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
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bearish
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
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
  • $AUDCAD has continued to weak today, now trading around the 0.9800 level. The pair is down almost 200 pips from the multi-year highs hit just shy of the 1.0000 level yesterday. $AUD $CAD https://t.co/hffaXojF5j
  • $Gold trying to build a base off of that 1725 level - one minute chart so super small sample size. but that bearish run was aggressive $GC $GLD https://t.co/USjAU0lcig https://t.co/uubVG4Jpe2
  • Now up 40 handles from the $SPX's stalled break down. Looks like we are in for yet another interesting, intraday volatility day
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: -0.19% 🇯🇵JPY: -0.33% 🇪🇺EUR: -0.41% 🇨🇦CAD: -0.45% 🇳🇿NZD: -1.11% 🇦🇺AUD: -1.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/e6FkqKIOLF
  • - There’s No Fundamental Justification For A Tightening Of Nominal Bond Yields At The Long End - Governing Council Should Instruct Board At March 11 Meeting To Fight Unwarranted Tightening Of Financing Conditions
  • Indices Update: As of 15:00, these are your best and worst performers based on the London trading schedule: US 500: -0.17% Germany 30: -0.70% Wall Street: -0.85% France 40: -1.46% FTSE 100: -2.32% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/rgg0WIgTxK
  • ECB's Stournaras says ECB should accelerate PEPP purchases
  • Another brutal day for gold as it breaks beneath prior February lows Read more - https://www.dailyfx.com/forex/market_alert/2021/02/25/Gold-Price-Plummets-as-Treasury-Yields-Soar-Where-to-Next-for-Gold.html?ref-author=phanks&QPID=917701&CHID=9 $GLD $XAU https://t.co/5qpaELXVLz
  • $Gold sell-off getting nasty just started to test 38.2 of the 18-20 major move ~1725 $GC $GLD https://t.co/1cb3hjRAR2 https://t.co/nXy6gomZU0
  • Gold printed a fresh eight-month low earlier in today’s session and the precious metal looks set to fall further if US Treasury yields resume their multi-month rally. Get your $XAUUSD market update from @nickcawley1 here:https://t.co/I4RpWM0mEY https://t.co/OrtbLLncuK
USD Price Outlook: US Dollar Back on Defense as Brexit Weighs

USD Price Outlook: US Dollar Back on Defense as Brexit Weighs

Rich Dvorak, Analyst

US DOLLAR OUTLOOK: GBP/USD PRICE ACTION SURGES ON BREXIT DEAL CHATTER & STEERS DXY INDEX LOWER

  • US Dollar edged lower on Wednesday as bulls and bears battle over the Greenback’s direction
  • GBP/USD price action exploded over 130-pips higher on the session due to Brexit deal rumors
  • The DXY Index could continue mirroring the Pound-Dollar as well as the VIX ‘fear-gauge’
Advertisement

The US Dollar declined broadly during Wednesday’s trading session as USD price action pivoted lower and unwound some of its recent gains. Sentiment-linked AUD/USD and NZD/USD ascended and were the top performing major currency pairs behind GBP/USD. The Pound Sterling, which makes up 11.9% of the DXY Index, surged over 130-pips on the day in response to news of a Brexit deal emerging.

Forex for Beginners
Forex for Beginners
Recommended by Rich Dvorak
Forex for Beginners
Get My Guide

GBP/USD PRICE CHART WITH US DOLLAR INDEX OVERLAID: 1-HOUR TIME FRAME (18 DEC TO 23 DEC 2020)

GBP USD Price Chart with US Dollar Index Overlaid

Chart by @RichDvorakFX created using TradingView

With Brexit deal chatter driving GBP/USD higher and EUR/USD price action piggybacking on Pound Sterling strength, there could be potential for a return of broad US Dollar weakness and invalidation of the recent US Dollar rebound attempt. This development, combined with talks of US politicians potentially boosting coronavirus aid checks to $2,000 from the initially agreed upon $600 amount, likely invigorated trader risk appetite and steered the US Dollar lower with the S&P 500-derived VIX Index. Need for fiscal stimulus was underscored by soft US economic data released earlier in the session.

GBP/USD BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 4% -27% -15%
Weekly 27% -39% -19%
What does it mean for price action?
Get My Guide

USD PRICE OUTLOOK - US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)

USD Price Chart Outlook US Dollar Implied Volatility Trading Ranges GBPUSD EURUSD

Learn more about implied volatility trading strategies!

US Dollar implied volatility readings have cooled off a bit judging by the overnight tenor. This is to be expected headed into Thursday’s trading session, however, in light calm market conditions typically observed around holidays. Shortened hours on Thursday in observation of Christmas might result in relatively low volume and liquidity. GBP/USD is expected to be the most active major currency pair and USD/MXN is expected to be the most active minor currency pair with overnight implied volatility readings of 15.% and 19.0% respectively.

Keep Reading - Top 10 Most Volatile Currency Pairs and How to Trade Them

-- Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

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

DISCLOSURES