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
Bullish
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
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
Gold
Mixed
GBP/USD
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
USD/JPY
Mixed
More View more
Real Time News
  • $USDCAD sold off aggressively last week, putting it into position to test the important 2017 low; trading bias is neutral to bearish. Get your market update from @PaulRobinsonFX here: https://t.co/sphxUAW9TB https://t.co/ZhsTeJOOM8
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/qP96xmgDVn
  • The pro-risk Australian Dollar may extend gains after the record miss in US jobs data, amplifying dovish rhetoric from the Federal Reserve and keeping the Dow Jones and S&P 500 intact. Get your market update from @ddubrovskyFX here: https://t.co/yf8mPX3O3W https://t.co/uCCmjaxUhF
  • Who else is keeping close tabs on Dogecoin $DOGE this weekend? All eyes on Elon Musk @elonmusk, the proverbial 'Dogefather,' and his Saturday Night Live @nbcsnl performance kicking off at 11:30PM ET. The #crypto is already looking nice and perky following that trendline break! https://t.co/nrQsnlUqWj https://t.co/4lOz6NLQTG
  • There is some very interesting event risk over the opening half of this coming week of trade. It starts with Elon Musk hosting SNL tonight for Dogecoin traders and moves into US inflation data to as means to stir the ongoing Fed debate and Dollar https://www.dailyfx.com/forex/video/daily_news_report/2021/05/08/Dollar-Tumbles-Dow-Hits-Record-Highs-and-Dogecoin-Traders-Tune-In.html https://t.co/LXhjv7ToWC
  • It was a big week for Gold bulls and Gold prices broke out to fresh two-month-highs, finally taking-out the 1800 level along the way. Get your market update from @JStanleyFX here: https://t.co/D222Ni37Dv https://t.co/KcMYyx3Ro4
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/PjywaPeUsl
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/AjOSPzOFLb
  • What are some trading takeaways from 2020, as we jump into the new year? Find out with your free guide here: https://t.co/e7udCTJlmf #DailyfxGuides https://t.co/eqklbOEJMa
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/p9Pkkbo2zf
Dollar Traders Eye FOMC Meeting- USDJPY Rally to Take Shape

Dollar Traders Eye FOMC Meeting- USDJPY Rally to Take Shape

David Song, Strategist

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10511.53

10515.85

10485.74

0.22

36.98%

Forex_Dollar_Traders_Eye_FOMC_Meeting-_USDJPY_Rally_to_Take_Shape_body_ScreenShot065.png, Dollar Traders Eye FOMC Meeting- USDJPY Rally to Take Shape

Chart - Created Using FXCM Marketscope 2.0

Despite the mixed batch of data coming out of the world’s largest economy, the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) is trading 0.22 percent higher from the open, and greenback may appreciate further over the next 24-hours of trading should the Federal Reserve show a greater willingness to taper its asset-purchase program in the second-half of the year. Although the greenback appears to be finding intraday resistance around the 1.618 Fibonacci extension (10,573) from the April decline, we’re seeing the index threaten the downward trend from earlier this this month, and the dollar looks poised to breakout to the upside as it carves out a higher low in June. In turn, we should see the dollar resume the upward trend from earlier this year, and the bullish sentiment surrounding the greenback may gather pace over the near to medium-term amid the shift in the policy outlook.

Forex_Dollar_Traders_Eye_FOMC_Meeting-_USDJPY_Rally_to_Take_Shape_body_ScreenShot066.png, Dollar Traders Eye FOMC Meeting- USDJPY Rally to Take Shape

As the USDOLLAR builds a short-term base, the rebound from 10,469 should produce a higher high in the index, and we may see a more meaningful run at the 10,900 handle should we see a growing number of Fed officials adopt a more neutral to hawkish tone for monetary policy. Beyond the updated forecast, the FOMC may lay out a more detailed exit strategy as the U.S. economy gets on a more sustainable path, and the committee may see scope to halt its easing cycle towards the end of the year as the recovery gradually gathers pace. In turn, the near-term rebound should turn into a larger advance following a more upbeat Fed, and we will look for a higher high as the bullish trend continues to take shape.

Forex_Dollar_Traders_Eye_FOMC_Meeting-_USDJPY_Rally_to_Take_Shape_body_ScreenShot067.png, Dollar Traders Eye FOMC Meeting- USDJPY Rally to Take Shape

The greenback strengthened against three of the four components, led by a 1.07 percent decline in the Japanese Yen, and the USDJPY continue to retrace the decline carried over from the previous month amid the deviation in the policy outlook. Indeed, the FOMC rate decision may serve as the fundamental catalyst to spark a sharp rally in the dollar-yen as the Bank of Japan (BoJ) looks to further embark on its easing cycle in the second-half of the year. As Japanese policy makers press the BoJ to implement more non-standard measures, Governor Haruhiko Kuroda may take further steps at the July 11 meeting, but there appears to be a growing rift within the board as central bank officials assess the impact on the real economy. Although we’re seeing the BoJ push to the sideline, Governor Kuroda remains poised to ease policy further in order to achieve the 2 percent target for inflation, and the USDJPY could be in for another at the 104.00 region as the Fed appears to be slowly moving away from its easing cycle.

--- 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