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
Bearish
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
Oil - US Crude
Mixed
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
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
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • NZD/USD quickly pulls back from a fresh 2020 high (0.6968) as upbeat data prints coming out of the US economy spark a bullish reaction in the Greenback. Get your $NZDUSD market update from @DavidJSong here: https://t.co/zghuqNDKXP https://t.co/B5YZ0dWOtR
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.27% 🇨🇦CAD: 0.05% 🇳🇿NZD: -0.09% 🇨🇭CHF: -0.16% 🇦🇺AUD: -0.23% 🇯🇵JPY: -0.67% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/zBEnHG1OJ9
  • US 10-year Treasury yields aiming higher on positive vaccine developments after U-turning at Ascending Channel support A move back towards the November high (0.98) looks likely in the near term and could spell further downside for #gold prices $TNX $GLD #US10Y https://t.co/7TgKaDHLdB
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.43% Gold: -1.90% Silver: -2.49% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/m88Pl31QW4
  • Michigan certifies election results for Joe Biden - BBG
  • Mexican Peso is carving the weekly opening-range just above downtrend support and while the broader risk remains lower. Get your $USDMXN market update from @MBForex here:https://t.co/7KPza6gEmZ https://t.co/u1Fdz3dwEI
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.33%, while traders in NZD/USD are at opposite extremes with 75.64%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/yjvp0kn5Ab
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.07% France 40: 0.02% Wall Street: 0.01% US 500: 0.01% FTSE 100: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/AWgEa62SzF
  • 🇰🇷 Consumer Confidence (NOV) Actual: 97.9 Previous: 91.6 https://www.dailyfx.com/economic-calendar#2020-11-23
  • Heads Up:🇰🇷 Consumer Confidence (NOV) due at 21:00 GMT (15min) Previous: 91.6 https://www.dailyfx.com/economic-calendar#2020-11-23
USD Downside Limited by Fed Policy- JPY to Mark Fresh Lows

USD Downside Limited by Fed Policy- JPY to Mark Fresh Lows

2013-05-20 15:45:00
David Song, Strategist
Share:

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10776.22

10814.17

10775.09

-0.42

61.36%

Forex_USD_Downside_Limited_by_Fed_Policy-_JPY_to_Mark_Fresh_Lows_body_ScreenShot258.png, USD Downside Limited by Fed Policy- JPY to Mark Fresh Lows

Chart - Created Using FXCM Marketscope 2.0

Although the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is trading 0.42 percent lower from the open, the greenback appears to be finding trendline support, and the reserve currency may track higher ahead of the FOMC Minutes on tap for later this week as a growing number of central bank officials scale back their willingness to expand the balance sheet further. As the 30-minute relative strength index bounces back from oversold territory, we should see the dollar consolidate throughout the North American trade, and we will continue to buy dips in the greenback as the upward trend from earlier this month continues to take shape. In turn, the bullish sentiment surrounding the greenback should gather pace over the near to medium-term, and the fresh batch of central bank rhetoric may spark fresh 2013 highs in the USDOLLAR as market participants scale back bets for more Fed easing.

Forex_USD_Downside_Limited_by_Fed_Policy-_JPY_to_Mark_Fresh_Lows_body_ScreenShot259.png, USD Downside Limited by Fed Policy- JPY to Mark Fresh Lows

Dallas Fed President Richard Fisher argued that the FOMC should have scaled back its asset purchase program at the previous meeting as he sees the world’s largest economy expanding more than 2.5 percent this year, and talked down the threat for deflation as the recovery gradually gathers pace. As a result, the meeting minutes may reveal a greater discussion to drop the highly accommodative policy stance, and we may see a growing number of Fed officials start to float a tentative exit strategy in the coming months as the U.S. gets on a more sustainable path. Indeed, we will need to keep a close eye on the relative strength index as it falls back from resistance (78), but we may see another push to the upside as long until the oscillator falls back below 70.

Forex_USD_Downside_Limited_by_Fed_Policy-_JPY_to_Mark_Fresh_Lows_body_ScreenShot260.png, USD Downside Limited by Fed Policy- JPY to Mark Fresh Lows

The greenback weakened across the board, led by a 0.69 percent advance in the Japanese Yen, and the Bank of Japan (BoJ) interest rate decision on tap for May 22 may further dampen the appeal of the low-yielding currency as the central bank adopts a more aggressive approach in achieving the 2 percent target for inflation. In light of all of the measures taken by BoJ Governor Haruhiko Kuroda, the central bank may now look to incorporate a broader range of assets for its quantitative easing program, which could include Real Estate Investment Trusts (REIT), and we should see the board continue to carry out its easing cycle throughout 2013 in order stem the downside risk for growth and inflation. In turn, we will continue to buy dips in the USDJPY, and the pair looks poised to mark fresh highs throughout the year amid the shift 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.

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.

DISCLOSURES