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
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bearish
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
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • Gold slightly lower as equities, dollar put in mixed sessions $XAU $USD $DXY https://t.co/37c9N2gzgh
  • The $VIX can't continue to trace out this coasting pattern for long. Again, I don't usually throw technical analysis on indicators derived from underlying activity, but VIX has become a trading vehicle in its own right https://t.co/qBvMeOCmmW
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Silver: 0.31% Oil - US Crude: -0.08% Gold: -0.32% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/DpPoyNP5hl
  • After a strong breakout this summer, Gold prices have now spent almost six months digesting. Get your $XAUUSD market update from @JStanleyFX here:https://t.co/H7k5kv4N5i https://t.co/shvReKpe1U
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in Germany 30 are at opposite extremes with 70.32%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ivQLPokYOs
  • The US Dollar is now trading lower again. After hitting an intraday low around 90.15, the $DXY rebounded to 90.25 but has turned toward again, falling back below 90.20. $USD https://t.co/xyglMBmakL
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: France 40: 0.14% Wall Street: 0.06% US 500: 0.03% Germany 30: 0.02% FTSE 100: -0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/SbFlX1iTdj
  • #Gold is consolidating slightly higher this week, around $1,850, after the precious metal's failed attempt at breaking above the $1,870 level last week. $XAU $GLD https://t.co/MyeWiBSQZR
  • US 10yr yields have notably tightened, falling from 1.10% yesterday to trade around 1.04% today. Yields still remain elevated in 2021 compared to earlier in the pandemic. $GOVT $IEF $USD https://t.co/uT27KDUkhM
  • Hey traders! Get your Tuesday market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/WPk9aapKhs
US Dollar Weekly Outlook: In One Word - Frail

US Dollar Weekly Outlook: In One Word - Frail

Nick Cawley, Strategist

US Dollar (DXY) Price, News and Analysis:

  • The latest NFP report highlights job market weakness.
  • Fed expected to keep monetary policy loose for longer.
Advertisement

The US dollar basket (DXY) hit lows last seen over two-and-a-half years ago this week as relentless selling kept forcing the value of the greenback lower. The backdrop for the US dollar has been deteriorating lately as the Federal Reserve continues to send out signals that it will keep monetary policy ultra-accommodative until a pick-up in the US economy is well underway. In addition, the expected roll-out next of a vaccine inoculation plan in the UK is boosting hopes globally that a cure for Covid-19 could soon be available to all, fuelling a risk-on move in the market and further dampening the allure of the haven US dollar. Further, recent reports that talks on a fresh US stimulus bill are ongoing and that an announcement may be made soon added an extra layer of risk appetite.

USD Forecast
USD Forecast
Recommended by Nick Cawley
Download our Q4 US Dollar Forecast
Get My Guide

The Federal Reserve is expected to announce that it will purchase more longer-dated US bonds at the December 15/16 FOMC meeting. The Fed will continue in its efforts to keep longer-term interest rates lower to help consumer borrowing and boost the ailing jobs market. The latest US Jobs Report (NFP) highlighted the weakness in the jobs market with 245k new roles created in November, missing estimates of 469k, and October’s downgraded print of 610k from an original release of 638k.

US Dollar Whipsaws on Soft Non-Farm Payrolls Report

The US dollar basket (DXY) chart shows not just the ongoing weakness in the greenback but the acceleration lower this week. Lower highs and lower dominate the chart and any areas of horizontal support are seemingly taken out with ease. The moving average set-up is negative after a ‘death-cross’ was made on July 2 around the 97 level and there is little in the way of support until the February 2018 low print at 87.90.

There are a couple of reasons that the sell-off may slow down with the USD in heavily oversold territory while next week the ECB is fully expected to announce an extension to their pandemic bond-buying program by up to a year - until the middle of 2022 - weakening the Euro and boosting the value of the dollar basket. The ECB meeting and press conference is on Thursday the 10th of December from 12:45 GMT onwards.

US Dollar (DXY) Daily Price Chart (February – December 4, 2020)

US Dollar Weekly Outlook: In One Word - Frail{{SENTIMENT|Learn How to Use Sentiment in Your Trading Strategy}}

What is your view on the US Dollar – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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

DISCLOSURES