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
Oil - US Crude
Bearish
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
Bearish
GBP/USD
Bullish
USD/JPY
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
More View more
Real Time News
  • Heads Up:🇩🇪 Markit Manufacturing PMI Final (NOV) due at 08:55 GMT (15min) Expected: 57.9 Previous: 58.2 https://www.dailyfx.com/economic-calendar#2020-12-01
  • Heads Up:🇩🇪 Unemployment Change (NOV) due at 08:55 GMT (15min) Expected: 8K Previous: -35K https://www.dailyfx.com/economic-calendar#2020-12-01
  • Heads Up:🇩🇪 Unemployment Rate (NOV) due at 08:55 GMT (15min) Expected: 6.3% Previous: 6.2% https://www.dailyfx.com/economic-calendar#2020-12-01
  • 🇨🇭 https://t.co/IuJgBTnOdA Manufacturing PMI (NOV) Actual: 55.2 Expected: 51.3 Previous: 52.3 https://www.dailyfx.com/economic-calendar#2020-12-01
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here: https://t.co/h7BKTd2J8N https://t.co/7Xbp8lTTam
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Silver: 2.02% Gold: 0.84% Oil - US Crude: -0.20% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/tnmmAwkc4b
  • Heads Up:🇮🇹 IHS Markit Manufacturing PMI (NOV) due at 08:45 GMT (15min) Expected: 52 Previous: 53.8 https://www.dailyfx.com/economic-calendar#2020-12-01
  • 🇪🇸 Markit Manufacturing PMI (NOV) Actual: 49.8 Expected: 50.5 Previous: 52.5 https://www.dailyfx.com/economic-calendar#2020-12-01
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.44% 🇳🇿NZD: 0.34% 🇨🇦CAD: 0.34% 🇨🇭CHF: 0.27% 🇦🇺AUD: 0.25% 🇯🇵JPY: -0.00% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/VkPBkuh866
  • Heads Up:🇨🇭 https://t.co/IuJgBTnOdA Manufacturing PMI (NOV) due at 08:30 GMT (15min) Expected: 51.3 Previous: 52.3 https://www.dailyfx.com/economic-calendar#2020-12-01
NZD/USD Remains Capped Ahead of NZ 4Q CPI; Fed Fund Futures Pick Up

NZD/USD Remains Capped Ahead of NZ 4Q CPI; Fed Fund Futures Pick Up

2017-01-20 17:12:00
David Song, Strategist
Share:

Talking Points:

- EUR/USD Consolidates Ahead of December High (1.0873); ECB Survey Undermines Dovish Outlook.

- NZD/USD Remains Capped Ahead of NZ 4Q CPI; Fed Fund Futures Pick Up Following Yellen Comments.

DailyFX

Currency

Last

High

Low

Daily Change (pip)

Daily Range (pip)

EUR/USD

1.0678

1.0694

1.0625

14

69

EUR/USD Daily

EUR/USD Daily Chart

Chart - Created Using Trading View

  • The recent advance in EUR/USD appears to be getting exhausted as the European Central Bank (ECB) continued to endorse a dovish outlook at its first policy meeting for 2017, and the pair may struggle to hold its ground ahead of the Federal Reserve’s interest rate decision on February 1 as Chair Janet Yellen and Co. appear to be on course to further normalize monetary policy over the coming months; with the broader outlook tilted to the downside, will keep a close eye on the Relative Strength Index (RSI) for confirmation as it appears to be responding to bearish formation carried over from 2015.
  • Even though the ECB’s survey of professional forecasters highlighted an improved outlook for the euro-area, current projections still show inflation running below the 2% target through 2019, and President Mario Draghi and Co. may boost their efforts to ward off a ‘taper tantrum’ as the Governing Council remains on course to narrow its asset-purchases to EUR 60B/month starting in April; at the same time, the U.S. 4Q Gross Domestic Product (GDP) report due out next week may sway interest rate expectations as the economy is expected to grow an annualized 2.1% following the 3.5% expansion during the three-months through September.
  • EUR/USD may continue to consolidate over the coming days as it struggles to make a more meaningful run at the December high (1.0873), with a move/close below 1.0600 (23.6% expansion) opening up the next downside around 1.0470 (38.2% expansion) to 1.0500 (50% expansion).

Currency

Last

High

Low

Daily Change (pip)

Daily Range (pip)

NZD/USD

0.7150

0.7225

0.7129

40

96

NZD/USD Daily

NZD/USD Daily Chart

Chart - Created Using Trading View

  • Even though NZD/USD fails to extend the recent series of lower highs & lows, the pair appears to have made another failed run at the December high (0.7239) as it quickly pulls back from a fresh weekly high of 0.7224; may see range-bound conditions persist going into the week ahead as market attention turns to New Zealand’s 4Q Consumer Price Index (CPI), which is projected to increase an annualized 1.3%, but the RSI appears to be flashing a bearish trigger as it struggles to preserve the bullish formation carried over from the previous month.
  • Fed Fund Futures have picked up following the fresh comments from Chair Yellen, with market participants now pricing a greater than 70% probability for a June rate-hike as the Federal Open Market Committee (FOMC) is ‘closing in’ on its dual mandate; the monetary policy outlook may continue to foster a long-term bearish outlook for NZD/USD, but the Reserve Bank of New Zealand (RBNZ) may have limited room to implement lower borrowing-costs as the region faces heightening price pressures accompanied by the widening trade deficit .
  • With the near-term advance capped around 0.7240 (61.8% retracement), NZD/USD may continue to give back the advance from earlier this month, with a break/close below 0.7040 (50% retracement) opening up the next downside area of interest around 0.6950 (38.2% retracement).

For More Updates, Join DailyFX Currency Analyst David Song for LIVE Analysis!

Click HERE for the Entire DailyFX Webinar schedule.

DailyFX Calendar

Click Here for the DailyFX Calendar

If you’re looking for trading ideas, check out our Trading Guides.

Read More:

COT-Crude Oil Positioning Remains Extreme

Crude Oil Price Forecast: Oil’s Impressive Polarity Zone Pivot

Silver Price Resistance and Dollar Support Confluence

USD/CAD at Risk for Further Losses Sub-1.33

--- 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.

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

DISCLOSURES