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
Oil - US Crude
Bullish
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
Bullish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.20% 🇳🇿NZD: 0.16% 🇬🇧GBP: 0.11% 🇪🇺EUR: 0.07% 🇯🇵JPY: 0.00% 🇨🇦CAD: -0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/w1pp0s9fSX
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.81%, while traders in Germany 30 are at opposite extremes with 65.02%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/nFlMXsEQor
  • 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/UalZ8cRSXB https://t.co/p7l6voNLTR
  • #DJIA futures eyeing a retest of the February record-high (29595.3) after breaking above Falling Wedge resistance A daily close above the January low (28130.2) could signal the resumption of the primary uptrend extending from the March doldrums $DJI #DowJones #WallStreet https://t.co/DKmECFfpGK https://t.co/IBuArQrIJQ
  • @DailyFXTeam Wall Street Futures Update: Dow Jones (+0.32%) S&P 500 (+0.35%) Nasdaq 100 (+0.37%) [delayed] -BBG
  • #Market Snapshot $AUDUSD and $EURUSD drifting from session-highs as the haven-associated $JPY attempts to claw back lost ground. #SP500 futures, #Gold and #crudeoil all moving higher while the #ASX200 struggles to penetrate key resistance at 6,000 https://t.co/07OdgCzeZD
  • Join @DanielGMoss's #Webinar at 10:00 PM ET/2:00 AM GMT for his weekly coverage of trading prep for $AUDUSD in the week ahead. Register here: https://t.co/wi1qabrtHJ https://t.co/yUfAnqiYEs
  • Dow Jones climbed a second day on fiscal stimulus hopes. All 9 Dow sectors were up. Traders face a quiet calendar day, with the 1st presidential debate closely eyed. The live TV debate will be on air from 9:00 to 10:30am Singapore time on Wednesday. https://t.co/vyVHRqDCMo
  • According to John Hopkins University, Coronavirus deaths globally have surpassed 1 million people
  • What is the outlook for financial markets ahead of the first presidential debate and how are Democratic nominee Joe Biden and President Donald Trump doing in the polls? Find out from @ZabelinDimitri here: https://t.co/QQwAZTxZFg https://t.co/7meK4cF0U9
Yen, US Dollar May Continue Higher Amid Global Recession Fears

Yen, US Dollar May Continue Higher Amid Global Recession Fears

2020-05-04 07:00:00
Ilya Spivak, Head Strategist, APAC
Share:

US DOLLAR, YEN, TRUMP, STOCKS, TRADE WAR, COVID-19 – TALKING POINTS:

  • Yen leads US Dollar upward as stocks drop amid global recession fears
  • US President Trump revives trade war worries with China tariffs threat
  • S&P 500 futures hint risk-off sentiment tilt likely to find follow-through

The Japanese Yen outperformed against its G10 FX counterparts as financial markets swooned at the start of the trading week. The similarly anti-risk US Dollar and Swiss Franc were not far behind. Sentiment deteriorated as Asia Pacific bourses followed Friday’s negative lead from Wall Street, as expected at the start of Monday’s session. They shed nearly 3 percent on average.

The news-wires are linking the downbeat mood to combative comments from US President Donald Trump. He said in a virtual Fox News town hall that his administration may move to “punish” China with additional tariffs for some sort of as-yet unexplained wrongdoing linked to the origin of the global Covid-19 coronavirus outbreak. Not surprisingly, the threat of renewed trade wars did not sit well with investors.

Yen, US Dollar May Continue Higher Amid Global Recession Fears

Chart created with TradingView

However, risk appetite was already deteriorating when Mr Trump spoke. This means that, while he certainly might have amplified the tilt toward liquidation, he probably did not trigger it. Rather, financial markets may finally be starting to onboard the raft of gloomy economic data and ominous corporate earnings guidance hitting the wires over recent weeks.

Indeed, the consensus forecast compiled by Bloomberg News now sees the global economy shrinking 1.5 percent this year. That is compared with a mere 0.07 percent overall contraction in 2009, the last time that overall output turned negative. It took the better part of a decade for the world to appear as though that setback had been well and truly overcome, at least at surface level. The situation now may be more dire still.

Looking ahead, a relatively quiet offering on the economic calendar seems unlikely to derail sentiment-driven trade. That seems to set the stage for the Yen and US Dollar to continue building higher as the risk-off tone persists. Indeed, European shares are already showing signs of following APAC issues lower and bellwether S&P 500 futures firmly in the red before the bell on Wall Street, hinting at more of the same.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Ilya Spivak
Traits of Successful Traders
Get My Guide

FX TRADING RESOURCES

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

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

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

DISCLOSURES