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
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
Oil - US Crude
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
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
  • The Dow Jones, S&P 500 and AUD/USD could be at risk of extending losses as retail investors increase upside exposure. What are key technical levels to watch for? Find out from @ddubrovskyFX here:https://t.co/ivQmFUTGdU https://t.co/KuIoM7g9E3
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDn8ejP https://t.co/FBT1eSZdjF
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/ERyiY47G5H https://t.co/LRL1iD3JDt
  • Even though the Australian Dollar lost some ground this week, support levels held. Bearish developments are brewing in $AUDUSD and $AUDJPY but remain unconfirmed. What else does #AUD face ahead technically? - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2020/10/24/Australian-Dollar-Technical-Forecast-AUDUSD-AUDJPY-EURAUD-GBPAUD.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/0gHyXW1vHh
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/LjEjTexrCg https://t.co/9qcanKW0uT
  • Third wave? We haven’t beaten the first wave. Until the virus is under control, the US economy won’t be able to properly heal, plain & simple. The lack of a competent response saps courage. Defeat the virus, then get people back to work. In that order. https://t.co/8R8IyTZejM
  • The British Pound may fall if EU and UK negotiators fail to reach a consensus as the December 31 deadline nears. The third presidential debate is on deck, how might markets react? Find out from @ZabelinDimitri here:https://t.co/kDSYzBDA3t https://t.co/80xL2Hyat7
  • The #Fed b/s hit a record high USD ~7.18T this week! Been awhile since I last did an update so here it is! I smoothened out analysis by using 4W moving averages You can see how into summer #SP500 growth 👇 as the b/s 👇 Since then it flipped until recent fiscal talk jitters https://t.co/4AESBo99dl
  • The US Dollar is losing ground against ASEAN FX, with USD/SGD and USD/IDR possibly readying to extend declines. Will USD/PHP and USD/MYR follow? Find out from @ddubrovskyFX here: https://t.co/l705RWumj5 https://t.co/wySomzNGbm
  • RT @FxWestwater: #Copper Price Forecast: US Q3 GDP and Chinese PMI in Focus - via @DailyFX https://www.dailyfx.com/forex/market_alert/2020/10/23/Copper-Price-Forecast-US-Q3-GDP-and-Chinese-PMI-in-Focus.html https://t.co/SV0GskVO…
US Dollar Eyes Fed's Evans Speech After Bullard's Commentary

US Dollar Eyes Fed's Evans Speech After Bullard's Commentary

2019-08-07 06:30:00
Dimitri Zabelin, Analyst
Share:

FED’S EVANS COMMENTARY, US DOLLAR – TALKING POINTS

  • US Dollar traders eyeing Fed’s Evans speech
  • Fed’s Bullard yesterday radiated neutral tones
  • RBNZ slashes OCR by 50bp, spooked markets

See our free guide to learn how to use economic news in your trading strategy!

APAC RECAP

Early into Wednesday’s Asia Pacific trading hours, the New Zealand and Australian Dollars were dealt a blow by an unexpectedly more-dovish Reserve Bank of New Zealand. The RBNZ cut the Overnight Cash Rate by 50bp, surprising market participants of whom the majority had priced in only 25bp cut. Excerpts from the monetary policy statement subsequently spooked markets and caused AUDUSD to plunge to 10-year lows.

US DOLLAR EYES CHICAGO FED PRESIDENT CHARLES EVANS COMMENTS

While the market reaction to St. Louis Fed President James Bullard’s comments was fairly muted, the actual underlying message was quite telling. How he brushed off recession fears and the inversion of the yield curve suggests he is not overly worried about the current outlook. But that’s not to say he’s happy about it. Tepid inflation and ongoing trade uncertainty remain key headwinds and he alluded to possible policy changes ahead.

He made it clear, however, that the Fed cannot respond to day-to-day trade developments and believes the central bank should not respond to knee-jerk reactions in the stock market. He also mentioned that the Fed has adjusted to trade uncertainty. This echoes Chairman Jerome Powell’s comments at the most recent FOMC meeting where he mentioned that the rate cut was serving as an insurance against future downside risks.

Markets will now be turning their attention to Chicago Fed President Charles Evans’ media breakfast event. It will be interesting to see whether Mr. Evans’ tones will echo Mr. Bullard’s neutrality. If so, equity markets may express some panic from the idea that the prospect of lower borrowing costs may not be coming as soon as they would hope, much like they did at the most recent FOMC rate decision.

CHART OF THE DAY: AUDUSD REACHES 10-YEAR LOWS AFTER RBNZ SPOOKED MARKETS

Chart Showing AUDUSD

AUDUSD chart created using TradingView

FX TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

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

DISCLOSURES