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. See our updated Privacy Policy here.

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
Mixed
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here: https://t.co/D8DXSAdpqC https://t.co/33eqPFMBnf
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.90% Gold: 0.58% Silver: 0.56% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/IY7CZHoXE4
  • The Bank of England (BoE) interest rate decision may do little to sway $GBPUSD as the central bank is widely expected to retain the current course for monetary policy. Get your market update from @DavidJSong here: https://t.co/WdTG2niAKz https://t.co/0PhCq2qmos
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.54% 🇳🇿NZD: 0.47% 🇯🇵JPY: 0.23% 🇨🇭CHF: 0.14% 🇬🇧GBP: 0.12% 🇪🇺EUR: 0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/TswpUR32Sh
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Gold are long at 86.94%, while traders in France 40 are at opposite extremes with 71.08%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/et7VbdfhiC
  • The big #gold sell-off quickly has an important long-term trend test in play; scenarios to consider from both sides of the tape. Get your market update from @PaulRobinsonFX here: https://t.co/rvFMCvEYi2 https://t.co/MY3nHLXfIJ
  • 🇦🇺 Retail Sales MoM Prel (MAY) Actual: 0.1% Expected: 0.5% Previous: 1.1% https://www.dailyfx.com/economic-calendar#2021-06-21
  • Heads Up:🇦🇺 Retail Sales MoM Prel (MAY) due at 01:30 GMT (15min) Expected: 0.5% Previous: 1.1% https://www.dailyfx.com/economic-calendar#2021-06-21
  • Dow Jones, Nikkei 225, ASX 200 Outlook: Tapering Fears Hurt Sentiment https://www.dailyfx.com/forex/market_alert/2021/06/21/Dow-Jones-Nikkei-225-ASX-200-Outlook-Tapering-Fears-Hurt-Sentiment.html https://t.co/4ZpklI0CUn
  • Last week’s updated Federal Reserve dot plot, suggesting two US interest rate increases in 2023, could be a game-changer for $EURUSD. Strategically, a long-term trend lower may have now begun. Get your market update from @MartinSEssex here: https://t.co/xMvmnbkpt7 https://t.co/yRCuwj7cAI
EUR, GBP and Gold All Punished by Strong USD

EUR, GBP and Gold All Punished by Strong USD

Martin Essex, MSTA, Analyst

USD talking points:

- The Dollar continues to show all-round strength as high US inflation makes further US interest rate rises this year ever more likely.

- That’s weakening many other currencies, as well as gold.

Check out the IG Client Sentiment data to help you trade profitably.

And for a longer-term outlook take a look at our Q2 forecast for USD.

USD strength still in focus

Rising US inflation is continuing to boost the Dollar at the expense of many other currencies as the likelihood of tighter US monetary policy this year to combat price pressures continues to give the currency an interest rate advantage over its rivals. While April producer price data this session are expected to show a mild easing of the upside pressure on consumer prices further down the line, April consumer price figures tomorrow are forecast to show further increases; a trend that will likely keep the Federal Reserve on the path towards still higher rates.

This session, the US dollar basket hit its highest level this year before easing back a little.

US Dollar Basket Price Chart, Daily Timeframe (November 27, 2017 – May 9, 2018)

Latest US Dollar basket price chart.

Chart by IG

At the same time, EURUSD has eased to its weakest since December last year, undermined by the prospect of a snap general election in Italy in the next few months that could result in populists taking control as well as by news of an unexpected fall in French industrial production in March that emphasized the relative weakness of the Euro-Zone economy.

GBPUSD is close to its 2018 lows too, with sentiment hit by a lack of progress on Brexit and by data from the British Retail Consortium showing the sharpest fall since the BRC started collecting retail sales data 23 years ago.

Elsewhere, AUDUSD has fallen to its lowest level since June last year, USDCAD continues to climb, USDJPY has risen strongly this session and the price of gold has fallen as the yield on the 10-year US Treasury note has risen back to 3%, emphasizing the Dollar’s interest-rate advantage against many other major currencies.

Resources to help you trade the forex markets

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you: analytical and educational webinars hosted several times per day, trading guides to help you improve your trading performance, and one specifically for those who are new to forex. You can learn how to trade like an expert by reading our guide to the Traits of Successful Traders.

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

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

DISCLOSURES