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
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
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Gold: 0.82% Silver: 0.65% Oil - US Crude: -0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/KVfIXfvjtM
  • Gold breaks out of the range-bound price action from earlier this week as the 10-Year US Treasury yield slips to a fresh monthly low (1.53%). Get your $XAUUSD market update from @DavidJSong here:https://t.co/QlflNxQb8o https://t.co/cMYBlVaH5X
  • Bank of America sets bond sale at $15 billion, new record issuance for a bank - BBG $BAC
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.51%, while traders in Germany 30 are at opposite extremes with 80.34%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Rt3UaXS0iz
  • CI Global Asset Mgmt to launch world's first Ethereum ETF - BBG $ETH
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.28% US 500: 0.16% France 40: 0.08% FTSE 100: 0.08% Germany 30: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/GMkjgMV7IS
  • US Indices are mixed today. The S&P 500 and Dow are up while Tech and Small Caps are trading slightly in the red. DOW +0.28% SPX +0.17% NDX -0.12% RUT -0.13% $DIA $SPY $QQQ $IWM
  • The US 10yr Treasury yield has slightly risen from the one month low hit yesterday around 1.53% to currently trade around 1.57%. Yields remain depressed compared to their levels from late March/early April. $USD https://t.co/uJJHXPaOhm
  • Retail CFD traders (at IG) have built up their heaviest short and net short position on the $SPX since we hit the peak at the beginning of September: https://www.dailyfx.com/sentiment https://t.co/IGK0KKRwwB
  • Hey traders! Wrap up the week with a quick market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/qLtlinTzj8
USD Losses Limited Ahead of FOMC, BoJ Pause to Support JPY

USD Losses Limited Ahead of FOMC, BoJ Pause to Support JPY

David Song, Strategist

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10492.29

10525.46

10482.91

-0.01

49.68%

Forex_USD_Losses_Limited_Ahead_of_FOMC_BoJ_Pause_to_Support_JPY_body_ScreenShot054.png, USD Losses Limited Ahead of FOMC, BoJ Pause to Support JPY

Chart - Created Using FXCM Marketscope 2.0

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is trading 0.01 percent lower from the open as the U. of Michigan Confidence survey narrowed to 82.7 from 84.5 in May, and the greenback may continue to track lower in the days ahead as it maintains the downward trend from earlier this month. Although we were looking for support around the 10,500 handle, we still anticipate a higher low in the index as it holds above the May low (10,399), and the reserve currency may regain its footing next week as tapering the asset-purchase program becomes a growing discussion at the Federal Reserve. Nevertheless, as market participation thins ahead of the weekend, we may see the dollar hold steady throughout the North American trade, but the updated assessment from the central bank may increase the appeal of the reserve currency should we see a growing number of Fed officials strike an improved outlook for the world’s largest economy.

Forex_USD_Losses_Limited_Ahead_of_FOMC_BoJ_Pause_to_Support_JPY_body_ScreenShot055.png, USD Losses Limited Ahead of FOMC, BoJ Pause to Support JPY

As the daily relative strength index continues to below support (41), the dollar may face further declines ahead of the FOMC interest rate decision, but we may see a growing argument to scale back the quantitative easing program as the region gets on a more sustainable. Although there’s limited scope of seeing the Fed taper its non-standard this month, the central bank may highlight a greater willingness to cut its purchases during the summer, and we should see the committee switch gears later this year as the economic recovery gradually gathers pace. In turn, we should see the dollar resume the bullish trend from earlier this year, and we anticipate a more meaningful run at the 10,900 handle as the dollar continues to carve out a higher low.

Forex_USD_Losses_Limited_Ahead_of_FOMC_BoJ_Pause_to_Support_JPY_body_ScreenShot056.png, USD Losses Limited Ahead of FOMC, BoJ Pause to Support JPY

Thee of the four components weakened against the greenback, led by a 0.49 percent decline in the Australian dollar, while the Japanese Yen bucked the trend, with the low-yielding currency advancing 1.11 percent against its U.S. counterparts. Indeed, the Bank of Japan (BoJ) Minutes suggests that the central bank will retain a wait-and-see approach at the July 11 meeting as the board struggles to meet on common ground, and we may see Governor Haruhiko Kuroda struggle to push through additional measures for the time being amid the increased volatility across the Japanese financial market. Although the USDJPY appears to be searching for a higher low, we may see the pair continue to retrace the advance from earlier this year as BoJ moves to the sidelines, but the FOMC rate decision may serve as a fundamental catalyst to spur a resumption of the bullish trend as the Fed turns increasingly upbeat towards the economy.

--- 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