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
Wall Street
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
More View more
Real Time News
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here:
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here:
  • RT @FxWestwater: Japanese Yen Forecast: JPY Crosses Eye BoJ, CPI as Haven Flows Bolster Yen Strength Link: https:/…
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here:
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here:
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here:
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today:
  • 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:
  • 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:
USD Outlook Favors Buying Dips- GBP Breakout Eyes Key Targets

USD Outlook Favors Buying Dips- GBP Breakout Eyes Key Targets

David Song, Strategist





Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index






USDOLLAR 30-Minute

Forex_USD_Outlook_Favors_Buying_Dips-_GBP_Breakout_Eyes_Key_Targets_body_ScreenShot294.png, USD Outlook Favors Buying Dips- GBP Breakout Eyes Key Targets

Chart - Created Using FXCM Marketscope 2.0





Producer Price Index (YoY) (JUL)




Producer Price Index ex Food, Energy (YoY) (JUL)




In light of the marked rebound in the GBPUSD, the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) slipped back below the 38.2 percent Fibonacci expansion (10,728), and we may see a more meaningful correction over the next 24-hours of trading as 50.0 percent expansion around 10,708 comes into focus.

Indeed, the weaker-than-expected U.S. Producer Price report dragged the dollar lower as it raises the threat for deflation, but the reserve currency appears to be regaining its footing following the New York Fed survey on private sector credit, which showed household indebtedness contracting 0.7 percent during the second-quarter. In turn, the dollar decline looks poised to taper off during the North American trade as the 30-minute relative strength index bounces back from a low of 25, and the fundamental developments on tap for later this week may encourage a more meaningful rally in the greenback as the outlook for growth improves.


Forex_USD_Outlook_Favors_Buying_Dips-_GBP_Breakout_Eyes_Key_Targets_body_ScreenShot295.png, USD Outlook Favors Buying Dips- GBP Breakout Eyes Key Targets

Beyond the U.S. data prints, we will be keeping a close eye on the news wires as FOMC voting member James Bullard is scheduled to speak on monetary policy at 13:20 ET, and we may see the fresh batch of central bank rhetoric produce a more meaningful move at the 50.0 percent expansion (10,708) should the St. Louis Fed President see scope to retain the highly accommodative policy stance at the September 17-18 meeting.

Nevertheless, the pullback in the USD may offer a potential long entry as carves out a higher low in August, and we will look to buy dips in the greenback as the bullish series continues to take shape.

Forex_USD_Outlook_Favors_Buying_Dips-_GBP_Breakout_Eyes_Key_Targets_body_ScreenShot297.png, USD Outlook Favors Buying Dips- GBP Breakout Eyes Key Targets


Forex_USD_Outlook_Favors_Buying_Dips-_GBP_Breakout_Eyes_Key_Targets_body_ScreenShot296.png, USD Outlook Favors Buying Dips- GBP Breakout Eyes Key Targets

The greenback weakened across the board, led by a 0.59 percent advance in the British Pound, and the GBPUSD may continue to threaten the downward trend from earlier this year as Bank of England (BoE) board member Martin Weale dissents against the majority and looks to shorten the timeframe for the inflation ‘knock out.’

Beyond the BoE Minutes, the U.K. Employment report appears to be raising the outlook for price growth as Average Weekly Earnings marked the biggest advance since November 2011, and the Monetary Policy Committee may come under increased pressure to implement its exit strategy ahead of schedule as the region continues to face above-target inflation.

In turn, we are looking for a more meaningful run at the 78.6 percent expansion around 1.5610-20, but could see the 38.2 percent retracement of the 2009 range come into play amid the shift in the policy outlook.

--- 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.

Looking to use the DailyFX Trade Signals LIVE? Check out Mirror Trader.

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.