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
Bullish
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
Mixed
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Natural gas is moving lower after weather models pointed to warmer-than-average temperatures across much of the US. Get your market update from @FxWestwater here:https://t.co/HuXPXu5PFU https://t.co/YCSGO04Aud
  • Crude oil prices are underpinned by an unexpected fall in US crude inventories, as well as a softening US Dollar. The API reported a substantial 5.27-million-barrel draw in crude inventories, far larger than the baseline forecast of a 0.43-million-barrel rise. https://t.co/F2bQ58LVHl
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.41% Gold: -0.19% Silver: -0.51% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/gyzo42h8OQ
  • (Sentiment Weekly) Canadian Dollar, Crude Oil Forecast: Will USD/CAD, WTI Fall as Long Bets Rise? (plus recording of today's webinar on IG Client Sentiment within the article below) https://www.dailyfx.com/forex/technical/article/special_report/2021/01/27/Canadian-Dollar-Crude-Oil-Forecast-Will-USDCAD-WTI-Fall-as-Long-Bets-Rise.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/hsw0vma7CL
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.01% 🇬🇧GBP: -0.02% 🇪🇺EUR: -0.03% 🇦🇺AUD: -0.14% 🇳🇿NZD: -0.14% 🇨🇦CAD: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Dc4gyvBsZb
  • Gold and silver prices may continue to rise in the coming months on the back of falling real rates of return and the prospect of additional fiscal support under a Biden administration. Get your market update from @DanielGMoss here:https://t.co/OMNoNHn2vZ https://t.co/PxfRaYC4Pj
  • China's Ministry of Industry and Information Technology releases measures aimed at accelerating the reduction of steel output - BBG
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in Germany 30 are at opposite extremes with 70.47%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/JylO9zltOq
  • Will the Swiss Franc find reprieve after recent losses against the Canadian and New Zealand Dollars as NZD/CHF and CAD/CHF uptrends face key chart barriers? Find out from @FxWestwater here:https://t.co/c89gcaNhTt https://t.co/AyIyZ4xpjQ
  • US daily Covid-19 new cases have fallen to 133,913 on January 25th, marking the lowest reading since November 15th. The 7-day moving average of daily cases has also been declining with the rollout of coronavirus vaccines. https://www.dailyfx.com/forex/market_alert/2021/01/27/Nasdaq-Poises-to-Rise-with-Hang-Seng-ASX-200-Apple-Earnings-in-Focus.html https://t.co/bn5cYen2i2
Heavy Risk-Off in Early Asia amid Rumors of China RRR Cut

Heavy Risk-Off in Early Asia amid Rumors of China RRR Cut

Nathalie Huynh,

Talking Points:

• Huge risk-offloading started around 9am (Sydney): AUD, NZD, CAD. Safe haven buying: JPY, CHF, EUR

• Negative sentiment subsided and a higher CNY fix should help to stem the sell-off

• Rumors of China’s required-reserve-ratio (RRR) cut to stabilize market led to a rout during late New York session

Asia market started the day with huge selling of risk assets across the board, in commodity currencies, emerging currencies, and regional stocks. This followed market pessimism late in New York on Friday due to rumors of a cut in China’s required-reserve-ratio. Meanwhile, safe haven assets like JPY, CHF, and even the EUR, posted gains.

After the initial round of selling, volatility seems to subside to some extent and price action retrace levels before the sell-off, though not yet fully. The AUD/USD is still under 0.70 and NZD/USD under 0.6550. The divergence between risk and safe haven assets shows most in crosses like EUR/AUD and AUD/JPY.

While a RRR cut was not seen, State Administration of Foreign Exchange (SAFE) issued a statement to calm the market that China’s financial system is "largely stably and healthy”. Previously used to moderate market liquidity, RRR rate is now a tool to enforce financial stability – according to announcement of a Macro Prudential Assessment on December 29.

All of this could change yet again upon China’s action today. The USD/CNY mid-point was fixed slight lower than prior day, i.e. stronger CNY. This should help to stem the current risk rout. Also watch out for any new financial policy, statements from governmental bodies or top officials.

--- Written by Nathalie Huynh, Currency Strategist for DailyFX.com

Contact and follow Nathalie on Twitter: @nathuynh

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

DISCLOSURES