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
More View more
Real Time News
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:https://t.co/MrLGSp7FYa https://t.co/XS0176LyOg
  • The Japanese Yen remains in focus with strength potential on risk aversion themes to go along with weakness on themes around higher rates. Get your weekly $JPY technical forecast from @JStanleyFX here: https://t.co/l4UICqJzJy https://t.co/dQ2pS0E4fp
  • Google finance-related search interest in 'Evergrande' has almost overtaken 'Covid'. 'Taper' doesn't even register on the scale https://t.co/P6H9sHFVIB
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDJ2wm https://t.co/b9m5ADIqqb
  • Gold remains higher despite positive Evergrande news out of China. Meanwhile, copper bulls are pushing prices upward as the potential for a housing crisis in China ebbs. Get your market update from @FxWestwater here:https://t.co/TK3MNntBdA https://t.co/14UKjR4w6M
  • GBP/USD has flattened overnight after its strongest rally in a month on Thursday. The British currency has been under pressure recently as an energy crisis has caused a number of gas providers to go bankrupt. Get your market update from @HathornSabin here:https://t.co/3D8s2eIVWv https://t.co/JDGNwKYyOn
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sIauS https://t.co/JIT5it2HAt
  • Gold could suffer further near-term losses due to rising U.S. Treasury yields and a weak technical picture for price action. Get your weekly gold forecast from @DColmanFX here: https://t.co/g9QvH3L4It https://t.co/Vz98E0Bl9U
  • Gold has been trending lower after failing to clear resistance in the $1835 area earlier this month. Get your $XAUUSD market update from @DColmanFX here:https://t.co/3hm1g3BHgf https://t.co/MdTQKEBCBx
  • Key break here in the 10-year #Treasury yield as it rises to the highest since late June Took out 1.4230 resistance, and the 100-day SMA Eyes now on the 38.2% Fib extension at 1.4775 Also potential falling resistance from March https://t.co/4cI6l210ui
British Pound Gains After Retail Sales, Dollar Down Overnight; US CPI Ahead

British Pound Gains After Retail Sales, Dollar Down Overnight; US CPI Ahead

Christopher Vecchio, CFA, Senior Strategist

INTRADAY PERFORMANCE UPDATE: 09:30 GMT

MAJORS

AUD

CAD

CHF

EUR

GBP

JPY

NZD

(vs USD)

+0.64%

+0.32%

+0.18%

+0.23%

+0.50%

+0.33%

+0.73%

Dow Jones FXCM Dollar Index (Ticker: USDOLLAR): -0.29% (+0.15%prior 5-days)

ASIA/EUROPE FOREX NEWS WRAP

More good news out of the United Kingdom this morning with the July Retail Sales report crushing expectations, and quickly elevating the British Pound to an eight-week high against the US Dollar. Unquestionably, data out of the UK has been the best among the currencies covered by DailyFX Research the past two-months, underpinning a swift turnaround in the Sterling’s fundamentals.

Even as the British Pound adds to its recent gains, it cannot take claim of top performer on the day, That instead goes to the New Zealand Dollar, whose neighbor the Australian Dollar is in a close second, up by +0.73% and +0.64% against the US Dollar respectively.

I believe that the broad US Dollar weakness, and thus prevailing favor towards the commodity – higher yielding – currencies is no coincidence in light of St. Louis Fed President James Bullard’s comments on inflation yesterday and the upcoming July US Consumer Price Index today.

President Bullard’s main critique of the Fed’s shift – most visible by his dissent at the June FOMC meeting – has been that it threatens to undermine the Fed’s credibility on inflation. That is to say, with inflation running so low, the Fed’s dovish credentials may be at stake (which would render QE a hapless exercise); and therefore any exit from QE3 is premature.

We thus turn to the US CPI report for further direction on the US Dollar, which has come off across the board. Another soft CPI print could be a metaphorical nail in the coffin for a ‘Septaper’; but a surprise to the upside (perhaps resulting from improved July consumption figures) would restore any lost confidence and help the US Dollar continue its rebound from a two-month low.

GBPUSD 5-min Chart: Thursday, August 15, 2013 Intraday

British_Pound_Gains_After_Retail_Sales_Dollar_Down_Overnight_US_CPI_Ahead_body_x0000_i1027.png, British Pound Gains After Retail Sales, Dollar Down Overnight; US CPI Ahead

Read more: Point, Taper: Improved July Retail Sales Report Lifts US Dollar as Yields Jump

ECONOMIC CALENDAR – UPCOMING NORTH AMERICAN SESSION

British_Pound_Gains_After_Retail_Sales_Dollar_Down_Overnight_US_CPI_Ahead_body_Picture_1.png, British Pound Gains After Retail Sales, Dollar Down Overnight; US CPI Ahead

See the DailyFX Economic Calendar for a full list, timetable, and consensus forecasts for upcoming economic indicators. Want the forecasts to appear right on your charts? Download the DailyFX News App.

TECHNICAL ANALYSIS – CHART OF THE DAY

British_Pound_Gains_After_Retail_Sales_Dollar_Down_Overnight_US_CPI_Ahead_body_x0000_i1029.png, British Pound Gains After Retail Sales, Dollar Down Overnight; US CPI Ahead

USDJPY – The overbought readings in both H4 RSI and Slow Stochastics (5,3,3,) have been resolved but only little downside was produced, with price maintaining ¥98.00. Accordingly, with H4 candles finding support at the conflux of the 50% Fibonacci retracement from the June low to July high and the 21-/55-EMA bullish crossover at 97.50/70, the next leg higher looks ready to begin. The Bullish Falling Wedge pattern first identified on Sunday night remains valid and points to 99.80/100.00.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

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

DISCLOSURES