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
  • Further your forex knowledge and gain insights from our expert analysts on EUR with our free guide, available today: https://t.co/XtydfV5wS6 https://t.co/Iw9haaHAnn
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sr63f https://t.co/raO3gCGqQ6
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/rWVlBs6H3c
  • The update to the US Consumer Price Index (CPI) is likely to sway the US Dollar during the Federal Reserve’s blackout period as the central bank braces for a transitory rise in inflation. Get your weekly $USD forecast from @DavidJSong here: https://t.co/JTuP7CLlyi https://t.co/tOvqn3Gdpc
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/s5dn4ZKnku
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACyvdZ https://t.co/6VjW5FEiQW
  • Global stocks bounce back from recent pullback as key resistance levels lie ahead. Get your weekly equities forecast from @HathornSabin here: https://t.co/wXSWo1JygD https://t.co/vWVaSEQTXT
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/9kfBu04auM
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5ddzFV https://t.co/8GJ6OQYgnW
  • Bitcoin (BTC) started the day on the front foot on the Twitter news before the latest China crypto ban hammered the market lower. Get your weekly crypto forecast from @nickcawley1 here: https://t.co/ZKHGXeVhsR https://t.co/QSltMQml6N
Dollar May Rise as Panic Strikes the Markets on US Inflation Data

Dollar May Rise as Panic Strikes the Markets on US Inflation Data

Ilya Spivak, Head Strategist, APAC

Talking Points:

  • Euro may fall if fourth-quarter German GDP figures disappoint
  • Strong US CPI may trigger risk aversion, send US Dollar higher
  • NZ Dollar up on RBNZ inflation survey, Yen higher as stocks fall

Fourth-quarter German GDP figures headline the economic calendar in European hours. They are expected to show that growth slowed, with output in the Eurozone’s top economy adding 0.6 percent. That is down from the 0.8 percent gain in the prior period. A revised set of analogous data for the entire currency bloc is seen confirming flash forecasts showing a mild slowdown in the last three months of the year.

Broadly speaking, realized Eurozone data outcomes have increasingly deteriorated relative to consensus forecasts in recent months. That opens the door for a downside surprise that cools bets on a further reduction of ECB stimulus in the near-term. The priced-in 2018 policy path has drifted toward in the dovish direction since mid-January and a soft print may encourage more of the same, punishing the Euro.

Later in the day, the spotlight turns to the US CPI report. Economist expect headline and core price growth to tick down. Survey data warns of an upside surprise however, echoing the surge in wage inflation reported in January’s labor-market statistics. Such an outcome is likely to send the US Dollar higher against a backdrop of violent risk aversion as fears of an aggressive Fed tightening cycle multiply.

The New Zealand Dollar outperformed in overnight trade, launching upward against all of its G10 FX counterparts after an RBNZ survey showed businesses’ two-year inflation expectation rose to 2.11 percent in the first quarter, the highest since the three months to June 2017. The Yen also pushed higher as Japanese stocks declined, boosting demand for the anti-risk currency.

Check out our free guide to see DailyFX analysts’ top trading ideas for 2018!

Asia Pacific Trading Session

Dollar May Rise as Panic Strikes the Markets on US Inflation Data

European Trading Session

Dollar May Rise as Panic Strikes the Markets on US Inflation Data

** All times listed in GMT. See the full DailyFX economic calendar here.

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivakon Twitter

To receive Ilya's analysis directly via email, please SIGN UP HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES