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
Mixed
Oil - US Crude
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
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
Mixed
GBP/USD
Bullish
USD/JPY
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
More View more
Real Time News
  • #Gold saw its worst performance the past 5 days in 5 months as longer-dated government bond yields in developed countries rose Could this be the beginning of a turning point in #XAUUSD? https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/08/15/Gold-Price-Outlook-Will-XAUUSD-Brush-off-Worst-Week-in-5-Months.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/x2Indk3b7P
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/PT09ZsIOCa
  • The US #Dollar may rise, buoyed by haven demand as fiscal stimulus talks stagnate and swelling tensions between Washington and Beijing sink trade talks. Get your #currencies update from @DanielGMoss here: https://t.co/Wcw9PDUr67 https://t.co/gnYZYl6aLV
  • Upside in #CrudeOil struggling ahead of #OPEC meeting. Cartel likely to maintain wait and see approach. Get your #commodities update from @JMcQueenFX here: https://t.co/gNHHKoTUzm https://t.co/eF40DRIBJ5
  • #Gold had some big moves last week, and while vol is expected to die down a bit, it will be important to see if gold can hold its ground in the coming days/weeks. Get your #metals update from @PaulRobinsonFX here: https://t.co/N8a84hRnHN https://t.co/3fjodPHTDm
  • The S&P 500's refusal to hit a record and Dollar's anchor to range this past week is sign of summer liquidity conditions, but the quiet is not insurmountable. 'S&P 500 Record and Dollar Break Look to Stimulus and Trade to Override Seasonality' https://www.dailyfx.com/forex/video/daily_news_report/2020/08/15/SP-500-Record-and-Dollar-Break-Look-to-Stimulus-and-Trade-to-Override-Seasonality-.html https://t.co/mbvPkdQfYl
  • Get your snapshot update of the of relative currency strength and exchange status from around the globe here: https://t.co/DmhBkcMZBK https://t.co/kFk6ccU3Sk
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/aXSB0bG3y0
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/1G7CRsegRX https://t.co/i342ipPuvW
  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here:https://t.co/Fkzk88Y5gm https://t.co/tHp0Nb3Tr5
Forex: USD Steady Ahead of Fed Beige Book- Shallow Correction in Play

Forex: USD Steady Ahead of Fed Beige Book- Shallow Correction in Play

2013-01-16 15:40:00
David Song, Strategist
Share:

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10074.52

10078.08

10047.45

0.09

69.97%

Forex_USD_Steady_Ahead_of_Fed_Beige_Book-_Shallow_Correction_in_Play_body_ScreenShot178.png, Forex: USD Steady Ahead of Fed Beige Book- Shallow Correction in Play

Although the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) remains 0.09 percent higher from the open, we’re seeing the greenback preserve the sideways price action carried over from the previous week, and the dollar may continue to consolidate going into the Fed’s Beige Book as the 30-minute relative strength index approaches overbought territory. However, as the USDOLLAR continues to pivot around the 10,050 figure, the greenback appears to be building a short-term base ahead of the next FOMC interest rate decision on January 30, and the bullish sentiment surrounding the dollar may gather pace in the days ahead as a growing number of central bank officials scale back their willingness to expand the balance sheet further. In turn, a more upbeat Beige Book could pave the way for another run at the 10,150 region, and the dollar may continue to carve higher highs along with higher lows amid the shift in the policy outlook.

Forex_USD_Steady_Ahead_of_Fed_Beige_Book-_Shallow_Correction_in_Play_body_ScreenShot179.png, Forex: USD Steady Ahead of Fed Beige Book- Shallow Correction in Play

Despite the more broad-based recovery in the world’s largest economy, Boston Fed President Eric Rosengren, who votes on the FOMC this year, and Minneapolis Fed President Narayana Kocherlakota argued that the central bank should do more to target the ongoing weakness in the labor market, but pledged to assess the cost and benefits of the open-ended asset purchase program as it raises the long-term outlook for inflation. Nevertheless, we should see the Fed continue to highlight the resilience in private sector consumption along with the budding recovery in the housing market as it raises the outlook for growth, and the FOMC may change its tune over the course of the year as the rebound in economic activity raises the threat for inflation. Although we’re seeing the relative strength index continue to fall back from overbought territory, we will maintain our bullish forecast for the USD as the oscillator preserves the upward trend from back in September.

Forex_USD_Steady_Ahead_of_Fed_Beige_Book-_Shallow_Correction_in_Play_body_ScreenShot180.png, Forex: USD Steady Ahead of Fed Beige Book- Shallow Correction in Play

The greenback strengthened against three of the four components, led by a 0.47 percent decline in the British Pound, while the Australian dollar continues to hold below the 1.0600 figure as the AUDUSD slipped 0.15 percent from the open. Although we’re expecting to see Australian employment increase another 4.5K in December, consumer inflation expectations are currently at its lowest level since 1997, and a further deterioration in the price growth outlook may dampen the appeal of the high-yielding currency as the Reserve Bank of Australia keeps the door open to cut the benchmark interest rate further. According to Credit Suisse overnight index swaps, market participants see borrowing costs in the $1T economy falling by nearly 50bp over the next 12-months, and the AUDUSD may have carved out a short-term top this month as Governor Glenn Stevens is expected to strike a cautious outlook at the February 4 meeting.

--- 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

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.