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
  • Fed's Williams: - Inflation did not achieve the 2% target because the Fed acted too soon in the past - If the US defaults, the Fed will not be able to repair the economic harm
  • Fed's Williams: - I don't anticipate a significant increase in labor supply in Sept. and Oct. - I believe the job market will be quite robust in 12 months
  • Crude oil back to resistance - #CL2! chart on @TradingView https://t.co/bwcFB2lpqr
  • Heads Up:🇺🇸 Fed Brainard Speech due at 16:50 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-27
  • Markets reacted earlier today after 10-year U.S. Treasury yields popped resulting in a move away from the South African rand as the U.S. dollar firmed – reducing the attractiveness of the carry trade. Get your market update from @WVenketas here:https://t.co/LPzqjA8Ysj https://t.co/2rfz0xrmeQ
  • US Dollar Ascending Triangle: EUR/USD, GBP/USD, USD/JPY, USD/CAD https://www.dailyfx.com/forex/analyst_picks/todays_picks/james_stanley/2021/09/27/US-Dollar-Ascending-Triangle-EUR-USD-EURUSD-GBP-USD-GBPUSD-USD-JPY-USDJPY-USD-CAD-USDCAD.html https://t.co/VSC47loQUx
  • Heads Up:🇺🇸 Fed Williams Speech due at 16:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-27
  • The price of oil appears to be on track to test the yearly high ($76.98) after breaking out of the descending channel from earlier this year. Get your #crudeoil market update from @DavidJSong here:https://t.co/QrzTFOCiw5 https://t.co/DQ0r1OsKF1
  • I read this morning that Boston Fed President Eric Rosengren is retiring 9 months earlier than his term expiration due to health issues. Hope he recovers quickly. Could change the calculus for the Fed's policy position next year as he was an incoming hawkish voter. #Tapering https://t.co/WDUeZl3Ziy
  • PRESIDENT BIDEN WILL GET COVID19 BOOSTER SHOT THIS AFTERNOON $PFE $MRNA
US Dollar Eyes CPI But Geopolitics May Trump Data Impact

US Dollar Eyes CPI But Geopolitics May Trump Data Impact

Ilya Spivak, Head Strategist, APAC

Talking Points:

  • Yen gains while Aussie, NZ Dollars sink as risk aversion extends to Asia
  • US Dollar may be forced to look past CPI data amid geopolitical jitters
  • Are FX markets matching DailyFX forecasts so far in Q3? Find out here

The sentiment-linked Australian and New Zealand Dollars slumped while the perennially anti-risk Japanese Yen and Swiss Franc traded higher as Asian bourses picked up the negative lead emanating from Wall Street. The MSCI Asia Pacific regional benchmark equity index shed over 1 percent amid worries about escalating tension between the US and North Korea.

From here, a quiet offering on the European economic data front puts July’s US CPI report in focus. The headline year-on-year inflation rate is expected to rise for the first time in five months, rising to1.8 percent from 1.6 percent in June. US economic news-flow has been improving relative to consensus forecasts since mid-June, opening the door for another upside surprise.

Taken in isolation, a strong CPI print would go a long way toward making another Fed rate hike in 2017 appear more likely. Needless to say, such an outcome might be expected to bode well for the US Dollar. However, the current sentiment backdrop makes it difficult to argue for any kind of tightening, regardless of what price growth may be doing.

As it stands, S&P 500 futures are trading relatively flat. That need not mean that risk-off momentum has dissipated however, and may amount to little more than a brief respite to consolidate after the US benchmark index issued the largest daily drop in three months yesterday. Indeed, contracts tracking the FTSE 100 are deep into the red, suggesting that the blood-letting will continue when Europe comes online.

Still, it is important to remember that the US and North Korea have engaged in nothing more substantive than volleying hyperbolic rhetoric at each other, at least for now. The US President’s penchant for about-face policy reversals suggests that cooler heads may yet prevail. A headline hinting as much may emerge without notice, meaning the risk of a sudden upsurge in risky assets is not to be treated lightly.

Need help fine-turning your FX trading strategy? Check out our guides!

Asia Session

US Dollar Eyes CPI But Geopolitics May Trump Data Impact

European Session

US Dollar Eyes CPI But Geopolitics May Trump Data Impact

** 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