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. See our updated Privacy Policy here.

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
Bearish
Gold
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
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Human error in the forex market is common and often leads to familiar trading mistakes. These trading mistakes crop up particularly with novice traders on a regular basis. Learn about the top ten trading mistakes and how you can avoid them here: https://t.co/i8E2AXtzF3 https://t.co/cDcjl3Ue09
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/KWOX5wSipe
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/cwSWCpKtaj
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/zu5hMovbz6
  • 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/QMKyTBOKNG
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/aRkGoNvj6D
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/ltVTNO2sjT
  • GBP/USD clears the May low (1.3801) as the Federal Reserve forecasts two rate hikes for 2023. Get your $GBP market update from @DavidJSong here:https://t.co/WdTG2niAKz https://t.co/2j02VyH0wm
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.01% 🇪🇺EUR: -0.36% 🇨🇭CHF: -0.60% 🇨🇦CAD: -0.91% 🇦🇺AUD: -0.96% 🇳🇿NZD: -1.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/HWVSmqaiYF
  • The amount of breakouts the #USD saw against its major peers this week was fairly impressive Lots of opportunities here for reversing dominant downtrends that have been prevailing for about 14-15 months Stay tuned for my USD weekly technical outlook coming out this weekend!
February US Non-Farm Payrolls (NFP) Prints at +273k

February US Non-Farm Payrolls (NFP) Prints at +273k

James Stanley, Senior Strategist

US Dollar, US NFP Talking Points

  • The US Dollar came into the morning holding on to an aggressive bearish trend.
  • This morning brought the release of February Non-Farm Payrolls Numbers.
  • This morning’s NFP print was released to a tune of +273k v/s the expectation of +175k. The unemployment rate came in at 3.5% v/s the expectation for 3.6%. And Average Hourly Earnings printed in-line with the expectation of 3%.

US Non-Farm Payrolls for February

It was a busy backdrop coming into the morning as a recent round of risk aversion sent global markets spiraling in disarray. While stocks have seen a bit of pressure, it’s been moves in the significantly larger US Treasury market that’s caught so many by surprise.

This flight to quality is being driven by fears around the still-spreading Coronavirus, and investors and traders have started to hone in on data releases in the effort of gauging just how much slowdown may emanate from this fear.

In the US, the risk is still relatively new, so data is of the upmost importance in trying to set those expectations; and Non-Farm Payrolls is especially pertinent given that it’s the fastest look recent econ, particularly on the employment-front.

This morning’s NFP report was a blowout number, printing at +273k vs the expectation of +175k. The unemployment rate edged back down to 3.5% from last month’s 3.6%, and even wage gains remained strong as Average Hourly Earnings printed at 3%. This provided a quick boost to the US Dollar after a really aggressive span of weakness had taken-over the currency.

US Dollar One-Minute Price Chart

US Dollar One MInute Price Chart

USD on Tradingview

The bigger question, however, is of a bigger picture nature and how or even if this might impact the stance around the Federal Reserve. It was just a few days ago when the FOMC announced an emergency rate cut of 50 basis points, the first of its kind.

As discussed in yesterday’s webinar, the US Dollar had quickly moved into an oversold state after just two weeks ago setting a fresh three-year-high. This stunning reversal is driven by the expectation for the FOMC to get even more loose and passive down-the-road, with Coronavirus popping up as a near-term risk.

US Dollar Daily Price Chart

US Dollar Daily Price Chart

USD on Tradingview

Taking an even further step back, and the reversal backdrop in the US Dollar remains as seen on the weekly chart below.

US Dollar Weekly Price Chart

US Dollar Weekly Price Chart

USD on Tradingview

--- Written by James Stanley, Strategist for DailyFX.com

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES