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
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePT7Yu8 https://t.co/GFx3b1W0OD
  • RBNZ's Hawkesby talking "considered steps" when setting monetary policy, leaning towards 25bps - With money markets pricing in 31bps worth of tightening at the October meeting. Room for disappointment. https://t.co/C7DHnPIeuU https://t.co/K2835aP57Z
  • Gold has plunged nearly 5% off the Monthly high with the sell-off now probing key weekly support here at 1738/47- looking for a pivot here with the Fed interest rate decision on tap. Get your $XAUUSD market update from @MBForex here:https://t.co/Vnxi4143uT https://t.co/zTpqrFIZfk
  • RBNZ: - We have benefitted from a robust rebound in China, our main trading partner - The interruption to the economy's supply side has lasted longer than expected
  • RBNZ: - Vaccination program has aided a stronger-than-expected rebound in the global economy - Demand for our exports has fared better than previous recessions
  • Between the volatile risk trend picture at the moment along with the Fed rate decision and expected 100bp hike from the Brazilian central bank both on Wednesday, $USDBRL is going to be a very interesting pair to watch...
  • RT @EricBalchunas: $SPY traded more than the Top 5 stocks combined. Just when you think $SPY is fading away like an aging legend you realiz…
  • Bitcoin sharply lower on the day, but well off session lows around $42,500 $BTCUSD #Bitcoin https://t.co/mPiZMs8eYH
  • You know what index didn't suffer an overtly threatening reversal this past session? The Russell 2000. It didn't continue the same steady climb through 2021 that the Dow, SPX and Nasdaq enjoyed; so not as much excess premium https://t.co/ieHojAC7b5
  • USD/JPY extends the rebound from the weekly low (109.11) as the stronger-than-expected US Retail Sales report fuels speculation for an imminent shift in monetary policy. Get your $USDJPY market update from @DavidJSong here:https://t.co/Rozq62yAou https://t.co/toaAHiCavK
Yen Gains on Trump Speech, NZ Dollar Drops on Budget Downgrade

Yen Gains on Trump Speech, NZ Dollar Drops on Budget Downgrade

Ilya Spivak, Head Strategist, APAC

Talking Points:

  • NZ Dollar drops as government downgrades growth, budget outlook
  • Yen gains as Aussie and Canadian Dollars weaken on Trump speech
  • Euro, US Dollar may look past PMIs data with Jackson Hole in focus

The New Zealand Dollar swooned after the government lowered economic growth and budget surplus projections a month before a general election. That leaves less room for a fiscal policy boost even as weaker performance might have called for a public spending pickup. Traders seemed to read the news as limiting scope for RBNZ tightening.

The sentiment-sensitive Australian and Canadian Dollars weakened while the anti-risk Japanese Yen traded higher even as most Asia Pacific stock exchanges strengthened. The markets seemed to read that as merely reactive following a spirited bounce on Wall Street, focusing on weakness in FTSE 100 and S&P 500 futures as a more forward-looking indication of where risk appetite trends are heading.

The mood appeared to sour as US President Donald Trump spoke at a rally in Phoenix, Arizona. The embattled commander-in-chief threatened a government shutdown if funding for his proposed wall along the US/Mexico border was not approved. Speaking on the nascent renegotiation of the NAFTA trade agreement, Trump said he doesn’t expect a deal will be made and predicted the pact might be terminated.

August’s PMI surveys from the Eurozone and the US headline the economic data docket. The pace of manufacturing- and service-sector growth is expected to slow in the currency bloc and accelerate across the Atlantic. Follow-through from the Euro and the US Dollar may be lacking however as markets look to speeches from the heads of the ECB and the Fed at the Jackson Hole symposium on Friday.

How might the Jackson Hole Symposium shape EUR/USD price action? Join our webinar to find out!

Asia Session

Yen Gains on Trump Speech, NZ Dollar Drops on Budget Downgrade

European Session

Yen Gains on Trump Speech, NZ Dollar Drops on Budget Downgrade

** 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