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.

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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
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
USD/JPY
Bullish
More View more
Real Time News
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/k2YkjBeSdW
  • RT @FxWestwater: Australian Dollar, APAC Markets Focus on Bond Yields to Start March Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/03/01/Australian-Dollar-APAC-Markets-Focus-on-Bond-Yields-to-Start-March.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr $AUDUSD https://t.co/py…
  • 🇦🇺 Investment Lending for Homes (JAN) Actual: 9.4% Previous: 8.2% https://www.dailyfx.com/economic-calendar#2021-03-01
  • 🇦🇺 Home Loans MoM (JAN) Actual: 10.9% Previous: 8.7% https://www.dailyfx.com/economic-calendar#2021-03-01
  • Wall Street IG Client Sentiment: Our data shows traders are now net-long Wall Street for the first time since Feb 01, 2021 when Wall Street traded near 30,246.40. A contrarian view of crowd sentiment points to Wall Street weakness. https://www.dailyfx.com/sentiment https://t.co/Qv5JIJxF2M
  • Aussie 10-year yield extends drop to 32 basis points after RBA buy notice - BBG $AUD
  • RBA to buy A$4 billion of longer-dated bonds, double usual size - BBG $AUD
  • Heads Up:🇦🇺 Investment Lending for Homes (JAN) due at 00:30 GMT (15min) Previous: 8.2% https://www.dailyfx.com/economic-calendar#2021-03-01
  • Heads Up:🇦🇺 Home Loans MoM (JAN) due at 00:30 GMT (15min) Previous: 8.7% https://www.dailyfx.com/economic-calendar#2021-03-01
  • 🇰🇷 Balance of Trade (FEB) Actual: $2.71B Previous: $3.76B https://www.dailyfx.com/economic-calendar#2021-03-01
Euro and US Dollar Look Vulnerable as Inflation Slows

Euro and US Dollar Look Vulnerable as Inflation Slows

Ilya Spivak, Head Strategist, APAC

Talking Points:

  • Yen and US Dollar rise as risk appetite sours in Asian trade
  • Soft German CPI may see Euro extend Draghi-inspired drop
  • Downtick in US PCE gauge may cool Fed rate hike outlook

The Yen outperformed in Asian trade as regional stock exchanges traded lower, boosting demand for the perennially anti-risk currency. The US Dollar likewise traded higher. That move was accompanied by gains in benchmark 10-year Treasury bond prices – another baseline anti-risk instrument – suggesting the greenback may be reclaiming its haven appeal.

The Euro was weakest among the G10 FX majors, with prices seemingly still reeling from yesterday’s comments by ECB President Mario Draghi. The central bank chief struck a dovish tone in testimony before the European Parliament as expected, saying it is too early to expect a change in monetary policy because officials are “firmly convinced” that the economy needs further support.

May’s preliminary set of German CPI figures headlines the economic calendar in European trading hours. The benchmark year-on-year inflation rate is expected to fall to 1.6 percent from 2 percent in April. Euro-area economic news-flow has increasingly underwhelmed relative to consensus forecasts in recent weeks, opening the door for a still softer outcome, which may amplify pressure on the single currency.

The Fed’s favored PCE gauge of US inflation enters the spotlight later in the day. The core year-on-year rate is expected to tick down to 1.5 percent, the lowest since December 2015. A still softer outcome echoing mostly disappointing US data outcomes since mid-March may cool expectations for Fed rate hike prospects beyond June’s policy meeting, weighing on the US Dollar.

Need help turning your market outlook into an actionable strategy? Check out our trading guide!

Asia Session

Euro and US Dollar Look Vulnerable as Inflation Slows

European Session

Euro and US Dollar Look Vulnerable as Inflation Slows

** 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