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
Bearish
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
GBP/USD
Bearish
USD/JPY
Bearish
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
Gold
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
Oil - US Crude
Bearish
Bitcoin
Bullish
More View more
Real Time News
  • The $JPY is the third most traded currency by volume with an ADV (average daily volume) above $1.0 bn. It is known to be one of the world's 'safe-haven' currencies. Find out the other currencies in this basket and how to trade them here: https://t.co/QZ94q44M8c https://t.co/K8SUpwWh7j
  • Huawei given the go ahead for partial access of 5G networks. - Huawei has also been designated a high risk vendor Secretary of State Pompeo due to arrive in London tomorrow Boris Johnson will visit Washington next week
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.48%, while traders in US 500 are at opposite extremes with 67.58%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/R2IDUjwEzT
  • LIVE NOW! Analyst and Editor @MartinSEssex discusses the most important events and themes that have driven market sentiment and will drive it in the days ahead here - https://www.dailyfx.com/webinars/181540619?CHID=9&QPID=917720
  • What are the truths and myths of #forex trading? Find out from @DailyFX analysts here: https://t.co/uF75VPzstr https://t.co/8wKhSioCSt
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Gold: -0.13% Silver: -0.36% Oil - US Crude: -0.59% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/HXzJBxsQke
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.08% 🇨🇭CHF: 0.05% 🇪🇺EUR: -0.02% 🇦🇺AUD: -0.29% 🇳🇿NZD: -0.32% 🇬🇧GBP: -0.37% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/tKfJiltKvZ
  • Coming up at half past the hour: my weekly free webinar on trading sentiment. Do join me if you can. You can sign up here: https://www.dailyfx.com/webinars/181540619?CHID=9&QPID=917711
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.24% US 500: 0.21% France 40: 0.17% Germany 30: -0.21% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/rF1IZGBHv8
  • LIVE IN 30 MIN: Analyst and Editor @MartinSEssex discusses the most important events and themes that have driven market sentiment and will drive it in the days ahead here - https://www.dailyfx.com/webinars/181540619?CHID=9&QPID=917720
British Pound Aims to Extend Gains, US Dollar May Stumble

British Pound Aims to Extend Gains, US Dollar May Stumble

2017-12-04 04:30:00
Ilya Spivak, Sr. Currency Strategist
Share:

Talking Points:

  • British Pound gains as Brexit deal prospects appear to brighten
  • US Dollar up on Senate tax vote but follow-through may unravel
  • Yen and Swiss Franc aim lower as market risk appetite improves

The day’s offering of European and US economic data seems unlikely to translate into FX market follow-through. The British Pound may shrug off the UK Construction PMI survey for the same reasons that the US Dollar looks past statistics on factory orders and durable goods orders. The results almost certainly mean little for near-term BOE and Fed policy bets, and so might pass without fireworks.

That seems likely to put sentiment trends at the forefront. Futures tracking the FTSE 100 and S&P 500 stock indexes are pointing unambiguously higher before London and New York come online, hinting at a decidedly risk-on mood. That probably spells continued trouble funding and otherwise anti-risk currencies like the Japanese Yen and the Swiss Franc, building on losses sustained in Asia Pacific trade.

The chipper seems mood seems to stem from two main drivers: fresh optimism about US fiscal policy prospects and a brightening Brexit outlook. The Senate passed their version of a tax cut plan Friday while the Times reported that negotiators have reached agreement on an EU/UK “divorce bill” and stand on the cusp of an accord on the post-separation role of the European Court of Justice (ECJ).

This has understandably buoyed the greenback and Sterling alike. Absent a major pivot in the narrative in the coming hours, both currencies have scope to extend gains. The former appears to be more vulnerable to disruption than the latter however following news that Special Counsel Mueller has extracted a guilty plea and key testimony from former national security advisor Michael Flynn.

While the Friday’s Senate vote is certainly an incremental victory, reconciling that plan with the version approved in the House of Representatives and then navigating the compromised bill through both chambers will be difficult. If Republican lawmakers must simultaneously contend with an existential challenge to their party’s presidential administration – be it real or perceived – the task may prove to be impossible.

What is the #1 mistake that traders make, and how can you fix it? Find out here!

Asia Session

British Pound Aims to Extend Gains, US Dollar May Stumble

European Session

British Pound Aims to Extend Gains, US Dollar May Stumble

** 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.