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
  • 🇿🇦 ABSA Manufacturing PMI (JUL) Actual: 43.5 Previous: 57.4 https://www.dailyfx.com/economic-calendar#2021-08-02
  • 🇬🇧 Markit/CIPS Manufacturing PMI Final (JUL) Actual: 60.4 Expected: 60.4 Previous: 63.9 https://www.dailyfx.com/economic-calendar#2021-08-02
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/iKSgaB6JUP
  • Heads Up:🇬🇧 Markit/CIPS Manufacturing PMI Final (JUL) due at 08:30 GMT (15min) Expected: 60.4 Previous: 63.9 https://www.dailyfx.com/economic-calendar#2021-08-02
  • 💶 Markit Manufacturing PMI Final (JUL) Actual: 62.8 Expected: 62.6 Previous: 63.4 https://www.dailyfx.com/economic-calendar#2021-08-02
  • 🇩🇪 Markit Manufacturing PMI Final (JUL) Actual: 65.9 Expected: 65.6 Previous: 65.1 https://www.dailyfx.com/economic-calendar#2021-08-02
  • 🇮🇹 IHS Markit Manufacturing PMI (JUL) Actual: 60.3 Expected: 61.5 Previous: 62.2 https://www.dailyfx.com/economic-calendar#2021-08-02
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.02%, while traders in Wall Street are at opposite extremes with 75.65%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/izlA7uadGr
  • Heads Up:💶 Markit Manufacturing PMI Final (JUL) due at 08:00 GMT (15min) Expected: 62.6 Previous: 63.4 https://www.dailyfx.com/economic-calendar#2021-08-02
  • Heads Up:🇩🇪 Markit Manufacturing PMI Final (JUL) due at 07:55 GMT (15min) Expected: 65.6 Previous: 65.1 https://www.dailyfx.com/economic-calendar#2021-08-02
US Dollar Edges Up as Donald Trump Prepares to Take Office

US Dollar Edges Up as Donald Trump Prepares to Take Office

Ilya Spivak, Head Strategist, APAC

Talking Points:

  • US Dollar edges higher as focus turns to Donald Trump’s inauguration
  • Follow-through uncertain as markets grope for US fiscal policy details
  • Aussie, Kiwi Dollars suffer outsized losses as Treasury bond yields rise

The US Dollar managed tepid gains against its major counterparts in early European trade having mostly meandered in narrow ranges through the Asia session. Meaningful trend development remains elusive however, with momentum proving only just sufficient to retrace yesterday’s losses.

The Australian and New Zealand Dollars suffered outsized losses. Their US cousin rose alongside Treasury bond yields, presumably pointing to a hawkish intraday shift in Fed rate hike bets. Not surprisingly, that has proven especially painful for the highest-carry alternatives to the greenback in the G10 FX space.

The noncommittal mood seems to make sense as all eyes turn to Donald Trump’s inauguration as the 45th President of the United States. Fiscal policy uncertainty has been a major hurdle for financial markets as they try to settle on a baseline path for the year ahead.

With that in mind, traders are understandably leery of taking firm directional bets before Mr Trump speaks. To be sure, he is unlikely to offer up all the details that the markets want to hear. However, the vagueness of his pronouncements has been market-moving in its own right before and may be so again.

In the meantime, an expectation of follow-through on intraday price swings is probably an unrealistic one. In fact, it may turn out that market participants opt to take the weekend to mull over whatever Mr Trump has to say, leaving prices rudderless in the interim. Still, the threat of kneejerk volatility is a very real one.

Have questions? Join a Q&A webinar and ask them live!

Asia Session

US Dollar Edges Up as Donald Trump Prepares to Take Office

European Session

US Dollar Edges Up as Donald Trump Prepares to Take Office

** 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