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
Bullish
Oil - US Crude
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
Wall Street
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
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 1.27% 🇦🇺AUD: 1.13% 🇬🇧GBP: 0.28% 🇨🇦CAD: 0.20% 🇯🇵JPY: 0.10% 🇨🇭CHF: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/WkqJDMh7yW
  • - Doubt that the Fed would ever sell bonds into the marketplace
  • - Most Fed officials didn't see rising rates until 2024 - Rate liftoff is outcomes-based and highly unlikely before 2022 - We will taper asset purchases when we make substantial progress towards our goals, this will be well before raising interest rates
  • - Fed won't give Congress advice on fiscal policy - In the longer-run, US federal budget is on an unsustainable path - Current level of debt is "very sustainable" and there is "no question" of the ability to service and issue this debt
  • Fed Chair Powell: - The economy currently seems to be at an inflection point - US is entering a period of faster growth and job creation - Risks still remain, mainly that another spike in cases from new strains occurs #Fed $USD
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.63% US 500: 0.14% FTSE 100: 0.03% France 40: -0.02% Germany 30: -0.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/gOngmHHwLZ
  • Canadian #Dollar Outlook: $USDCAD Range Coils– #Loonie Break Imminent - https://t.co/pvCDpL36j2 https://t.co/AYR1GQHqDN
  • Heads Up:🇺🇸 Fed Chair Powell Speech due at 16:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-04-14
  • Hey traders! Get your Wednesday market update covering bank earnings and developments on Credit Suisse from @DailyFX Chief Strategist @JohnKicklighter👇 https://t.co/B6VM3TDvrq
  • $EURUSD is remaining stronger today. The pair is currently trading at a four week high above the 1.1970 level amidst further weakness from the US Dollar. $EUR $USD https://t.co/h5V2my96e0
China Economic Stimulus to Benefit ZAR, Oil and Copper

China Economic Stimulus to Benefit ZAR, Oil and Copper

Martin Essex, MSTA, Analyst

China stimulus news and analysis:

  • The latest plan by China to boost its economy via fiscal measures is likely to be followed by more economic stimulus.
  • That should lift demand for commodities, as well as the currencies of commodity producers like South Africa.

Our trading forecasts for Q3 have been published; you can find them here.

And check out the IG Client Sentiment data to help you trade profitably.

Chinese demand to rise

The prospect of further moves by the Chinese to boost their economy will likely lead to increased demand for commodities and boost the currencies of commodity producers like South Africa and Australia.

On Monday, China announced new economic measures to increase liquidity and offered nearly $200 billion to local governments to spend on infrastructure. While relatively modest, the package is likely to be followed by more fiscal and monetary measures, which would boost Chinese imports.

On the currency front, the latest moves have lifted the South African Rand, which is now well placed to make further gains.

USDZAR Price Chart, Hourly Timeframe (July 19-25, 2018)

Latest USDZAR price chart.

Chart by IG

While USDZAR has already fallen, the slide looks set to accelerate. Similarly, commodities like oil and copper could yet have further to rise.

US Crude Oil Price Chart, Hourly Timeframe (July 19-25, 2018)

Latest US crude oil price chart.

Chart by IG

China’s new measures have helped offset market concerns about the US-China trade dispute ahead of a meeting between US President Donald Trump and European Commission President Jean-Claude Juncker. Hopes are high that a full-scale trade war can be avoided, and that has helped boost market sentiment.

One currency that has failed to benefit so far is the Australian Dollar. Even though Australia is another major commodity exporter, AUD is suffering from news of weaker than expected inflation data. However, that weakness could easily reverse.

AUDUSD Price Chart, Five-Minute Timeframe (July 25, 2018)

Latest AUDUSD price chart.

Chart by IG

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