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
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
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
More View more
Real Time News
  • 3 consecutive down weeks for the #SP500 as of today, the first actually in almost one year How's the #Fed balance sheet dong? Up 0.76% this week, most in a month. Though all things considered, materially unchanged since June/July Markets may be growing increasingly impatient... https://t.co/wD6wga9vsu
  • The New Zealand Dollar appears poised to extend its climb against its haven-associated counterparts as long-term trend break hints at cyclical upturn. Get your $NZDUSD market update from @DanielGMoss here: https://t.co/CPxP1Q8B6d https://t.co/NBJ9qkaNei
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.17% 🇳🇿NZD: 0.07% 🇪🇺EUR: -0.06% 🇨🇦CAD: -0.30% 🇨🇭CHF: -0.33% 🇬🇧GBP: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/lYbgFKQKmu
  • USD/MXN is in danger of picking up more momentum as the recent decline takes out support levels and gains ‘negative curvature’ to its path. Get your $USDMXN technical analysis from @PaulRobinsonFX here: https://t.co/eQzD6JyA5c https://t.co/km6neTN3M6
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Gold: 0.33% Oil - US Crude: -0.55% Silver: -0.64% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/0yp0FnGl8y
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.22%, while traders in NZD/USD are at opposite extremes with 71.43%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/fu1Xj6AuYv
  • US Equity Update (Friday Close): $DJI -0.88% $SPX -1.12% $NDX -1.30% $RUT -0.38% $VIX -2.00%
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: US 500: -0.01% Wall Street: -0.01% Germany 30: -0.31% France 40: -0.39% FTSE 100: -0.40% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/TUiymobDKl
  • Precious Metals Update: #Gold 1950.04 (+0.29%), #Aluminum 1781.00 (-0.81%), and #Copper 6780.50 (+0.05%) [delayed]
  • RT @SadiqKhan: IMPORTANT: The PM has said that we are now seeing the start of a second wave of COVID-19 across the UK. Londoners should k…
USD Index Looks Higher Ahead Of Jackson Hole, GBP Advances On BoE

USD Index Looks Higher Ahead Of Jackson Hole, GBP Advances On BoE

2012-08-29 14:45:00
David Song, Strategist
Share:

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10004.24

10008.11

9983.9

0.14

57.41%

USD_Index_Looks_Higher_Ahead_Of_Jackson_Hole_GBP_Looks_Higher_On_BoE_body_ScreenShot137.png, USD Index Looks Higher Ahead Of Jackson Hole, GBP Advances On BoE

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is 0.14 percent higher from the open after moving 57 percent of its average true range, and we may see the dollar hold above the 10,000 figure over the next 24-hours of trading as risk sentiment tapers off ahead of the Jackson Hole Economic Symposium.As the recent batch of data coming out of the world’s largest economy instills an improved outlook for growth, the Fed may sound less dovish going forward, and we may see a sharp reversal in the index should the Fed maintain its current policy in September. However, as the USDOLLAR struggles to trade back within the upward trending channel from earlier this month, former trendline support may act as new resistance, and we may see a very choppy reaction to the central bank conference as current traders go offline ahead of the holiday weekend.

USD_Index_Looks_Higher_Ahead_Of_Jackson_Hole_GBP_Looks_Higher_On_BoE_body_ScreenShot138.png, USD Index Looks Higher Ahead Of Jackson Hole, GBP Advances On BoE

At the same time, we will be closely watching the Fed’s Beige Book on tap for later today, and a more upbeat report may sap expectations for additional monetary support as the central bank expects the recovery to gradually gather pace. In turn, we may see Chairman Ben Bernanke refrain from hinting at QE3, and the central bank head may endorse a wait-and-see approach throughout the remainder of the year as the economy gets on a more sustainable path. As the USDOLLAR continues to come off of trendline support, we may see another run at the 78.6 percent Fibonacci retracement around the 10,118 figure, and the greenback may threaten the downward trend carried over from June if we see Mr. Bernanke talk down expectations of expanding the Fed’s balance sheet further.

USD_Index_Looks_Higher_Ahead_Of_Jackson_Hole_GBP_Looks_Higher_On_BoE_body_ScreenShot139.png, USD Index Looks Higher Ahead Of Jackson Hole, GBP Advances On BoE

The greenback advanced against three of the four components, led by a 0.32 percent decline in the Japanese Yen, while the British Pound continue to outperform against its major counterparts as it advanced another 0.07 on Wednesday. As the Bank of England is widely expected to maintain its current policy at the September 6 meeting, the short-term rally in the GBPUSD looks poised to gather pace over the coming days, and we are looking for a move back above the 1.5900 figure as the upward trending channel from July continues to take shape. As the recent developments coming out of the U.K. top market expectations, the BoE may sound less dovish over the coming months, and we may see the central bank slowly move away from its easing cycle as growth and inflation picks up.

--- 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

Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.

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

DISCLOSURES