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.

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
EUR/USD
Bullish
Oil - US Crude
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
Wall Street
Bearish
Gold
Mixed
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
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: -0.04% 🇪🇺EUR: -0.05% 🇨🇦CAD: -0.08% 🇬🇧GBP: -0.18% 🇦🇺AUD: -0.47% 🇳🇿NZD: -0.61% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/JIAsnaWcPz
  • US Dollar Index Trades in Price Channel Ahead of US Stimulus Deadline - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2020/10/20/US-Dollar-Index-Trades-in-Price-Channel-Ahead-of-US-Stimulus-Deadline.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $USD $DXY https://t.co/FAi3oLk9Xu
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: US 500: 0.45% Wall Street: 0.23% France 40: -0.28% FTSE 100: -0.30% Germany 30: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/r3AZEgsPq3
  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:https://t.co/eILWbFgHRE https://t.co/462aKuf7kL
  • 🇨🇭 Balance of Trade (SEP) Actual: CHF2.7B Previous: CHF3.3B https://www.dailyfx.com/economic-calendar#2020-10-20
  • 🇨🇭 Balance of Trade (SEP) Actual: CHF2.7B Previous: CHF3.4B https://www.dailyfx.com/economic-calendar#2020-10-20
  • Heads Up:🇨🇭 Balance of Trade (SEP) due at 06:00 GMT (15min) Previous: CHF3.4B https://www.dailyfx.com/economic-calendar#2020-10-20
  • Market Snapshot Broad risk-off tilt seen throughout APAC trade as the haven-associated $USD and $JPY climbed higher against their major counterparts #SP500 futures, #crudeoil and Australia's #ASX 200 index all losing ground alongside the risk-sensitive $AUDUSD https://t.co/axRzXuwo3t
  • USD hegemony is at risk thanks to changes in the global economy and the long-term consequences of the US-China trade war. Get your market update from @CVecchioFX here: https://t.co/7HzovoH1fH https://t.co/4ANpmSHD2c
  • What kind of 'safe haven' falls with stocks and risk-on currencies like AUD and NZD while anti-risk JPY and USD tellingly rise? Good question, #gold prices. Good question. #XAUUSD https://t.co/YDhkJ4EkRB
Japanese Yen, Aussie Dollar Fall on Firming Fed Rate Hike Outlook

Japanese Yen, Aussie Dollar Fall on Firming Fed Rate Hike Outlook

2018-05-09 05:00:00
Ilya Spivak, Head Strategist, APAC
Share:

TALKING POINTS – AUSSIE DOLLAR, YEN, FED, US PPI

  • Yen falls as Fed boosts global rates, hurting the go-to funding currency
  • Aussie Dollar down on bets US Dollar yield advantage to widen further
  • A speech from the Fed’s Bostic, US PPI data unlikely to bring fireworks

The Yen underperformed in Asia Pacific trade, falling alongside gold prices while front-end US Treasury yields rose. Realized and expected Fed interest rate hikes have bid up borrowing costs globally since close to 80 percent of all monetary transactions are settled in USD. Bets on more of the same after a hawkish speech form Chair Powell are thus understandably negative for the low-yielding Japanese unit as the emerging environment encourages build-up of JPY-funded carry trades.

The Australian Dollar also declined. This too coincided with the upshift in US yields and seems to reflect the likelihood that the greenback will open a widening lead against its Aussie namesake on the top end of the G10 FX rates spectrum as the Fed continues to tighten while the RBA stands pat. Priced-in expectations don’t see Governor Lowe and company following the Fed’s lead until February 2019 at the earliest.

Looking ahead, a lull on the European economic data docket shifts the spotlight to a somewhat lackluster offering of US event risk. April’s PPI figures are expected to show a slowdown in wholesale inflation and Atlanta Fed President Rafael Bostic is due to speak. The former may pass without fireworks as the higher-impact CPI report looms ahead. Meanwhile, Mr Bostic’s cautious posture has been well-telegraphed already. On balance, a day of consolidation may be in the cards.

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

ASIA PACIFIC TRADING SESSION

Asia Pacific Trading Session Economic Calendar

EUROPEAN TRADING SESSION

No 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