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
Oil - US Crude
Bullish
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
Bearish
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
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/ZDuee58Abe
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/niJL2W2yXV
  • 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/0rNbbrd58e
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/zPzJAxBJxt
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/uf6KEYTes5
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/gRjdVfbg66
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/mLLGqYUygY
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/HUYJzEkYiT
  • #Gold prices put in a major breakout last month and, so far, buyers have held the line. But a really big Fed meeting is on the calendar for this week. Can Gold bulls hold? Get your market update from @JStanleyFX here: https://t.co/NGRTSfceOW https://t.co/QkSUORIQE2
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/PHK2sqB1jV
Nasdaq Extends Slide, Bond Yields Spike on Fed Taper Fears

Nasdaq Extends Slide, Bond Yields Spike on Fed Taper Fears

Rich Dvorak, Analyst

STOCK MARKET OUTLOOK: NASDAQ SINKS AS TEN-YEAR TREASURY YIELD TOPS 1.65%

  • Nasdaq extends its selloff as tech stocks slide further due to surging bond yields
  • The ten-year Treasury yield has climbed over 20-basis points from Friday’s bottom
  • Fed taper timeline could be pulled forward with inflation looking not-so transitory

The Nasdaq and other major stock indices are trading deep in the red on Wednesday. This follows a sharp move higher by Treasury bond yields and the US Dollar this morning in response to red-hot inflation data. Notably higher-than-expected readings for both headline and core CPI have stoked investor concerns that the Federal Reserve may have to bring forward its taper timeline.

Even FOMC Vice-Chair Richard Clarida noted how he was surprised by the strength of today’s CPI report. Fears of sticky inflation were not felt in today’s solid ten-year Treasury auction results, however, as yields at 1.68% attracted buyers. That alleviated upward pressure on yields and helped Nasdaq price action erase some downside.

NDX – NASDAQ PRICE CHART: DAILY TIME FRAME (21 OCTOBER 2020 TO 12 MAY 2021)

Nasdaq Price Chart Forecast

Chart by @RichDvorakFX created using TradingView

The Nasdaq is currently trading around the psychologically-significant 13,000-price level. Failure to maintain altitude here, which could follow yesterday’s rejection of the 50-day simple moving average, has potential to steer the Nasdaq a bit lower toward the ascending trendline that connects the 02 November and 05 March swing lows. This potential area of technical support is also underpinned by the 61.8% Fibonacci retracement of the Nasdaq’s year-to-date trading range. Although, it is worth noting the Nasdaq is arguably looking a bit overextended here.

This is judging by the relative strength index nearing ‘oversold’ territory and Nasdaq price action trading outside its bottom two-standard deviation Bollinger Band. That said, it is likely that the Fed will look through short-term spikes in inflation, pegging them as transitory price increases due to supply constraints and anchoring long-term inflation expectations around 2%. This also likely means that the Fed will stay patiently dovish until ‘substantial further progress’ is made toward reaching its other mandate – full employment. Nevertheless, I would have ten-year Treasury yields near the top of my radar for a potential bellwether to where the Nasdaq heads next due to the recently strong inverse relationship between the Nasdaq and Treasury bond yields.

-- 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