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
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
Oil - US Crude
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
Wall Street
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
Gold
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
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • US Dollar dropped about 0.5% early Monday as measured by the broad-based DXY Index. Get your $USD market update from @RichDvorakFX here: https://t.co/QIKZInuzm2 https://t.co/NtWDSQeUTR
  • $USD $DXY | US Dollar Mired by Fiscal Stimulus Deadline -via @DailyFX Link to Analysis: https://www.dailyfx.com/forex/market_alert/2020/10/19/usd-price-outlook-us-dollar-mired-by-fiscal-stimulus-deadline.html #FX #Forex #Trading https://t.co/qvLb1N8QJX
  • Combing the headlines today, it feels very much like a 'these are the stocks that will hit record highs should the pandemic and recession return' kind of vibe. Rampant speculation.
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.52% 🇪🇺EUR: 0.46% 🇬🇧GBP: 0.23% 🇨🇦CAD: 0.01% 🇯🇵JPY: -0.03% 🇦🇺AUD: -0.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/d7oMzMEfU6
  • Senator McConnell says stimulus to be voted on this Tuesday and Wednesday - BBG
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 0.90% Gold: 0.23% Oil - US Crude: -0.39% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/zaH4DP0nFZ
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.05%, while traders in EUR/USD are at opposite extremes with 69.60%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/b7OFCOlJkt
  • After recovering from March 2020 lows, price action favored the bulls, until reaching a wall of resistance on 1 September at the psychological level of 1.2000. Get your $EURUSD market update from @Tams707 here:https://t.co/PxcRm33ooH https://t.co/S7thoATfKw
  • US Equity Update (Monday Close): $DJI -1.43% $SPX -1.63% $NDX -1.84% $RUT -1.23% $VIX +6.24%
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: US 500: 0.04% Wall Street: 0.03% France 40: -0.50% FTSE 100: -0.58% Germany 30: -0.97% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/N8tSHADd40
USD Index Carving Higher Low Ahead Of April, JPY At Critical Juncture

USD Index Carving Higher Low Ahead Of April, JPY At Critical Juncture

2012-03-29 17:00:00
David Song, Strategist
Share:

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

9973.33

9987.18

9941.98

0.01

67.57%

USD_Index_Carving_Higher_Low_Ahead_Of_April_JPY_At_Critical_Juncture_body_ScreenShot081.png, USD Index Carving Higher Low Ahead Of April, JPY At Critical Juncture

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is 0.01 percent higher from the open after moving 68 percent of its average true range, and the rebound may gather pace over the next 24-hours of trading as it continues to threaten the downward trending channel from earlier this month. However, as there appears to be a downward trend in the 30-minute relative strength index, the recent run up in the index could turn out to be a false break, and we may see the greenback continue to consolidate should Fed officials talk up speculation for more quantitative easing.

USD_Index_Carving_Higher_Low_Ahead_Of_April_JPY_At_Critical_Juncture_body_ScreenShot082.png, USD Index Carving Higher Low Ahead Of April, JPY At Critical Juncture

Atlanta Fed President Dennis Lockhart, who also serves on the FOMC this year, held an improved outlook for the world’s largest economy and talked down the spillover effects from the sovereign debt crisis as European policy makers increase their effort to stem the risk for contagion. At the same time, Philadelphia Fed President Charles Plosser warned that more monetary accommodation could put the U.S. on a treacherous path, and we should see central bank officials continue to soften their dovish tone for monetary policy as the recovery gathers pace. In turn, the Fed may show an increased willingness to conclude its easing cycle in 2012, and the committee may start normalizing monetary policy towards the end of the year as the economy gets on a more sustainable path. As the upward trending channel from earlier this year continues to take shape, we are still looking for another run at the 78.6 percent Fibonacci retracement around 10,118, and the bullish sentiment underling the dollar should gather pace as interest rate expectations pick up.

USD_Index_Carving_Higher_Low_Ahead_Of_April_JPY_At_Critical_Juncture_body_ScreenShot083.png, USD Index Carving Higher Low Ahead Of April, JPY At Critical Juncture

Two of the four components weakened against the greenback, led by a 0.50 percent decline in the Australian dollar, while the Japanese Yen rallied another 0.64 percent on Thursday amid the shift away from risk-taking behavior. Although the USDJPY slipped to 81.90 earlier this morning, we’re seeing the pair slowly regain its footing during the North American trade, and the pair may continue to retrace the decline from earlier this year as it looks to be carving a higher low ahead of April. As the Fed continues to soften its dovish tone for monetary policy, the Bank of Japan’s pledge to meet the 1% target for inflation should continue to push the USDJPY higher over the near-term, but the technical outlook paints a mixed picture for the pair as the relative strength index appears to be in a downward trend. As the USDJPY sits at a very critical juncture, seeing how the pair ends the month should help to generate a clear directional bias for April, but the shift in the policy outlook is likely to play an increased role in driving the exchange rate as the Fed looks to conclude its easing cycle.

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong

To be added to David's e-mail distribution list, send an e-mail with subject line "Distribution List" to dsong@dailyfx.com.

Join us to discuss the outlook for the major currencies on the DailyFX Forums

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

DISCLOSURES