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
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
Oil - US Crude
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
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Technical analysis of charts aims to identify patterns and market trends by utilizing 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/F7qhF7cazx
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.38% 🇨🇭CHF: 0.29% 🇨🇦CAD: 0.28% 🇯🇵JPY: -0.03% 🇦🇺AUD: -0.22% 🇳🇿NZD: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/uDphropBki
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Gold: 0.68% Silver: 0.37% Oil - US Crude: -0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/GjCpxqPpKk
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.55%, while traders in Germany 30 are at opposite extremes with 80.61%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/XBXs1LXXEF
  • Ontario Premier: Ontario is extending its stay-at-home order to six full weeks $CAD
  • As UK vaccination rates have slowed, coupled with a backdrop of calmed UK Gilt yields, the British Pound’s relative appeal that carried it through the first three months of 2021 has been tarnished. Get your market update from @CVecchioFX here:https://t.co/7aZHtoa1vg https://t.co/YQYvJ17SMb
  • For most of 2021, the US 10Y yield remained in an ascending channel. In recent sessions, yields have cooled thanks to a dovish Fed. Also of note, markets appear to be signaling that US outperformance is now fully priced in. https://t.co/QD7ctvXB6T
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: France 40: 0.40% Germany 30: 0.35% FTSE 100: 0.27% US 500: -0.01% Wall Street: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/TQst43wrMf
  • GBP: Gradual chopping decline since Feb smacks of corrective behavior. Bull-flag coming into view that could soon trigger. Get your $GBP market update from @PaulRobinsonFX here:https://t.co/ndjE4K0Nmk https://t.co/8dxgUTYH7V
  • #Bitcoin lower by more than 2.5% as Turkey bans crypto payments, citing risks #BTC $BTCUSD https://t.co/KFj1mJjBpp
Asia AM Digest: USD Pauses Rise on FOMC Minutes, Trade War Ahead?

Asia AM Digest: USD Pauses Rise on FOMC Minutes, Trade War Ahead?

Daniel Dubrovsky, Strategist

Current Developments – USD Tops After FOMC Minutes

The US Dollar finished Thursday’s session rather mixed having experienced losses during the first half followed by gains in the second. During the former, its weakness may have been due to broad Euro strength as the ECB increased hawkish monetary policy bets. Then, news that the US proposed eliminating auto import tariffs on both sides of the Atlantic added more momentum to Euro gains and the DAX.

In the second half, the US Dollar advanced along with local front-end government bond yields. During its climb, better-than-expected ISM Non-Manufacturing data did not hurt. Simultaneously, US stocks came online after the Independence Day holiday and Wall Street finished the day higher. The S&P 500 rose about 0.86 percent.

The release of the FOMC minutes did put a halt to the greenback’s ascent, though it certainly gained temporarily as the statement crossed the wires. There, Fed officials saw gradual rate hikes as needed given a ‘very strong’ economy. However, most members noted that there are intensified risks around trade policy. Increasing concerns on this front may have contributed to USD’s top.

Notes from the FOMC Minutes:

  • Gradual hikes needed amid ‘very strong’ economy
  • Most Fed officials saw intensified risks around trade policy
  • Fed minutes show broad support for gradual rate hikes
  • A few Fed officials saw US fiscal policy as an upside risk
  • Many business contacts are concerned by risks from a trade war
  • Price moves support outlook for 2% inflation
  • A number of Fed officials said it is premature to declare victory on inflation
  • Some businesses are passing higher costs to consumers
  • Fed officials saw fiscal policy supporting economic growth

A Look Ahead – Trade War Looming?

Speaking of rising concerns round trade policy, US President Donald Trump confirmed that the country will go ahead with imposing the first portion of the $50b in Chinese import tariffs at midnight local time. This translates to $34b around 4:00 GMT on Friday. China is at this point ready to retaliate and yesterday, Commerce Ministry Spokesman Gao Feng confirmed it.

As such, while Asian shares may have some scope for gains given Wall Street’s performance, those might be mitigated to a certain extent. Keep in mind that a few weeks ago, Donald Trump has threatened to impose additional levies on China in the event that they retaliate. If stocks do climb in the interim, there may be a nasty surprise down the road as such. Either way, anti-risk currencies and sentiment-linked ones like the Japanese Yen and Australian/New Zealand Dollars respectively could be volatile.

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

Asia AM Digest: USD Pauses Rise on FOMC Minutes, Trade War Ahead?

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

Asia AM Digest: USD Pauses Rise on FOMC Minutes, Trade War Ahead?

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

Asia AM Digest: USD Pauses Rise on FOMC Minutes, Trade War Ahead?

CLICK HERE to learn more about the IG Client Sentiment Index

Retail trader data shows 63.7% of traders are net-long with the ratio of traders long to short at 1.76 to 1. In fact, traders have remained net-long since Jun 05 when AUD/USD traded near 0.75665; price has moved 2.4% lower since then. The number of traders net-long is 2.2% lower than yesterday and 7.2% lower from last week, while the number of traders net-short is 6.7% higher than yesterday and 12.3% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests AUD/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 AUD/USD price trend may soon reverse higher despite the fact traders remain net-long.

Five Things Traders are Reading:

  1. China Says ’Ready to Fight’ in the Trade War on Eve of US Tariff Hit by Renee Mu, Currency Analyst
  2. Central Bank Weekly: GBP, CAD Rebound as BOE, BOC Rate Hike Odds Rise by Christopher Vecchio, CFA, Sr. Currency Strategist
  3. NZD/USD to Stage Larger Rebound as RSI Flashes Buy Signal by David Song, Currency Analyst
  4. Pre-NFP Price Action Setups Across the US Dollarby James Stanley, Currency Strategist
  5. Weekly Technical Perspective on the Australian Dollar (AUD/USD)by Michael Boutros, Currency Strategist

--- 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