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
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
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
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
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/1rhLp4LnfN
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/RKYGzRStvL
  • The US Dollar is moving higher after a blowout NFP report bolstered confidence in the US economic recovery. Markets will now turn attention to next week’s US inflation data which could boost the Greenback. Get your market alert from @FxWestwater here: https://t.co/Ud62r3hKRF https://t.co/dvvDCJvlbP
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/7g9pB8D9xK
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/OCLzmXaDCu
  • Technical analysis of charts aims to identify patterns and market trends by utilising differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/UZela9nSIm
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/7oqC3ykBbU
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/IgUIG55MbH
  • Supply constraints, rebounding global demand and rising inflation expectations may drive crude oil prices higher in the near term. Get your market update from @DanielGMoss here: https://t.co/ezPoAwcJt7 https://t.co/NMfk1cYSvE
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/OiRiBVeuzL
USD Whipsaws Following Weak CPI Data And Fed Comments

USD Whipsaws Following Weak CPI Data And Fed Comments

Omar Habib,

Talking Points:

- CPI report came in weaker-than-expected in July.

- More mixed U.S. data as Housing Starts beat expectations but Building Permits came in below.

- AUD/USD falls sharply as the USD strengthens on the news; USD/CAD spikes higher.

The U.S. Consumer Price Index was weaker-than-expected in July, with the headline reading slowing to an annualized 0.8% from 0.9% the month prior. The core reading, which excludes food and energy prices, grew an annualized 2.2% amid expectations for a 2.3% print.

Building Permits came in at an annualized 1152K, which were below expectations for a 1160K print, marking a 0.1% decline for July. On the other hand, Housing Start rose 2.1% during the same period, exceeding forecasts for a 0.8% contraction, with the annualized reading coming at 1211K versus 1180K expected.

Upon release, New York Fed President William Dudley also hit the headlines, with the permantent voting-member spoke saying that CPI inflation was little changed, on balance, in recent months. He reiterated the Fed view that Fed Funds markets were underpricing the path of rate hikes and that September was still on the table. He also played down fears of uncertainty surrounding Brexit and the US election. As a result, the initial bearish U.S. dollar reaction to the mixed data pritns were largely muted as Mr. Dudley continued to endorse the idea of a 2016 Fed rate-hike.

Here are the data thatimpacted theUS Dollar this morning:

- USD Consumer Price Index (JUL): +0.8% versus +0.9% expected, from +1.0% (y/y).

- USD Core Consumer Price Index (JUL): +2.2% versus +2.3% expected, from +2.3% (y/y).

- USD Housing Starts (JUL): +2.1% versus -0.8% expected, from +5.1% (m/m).

See the DailyFX economic calendar for Tuesday, August 16, 2016

Chart 1: AUD/USD 1-minute Chart (August 16, 2016 Intraday)

USD Whipsaws Following Weak CPI Data And Fed Comments

In the immediate wake of the data, the US Dollar spiked lower against the Australian Dollar, but the market reaction was short-lived following the fresh comments from New York Fed President Dudley. Despite the advacing into $0.7748, the failed attempt to test the monthly high ($0.7759) may spur a near-term cosolidation in the exchange rate as market participants digest the fresh developments. With FX volatility edging higher again, it’s the right time to review risk management principles to protect your capital.

--- Written by Omar Habib, DailyFX Research

For comments or feedback, e-mail feedback@dailyfx.com

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

DISCLOSURES