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
Mixed
Wall Street
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
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
  • Two of the main Euro-pairs, $EURUSD and $EURGBP, are being driven by very different drivers. Get your market update from @nickcawley1 here: https://t.co/Vd32Y6HKEr https://t.co/Lgb5z5V1Xa
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/9uPXNvDBS5
  • We ended this past week with another cliffhanger. The $SPX teeters on the edge of a breakdown from the post-pandemic recovery. While we have NFPs and other key data ahead, the markets are likely to remain fixated on yields. My outlook for next week: https://www.dailyfx.com/forex/video/daily_news_report/2021/02/27/SP-500-Dollar-Reversal-Hinge-Not-On-NFPs-but-Markets-Risk-Imagination.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/mlNDDyTgex
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/70ZOJ0ZMwF
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/SyroornFf5
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4QhQGQ6 https://t.co/KrMcyZZqO7
  • The Reserve Bank of Australia (RBA) rate decision may spark a bullish reaction in $AUDUSD as the central bank is expected to retain the current course for monetary policy. Get your market update from @DavidJSong here: https://t.co/WbcR9ER0qT https://t.co/TynsqCtPQ6
  • Gold has broken below a critical support confluence we’ve been tracking for months now and the risk remains for further losses while below this threshold in the weeks ahead. Get your $XAUUSD market update from @MBForex here:https://t.co/xgN2obaIWR https://t.co/H71ufPNkPg
  • 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/Evr5KgUjVo
  • $GBPUSD corrects from stretched valuations, however, positioning clear is likely to entice dip-buyers. Get your market update from @JMcQueenFX here: https://t.co/sfFdBx9pN6 https://t.co/j6nnry65SW
Asia AM Digest: Markets Eye Sentiment Instead of BoJ Post ECB Jolt

Asia AM Digest: Markets Eye Sentiment Instead of BoJ Post ECB Jolt

Daniel Dubrovsky, Strategist

Current Market Developments – ECB Rocked Markets

Thursday’s European Central Bank monetary policy announcement generated large amounts of volatility in the FX and stock spectrum. In short, the ECB followed through with confirming QE tapering bets by announcing that the programme will be cut in September and run until the end of the year. However, a lack of urgency to raise rates thereafter sent the Euro tumbling while fueling European shares higher.

The Euro Stoxx 50 and DAX rose 1.37 percent and 1.68 percent respectively. However, US shares remained quite restrained. In fact, the Dow Jones fell about 0.10% while the S&P 500 rose 0.25%. Keep in mind that we also had a Fed rate hike on Wednesday and now with the ECB behind us, perhaps Wall Street paid more attention to domestic tightening credit conditions as opposed to still loose ones in Europe.

As anticipated, the relatively high-yielding Australian Dollar fell across the board. This was likely due to pronounced US Dollar strength on the ECB which given its higher return, makes the Aussie look relatively unattractive from a yield perspective. Meanwhile, the Japanese Yen rose versus all but the greenback.

A Look Ahead – BoJ Due, But Eyes Will Probably Be on Sentiment

At an unspecified time during Friday’s Asian trading session, we will get the Bank of Japan monetary policy announcement. Though so far this year, the rate decision has tended to cross the wires around 3:00 GMT +-15 minutes. Here, this is likely to be the least market moving central bank rate event this week when comparing to the Fed and ECB. Inflation still remains persistently below target in Japan. This argues for another status quo announcement.

Keep an eye out for how Asian shares react to the aftermath of the ECB rate decision. Given the relatively restrained US market response, local stocks may edge cautiously higher. On a side note, it appears to have been confirmed that US President Donald Trump has approved $50 billion in tariffs against Chinese goods. Meanwhile, Mexico was reported looking into tariffs on US corn and soy. With that in mind, we shall see what the markets will care more about as we await Tokyo open.

DailyFX Economic Calendar: Asia Pacific (all times in GMT)

DailyFX Economic Calendar: Bank of Japan

DailyFX Webinar CalendarCLICK HERE to register (all times in GMT)

DailyFX Webinar Calendar

IG Client Sentiment Index Chart of the Day: NZD/USD

Asia AM Digest: Markets Eye Sentiment Instead of BoJ Post ECB Jolt

CLICK HERE to learn more about the IG Client Sentiment Index

Retail trader data shows 62.3% of NZD/USD traders are net-long with the ratio of traders long to short at 1.65 to 1. In fact, traders have remained net-long since Apr 22 when NZD/USD traded near 0.73652; price has moved 5.0% lower since then. The number of traders net-long is 4.7% lower than yesterday and 15.2% lower from last week, while the number of traders net-short is 7.7% higher than yesterday and 1.4% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests NZD/USD prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current NZD/USD price trend may soon reverse higher despite the fact traders remain net-long.

Five Things Traders are Reading:

  1. ETH/USD Price Analysis: Ethereum Rebounds from Multi-month Lows by Michael Boutros, Currency Strategist
  2. Post-FOMC USD/JPY Weakness to Persist as Bullish Sequence Snaps by David Song, Currency Analyst
  3. XAU/USD Technical Outlook: Gold Price Breakout Stallsby Michael Boutros, Currency Strategist
  4. Another Potential Blow for Euro as Germany’s CSU Defies Merkelby Martin Essex, MSTA, Analyst and Editor
  5. EUR/USD Crumbles as ECB Unveils Cautious Stimulus Exit by James Stanley, Currency Strategist Analyst

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES