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.

Free Trading Guides
Oil - US Crude
Wall Street
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
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.90%, while traders in US 500 are at opposite extremes with 78.20%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/xNfVZWeHaL
  • The $USD is falling against #ASEAN currencies such as the Singapore Dollar and Indonesian Rupiah as stock markets rise. Watch out for US-China escalation and Brexit talks. Get your market update from @ddubrovskyFX here:https://t.co/PziC8KZaIC https://t.co/IhJHu2WCVZ
  • For those who argue a bullish case for stocks... Let me counter with a single chart of the gold to S&P 500 ratio. Looks to me like risk-reward favors bullion over equities. $XAU $GLD https://t.co/6qiSh8E0ht https://t.co/lKViSEnrMc
  • - Silver prices could pull back as negative RSI divergence shows slowing momentum - Copper prices have risen over 20 percent, are now trading above 17-year uptrend - Monthly perspective show the base metal has entered into a key compression zone https://www.dailyfx.com/forex/market_alert/2020/06/02/Silver--Copper-Prices-Enjoyed-a-Nice-Ride---Is-it-Time-to-Get-Off.html
  • What is it about a colorful Bloomberg Terminal that is so satisfying to look at? https://t.co/Qtv9wwQv75
  • I have finally found a way to express the social climate in San Francisco and the effects of peer pressure: https://t.co/yYFXFHG2Lb
  • The US Dollar, Euro, British Pound and Australian Dollar will all be at the mercy of political developments in Asia, Europe and North America this week. An avalanche of PMI data will set the backdrop.Get your market update from @ZabelinDimitri here:https://t.co/L8cfAgVx94 https://t.co/vwChirq7SL
  • S&P 500 Forecast: Stocks Face Peril as Day of Reckoning Looms Link: https://www.dailyfx.com/forex/fundamental/article/special_report/2020/06/01/spx-sp500-forecast-stocks-face-peril-as-day-of-reckoning-looms.html $SPX $SPY $ES_F #StockMarket #Investing #Analysis https://t.co/sufK8mMtD4
  • #ASEAN currencies (such as SGD, IDR, PHP and MYR) are relatively outperforming the #USD at a stronger pace than the Indian #Rupee vs the Greenback. This is despite notable gains in the MSCI #EmergingMarkets Index. Full $USDINR, #Nifty piece to come later today! https://t.co/n0SlkfnYOV
  • Seasonal factors, oversupply issues and the outbreak of COVID-19 has seen the price of liquefied #naturalgas (LNG) fall to 22-year lows (1.519), with the situation exacerbated by ‘fuller-than-normal’ storage facilities. Get your market update here:https://t.co/VOqfkBQ4aR https://t.co/9gFVefFC3w
Forex: USD Maintains Broader Trend Despite Fed Easing- GBP Eyes 1.62

Forex: USD Maintains Broader Trend Despite Fed Easing- GBP Eyes 1.62

2012-12-13 16:05:00
David Song, Strategist





Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index






Forex_USD_Maintains_Broader_Trend_Despite_Fed_Easing-_GBP_Eyes_162_body_ScreenShot110.png, Forex: USD Maintains Broader Trend Despite Fed Easing- GBP Eyes 1.62

Although the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) remains 0.06 percent higher from the open, we may see the greenback consolidate going into the end of the week as the 30-minute relative strength index reverts back from oversold territory. In turn, the downward trending channel may continue to take shape over the remainder of the year, and bearish sentiment surrounding the USD may get carried into the following year as the Federal Reserve retains a dovish tone for monetary policy. However, as headlines coming out of the EU Summit fails to prop up investor confidence, a drop in risk-taking behavior should increase the appeal of the reserve currency, and we may see the index push back towards the 10,000 figure as the new initiatives taken on by the Federal Open Market Committee (FOMC) comes under scrutiny.

Forex_USD_Maintains_Broader_Trend_Despite_Fed_Easing-_GBP_Eyes_162_body_ScreenShot111.png, Forex: USD Maintains Broader Trend Despite Fed Easing- GBP Eyes 1.62

Although Fed Chairman Ben Bernanke argued that the expansion in the open-ended asset purchase program does not constitute more monetary stimulus, U.S. lawmakers labeled the move as ‘a continuation of unnecessary and dangerous monetary policy to make up for failed fiscal policy,’ and warned that the central bank has the ‘wrong prescription’ as the ‘Fiscal Cliff’ continues to threaten the economic recovery. However, as the Fed extends its dollar-swap agreements through February 2014, we may see the FOMC remain supportive in the following year, and the central bank may keep the open to expand its balance sheet further as the committee looks for a stronger recovery. Nevertheless, as the index preserves the bullish trend from September, with the relative strength holding above support (41), the set of higher lows in December could pave the way for a higher high, and we will look for another run at 10,100 figure once the index clears the downward trend from the June highs.

Forex_USD_Maintains_Broader_Trend_Despite_Fed_Easing-_GBP_Eyes_162_body_ScreenShot112.png, Forex: USD Maintains Broader Trend Despite Fed Easing- GBP Eyes 1.62

Three of the four components weakened against the greenback, led by a 0.40 percent decline in the Japanese Yen, while the British Pound shed 0.11 percent as it holds within the previous day’s range. Indeed, the Bank of England (BoE) Minutes highlight the biggest event risk for the following week, but another uptick in the headline reading for U.K. inflation may pave the way for another test of the 23.6 percent Fib from the 2009 low to high around 1.6200 as the central bank drops its dovish tone for monetary policy. As above-target inflation threatens the outlook for price stability, the BoE remains poised to shift gears in 2013, and we should see the Monetary Policy Committee (MPC) slowly move away from its easing cycle as the region emerges from the double-dip recession.

--- 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.


News & Analysis at your fingertips.