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
Bullish
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
Gold
Bearish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • #Coronavirus update on 2 U.S. companies just crossed the wires: United Airlines (-0.62% afterhours): - Withdraws 2020 forecast with 100% decline in near-term demand to China Mastercard (-2.94% afterhours): - Sees lower revenue growth in the first quarter
  • RT @KyleR_IG: * MASTERCARD SEES LOWER REVENUE GROWTH ON CORONAVIRUS IMPACT Corporate warnings coming in thick and fast today.
  • The iShares #Malaysia ETF closed at its lowest since Aug 2004 and the Malaysian #Ringgit weakened to August 2019 lows in the aftermath of Prime Minister Mahathir Mohamad resigning yesterday, adding further uncertainty amid a deteriorating outlook due to the #Coronavirius $USDMYR https://t.co/uFfxtlMDAo
  • Recession risk is back on the rise and largely attributable to expected economic impact from the #coronavirus outbreak. Get your market update from @RichDvorakFX here:https://t.co/NhzJHEqwj6 https://t.co/nWjrHlR6Ud
  • RT @russian_market: KUWAIT SUSPEND FLIGHTS TO SOUTH KOREA, THAILAND, ITALY: KUNA
  • Do you analyze different chart time frames before entering a trade? Multiple time frame analysis is a charting technique that professional traders use to reveal what may not have been noticed otherwise. Learn how you can utilize this technique here: https://t.co/mhPZ2IBK0V https://t.co/wbFbGPVgld
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.76% 🇪🇺EUR: 0.05% 🇨🇭CHF: -0.08% 🇬🇧GBP: -0.21% 🇦🇺AUD: -0.33% 🇨🇦CAD: -0.51% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Q6PiOGnZzO
  • Poll: Perhaps a little exploitative of the concern rippling through the market after such a severe single-day drop - compounded as it comes after such extended quiet - by $SPX and other risk assets; but do you think the markets just put in a top (via US indices):
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Gold: 1.09% Silver: 0.87% Oil - US Crude: -0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/HfGEb3JLmW
  • The speculative fireworks today seemed to add more weight to the US 10yr/3mth Treasury yield curve inversion. Reminds me of the sudden charge on August 1st. Search interest in 'recession' surged alongside that event https://t.co/prgRHd3ela
EUR, GBP and Gold All Punished by Strong USD

EUR, GBP and Gold All Punished by Strong USD

2018-05-09 12:00:00
Martin Essex, MSTA, Analyst and Editor
Share:

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

News & Analysis at your fingertips.