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
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Mixed
GBP/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
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
  • Now up 40 handles from the $SPX's stalled break down. Looks like we are in for yet another interesting, intraday volatility day
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: -0.19% 🇯🇵JPY: -0.33% 🇪🇺EUR: -0.41% 🇨🇦CAD: -0.45% 🇳🇿NZD: -1.11% 🇦🇺AUD: -1.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/e6FkqKIOLF
  • - There’s No Fundamental Justification For A Tightening Of Nominal Bond Yields At The Long End - Governing Council Should Instruct Board At March 11 Meeting To Fight Unwarranted Tightening Of Financing Conditions
  • Indices Update: As of 15:00, these are your best and worst performers based on the London trading schedule: US 500: -0.17% Germany 30: -0.70% Wall Street: -0.85% France 40: -1.46% FTSE 100: -2.32% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/rgg0WIgTxK
  • ECB's Stournaras says ECB should accelerate PEPP purchases
  • Another brutal day for gold as it breaks beneath prior February lows Read more - https://www.dailyfx.com/forex/market_alert/2021/02/25/Gold-Price-Plummets-as-Treasury-Yields-Soar-Where-to-Next-for-Gold.html?ref-author=phanks&QPID=917701&CHID=9 $GLD $XAU https://t.co/5qpaELXVLz
  • $Gold sell-off getting nasty just started to test 38.2 of the 18-20 major move ~1725 $GC $GLD https://t.co/1cb3hjRAR2 https://t.co/nXy6gomZU0
  • Gold printed a fresh eight-month low earlier in today’s session and the precious metal looks set to fall further if US Treasury yields resume their multi-month rally. Get your $XAUUSD market update from @nickcawley1 here:https://t.co/I4RpWM0mEY https://t.co/OrtbLLncuK
  • $Silver not able to escape this rates move, testing tl support. not quite as bearish looking as $gold https://t.co/XnW51WNiBd
  • Other measures of risk are dropping as well: EEM emerging markets, HYG junk bonds, AUDJPY carry trade, copper for commodities (hey at least it eases that inflation fear a little)
USD Boosted by Fed's Powell Ahead of the FOMC Meeting

USD Boosted by Fed's Powell Ahead of the FOMC Meeting

Nick Cawley, Strategist

USD News and Talking Points

- US Dollar boosted by extra Fed communication chatter.

- Short-Dated US Treasury yields near recent highs.

The DailyFX Q2 Trading Forecasts for all major currencies, commodities and indices, are now availableto download to help you make more informed trading decisions.

US Dollar to be Underpinned by Rate Hike, Hawkish Chatter

The Fed is fully expected to hike interest rates by 0.25% at today’s FOMC meeting, the second hike in a year. After the rate decision Fed Chair Jerome Powell will communicate his thoughts on the US economy and likely give clues to further rate hikes ahead, with analysts divided if there will be a total of three or four 0.25% hikes in 2018. At present there are only four FOMC meetings a year that also have updated economic projections – March, June, September and December – and these meetings are the ones traditionally seen as ‘live’ where policy changes occur. The market view is that if Powell now communicates after every meeting, all eight FOMC meetings per year should be seen as ‘live’.

Today’s meeting comes on the back of some robust US economic data with yesterday’s US inflation reading the highest in six years, while US unemployment is at an 18-year low. If Powell does give himself flexibility on communication and if today’s rate hike is accompanied by a hawkish Fed chatter, the US dollar could easily rally back to recent highs.

DailyFX Chief Currency Strategist John Kicklighter will be covering the FOMC Meeting Live from 6:45pm.

The latest IG Client Sentiment Indicator shows retail are positioned in a wide range of currency pairs, commodities and indices, and why sentiment changes matter.

US Dollar Index Price Chart Four Hour Timeframe (May 10 – June 13, 2018)

USD Boosted by Fed's Powell Ahead of the FOMC Meeting

US Treasury Yields Pushing Higher

With US monetary policy tightening further, US Treasury yields continue to push higher, giving strength to the greenback. The interest-rate sensitive 2-year is near its recent decade-high of 2.59% while the 10-year will hit a new seven-year high when it trades back above 3.12%.

USD Boosted by Fed's Powell Ahead of the FOMC Meeting

If you are new to foreign exchange, or if you would like to update your knowledge base, download our New to FX Guide and our Traits of Successful Traders to help you on your journey.

What’s your opinion on the US Dollar? Share your thoughts with us using the comments section at the end of the article or you can contact the author via email at Nicholas.cawley@ig.com or via Twitter @nickcawley1

--- Written by Nick Cawley, Analyst

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

DISCLOSURES