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. See our updated Privacy Policy here.

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
Subscribe
Please try again
More View more
Real Time News
  • GBP/USD IG Client Sentiment: Our data shows traders are now net-short GBP/USD for the first time since Jun 16, 2021 when GBP/USD traded near 1.40. A contrarian view of crowd sentiment points to GBP/USD strength. https://www.dailyfx.com/sentiment https://t.co/6IxNIkWji6
  • NY Fed accepts $927.42 billion in reverse repo operations $USD $DXY
  • $EURUSD is looking to close above the 20-day moving average for the first time in 36 trading days. This would end the longest bearish leg (by definition of spot above/below 20 SMA) since Nov 16, 2018 https://t.co/CM9PhSi7RN
  • USD/CAD struggles to push back above the 200-Day SMA (1.2608) as it tracks the range-bound price action carried over from the previous week. Get your market update from @DavidJSong here:https://t.co/VZBKpusKx1 https://t.co/GSZTNOfuOm
  • Despite the formation of a "death cross" EUR/USD continues higher, trading back above 1.1830 $EURUSD #Forex #Trading https://t.co/J9Z4psFoim
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.60%, while traders in Wall Street are at opposite extremes with 70.50%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/BXjltzFs4r
  • In case you missed it... I discuss considerations for playing gold and silver price pullbacks as potentially attractive opportunities in the article below. Link - https://www.dailyfx.com/forex/fundamental/forecast/monthly/title/2021/07/02/gold-silver-price-pullback-could-provide-attractive-opportunities-in-q3.html https://t.co/XFd16WGsKN
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Gold: 0.12% Oil - US Crude: -0.90% Silver: -2.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/shWd9TLjur
  • As risk-assets decline, the $VIX moves back above 20 ahead of tomorrow's Fed rate decision $VIX $VVIX $VXX https://t.co/tWlI7CJivw
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.70% 🇬🇧GBP: 0.48% 🇨🇭CHF: 0.24% 🇨🇦CAD: -0.30% 🇦🇺AUD: -0.33% 🇳🇿NZD: -0.63% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/a0R3xYzRkN
US Dollar Regains Momentum, Aims to Capitalize on Market Turmoil

US Dollar Regains Momentum, Aims to Capitalize on Market Turmoil

Ilya Spivak, Head Strategist, APAC
Please add a description for the image.

US DOLLAR FUNDAMENTAL FORECAST: BULLISH

  • US Dollar erases prior week’s losses after hawkish FOMC meeting minutes
  • Renewed risk aversion reveals USD behaving like a haven asset once again
  • Lingering headwinds warn sentiment may sour further, US Q3 GDP on tap

See our US Dollar forecast to learn what will drive prices through the end of the year!

The US Dollar has all but erased losses sustained against the backdrop of the prior week’s market rout. Its rebound did not coincide with returning risk appetite. Rather, the bellwether S&P 500 stock index is on course to finish the week little changed, unable to sustain a bounce after the third-largest drop in two years.

Recovery came courtesy of hawkish rhetoric in minutes from September’s FOMC meeting, as expected. Officials flagged risks linked to leveraged loans and a stronger currency but still unanimously agreed that gradual tightening is the best path forward. A rise beyond the “long run” level was even posited.

That deflates the idea that the Greenback has migrated to the risk-on side of the G10 FX sentiment spectrum. Indeed, the benchmark unit reclaimed its place alongside the Yen and US Treasury bondsthe very next day, rising amid risk aversion.

Expectant markets will not have a meaningful opportunity to relitigate the issue until third-quarter US GDP data comes across the wires Friday. A slowdown is expected but the annualized growth rate is still seen coming in at a brisk 3.2 percent. A particularly big miss might revive “Powell put” hopes somewhat.

In the meantime, festering trade wars and shaky politics threaten to keep risky assets on the defensive. Italy is still on a collision course with EU authorities, Brexit talks are at a stalemate, the US remains at odds with China and anti-establishment politicians have muddied the fiscal landscape from Sweden to Brazil.

The US Dollar seems like a natural beneficiary amid the kind of de-risking of portfolios that such a landscape encourages. It is precisely times like this that make its unrivaled liquidity most appealing. Before all else, a broad-based “cashing out” needs a vehicle able to smoothly absorb capital flows on a vast scale.

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

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

US DOLLAR TRADING RESOURCES

OTHER FUNDAMENTAL FORECASTS:

Australian Dollar Forecast – AUD Price at Risk to Political Uncertainty, Fed Bets, BoC Rate Hike

Oil Forecast – Crude Oil Joins Macro Headlines For Busy October As Stockpiles Build

British Pound Forecast – Brexit Stuck in a Rut, UK PM May on a Tightrope

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

DISCLOSURES