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. See our updated Privacy Policy here.

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
More View more
Real Time News
  • Believe it or not, some stocks may actually be more attractive in a bear market. Learn more about Defensive stocks here:https://t.co/TMcbMALtbw https://t.co/FQFnd3SIkG
  • Further your forex knowledge and gain insights from our expert analysts @JohnKicklighter and @JStanleyFX on $USD with our free Q4 market analysis guide, available for free today. https://t.co/7G7pWntiyY #DailyFXGuides https://t.co/k803MjNfTC
  • Stocks looked poised to rally with risk sentiment generally strong and technical signposts supportive of higher levels. Get your weekly equities forecast from @PaulRobinsonFX here: https://t.co/j0iidIkrfR https://t.co/Jki7lJcs0B
  • Volatility, volatility, volatility. It's talked about so often but how can a trader really incorporate this into their approach? Find out here: https://t.co/SVmeGHIP2P https://t.co/rRe35rW8Mh
  • Markets move in cycles, and stocks do too, with certain sectors carrying more attraction in various backdrops. Learn more here:https://t.co/HMyeIy09Wm https://t.co/K16BSqaRxw
  • Bitcoin broke above $60k earlier in the session to a fresh multi-month high on the renewed expectation that the SEC will approve a futures-based Bitcoin ETF very soon. Get your weekly #Bitcoin forecast from @nickcawley1 here: https://t.co/cq9KH6fdQB https://t.co/isXVY87GZq
  • Further your stock trading knowledge and gain informed market analyses from our expert analysts @HathornSabin and @JMcQueenFX on Indexes with our free Q4 guide, available today.https://t.co/YQG1aaIT8C #Dailyfxguides https://t.co/aJViAT9lw8
  • Get your basics right. Find out what is stock market volatility and how you can trade It here:https://t.co/pK95WaqA3j https://t.co/sLMza2wKYd
  • The Japanese Yen continues to be pummeled against most major currencies. Get your weekly Japanese Yen forecast from @HathornSabin here: https://t.co/WY5rcoqNP2 https://t.co/JT8yOUgceA
  • The US Dollar paused its advance against ASEAN currencies. USD/SGD eyes a key trendline, USD/THB risks stalling, USD/PHP enters consolidation as USD/IDR continues ranging. Get your market update from @ddubrovskyFX here:https://t.co/Hd4mu0MKkp https://t.co/1kOgueJOXz
USD Outlook Propped Up By Fed, JPY Weighed By BoJ Nomination

USD Outlook Propped Up By Fed, JPY Weighed By BoJ Nomination

David Song, Strategist

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10428.62

10444.45

10396.24

0.23

94.30%

Forex_USD_Outlook_Propped_Up_By_Fed_JPY_Weighed_By_BoJ_Nomination_body_ScreenShot010.png, USD Outlook Propped Up By Fed, JPY Weighed By BoJ Nomination

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is 0.23 percent higher from the open after moving 94 percent of its average true range, and the reserve currency may push higher over the next 24-hours of trading as the 30-minute relative strength index bounces off of oversold territory. As the index fills in the gap from the Sunday open, the fresh batch of comments from Atlanta Fed President Dennis Lockhart, the sole dissenter on the 2012 FOMC, may heighten the bullish sentiment surrounding the reserve currency, and the USDOLLAR may continue to mark fresh highs ahead of the Fed testimony scheduled for later this week as the upward trending channel from earlier this year continues to take shape. Beyond the Humphrey-Hawkins Testimony, the preliminary 4Q GDP report is expected to reflect a 0.5% rise in the growth rate, and an upward revision may provide another fundamental catalyst to spark a near-term rally in the reserve currency as the FOMC faces limited scope to expand the balance sheet further.

Forex_USD_Outlook_Propped_Up_By_Fed_JPY_Weighed_By_BoJ_Nomination_body_ScreenShot011.png, USD Outlook Propped Up By Fed, JPY Weighed By BoJ Nomination

The USDOLLAR looks poised for a near-term reversal as the relative strength index approaches resistance (76), but we may see a shallow correction in the dollar as Fed policy makers adopt an improved outlook for the U.S. economy. Boston Fed President Eric Rosengren, who serves on the FOMC this year, struck a positive tone for the banking sector and said ‘U.S. financial institutions are now well placed to finance the economic recovery,’ and added that ‘the particularly large increase in narrowly defined tangible capital highlights a significant improvement in loss absorption capacity’ as private sector activity gradually gathers pace. As the dollar continues to carve out a series of higher highs paired with higher lows, we will continue to buy dips in the dollar, and we may see another short-term rally in the index should Fed Chairman Ben Bernanke show a greater willingness to start normalizing monetary policy later this year.

Forex_USD_Outlook_Propped_Up_By_Fed_JPY_Weighed_By_BoJ_Nomination_body_ScreenShot012.png, USD Outlook Propped Up By Fed, JPY Weighed By BoJ Nomination

Three of the four components weakened against the greenback, led by a 0.40 percent decline in the British Pound, while the Japanese Yen shed 0.37 percent amid growing bets that Prime Minister Shinzo Abe will nominate Haruhiko Kuroda to take the helm of the Bank of Japan (BoJ). As the new government takes a more aggressive approach in tackling deflation, the current head of the Asian Development Bank is expected to unveil new measures to jump-start the ailing economy, and the transition heightens the bearish outlook for the Yen as Japanese policy makers maintain their pledge to weaken the local currency. As the relative strength index on the USDJPY continues to find support around the 60 figure, we will continue to buy dips in the exchange rate, and the pair should continue to retrace the decline from back in 2009 amid the deviation in the policy outlook.

--- 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