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
GBP/USD
Bearish
USD/JPY
Bullish
Gold
Bullish
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/g7iT8bpi7f
  • What are a few of the common trading mistakes made by traders? Find out from @WVenketas here: https://t.co/d3OFc4yGao #tradingstyle https://t.co/wQ1MAkOb0n
  • The UK population voted the Conservative government back in with a strong majority, giving PM Johnson the backing to push Brexit through. And Sterling (GBP) likes it. Get you $GBPUSD market update from @nickcawley1 here: https://t.co/tjCHWDxoWm https://t.co/Z7Vaadxy5r
  • #Gold prices may fall while the US Dollar gains even as economic policies championed by the Trump administration invite inflation. Get your $gld markets news from @IlyaSpivak here:https://t.co/4lHhHsby56 https://t.co/zF4EyLIRWM
  • Lessons from Bretton Woods are forgotten, the US-China #tradewar represents a true existential threat to the post-World War II international trade order, and in turn, the globalized economy that has grown out of the ashes of history. More from @CVecchioFX :https://t.co/paaBxX6Xt0 https://t.co/tcjkQnaBWl
  • What are the truths and myths of #forex trading? Find out from @DailyFX analysts here: https://t.co/uF75VPzstr #FOMOintrading https://t.co/bDXG2dV3wG
  • The US Dollar technical outlook against the Euro, British Pound, Australian Dollar and New Zealand Dollar are discussed. Large wicks left signs of indecision, will reversals follow? $EURUSD $GBPUSD $AUDUSD $NZDUSD - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/12/15/US-Dollar-Technical-Outlook-EURUSD-GBPUSD-AUDUSD-NZDUSD.html?CHID=9&QPID=917702 https://t.co/dpuIppxo3F
  • What are some trading mistakes @nickcawley1 made during his career and what did he learn from them? Find out: https://t.co/y3cckNW22W https://t.co/vUQyVl6b0e
  • Growth linked currencies have gained as investors hope for progress on the trade front as well as stimulus from the Fed. The global economy however remains depressed and seems likely to remain so. Get your market update from @DavidCottleFX here: https://t.co/jt1HH9AHLM https://t.co/Yz65AMJYlm
  • RT @YuanTalks: #China temporarily suspend additional tariffs of either 10% or 5% on some #US goods scheduled to take effect on Dec 15, said…
US Dollar Looks to Fed Commentary for a Lifeline

US Dollar Looks to Fed Commentary for a Lifeline

2017-03-20 08:12:00
Ilya Spivak, Sr. Currency Strategist
Share:

Talking Points:

  • US Dollar down as FOMC impact continues to reverberate
  • Nearing RBNZ rate decision offers a boost to the NZ Dollar
  • G20 outcome may stoke risk aversion, Fed’s Evans to speak

The US Dollar traded lower against its leading counterparts as front-end Treasury bond yields declined, undermining rates-based support for the benchmark currency. The move may amount to follow-on momentum from last week’s FOMC rate decision. The greenback slumped after Chair Yellen and company issued a broadly expected rate hike but offered nothing to suggest a steeper tightening path thereafter.

The New Zealand Dollar outperformed despite data showing consumer confidence ebbed in the first quarter and service-sector activity growth slowed in February. The currency’s strength may be reflecting pre-positioning ahead of this week’s RBNZ meeting. A rate hike isn’t expected but markets price in at least one increase in the next 12 months. The statement accompanying the announcement may offer timing clues.

From here, a lackluster economic data docket in European and US trading hours puts Fed-speak in the spotlight. Comments from the President of the central bank’s Chicago branch Charles Evans are due to cross the wires. As noted in the weekly US Dollar forecast, the battered unit may find a lifeline as a steady stream of official commentary reiterates an intent to hike rates while their G10 counterparts sit idly by.

Sentiment trends may emerge as another potent driver of price action. Stocks stumbled in Asian trade and echoes of risk aversion appeared in the commodities space after the standard admonishment of protectionism vanished from the text of the communique after a G20 finance ministers’ meeting, allegedly at the behest of US Treasury Secretary Steven Mnuchin.

This fuels worries that the Trump administration means what it says when it threatens to tear up free trade agreements and even questions the utility of the WTO. Upending the international commercial order is likely to bode ill for global growth, so markets are understandably unnerved. S&P 500futures are pointing lower ahead of the opening bell on Wall Street, which may yet boost the anti-risk Yen before the day is out.

Have a question about trading the financial markets? Join a Q&A webinar and ask it live!

Asia Session

US Dollar Looks to Fed Commentary for a Lifeline

European Session

US Dollar Looks to Fed Commentary for a Lifeline

** 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

News & Analysis at your fingertips.