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
Bullish
Oil - US Crude
Mixed
Wall Street
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
Gold
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
Mixed
USD/JPY
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
More View more
Real Time News
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/X15k6b4ZyB
  • The month of May saw equities rise across the board. The #Dow Jones and #DAX 30 will look to hold above nearby support while the #Nasdaq 100 may look to attack all-time highs. Get your #equities market update from @PeterHanksFX here: https://t.co/dQxkG68R0I https://t.co/cgfcOs14qG
  • There is a dramatic departure between yield curve pricing for a recession and other measures of near-term growth; the Q2’20 Atlanta Fed GDPNow is extremely alarming.Get your market update from @CVecchioFX here: https://t.co/eMd3T8EwDO https://t.co/56oUP6we9U
  • The #DAX has now closed the gap from the beginning of March with the index breaking above 61.8% fib at 11592. Get your DAX market update from @JMcQueenFX here: https://t.co/wr67nkxc8z https://t.co/CkxPZn1v3t
  • Emerging market currencies haven’t been treated equally by the effects of global contagion, even if most have suffered to some degree. However withdrawal of investment flows could hit them all. Get your market update from @DavidCottleFX here:https://t.co/QzNoNYgMgP https://t.co/9CV6iZt40j
  • My weekend trading video: 'S&P 500 Rises on Trump China Presser, #NFPs and Rate Decisions Ahead' https://www.dailyfx.com/forex/video/daily_news_report/2020/05/30/SP-500-Rises-on-Trump-China-Presser-NFPs-and-Rate-Decisions-Ahead.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/ZvoGoibzj1
  • Hopes are high for deeper European economic integration as the continent battles back from the coronavirus slowdowns – but will it hold? What impact can this have on #Euro? Find out from @JStanleyFX here: https://t.co/b9ZWRd4cTr https://t.co/gngm5tKqjz
  • The US Dollar could rise against #ASEAN currencies such as the Singapore Dollar as US-China tensions seem to escalate. The Indian Rupee is also looking ahead of local 1Q GDP data.Get your market update from @ddubrovskyFX here:https://t.co/LkEFJViPWY https://t.co/iL7xlHLBiF
  • #Gold has a short-term bullish set-up that may play nicely with USD weakening. The longer and shorter-term path of least resistance remains higher. Get your $XAUUSD technical analysis from @PaulRobinsonFX here:https://t.co/6gt3F9LuGP https://t.co/B4MVrg8f6i
  • The AUD may suffer as relations between Australia and China deteriorate amid dwindling growth prospects. Euro traders will be closely watching progress in talks about a €500b recovery fund proposal. Get your market update from @ZabelinDimitri here: https://t.co/LkEFJViPWY https://t.co/Fo1wlWyz8r
US Dollar May Rise if PMI Data Kindles Demand for Liquidity

US Dollar May Rise if PMI Data Kindles Demand for Liquidity

2020-03-31 08:00:00
Dimitri Zabelin, Analyst
Share:

US Dollar Outlook, EUR/USD Analysis – Talking Points

  • US Dollar could gain on risk aversion if PMI data sours sentiment
  • Data for March will give a better picture for impact of coronavirus
  • EUR/USD may retest crucial support: will a break catalyze a selloff?

ASIA-PACIFIC RECAP

The New Zealand Dollar was aiming higher early into Asia’s Tuesday trading session while the British Pound was uniformly trending lower vs its G10 counterparts. Prior to the release of Chinese PMI data, AUD/USD briefly dipped 1.50 percent heading into the release before modestly recovering after the statistics printed better-than-expected readings. Read the full alert here.

US DOLLAR ANALYSIS AHEAD OF CHICAGO MNI PMI DATA

The US Dollar may rise if MNI Chicago PMI data for March misses the already-low estimate of 40, which is significantly weaker than the prior 49.0 reading. Consequently, demand for liquidity may surge and bring the Greenback with it if the statistics reinforce the notion of a severe recession from the coronavirus. At the time of writing, the total number of confirmed cases currently stands at 780,000 with the majority in the US now.

Chart Showing Coronavirus Infections

Chart showing coronavirus

Source: Johns Hopkins CSSE

This risk-off dynamic may be amplified by the publication of Conference Board Consumer Confidence data which is scheduled to be released 15 minutes after the PMI report. Analysts are estimating a 110.0 reading amid a nationwide job layoff – as seen in last week’s employment figures – and weaker consumption habits as would-be purchasers stay at home.

EUR/USD PRICE CHART

As forecasted, EUR/USD edged closer to testing a key inflection range between 1.0989 and 1.0981 (white-dotted lines). If it’s broken, it could cast a long and dark bearish shadow shortly after the pair peaked above key resistance channels where it was huddled under for several weeks. Furthermore, the downside bias towards EUR/USD is reinforced by the fundamental circumstances that are supportive of a strong US Dollar.

EUR/USD – Daily Chart

Chart showing EUR/USD

EUR/USD chart created using TradingView

US DOLLAR TRADING RESOURCES

--- Written by Dimitri Zabelin, 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

News & Analysis at your fingertips.