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
Mixed
Oil - US Crude
Bullish
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
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • (ASEAN Fundy) US Dollar Forecast: Stuck Between Treasuries, Equities as Emerging Markets Push On $USDSGD $USDTWD $USDPHP #EmergingMarkets #ASEAN https://www.dailyfx.com/forex/fundamental/article/special_report/2021/01/26/US-Dollar-Forecast-Stuck-Between-Treasuries-Equities-as-Emerging-Markets-Push-On.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/SVqNE5I4NV
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in US 500 are at opposite extremes with 68.42%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/5qXbmhK4TF
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.01% 🇨🇭CHF: -0.05% 🇪🇺EUR: -0.08% 🇨🇦CAD: -0.18% 🇳🇿NZD: -0.22% 🇦🇺AUD: -0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/q1uXEuBA1M
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.08% Germany 30: -0.06% France 40: -0.14% Wall Street: -0.52% US 500: -0.57% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/bCGarAMjGk
  • Want to make trading decisions with confidence? Download you free guide to avoid hesitations in your trading decisions.https://t.co/00I3lH90OD #DailyFXGuides https://t.co/LEzeGkMlO6
  • Market Snapshot: Anti-risk USD and JPY outperforming Growth-linked Australian, New Zealand and Canadian Dollars underperforming Wall Street futures extending losses during Tuesday APAC trade Nikkei 225 (-1.0%), Hang Seng (-2.4%), Shanghai Composite (-1.2%) [delayed] -BBG
  • Gold and silver prices may continue to rise in the coming months on the back of falling real rates of return and the prospect of additional fiscal support under a Biden administration. Get your market update from @DanielGMoss here:https://t.co/OMNoNHn2vZ https://t.co/FyyPehAlJh
  • Thai Debt Chief Rules Out Additional Stimulus Borrowing For Now - BBG
  • The #HSI Hang Seng Index tumbled 2.5% as profit-taking kicked in among tech stocks: - Tencent (-5.94%) - Alibaba (-1.86%) - Meituan (-6.35%) - Xiaomi (-1.64%)
  • Will the Swiss Franc find reprieve after recent losses against the Canadian and New Zealand Dollars as NZD/CHF and CAD/CHF uptrends face key chart barriers? Find out from @FxWestwater here:https://t.co/c89gcaNhTt https://t.co/egDQcTpU87
Forex: USDOLLAR At Critical Juncture- All Eyes On Chairman Bernanke

Forex: USDOLLAR At Critical Juncture- All Eyes On Chairman Bernanke

David Song, Strategist

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

9948.81

9961.18

9940.44

0.00

58.13%

Forex_USDOLLAR_At_Critical_Juncture-_All_Eyes_On_Chairman_Bernanke_body_ScreenShot103.png, Forex: USDOLLAR At Critical Juncture- All Eyes On Chairman Bernanke

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is relatively flat from the open amid bets for additional monetary support, and the reserve currency may face a sharp selloff during the North American trade as market participants see the Federal Reserve offsetting ‘Operation Twist’ with additional asset purchases. Indeed, a further expansion in the central bank may trigger a move back towards the 9,900, but we may see the dollar track higher going into the rate announcement as the 30-minute relative strength index bounces back from oversold territory. As former trendline support appears to be acting as new resistance, we’re starting to see the index carve out a bearish trend, and dollar may weaken further in the following year should the Fed carry its easing cycle into the following year.

Forex_USDOLLAR_At_Critical_Juncture-_All_Eyes_On_Chairman_Bernanke_body_ScreenShot106.png, Forex: USDOLLAR At Critical Juncture- All Eyes On Chairman Bernanke

Indeed, market participants appear to be pricing an expansion in the Fed’s open-ended asset purchase program as ‘Operation Twist’ comes to an end, but the central bank may continue to stick to the sidelines as the economic recovery gradually gathers pace. The central bank may hold off on further easing as the U.S. Congress struggles to address the ‘Fiscal Cliff,’ and the Fed may put more pressure on the government to tackle the ballooning deficit as it continues to threaten the long-term outlook for the world’s largest economy. As the Fed sees a more broad-based recovery and holds an improved outlook for 2013, we may see a growing number of central bank officials drop their dovish tone for monetary policy, and the FOMC may scale back its willingness to expand the balance sheet further as growth and inflation picks up. As the USDOLLAR pivots around the 61.8 percent Fibonacci retracement around 9,949, the index still appears to be carving a higher low in December, and we may see the greenback threaten the downward trend from earlier this year should the Fed slowly move away from its easing cycle.

Forex_USDOLLAR_At_Critical_Juncture-_All_Eyes_On_Chairman_Bernanke_body_ScreenShot105.png, Forex: USDOLLAR At Critical Juncture- All Eyes On Chairman Bernanke

The greenback lost ground against three of the four counterparts, led by a 0.26 percent advance in the Euro, while the Japanese Yen bucked the trend as the USDJPY rallied to a fresh monthly high of 82.92. Beyond the FOMC interest rate decision, the Yen may face additional headwinds ahead of the December 16 elections amid the risk of a political shift in Japan, but a multiparty coalition government may increase the appeal of the low-yielding currency as it dampens the scope of seeing the Bank of Japan (BoJ) of taking a more aggressive approach in addressing the risks surrounding the region. As the relative strength index on the USDJPY threatens overbought territory, the technical outlook points to a short-term correction in the exchange rate, and we may see the Yen regain its footing next week should the elections fail to yield a strong partnership that would put increased pressure on the BoJ to expand monetary policy further.

--- 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, please follow this link.

New to FX? Watch this Video

Join us to discuss the outlook for the major currencies on the DailyFXForums

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

DISCLOSURES