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.

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
More View more
Real Time News
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: France 40: 0.47% US 500: 0.32% Wall Street: 0.26% Germany 30: 0.19% FTSE 100: 0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/e9Pahsokz1
  • Join @PaulRobinsonFX at 6:00 EST/10:00 GMT for a webinar on becoming a better trader in current markets. Register here: https://t.co/rriVJ9cZOb https://t.co/Mpq9YT6w4g
  • Forex sentiment analysis can be a useful tool to help traders understand and act on price behavior. Learn how to get the most out of understanding trader sentiment here: https://t.co/rJznrXkcYz https://t.co/okpXPh6XGX
  • 🇬🇧 Construction PMI (JUL) Actual: 58.7 Expected: 64 Previous: 66.3 https://www.dailyfx.com/economic-calendar#2021-08-05
  • Beijing to quarantine visitors from high-risk areas for 14 days $CNH
  • Heads Up:🇬🇧 Construction PMI (JUL) due at 08:30 GMT (15min) Expected: 64 Previous: 66.3 https://www.dailyfx.com/economic-calendar#2021-08-05
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 94.06%, while traders in France 40 are at opposite extremes with 80.15%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/H9zwgbPJJF
  • Heads Up:💶 ECB Economic Bulletin due at 08:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-08-05
  • 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: https://t.co/vg7w10la3j https://t.co/Rsh9VeB7TU
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Silver: 0.06% Gold: 0.00% Oil - US Crude: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/YueZQaYokR
EUR/USD Pares Fed-Driven Decline; Retail FX Flips Back to Net-Short

EUR/USD Pares Fed-Driven Decline; Retail FX Flips Back to Net-Short

David Song, Strategist

Talking Points:

- EUR/USD Pares Fed-Driven Decline; Retail FX Flips Back to Net-Short.

- GBP/USD Mounts Larger Rebound Ahead of BoE Inflation Report.

- USDOLLAR Outlook Mired by Mixed Data; Fed Rhetoric, NFP Report in Focus.

For more updates, sign up for David's e-mail distribution list.

EUR/USD

EUR/USD Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • With EUR/USD largely reversing the losses following the Federal Open Market Committee (FOMC) interest rate decision, the pair may face a larger rebound in the days ahead following the failed test of the August low (1.0847); the bearish formation in the Relative Strength Index (RSI) favors the approach to ‘sell-bounces’ in EUR/USD, but the pair may mount a larger rebound as the oscillator fails to push into oversold territory.
  • Despite speculation for a major announcement at the European Central Bank’s (ECB) December 3 interest rate decision, the uptick in the Euro-Zone core Consumer Price Index (CPI) may encourage central bank President Mario Draghi to endorse a wait-and-see approach as the non-standard measures continue to work their way through the real economy.
  • DailyFX Speculative Sentiment Index (SSI) shows the retail crowd flipped back net-short EUR/USD on October 29, with the ratio slipping to -1.09 as 48% of traders are now long.

GBP/USD

GBP/USD Daily Chart
  • Following the failed test of the May low (1.5088) earlier this month, GBP/USD may consolidate ahead of the Bank of England (BoE) interest rate decision on November 5 as the pair largely remains capped by the 100-Day (SMA).
  • With the BoE also scheduled to release its quarterly inflation report next week, the fresh developments coming out of the ‘Super Thursday’ event may undermine the near-term rebound in GBP/USD should Governor Mark Carney and Co. highlight a more delayed normalization cycle.
  • GBP/USD remains at risk for a longer-term decline as the RSI retains the bearish formation from back in May, and will look for a break/close below 1.5240 (50% retracement) to 1.5250 (100% expansion) to favor a further decline in the exchange rate.

Join DailyFX on Demand for Real-Time SSI Updates Across the Majors!

Read More:

Price & Time: USD/JPY – 1998 High Still An Influence?

USD/CAD Technical Analysis: Reaching a Polarity Point?

USDOLLAR(Ticker: USDollar):

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

12035.58

12084.84

12024.74

-0.42

120.27%

EUR/USD Pares Fed-Driven Decline; Retail FX Flips Back to Net-ShortUSDOLLAR Daily Chart

Chart - Created Using FXCM Marketscope 2.0

  • Dow Jones-FXCM U.S. Dollar gives back the advance following the Fed meeting amid the ongoing mixed batch of data coming out of the U.S. economy; with U.S. Non-Farm Payrolls currently projected to increase 182K in October, a disappointing employment report may further dampen the appeal of the greenback as the FOMC remains in no rush to normalize monetary policy.
  • At the same time, will keep a close eye on the slew of central bank rhetoric as Fed Chair Janet Yellen, Vice-Chair Stanley Fischer, Governor Lael Brainard, Governor Daniel Tarullo, New York Fed President William Dudley, Atlanta Fed President Dennis Lockhart and St. Louis Fed President James Bullard scheduled to speak in the week ahead.
  • With the RSI threatening the bearish formation from earlier this year, will retain a constructive view on the USDOLLAR, and will keep a close eye around the Fibonacci overlap around 11,951 (38.2% expansion) to 11,965 (23.6% retracement) as the greenback searches for support.

Join DailyFX on Demand for Real-Time SSI Updates!

EUR/USD Pares Fed-Driven Decline; Retail FX Flips Back to Net-Short

--- 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.

Trade Alongsidethe DailyFX Team on DailyFX on Demand

New to FX? Watch this Video

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES