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
EUR/USD
Mixed
Oil - US Crude
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
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • 🇯🇵 Tertiary Industry Index MoM (MAY) Actual: -2.1% Previous: -7.7% https://www.dailyfx.com/economic-calendar#2020-07-13
  • 🇯🇵 Tertiary Industry Index MoM (MAY) Actual: -2.1% Previous: -6.0% https://www.dailyfx.com/economic-calendar#2020-07-13
  • 🇯🇵 Tertiary Industry Index MoM (MAY) Actual: -2,1% Previous: -6.0% https://www.dailyfx.com/economic-calendar#2020-07-13
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.93%, while traders in US 500 are at opposite extremes with 76.12%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/TRp6GF9snQ
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.32% 🇬🇧GBP: 0.27% 🇪🇺EUR: 0.24% 🇨🇭CHF: 0.16% 🇯🇵JPY: 0.09% 🇳🇿NZD: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/O81hxQPBpL
  • Heads Up:🇯🇵 Tertiary Industry Index MoM (MAY) due at 04:30 GMT (15min) Previous: -6.0% https://www.dailyfx.com/economic-calendar#2020-07-13
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Germany 30: 1.31% France 40: 1.23% FTSE 100: 0.94% Wall Street: 0.64% US 500: 0.54% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/YSclbAH1mY
  • Brush up your knowledge on trade-wars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/ZWaL6laTU5 https://t.co/sBmNFhegO2
  • RT @DanielGMoss: Broad risk-on tilt seen during #APAC trade with the trade-sensitive $AUDUSD following #SP500 futures higher Haven-associa…
  • (ASEAN Fundy Weekly) The US #Dollar weakened against #ASEAN currencies like the Singapore Dollar, Malaysian #Ringgit, Indonesian #Rupiah and Philippine Peso. Ahead, Chinese GDP and US retail sales are eyed $USDSGD $USDMYR $USDIDR $USDPHP - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/07/13/US-Dollar-Fundamental-Outlook-USDSGD-USDMYR-USDIDR-USDPHP.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/6ebwzv8CNq
US Dollar Eyes Trump Speech, Beware of Month-End Rebalancing

US Dollar Eyes Trump Speech, Beware of Month-End Rebalancing

2020-05-29 08:00:00
Justin McQueen, Analyst
Share:

US Dollar Price Analysis & News

  • Main Focus on Trump Press Conference
  • Beware of Month End Rebalancing
  • US-China Tensions to Remain USD Supportive

Main Focus on Trump Press Conference

Late in the US session, the risk rally faded into the Wall Street close after President Trump announced that he will hold a press conference on US measures against China concerning the recent passing of the Hong Kong Security Bill. In turn, with sanctions against Chinese officials likely to be the main outcome, alongside a potential change to Hong Kong’s special trading status with the US. This will mark a fresh escalation in the tensions between the US and China, where the latter has already vowed to announce countermeasures if the US interferes with internal affairs. Therefore, risks are rising for a pullback in risk sentiment.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Justin McQueen
Trading Forex News: The Strategy
Get My Guide

Beware of Month End Rebalancing

Another factor to keep in mind is month-end rebalancing. As it stands, major investment bank models have touted USD selling, given the outperformance in US equities relative to its counterparts over the past month. In turn, we will be playing a close eye in the run-up to the London fix at 1600BST (Figure 1) . Signs are that month-end has already had an impact on the US Dollar, which has seen a notable pullback throughout the week. Interestingly, despite equities seeing modest softening, the typically safe-haven USD has weakened as well, which has been a rare occurrence as of late, given the increasingly negative correlation between the US Dollar and risk assets.

With that said, given that the tensions between the US and China are likely to persist, we still that risks are skewed towards the upside for the US Dollar in the mid-term.

GBP/USD BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 2% 4% 3%
Weekly -15% 10% -3%
Learn how to use Sentiment in your trading strategy
Get My Guide

Figure 1. April End of Month Rebalancing Saw Significant USD Selling

US Dollar Eyes Trump Speech, Beware of Month-End Rebalancing

Source: Refinitiv

--- Written by Justin McQueen, Market Analyst

Follow Justin on Twitter @JMcQueenFX

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

DISCLOSURES

News & Analysis at your fingertips.