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
Bearish
Wall Street
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
Gold
Bullish
GBP/USD
Bullish
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
Breaking news

British Pound sinks as EU Brexit negotiator Barnier says there may not be an EU/UK deal

Real Time News
  • 🇮🇹 Unemployment Rate (OCT) Actual: 9.8% Expected: 9.9% Previous: 9.6% https://www.dailyfx.com/economic-calendar#2020-12-02
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 94.23%, while traders in EUR/USD are at opposite extremes with 76.39%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/tOPLdyRuXM
  • Heads Up:🇮🇹 Unemployment Rate (OCT) due at 09:00 GMT (15min) Expected: 9.9% Previous: 9.6% https://www.dailyfx.com/economic-calendar#2020-12-02
  • 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/5GU4pInyEz
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Gold: 0.12% Oil - US Crude: -0.06% Silver: -0.42% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Or5dlWpp5V
  • Oil - US Crude IG Client Sentiment: Our data shows traders are now net-long Oil - US Crude for the first time since Nov 17, 2020 when Oil - US Crude traded near 4,158.50. A contrarian view of crowd sentiment points to Oil - US Crude weakness. https://www.dailyfx.com/sentiment https://t.co/PfSmrjovuW
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.03% 🇳🇿NZD: 0.01% 🇨🇭CHF: -0.03% 🇪🇺EUR: -0.10% 🇯🇵JPY: -0.25% 🇬🇧GBP: -0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/uazAW4gwnj
  • EURGBP popping higher on negative Brexit headlines...+0.50% @ 0.9035 #eurgbp #brexit @DailyFXTeam https://t.co/inCrIn1xc2
  • US Dollar Price Outlook: DXY May Extend Fall on Renewed Fiscal Aid Hopes - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2020/12/02/US-Dollar-Price-Outlook-DXY-May-Extend-Fall-on-Renewed-Fiscal-Aid-Hopes-.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $USD $DXY https://t.co/Oa2qKHA6P1
  • $GBPUSD plunging after EU chief negotiator Michel Barnier tells EU ambassadors there may be no #Brexit deal... #GBP https://t.co/AkkWmcO46b
US Dollar, S&P 500 Overlook FOMC Rate Decision as Election Drags

US Dollar, S&P 500 Overlook FOMC Rate Decision as Election Drags

2020-11-05 19:45:00
Rich Dvorak, Analyst
Share:

US DOLLAR, S&P 500 UNFAZED BY FOMC DECISION IN LINE WITH EXPECTATIONS

  • FOMC leaves policy interest rate and pace of asset purchases unchanged as widely expected
  • US Dollar facing heavy selling pressure, S&P 500 soaring on prospective Biden Presidency
  • Market volatility could quickly resurface if coronavirus concerns come back into the spotlight

The Federal Reserve just announced its latest interest rate decision. FOMC officials unanimously voted to leave the target Federal funds rate range unchanged at 0.00-0.25% and continue expanding its balance sheet at the current pace. This was widely expected with the US central bank likely opting to stay sidelined this meeting in light of the November 2020 election.

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

US DOLLAR INDEX PRICE CHART: 4-HOUR TIME FRAME (20 OCT TO 05 NOV 2020)

US Dollar Index Price Chart November 2020 FOMC Decision

Chart by @RichDvorakFX created using TradingView

The broad-based US Dollar Index moved little in response to the latest FOMC decision. Over the last few hours, however, USD price action has plunged amid election-driven volatility. The DXY Index now trades about 1.6% lower month-to-date and is probing technical support provided by October swing lows near the 92.60-price level. Growing prospects for a Biden presidency stands out as the primary catalyst for recent US Dollar weakness.

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

S&P 500 INDEX PRICE CHART: 2-HOUR TIME FRAME (28 OCT TO 05 NOV 2020)

S&P 500 Index Price Chart November 2020 FOMC Decision

Chart by @RichDvorakFX created using TradingView

The S&P 500 similarly changed little in the wake of the Federal Reserve statement. Stocks have been soaring and seemingly defying gravity as the mix of a Biden presidency and split congress could downplay risks of higher taxes. That said, the move higher in risk assets and selloff across safe-haven currencies seems a touch overdone at this point.

President Trump continues to file lawsuits against states in an attempt to contest election results across key battleground states. If there is merit to these lawsuits and the final election result is dragged out further, investors could grow uneasy and send the VIX ‘fear-gauge’ snapping back higher. Nonetheless, two court judges in Georgia and Michigan have just separately dismissed Trump lawsuits regarding potential voter fraud due to lacking evidence.

US 500 MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 4% -1% 1%
Weekly -9% 4% -1%
What does it mean for price action?
Get My Guide

Looking beyond the election, the threat of mounting coronavirus concerns across the US again stands out as a major headwind to the economy and risk appetite. The Fed press statement highlighted once again how the path of the economy depends significantly on the course of the pandemic.

On that note, with other global central banks ramping up their pace of asset purchases recently, there could be potential for the Fed to expand its QE program down the road at the December FOMC meeting. Also, considering the little chance for a democratic sweep now, hopes for a massive stimulus package may dwindle and the burden of providing much-needed economic support could fall back on the Fed’s shoulders.

-- 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