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
Wall Street
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
Gold
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
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • The growth-linked New Zealand Dollar may rise on the upcoming #RBNZ rate decision following rosy economic data. However, downside potential in the S&P 500 could offset $NZDUSD gains. Get your #currencies update from @ddubrovskyFX here: https://t.co/LfCe6C6G3P https://t.co/kUeBxxeaEf
  • It was a quiet week in Aussie as $AUDUSD put in its second consecutive week of indecision. But taking a more granular look highlights the potential for a reversal scenario. Get your #currencies update from @JStanleyFX here: https://t.co/PPK20nubAf https://t.co/0nfmRRFNnz
  • The S&P 500 pushed the market's comfort with a head-and-shoulders pattern through Friday's close. What should we look for in technical patterns, overlapping fundamental tides and speculative positioning for the likes of $EURUSD next week? https://www.dailyfx.com/forex/video/daily_news_report/2020/09/19/EURUSD-Pressure-Building-while-Anxious-Traders-Weigh-Did-SP-500-Break.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/lgVJVwi8th
  • Sterling remains trapped by overarching fundamentals drivers and both $GBPUSD and $EURGBP are going to have to wait until the Brexit dust settles. Get your #currencies update from @nickcawley1 here: https://t.co/vF1K1cy0nd https://t.co/NSA7qiQihc
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/d9EmTOHyTv
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true.Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/xqbUxwWgTZ
  • An economic calendar is a resource that allows traders to learn about important economic information scheduled to be released. Stay up to date on the most important global economic data here: https://t.co/JdvW6HNuqV https://t.co/Gi8LHCT5sB
  • The AB=CD pattern is simple once you know how to spot it and draw the proper Fibonacci retracements. Make your trading strategy as simple as ABCD here: https://t.co/AKmlmaAZBS https://t.co/FFmRYyx4ou
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here: https://t.co/aVAzFypAg1 https://t.co/r7aJb4qpqc
  • 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/fIGDaDW21V
US Dollar and Yen May Rebound on Recession Fears, ADP Eyed

US Dollar and Yen May Rebound on Recession Fears, ADP Eyed

2020-05-06 07:00:00
Ilya Spivak, Head Strategist, APAC
Share:

US DOLLAR, YEN, ADP, PMI, S&P 500 – TALKING POINTS:

  • Markets face mixed signals from G10 FX, S&P 500 futures
  • Focus on global recession risk may undermine risk appetite
  • S&P 500 futures up but ADP data may show 21m jobs lost

Currency markets were in a relatively chipper mood in Asia Pacific trade. The cyclical Australian, Canadian and New Zealand Dollars rose alongside regional shares, which added about 0.7 percent on average. A sense of unease was palpable however. The anti-risk US Dollar and Japanese Yen were conspicuously steady, suggesting that traders were not prepared to fully commit to a ‘risk-on’ tilt.

AUD and NZD up with stocks but JPY and USD steady

Chart created with TradingView

That sense of fragility stands in contrast to upbeat signaling in futures tracking the bellwether S&P 500 stock index. They are pointing convincingly higher ahead of the opening bell on Wall Street, implying a rosy disposition. The calendar is not especially eye-catching, with a string of revised PMI surveys and an economic forecasts update from the EU Commission on offer.

It seems unreasonable to expect that the outcomes on offer will paint anything but a very gloomy picture, given the severe disruption of economic activity amid the Covid-19 outbreak. That may undercut the releases’ market-moving potential. A sense of renewed focus on the emerging global recession seems palpable however, so perhaps the total impact of multiple negative data points has the capacity to trigger a risk-off pivot.

If this scenario does play out, April’s ADP employment data may strengthen the anti-risk argument. It is expected to show that the economy shed 21 million jobs last month. That stands to foreshadow Friday’s official labor market report, which is seen delivering the same result on headline payrolls. Not surprisingly, US economic data has tended to undershoot forecasts, warning that these dire bets may be too timid.

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