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.

Free Trading Guides
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
GBP/USD
Bullish
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
Gold
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
Bitcoin
Bearish
More View more
Real Time News
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.21% 🇪🇺EUR: 0.02% 🇨🇭CHF: -0.01% 🇨🇦CAD: -0.20% 🇦🇺AUD: -0.55% 🇳🇿NZD: -0.62% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/vYw4TJGluQ
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: US 500: -1.00% Wall Street: -1.00% Germany 30: -1.32% France 40: -1.61% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Hrkj947xY7
  • RT @C_Barraud: 🇨🇳 #China (2) | A blockage of 16 cities (~50 million people) coupled with the extension of the Lunar New Year holiday and pr…
  • Last week, I discussed in a webinar following New Zealand #CPI data how the uptick is unlikely to give lasting support to #NZDUSD. It has since dropped to a 1-month low. Here's the webinar recording - https://t.co/FB370zM7YU
  • Hey, traders 👋 do you want live AMAS with our analysts, market updates and tools to improve your trading strategy? Join us now on Instagram! 👉 https://t.co/pHGzVMqsC4 https://t.co/Gqd6QYtwau
  • Excellent quote, and very true. https://t.co/ZZxfYkhtUM
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.55%, while traders in Germany 30 are at opposite extremes with 78.28%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/mF9IjVDANC
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.19% 🇨🇭CHF: 0.05% 🇪🇺EUR: 0.03% 🇬🇧GBP: -0.10% 🇦🇺AUD: -0.31% 🇳🇿NZD: -0.49% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/B5s24o9414
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.98% US 500: -1.04% France 40: -1.20% Germany 30: -1.24% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/smh3lrHlFA
  • AUD/USD Technical Analysis: Aussie Dollar Drop Ends Rebound - https://www.dailyfx.com/forex/technical/home/analysis/aud-usd/2020/01/27/AUDUSD-Technical-Analysis-Aussie-Dollar-Drop-Ends-Rebound.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #AUDUSD #technicalanalysis https://t.co/NFK3zlXtVX
Fed Chair Powell Dips USD, Boosts S&P. Nikkei 225 Eyes Trend Line

Fed Chair Powell Dips USD, Boosts S&P. Nikkei 225 Eyes Trend Line

2018-08-26 23:00:00
Daniel Dubrovsky, Analyst
Share:

Asia & Pacific Market Open – Fed, Jackson Hole, US Dollar, S&P 500, Nikkei 225

  • Fed hawkish were disappointed as Chair Jerome Powell spoke at Jackson Hole
  • The US Dollar dipped as stocks rose, the anti-risk Japanese Yen may fall ahead
  • Nikkei 225 climbed above near-term resistance and now approaches a trend line

Check out our 3Q forecasts for currencies like the Yen in the DailyFX Trading Guides page

The US Dollar suffered its second week of losses, with declines amplified as Fed Chair Jerome Powell spoke at the Jackson Hole Central Banking Symposium on Friday. While he did reiterate much of the status quo that gradual hikes are likely appropriate, a lack to go beyond that left hawks rather disappointed. Indeed, US government bond yields declined across the board.

For stocks, the risk that the Fed could have dialed up hawkish rhetoric dissipated, allowing the S&P 500 to clock in a record high after struggling to do so for most of this week. In fact, it was a rather rosy day for global benchmark indexes as they climbed during both the European and US trading sessions. Gold prices, which typically behave as an anti-fiat asset, soared the most in a day since May 2017.

The anti-risk Japanese Yen thus ended up one of the worst performing FX majors while the sentiment-linked Australian and New Zealand Dollars rose. Gains in the former were also amplified when political uncertainty in Australia declined. After struggling to hold on to his leadership, Prime Minister Malcolm Turnbull was ousted by former Treasurer Scott Morrison.

With that in mind, the beginning of this week could be met with an improvement in market mood as Asia/Pacific stocks cheer somewhat diminished prospects of global tightening credit conditions. This may allow the Yen to resume its depreciation while the Aussie and Kiwi Dollars receive more fuel to their upside momentum.

Nikkei 225 Technical Analysis – Above Resistance

The rally in stocks on Friday allowed the Nikkei 225 to clock in its 4th consecutive gain on the daily chart, the longest winning streak since July 18th. The index has also pushed above a near-term descending resistance line, hinting that it may rise in the near-term. From here, immediate resistance is the 50% Fibonacci extension at 22,814 followed by a trend line that connects the May, June and July highs.

Nikkei 225 Daily Chart

Chart created in TradingView

US Trading Session

US Trading Session

Asia Pacific Trading Session

Fed Chair Powell Dips USD, Boosts S&P. Nikkei 225 Eyes Trend Line

** All times listed in GMT. See the full economic calendar here

FX Trading Resources

--- 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.