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
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/rChAkNqPL2
  • Long wick candles are recurrent within the forex market. This makes understanding the meaning behind these candles invaluable to any trader to comprehend the market dynamics during a specific period. Learn about the importance of extended wicks here: https://t.co/SIpslvhX0J https://t.co/jVxcE1QUBs
  • Safe haven stocks also allow traders to diversify their portfolio and reduce risk. Learn if safe-haven stocks are made for you here: https://t.co/MTc4tUDD6c https://t.co/DOQ6tyzep9
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/WQLZ1X7gIY
  • but the next major point in my view to monitor will be 52.76 - at least in the short term.
  • #Brent having broken above the pre-OPEC drop off at 45.51 is a huge deal considering it failed to crack resistance there in August (leading to the invalidation of "uptrend 2") and the psychological significance of that level https://t.co/LkEyRxFhnq
  • The New Zealand Dollar looks poised to extend its push higher against its haven-associated counterparts on robust economic data and a less dovish stance from the RBNZ. Get your $NZD market update from @DanielGMoss here:https://t.co/vytr4OR1Jy https://t.co/ZcxEUWIm8O
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2020? Find out from @JohnKicklighter here: https://t.co/1oeXWEsJkb https://t.co/x8uyOHLtgE
  • The Swiss Franc may continue higher against the US Dollar as technical pressure favors USD/CHF bears..Get your $USDCHF market update from @FxWestwater here:https://t.co/yqJbbhAWiu https://t.co/CaMR0Vqd1m
  • The US Dollar lost ground to most ASEAN currencies as Emerging Market assets climbed despite US economic woes. USD/INR is eyeing third-quarter Indian GDP at the end of the week. Get your market update from @ddubrovskyFX here:https://t.co/urDN2b5Nwd https://t.co/toSDbVZCSi
US Yield Bounce Soothes Some Market Fear, Risk Appetite Still on Edge

US Yield Bounce Soothes Some Market Fear, Risk Appetite Still on Edge

2019-08-19 05:07:00
David Cottle, Analyst
Share:

APAC Stocks, Talking Points:

  • Stocks rose across the region
  • Hopes for German fiscal largesse bolstered risk taking
  • The US Dollar held up against major rivals

Join our analysts for live, interactive coverage of all major economic data at the DailyFX Webinars. We’d love to have you along.

Asia Pacific stock markets saw strong broad gains on Monday. A rise in Treasury yields provided the broad backdrop but some individual good-news stories also lifted heavyweight names.

Sentiment showed a marked improvement after Wall Street stood taller on Friday and Germany’s government was reported to be ready to loosen tight fiscal constrictions, setting aside balanced budget rules to stimulate a slowing economy.

Markets had taken fright last week when the US Treasury market seemed to be sending reliable recession signals. However, the news from Berlin has played a part in raising risk appetite. Sure enough those US yields are higher across the board. It must be noted however that this apparent German change of heart comes very late in the cycle and that the German economy has already chalked up one quarter of contraction

The Nikkei 225 was up 0.7% in the middle of its Monday afternoon, with gains of more than 1.5% seen for both the Shanghai Composite and the Hang Seng. The ASX 200 rose 0.8%.

Chinese tech giant Tencent saw strong gains as analysts have kept faith in its prospects despite a recent revenue disappointment. Australia’s big-four banks started the week on a strong note, as did Lendlease Group. Its stock rose despite news of a 41% decline in full year net profit. Poor as this was, it was far better than markets had expected.

On the currency front the Japanese Yen weakened as haven assets lost some of their allure. USDJPY has bounced notably having hit lows not seen since March 2018, with the exception of early January’s spurious ‘flash crash.’

US Dollar Vs Japanese Yen, Daily Chart

The bulls have managed a reasonable defensive action since but the pair looks to be topping out around early-August’s highs and a reteracement of the sharp falls seen since July 31 still seems a very tall order.

Still, more broadly the US Dollar remained close to the two-week highs reached on Friday against a basket of its most widely traded rivals.

This week will see plenty of likely market moving events but the biggest is likely to be the annual symposium held at Jackson Hole, Wyoming under the auspices of the Kansas City Federal Reserve. With overall Fed Chair Jerome Powell leading the usual roster of monetary heavyweights, the week is likely to see quite cautious market action until the last delegate has spoken.

APAC Stocks, Resources For Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

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

DISCLOSURES