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
Wall Street
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
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/v6RGICQvge
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/rws9LHJV3E
  • RT @FxWestwater: Japanese Yen Forecast: JPY Crosses Eye BoJ, CPI as Haven Flows Bolster Yen Strength Link: https://www.dailyfx.com/forex/fundamental/forecast/weekly/jpy/2021/09/18/Japanese-Yen-Forecast-JPY-Crosses-Eye-BoJ-CPI-as-Haven-Flows-Bolster-Yen-Strength.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https:/…
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/FVisZuTP6M
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here: https://t.co/H1BaTlIHjY https://t.co/zP3mjfslSD
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Of1thU4zXw
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://t.co/p2FhEwym1E https://t.co/MjiYB85TSF
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/fIO9TP7D62
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/9po5Lg4vnR
US Dollar May Retrace Some Recent Gains After Jobs Data

US Dollar May Retrace Some Recent Gains After Jobs Data

Ilya Spivak, Head Strategist, APAC

TALKING POINTS – US DOLLAR, JOBS DATA, AUSTRALIAN DOLLAR, YEN

  • US Dollar may retrace some recent gains after April jobs data
  • Australian Dollar higher after RBA upgrades inflation outlook
  • Yen up while Asia Pacific stocks fall as Mnuchin visits China

A lackluster offering of European economic data is likely to see currency markets focused on April’s US labor-market data through the end of the week. The economy is expected to have added 192k jobs last month, marking a spirited rebound from the meager 103k increase recorded in March. The unemployment rate is seen falling to 4 percent, the west since December 2000.

On balance, traders will likely be more interested in the pace of wage inflation – where the on-year rate is expected to remain at 2.7 percent – than headline job creation metrics. The Fed has all but declared victory on reaching its goal of “maximum employment” some time ago, putting the second objective of doing so in a context of “price stability” front and center as the driver of policy decisions.

From a practical perspective, the path of least resistance probably leads lower for the US Dollar in the data release’s aftermath. It is hovering near a four-month high after a steep upshift in the Fed rate hike outlook. Wages would probably need to post an improbably large upside surprise to inspire strong follow-through in the near term. Rather, profit-taking may nudge the greenback lower after event risk has passed.

The Australian Dollar outperformed in Asia Pacific trade, rising after the RBA upgraded its inflation outlook and said higher rates are likely to be appropriate “at some point”. The Japanese Yenalso traded higher as regional shares declined, offering a boost to the standby anti-risk currency. Anxiety about US trade negotiations with China may have been a catalyst as Treasury Secretary Mnuchin visits Beijing.

See our quarterly FX market forecasts to learn what will drive prices through mid-year!

ASIA PACIFIC TRADING SESSION

US Dollar May Retrace Some Recent Gains After Jobs Data

EUROPEAN TRADING SESSION

US Dollar May Retrace Some Recent Gains After Jobs Data

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

FX TRADING RESOURCES

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

To contact Ilya, use the comments section below or @IlyaSpivak on 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