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
EUR/USD
Bearish
Oil - US Crude
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
Wall Street
Bullish
Gold
Bearish
GBP/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
USD/JPY
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
More View more
Real Time News
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3FsnNdo7VK https://t.co/lC69rPbkcJ
  • $AUDUSD just weakened slightly following disappointing Chinese industrial production and retail sales data What is the Aussie facing over the next 24 hours and heading into next week? #AUD https://www.dailyfx.com/forex/market_alert/2020/08/14/Australian-Dollar-Outlook-Eyes-SP-500-Retail-Sales-After-Chinese-Data.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/b9pmxMkp8o
  • 🇨🇳 Unemployment Rate (JUL) Actual: 5.7% Previous: 5.7% https://www.dailyfx.com/economic-calendar#2020-08-14
  • 🇨🇳 Fixed Asset Investment (YTD) YoY (JUL) Actual: -1.6% Expected: -1.6% Previous: -3.1% https://www.dailyfx.com/economic-calendar#2020-08-14
  • 🇨🇳 Industrial Production YoY (JUL) Actual: 4.8% Expected: 5.1% Previous: 4.8% https://www.dailyfx.com/economic-calendar#2020-08-14
  • 🇨🇳 Retail Sales YoY (JUL) Actual: -1.1% Expected: 0.1% Previous: -1.8% https://www.dailyfx.com/economic-calendar#2020-08-14
  • Heads Up:🇨🇳 Unemployment Rate (JUL) due at 02:00 GMT (15min) Previous: 5.7% https://www.dailyfx.com/economic-calendar#2020-08-14
  • Heads Up:🇨🇳 Fixed Asset Investment (YTD) YoY (JUL) due at 02:00 GMT (15min) Expected: -1.6% Previous: -3.1% https://www.dailyfx.com/economic-calendar#2020-08-14
  • Heads Up:🇨🇳 Industrial Production YoY (JUL) due at 02:00 GMT (15min) Expected: 5.1% Previous: 4.8% https://www.dailyfx.com/economic-calendar#2020-08-14
  • Heads Up:🇨🇳 Retail Sales YoY (JUL) due at 02:00 GMT (15min) Expected: 0.1% Previous: -1.8% https://www.dailyfx.com/economic-calendar#2020-08-14
Asia AM Digest: Stocks Brush off Brexit Unease, More Gains Next?

Asia AM Digest: Stocks Brush off Brexit Unease, More Gains Next?

2018-07-09 23:00:00
Daniel Dubrovsky, Analyst
Share:

US Session Recap – GBP Down as UK Foreign Secretary Boris Johnson Resigns

As anticipated, the gap higher in the British Pound as this week began was pared as political uncertainty in the UK dampened appeal for the local unit. Sterling took a dive during the second half of the day as Foreign Secretary Boris Johnson resigned after David Davis. Accompanying GBP’s descent was falling local front-end government bond yields, hinting at ebbing Bank of England hawkish monetary policy expectations.

Indeed, overnight index swaps are now pricing in a 69 percent probability that the BoE will raise rates in August. This is down from about 80% confidence at the end of last week. Interestingly, UK stocks managed to secure some gains. The FTSE 100 in particular rose 0.92% on Monday. This could have been as a result of fading tightening credit condition expectations. Lower rates for longer can bode well for investment.

With that said, there are still numerous uncertainties going forward in the UK. From here, Prime Minister Theresa May could potentially face not only parliament, but also her own cabinet if this leads to a no confidence vote. Any signs that Brexit negotiations could be delayed, especially with the White Paper on a Brexit agreement due later this week, could weigh against Sterling if the outlook entails more uncertainty.

For now, it has been confirmed that Jeremy Hunt will be the new UK Foreign Secretary. In a tweet, he indicated his support for Theresa May in getting a ‘great’ Brexit deal. This may be a step in a direction towards less uncertainty, but only time will tell the true impact.

The intense weakness in GBP allowed the US Dollar to regain some upside momentum. It pared earlier loses and finished the day little changed. The general pickup in stocks seen in Asia, Europe and in the US dampened the appeal of the anti-risk Japanese Yen. Meanwhile, the sentiment-linked Australian and New Zealand Dollars rose.

A Look Ahead – Markets Still Eye Risk Trends

During Tuesday’s Asia session, we will get Chinese CPI and PPI statistics. However, the impact of this data on the Australian Dollar could be limited. Even though China is Australia’s largest trading partner, the Reserve Bank of Australia has persistently maintained its patient stance as it considers its next move as a hike. Thus, knock-on effects could be limited.

With that in mind, it is risk trends that can arguably shape market performance during this session. The gains seen in worldwide global stock exchanges could be reverberated into the session. Such a scenario may continue weighing on the Yen while AUD and NZD rise. The former could also be temporarily impacted by local consumer confidence data.

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

Asia AM Digest: Stocks Brush off Brexit Unease, More Gains Next?

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

Asia AM Digest: Stocks Brush off Brexit Unease, More Gains Next?

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

Asia AM Digest: Stocks Brush off Brexit Unease, More Gains Next?

CLICK HERE to learn more about the IG Client Sentiment Index

Retail trader data shows 71.0% of NZD/USD traders are net-long with the ratio of traders long to short at 2.45 to 1. In fact, traders have remained net-long since Apr 22 when NZD/USD traded near 0.73603; price has moved 7.1% lower since then. The number of traders net-long is 6.6% lower than yesterday and 8.9% lower from last week, while the number of traders net-short is 3.5% higher than yesterday and 4.7% 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. AUD/USD Stages Larger Rebound While Retail Shorts Jump 32% David Song, Currency Analyst
  2. US Dollar Weakens But Not Enough to Complete the Wave by Jeremy Wagner, CEWA-M, Head Forex Trading Instructor
  3. US Dollar May Be Set For Strong Rebound after Four Days of Declines by Tyler Yell, CMT, Forex Trading Instructor
  4. AUD/USD Technical Outlook: Trading the Aussie Price Recoveryby Michael Boutros, Currency Strategist
  5. PM May Leadership in Crisis as Boris Johnson Quits; GBP Plungesby Justin McQueen, 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

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.