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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here:
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EST on DailyFX! A look at the levels heading into #FOMC -
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:
  • Markets Week Ahead: Euro, Dollar, Gold, S&P 500, Earnings, Inflation Check out @RichDvorakFX's latest market recap and preview plus all the weekly forecasts from the @DailyFXTeam at the link below! Link to Analysis - $EURUSD $SPX #Trading
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here:
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here:
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here:
  • US indices have a packed week ahead with earnings from the major technology names, US GDP data due and an FOMC rate decision. With so much on the docket the potential for volatility is heightened. Get your stock market forecast from @PeterHanksFX here:
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here:
  • 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:
USDOLLAR to Search for Support- GBP Rebound to Accelerate

USDOLLAR to Search for Support- GBP Rebound to Accelerate

David Song, Strategist





Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index






Forex_USDOLLAR_to_Search_for_Support-_GBP_Rebound_to_Accelerate_body_ScreenShot245.png, USDOLLAR to Search for Support- GBP Rebound to Accelerate

Chart - Created Using FXCM Marketscope 2.0

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is trading 0.03 percent lower from the open after giving back the advance to 10,781, and we’re seeing the greenback threaten the upward trend from earlier this month as the fresh batch of data coming out of the world’s largest economy appears to be showing a slowing recovery. Although U.S. Building Permits jumped 14.3 percent in April, the 16.5 percent decline in Housing Starts along with easing Consumer Prices may encourage the FOMC retain its highly accommodative policy stance throughout 2013, but we’re seeing a growing number of Fed officials scale back their willingness to expand the balance sheet further as the region gets on a more sustainable path. Should the dollar fail to hold trendline support, we will look for a move back towards the 10,600 region, but we will maintain a bullish outlook over the near to medium-term as the index continues to carve a series of higher highs paired with higher lows.

Forex_USDOLLAR_to_Search_for_Support-_GBP_Rebound_to_Accelerate_body_ScreenShot246.png, USDOLLAR to Search for Support- GBP Rebound to Accelerate

As Philadelphia Fed President Charles Plosser continued to float the idea of scaling back quantitative easing at the June 19 meeting, Dallas Fed President Richard Fisher followed suit and warned that the asset purchase program could be ‘potentially disruptive to the proper functioning of the MBS market,’ and went onto say that the committee should ‘dial back’ its non-standard measures as the economic recovery gradually gathers pace. Indeed, the shift in the policy outlook should carry the dollar higher over the coming months, but the index looks poised for a correction as the relative strength index falls back from a high of 72. In turn, we may see former resistance around the 10,600 figure come in as new support, and the bullish sentiment surrounding the reserve currency should gather pace throughout 2013 as the central bank faces limited scope to expand the balance sheet further.

Forex_USDOLLAR_to_Search_for_Support-_GBP_Rebound_to_Accelerate_body_ScreenShot247.png, USDOLLAR to Search for Support- GBP Rebound to Accelerate

The greenback weakened against three of the four components, led by a 0.36 percent rally in the British Pound, and the sterling may continue to track higher ahead of the Bank of England (BoE) Minutes due out on May 22 as the central bank strikes an improved outlook for the U.K. economy. Indeed, the policy statement may further dampen expectations for more quantitative easing as a growing number of BoE officials adopt a more neutral to hawkish tone for monetary policy, and it seems as though the Monetary Policy Committee will keep the Asset Purchase Facility capped at GBP 375B as they see a modest and sustainable recovery in Britain. As the GBPUSD carves out a higher low in May, the shift in the policy outlook may spark a more meaningful run at the 38.2 percent Fibonacci retracement from the 2009 low to high around 1.5680, and the British Pound may continue to recoup the losses from earlier this year as the BoE appears to be slowly moving away from its easing cycle.

--- Written by David Song, Currency Analyst

To contact David, e-mail Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

Bring the economic calendar to your charts with the DailyFX News App.

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.