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
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
Bullish
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.39% Gold: -0.10% Silver: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/VYJLLMIYs1
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.19% 🇳🇿NZD: 0.09% 🇨🇭CHF: 0.08% 🇦🇺AUD: 0.05% 🇪🇺EUR: 0.03% 🇨🇦CAD: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/vYpt09hgMQ
  • #Copper prices surging above the 2017 high as RSI climbs above 70 for the first time since July Hate to say I told you so......but 👉https://www.dailyfx.com/forex/market_alert/2020/11/17/Copper-Prices-Poised-to-Outperform-on-Chinese-Recovery-Vaccine-News-.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $CPER #XCUUSD https://t.co/u3ucCf64Vz
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.08%, while traders in NZD/USD are at opposite extremes with 74.40%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/mUnqic6URw
  • Australia says it will vigorously fight Chinese wine tariffs - BBG $AUD $XJO
  • South Korea to decide on November 29 whether to raise social distancing rules Ministry says tougher rules could cause side effects - BBG $USDKRW
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/MIgA7RlblS
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here: https://t.co/qV3c7a4YR3 https://t.co/OSOYhffKNr
  • Japan FinMin Aso: Extra budget must also help change post-virus economy No decision on giving cash handouts to single parents Local banks must be strong enough to serve communities and must make own decisions on issues like mergers - BBG $JPY
  • China to impose anti-dumping deposits over Australian wine from Nov 28th - Reminder: Alcoholic beverage exports have over a 30% exposure to China $AUD https://t.co/jLTjF9AV68
Tech Weighs S&P 500 Despite Brexit News, EUR/USD Fall May Resume

Tech Weighs S&P 500 Despite Brexit News, EUR/USD Fall May Resume

2018-09-05 23:00:00
Daniel Dubrovsky, Analyst
Share:

Asia Pacific Market Open – Brexit, S&P 500, Information Technology, BoC, EUR/USD

  • Brexit news lifted GBP/USD prices, but S&P 500 declined as it was weighed by tech sector
  • US Senators raised prospects of regulating social media. BoC disappointed hawks, CAD fell
  • EUR/USD downtrend may resume on US China trade war fears, eyes 1.1568 if resistance holds

Just getting started trading FX? See our beginners’ guide for FX traders to learn how you can apply this in your strategy!

The US Dollar was on pace to deliver another solid day of gains as market mood deteriorated during APAC trade, fueling haven demand for the world’s reserve currency. This then turned around later in the day amidst reports that Germany and the UK dropped a key Brexit demand, potentially paving a smoother path for Britain to strike with the European Union on an exit deal.

As a result, GBP/USD soared as much as 1.2% as the British Pound appreciated against its major counterparts. UK government bond yields rose, signaling firming BoE rate hike bets. This weighed against the US Dollar and earlier gains were pared. EUR/USD ended up posting its largest gain on the daily chart since August 27th.

Following the market moving Brexit news, the BoC brought volatility to the Canadian Dollar and it could have gone better. The central bank left rates unchanged at 1.50% as expected, but failed to dial up expectations of a hike in October. USD/CAD rose, but finished the day little changed. With that in mind, it would probably take better-than-expected Canadian economic data ahead to revive hawkish bets.

Despite the Brexit update, sentiment continued deteriorating after Wall Street came online. The S&P 500 and NASDAQ Composite declined, falling 0.28% and 1.19% respectively. This was led by weakness in information technology as US Senators increased prospects of regulating social media. Despite this, the anti-risk Japanese Yen ended the day weaker. Gains were offset by USD performance.

Ahead, prolonged weakness in shares could see Asia Pacific trade echo the performance on Wall Street. This may lead the US Dollar higher as markets are still facing the potential of rising trade wars between the world’s largest economies. Meanwhile, the Australian Dollar faces a trade balance report. Yesterday’s stronger second quarter GDP report could offer a data beat. But gains on that may not last given that the RBA still does not intend on raising rates in the near-term.

EUR/USD Technical Analysis – Can Gains Last?

Even though EUR/USD rose Wednesday, the pair was unable to push out of channel resistance. In fact, the pair stopped right on the 23.6% Fibonacci retracement. Given the prospects of USD gains ahead, the Euro may find its next leg lower after this temporary pullback. This would resume its decline since late August after a descent through a near-term rising trend line. Immediate support is the 38.2% level at 1.1568.

Tech Weighs S&P 500 Despite Brexit News, EUR/USD Fall May Resume

Chart created in TradingView

US Trading Session

Tech Weighs S&P 500 Despite Brexit News, EUR/USD Fall May Resume

Asia Pacific Trading Session

Tech Weighs S&P 500 Despite Brexit News, EUR/USD Fall May Resume

** 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