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.

Free Trading Guides
EUR/USD
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
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
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
Mixed
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • 🇩🇪 Retail Sales YoY Actual: -6.5% Expected: -14.3% Previous: -2.8% https://www.dailyfx.com/economic-calendar#2020-05-29
  • The S&P 500 is approaching secondary breakout targets up here and the rally may be vulnerable heading into uptrend resistance. Get your S&P500 technical analysis from @MBForex here: https://t.co/21a20q3vt7 https://t.co/GgmPAcuTVe
  • Heads Up:🇬🇧 Nationwide Housing Prices YoY due at 06:00 GMT (15min) Expected: 2.8% Previous: 3.7% https://www.dailyfx.com/economic-calendar#2020-05-29
  • Heads Up:🇩🇪 Retail Sales YoY due at 06:00 GMT (15min) Expected: -14.3% Previous: -2.8% https://www.dailyfx.com/economic-calendar#2020-05-29
  • 🇯🇵 Housing Starts YoY Actual: -12.9% Expected: -12.1% Previous: -7.6% https://www.dailyfx.com/economic-calendar#2020-05-29
  • 🇯🇵 Consumer Confidence Actual: 24.0 Previous: 21.6 https://www.dailyfx.com/economic-calendar#2020-05-29
  • Heads Up:🇯🇵 Housing Starts YoY due at 05:00 GMT (15min) Expected: -12.1% Previous: -7.6% https://www.dailyfx.com/economic-calendar#2020-05-29
  • Heads Up:🇯🇵 Consumer Confidence due at 05:00 GMT (15min) Previous: 21.6 https://www.dailyfx.com/economic-calendar#2020-05-29
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.14%, while traders in US 500 are at opposite extremes with 78.47%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/RqW7nbBjB3
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.28% 🇪🇺EUR: 0.14% 🇦🇺AUD: 0.12% 🇬🇧GBP: 0.07% 🇳🇿NZD: -0.06% 🇨🇦CAD: -0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/4JS19zN9h3
Forex News: US Dollar Rally Stalls as Markets Eye Fiscal Cliff Talks

Forex News: US Dollar Rally Stalls as Markets Eye Fiscal Cliff Talks

2012-12-31 03:58:00
Ilya Spivak, Christopher Almeida,
Share:

THE TAKEAWAY: The US Dollar rally has stalled as traders look toward Washington, DC for direction cues amid last-minute negotiations to avoid the “fiscal cliff”.

As the turn of the calendar year approaches, the financial markets remain focused on how US policymakers will avoid the ‘fiscal cliff’, which is a series of tax increases and government spending cuts due to come into effect on the first day of 2013. The US Dollar strengthened last week leading into the Christmas holiday as haven flows buoyed the currency amid lingering deadlock. Prices now appear to be hovering at key technical resistance.

Negotiations are still ongoing at the open of this trading week but an agreement outlining (at least) how to reduce the impact of the “fiscal cliff” has not been reached. A bit of supportive news-flow emerged Sunday as Republicans dropped a key demand to link growth in Social Security pay-outs to “chained” CPI, which would decrease spending by slowing the pace of inflation adjustment. However, critical sticking points including the income threshold for tax hikes and the hefty $100 billion “sequester” spending reduction remain.

Although time is running out, it is still possible that the two sides could come to a watered-down, temporary agreement averting an immediate austerity shock and paving the way for more substantive work in the months ahead. Indeed, the political impact of compromise may be muted considering the outgoing Congress would leave the truly hard decisions to a new set of legislators to be sworn in on January 3. It appears overwhelmingly likely however that with the clock ticking down to the last hours of the year, a “grand bargain” deal that addresses the core issues of US fiscal health will not materialize in 2012.

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

DISCLOSURES

News & Analysis at your fingertips.