtesy of an on-coming inflationary fiscal policy pivot.

Today’s selloff found added inspiration in minutes from December’s FOMC meeting (as expected). Officials seemed far less convinced in the need for faster tightening than investors, coming out split on the outlook for inflation and stressing fiscal policy uncertainty. This is a message that fell on deaf ears previously but seems to have struck a nerve this time with a correction already in progress.

The Yen traded broadly higher as Japan’s benchmark Nikkei 225 stock index declined, fueling demand for the perennially anti-risk currency. The move may have reflected digestion after shares surged yesterday – posting the largest advance in two months and hitting a one-year high – as liquidity returned following the New Year holiday.

UK PMI data headlines an otherwise tame European economic calendar. The composite gauge is expected to show manufacturing- and service-sector growth slowed for the first time in five months. UK news-flow has cautiously improved relative to consensus forecasts recently, hinting analysts are underestimating the economy’s vigor and opening the door for an upside surprise that may boost the British Pound.

Later in the day, ADP and ISM data are expected to show that US job creation and growth in the service sector slowed in December. Such outcomes may compound pressure on the greenback, offering fresh fodder for profit-taking. Follow-through may be somewhat restrained by the proximity of official labor-market data due on Friday however, with traders reserving judgement in the meantime.

See the schedule of upcoming webinars and join us LIVE to follow the financial markets!

Asia Session

US Dollar Pullback May Continue on ISM, ADP Data

European Session

US Dollar Pullback May Continue on ISM, ADP Data

** All times listed in GMT. See the full DailyFX economic calendar here.

--- 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