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
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
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
More View more
Real Time News
  • We are going to start the new trading week with a few critical technical breaks like the $QQQ's (NDX) H&S neckline break on volume and EURUSD's clearance below 1.1950. Are these the makings of trends? My take: https://www.dailyfx.com/forex/video/daily_news_report/2021/03/06/EURUSD-and-Nasdaq-100-to-Start-Week-with-Multi-Month-Breakdown.html https://t.co/iR5w7iDkDU
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/OR70NHkgeI
  • What are some factors driving AUD? Get your free forecast for this quarter here:https://t.co/z85CIVYiuK #DailyFXGuides https://t.co/nd93gXDswq
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/xeidoj2K9f
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/1rhLp4LnfN
  • 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/RKYGzRStvL
  • The US Dollar is moving higher after a blowout NFP report bolstered confidence in the US economic recovery. Markets will now turn attention to next week’s US inflation data which could boost the Greenback. Get your market alert from @FxWestwater here: https://t.co/Ud62r3hKRF https://t.co/dvvDCJvlbP
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/7g9pB8D9xK
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/OCLzmXaDCu
  • Technical analysis of charts aims to identify patterns and market trends by utilising differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/UZela9nSIm
US Dollar, Nasdaq, Chinese Yuan React to Trump-China Presser

US Dollar, Nasdaq, Chinese Yuan React to Trump-China Presser

Rich Dvorak, Analyst

President Trump Press Conference on Rising China Tension Weighs on US Dollar, Nasdaq, Yuan

  • President Trump formally announces the United States will revoke Hong Kong’s preferential treatment amid escalating China tension
  • US Dollar drifted lower as the Chinese Yuan rebounded and pushed USD/CNH price action 300-pips lower from intraday highs despite Trump’s harsh remarks directed at Beijing
  • Nasdaq Index and stocks pushed higher after the Trump-China press conference perhaps owing to the absence of a material breakdown in the phase one trade deal

US President Trump just lobbed terse commentary toward China during a highly-anticipated press conference. Amid escalating China tension, which largely surrounds the coronavirus outbreak and hostile situation in Hong Kong, investors have digested reintroduced trade war uncertainty between the world’s two largest economies.

Trump stated that the White House wants an open and constructive relationship with China, but mentioned how Beijing has violated promises made to Washington and that the world is now suffering due to China’s negligence and coverup of the coronavirus outbreak. Further, the national security law China levied on Hong Kong earlier this week stands to blatantly undermine Hong Kong independence and autonomy according to President Trump.

Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Rich Dvorak
Trading Forex News: The Strategy
Get My Guide

Trump responded by stating that the United States will sanction Chinese officials and formally revoke Hong Kong’s preferential trade status. Nevertheless, markets have so far overlooked the threat of a breakdown in Sino-American relations and the recently inked phase one trade deal between Washington and Beijing.

DXY – US DOLLAR INDEX PRICE CHART: 5-MINUTE TIME FRAME (29 MAY 2020 INTRADAY)

US Dollar Price Chart DXY Index China Tension Trump Press Conference

Chart created by @RichDvorakFX with TradingView

The US Dollar basket (DXY Index) took a spill amid the Trump-China press conference, but USD price action has edged notably higher from session lows on balance. Protracted US Dollar weakness corresponds with absent demand for safe-haven currencies and broadly mirrors the Chinese Yuan rebound.

Forex for Beginners
Forex for Beginners
Recommended by Rich Dvorak
Forex for Beginners
Get My Guide

USD/CNH – US DOLLAR TO YUAN PRICE CHART: DAILY TIME FRAME (JULY 2019 TO MAY 2020)

Chinese Yuan USD to CNH Price Chart Hong Kong Autonomy National Security Law

The US Dollar pivoted lower against the Chinese Yuan in response to commentary from US President Trump. This comes subsequent to spot USD/CNH price action spiking to the 7.2000 level earlier this week – the top emerging market currency pair’s strongest reading since September 2019. USD/CNH now trades 300-pips lower from its intraday high and underscores the risk-on tone expressed by market participates in the wake of Trump’s presser.

USD Forecast
USD Forecast
Recommended by Rich Dvorak
Get Your Free USD Forecast
Get My Guide

NDX – NASDAQ PRICE CHART: 1-MINUTE TIME FRAME (29 MAY 2020 INTRADAY)

Nasdaq Price Chart NDX Index Stocks Trump China

Chart created by @RichDvorakFX with TradingView

Nasdaq 100 price action ripped higher after President Trump delivered harsh remarks directed at Beijing. Stocks likely recovered considering the revocation of Hong Kong’s preferential treatment was expected. Likewise, the iShares Emerging Markets Equity ETF (Ticker: EEM) and China Large-Cap Stocks ETF (Ticker: FXI) gained ground.

Equities Forecast
Equities Forecast
Recommended by Rich Dvorak
Get Your Free Equities Forecast
Get My Guide

The boost to stocks might be explained by the lack of material action announced by Trump today directed at undermining the US-China phase one trade deal. Nevertheless, event risk over the weakened remains noteworthy as markets await Beijing’s response to the latest President Trump press conference.

Keep Reading – S&P 500 Price Outlook: VIX Index Sends Bad Omen for Stocks

-- Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

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

DISCLOSURES