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
Wall Street
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
  • Further your forex knowledge and gain insights from our expert analyst @ @MartinSEssex and @DColman on EUR with our free Q4 market analysis guide, available for free today.https://t.co/YwV249fojQ #Dailyfxguides https://t.co/BvfOW4QwZ9
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/6cn6OK6M7w
  • RT @Stephanie_Link: 84% of $SPX companies have beaten EPS estimates to date for Q3, which is tied for the 3rd highest percentage since 2008…
  • What is #NFP and how can you trade it? Find out: https://t.co/XJWS04IF9j https://t.co/iV9lPzPDtc
  • What does it mean when one candle fully engulfs the previous in its price action? The bullish engulfing candle is one of the forex market?€?s most clear-cut price action signals. Figure out how to identify this pattern here: https://t.co/Yg6ecRZZNr https://t.co/3J0xXp4axT
  • Oil maintains a medium-term bullish outlook, but its overbought condition and price's proximity to key technical resistance may pave the way for a brief pullback before the next leg higher. Get your weekly oil forecast from @DColmanFX here: https://t.co/sv2bMc34gI https://t.co/DDIoe4VhZ3
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2020? Find out from @JohnKicklighter here: https://t.co/1oeXWEsJkb https://t.co/P3SduerCFF
  • The update to the US GDP report may keep the Greenback under pressure as signs of a slowing recovery undermines speculation for an imminent shift in Fed policy. Get your weekly USD forecast from @DavidJSong here: https://t.co/xvLr1bLfZG https://t.co/aQnOIoUM9t
  • There a many different trading styles that can be applied to trading forex. Learn about different types of traders here: https://t.co/xfzRCzuuKK https://t.co/GXxdkNEeCg
  • Hang Seng Tech Index has likely formed a bullish “Inverse Head and Shoulders” chart pattern. Immediate support and resistance levels can be found at 5,800 and 7,433 respectively. Breaching above 7,433 would likely bring 8,266 into focus. https://t.co/VsavFLj97V
US Dollar Winning Safe-Haven Battle vs JPY, CHF Risks Are Lower

US Dollar Winning Safe-Haven Battle vs JPY, CHF Risks Are Lower

Justin McQueen, Strategist

Japanese Yen (JPY) & Swiss Franc (CHF) Analysis and News

  • Japanese Yen Plummets Across the Board
  • EUR/USD & US Yields Signal Lower CHF,
  • US CPI a Key FactorFor Near-Term FX Outlook

Japanese Yen Plummets Across the Board

Commodities soaring, global bond yields edging higher has seen the Japanese Yen tumble across the board with USD/JPY trading on a 113.00 handle and now at its highest level since late 2018. As I have said previously, the Japanese Yen has largely been a fixed income play and thus it is important to keep a close eye on the US 10yr yield for direction. A reminder that tomorrow will see the latest US CPI report and in light of the increased focus on the stagflation narrative, market sensitivity to the data will be heightened and by extension the Japanese Yen. That being said, with US yields seeing a slightly subdued open from Friday’s close, chasing USD/JPY higher from current levels is a risk and instead, focus will be on dip demand with particular interest from the 2019 and 2020 peaks at 112.40 and 112.20 respectively.

USD/JPY vs US 10Yr Yield

US Dollar Winning Safe-Haven Battle vs JPY, CHF Risks Are Lower

Source: Refinitiv

IG Client Sentiment Suggests USD/JPY Bull Momentum Will Continue

Data shows 28.38% of traders are net-long with the ratio of traders short to long at 2.52 to 1. The number of traders net-long is 7.30% higher than yesterday and 10.19% lower from last week, while the number of traders net-short is 12.47% higher than yesterday and 23.61% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USD/JPY prices may continue to rise.

Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USD/JPY-bullish contrarian trading bias.

EUR/USD & US Yields Signal Lower CHF

Yesterday, I touched on the Swiss Franc’s recent resilience, despite being faced with higher commodities and firmer bond yields. Taking a look at the charts below (Figure 1. & Figure 2.) the Swiss Franc is trading at relatively elevated levels vs EUR/USD and US Yields and thus I remain biased to fade CHF upside, looking for a break of 0.9300. Of course, tomorrow’s CPI will be a key determinant in that effort for a topside breach.

EUR/USD vs USD/CHF (Inv)

US Dollar Winning Safe-Haven Battle vs JPY, CHF Risks Are Lower

Source: Refinitiv

US 10yr Yield vs USD/CHF (Inv)

US Dollar Winning Safe-Haven Battle vs JPY, CHF Risks Are Lower

Source: Refinitiv

IG Client Sentiment Signals Potential USD/CHF Reversal Higher

Data shows 69.48% of traders are net-long with the ratio of traders long to short at 2.28 to 1. The number of traders net-long is 2.26% higher than yesterday and 1.87% higher from last week, while the number of traders net-short is 11.16% higher than yesterday and 9.13% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USD/CHF prices may continue to fall.

Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current USD/CHF price trend may soon reverse higher despite the fact traders remain net-long.

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

DISCLOSURES