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
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • 🇨🇳 New Yuan Loans (MAR) Actual: CNY2730B Expected: CNY2450B Previous: CNY1360B https://www.dailyfx.com/economic-calendar#2021-04-12
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.00%, while traders in France 40 are at opposite extremes with 78.18%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/7UYDmvffGJ
  • Heads Up:🇨🇳 New Yuan Loans (MAR) due at 08:00 GMT (15min) Expected: CNY2450B Previous: CNY1360B https://www.dailyfx.com/economic-calendar#2021-04-12
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Gold: -0.30% Silver: -0.61% Oil - US Crude: -0.67% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/zdtlSWnvQN
  • Build you crude oil strategy with some basic key insights. Hone your trading skills here: https://t.co/ekflhEeXRX https://t.co/ASQshPqL0M
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.09% 🇬🇧GBP: 0.08% 🇳🇿NZD: 0.01% 🇪🇺EUR: -0.15% 🇨🇭CHF: -0.19% 🇨🇦CAD: -0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ONjmG96bBI
  • Euro Price Outlook: EUR/USD at Risk as US Treasury Yields Aim Higher - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2021/04/12/Euro-Price-Outlook-EURUSD-at-Risk-as-US-Treasury-Yields-Aim-Higher.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $EUR $EURUSD https://t.co/F5xV0LfjbZ
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.11% France 40: 0.07% US 500: -0.18% Wall Street: -0.21% FTSE 100: -0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/BYsOrQ3vtn
  • Crude Oil Prices Struggle Even as Powell Highlights Strong Recovery https://www.dailyfx.com/forex/market_alert/2021/04/12/Crude-Oil-Prices-Steady-as-Powell-Highlights-a-Strong-Recovery.html https://t.co/r8i6QncAeH
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cBMUg9 https://t.co/M5ByVTQRO5
USD is King in Low Currency Volatility Environment, Gold Drops Below Support - US Market Open

USD is King in Low Currency Volatility Environment, Gold Drops Below Support - US Market Open

Justin McQueen, Analyst

MARKET DEVELOPMENT – USD is King in Low Currency Volatility Environment, Gold Drops Below Support

USD: Despite the risk events throughout the week, FX volatility has been very subdued and continues to do so, with the most traded currency, EURUSD, seeing implied volatility hovering around record lows (1-month vols). Consequently, in this period of low volatility USD remains firm given the attractiveness that carry trades provide, while the fundamental backdrop for the US economy is notably stronger than the Eurozone. With little on the docket, eyes will turn to the Fed speak later today.

GBP: Given that an extension had largely been priced in and the outlook remains unchanged, GBP subsequently failed to find a renewed bid after the announcement. As a reminder, speculative positioning had been relatively neutral, according to the latest COT update, which in turn suggested that a short squeeze would be unlikely. However, while an extension may help GBPUSD hold support at 1.30, uncertainty will persist with a wide range of outcomes still possible (general election, second referendum, Theresa May resignation).

Risk Currencies (AUD, NZD, CAD): Risk sensitive currencies are the notable underperformers this morning against the greenback with the Canadian Dollar feeling the pressure from the pullback in oil prices. In turn, USDCAD is back to familiar resistance at 1.3385-1.34.

Gold: As the USD stabilises around the 97.00 handle, gold prices have taken a slight knock with the precious metal dropping back below the 1300 level. Demand for the precious metal has also been dampened by the mild support for equity markets.

USD is King in Low Currency Volatility Environment, Gold Drops Below Support - US Market Open

Source: Thomson Reuters, DailyFX

DailyFX Economic Calendar: – North American Releases

USD is King in Low Currency Volatility Environment, Gold Drops Below Support - US Market Open

IG Client Sentiment

USD is King in Low Currency Volatility Environment, Gold Drops Below Support - US Market Open

How to use IG Client Sentiment to Improve Your Trading

WHAT’S DRIVING MARKETS TODAY

  1. GBPUSD Price Shrugs Off Brexit Extension, Sterling’s Bid Remains” by Nick Cawley, Market Analyst
  2. Gold Price Outlook Still Positive as Global Slowdown Fears Persist” by Martin Essex, MSTA , Analyst and Editor
  3. S&P 500 Outlook: Investors on Edge Ahead of Earning Season” by Justin McQueen, Market Analyst
  4. FTSE Technical Outlook Following Brexit ’Agreement’; GBP Correlation a Factor Again” by Paul Robinson, Market Analyst
  5. Using FX To Effectively Trade Global Market Themes at IG” by Tyler Yell, CMT , Forex Trading Instructor

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES