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
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
Bullish
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.60% 🇨🇭CHF: 0.49% 🇪🇺EUR: 0.48% 🇦🇺AUD: 0.30% 🇨🇦CAD: 0.16% 🇯🇵JPY: 0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/L2vBDPB0WB
  • Indices Update: As of 15:00, these are your best and worst performers based on the London trading schedule: US 500: 0.23% Wall Street: 0.16% Germany 30: 0.03% FTSE 100: -0.16% France 40: -0.53% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/ctRsCaxSOy
  • #Bitcoin is now down over 10% today as the cryptocurrency sells off. It is currently trading around $31,500, its lowest level since the selloff on January 11th. $BTC https://t.co/hUjQ0QXE4F
  • The DAX hasn’t done a whole lot in recent sessions, with it generally holding onto the surge off the October low into the end of the year. Get your #DAX market update from @PaulRobinsonFX here:https://t.co/BWmyKlakke https://t.co/ZLERTZG6ER
  • $USDCAD pushed to fresh lows around 1.2610 today, hitting its lowest level since the spring of 2018. $USD $CAD https://t.co/3QUssEABVU
  • Commodities Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Silver: -0.14% Gold: -0.35% Oil - US Crude: -0.58% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Tg6bH3xQw1
  • 💶 Consumer Confidence Flash (JAN) Actual: -15.5 Expected: -15 Previous: -13.8 https://www.dailyfx.com/economic-calendar#2021-01-21
  • Join us for a special #webinar at 11:00 AM EST/16:00 GMT where you can learn how to identify price trends with trader sentiment. Register here: https://t.co/MqVMi2INbJ https://t.co/IyPYLVzQEb
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in Wall Street are at opposite extremes with 71.54%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/RCA1oyMCcL
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Silver: -0.38% Gold: -0.44% Oil - US Crude: -0.79% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/OAvmToO5ys
British Pound Finds New Role as Haven During Emerging Market Turmoil

British Pound Finds New Role as Haven During Emerging Market Turmoil

Christopher Vecchio, CFA, Senior Strategist

INTRADAY PERFORMANCE UPDATE: 09:30 GMT

MAJORS

AUD

CAD

CHF

EUR

GBP

JPY

NZD

(vs USD)

-0.65%

-0.46%

-0.20%

-0.19%

+0.04%

-0.23%

-0.97%

Dow Jones FXCM Dollar Index (Ticker: USDOLLAR): +0.18% (-0.31%prior 5-days)

ASIA/EUROPE FOREX NEWS WRAP

The British Pound has emerged as an unlikely top performer and perhaps safe haven du jour as few developed economies have seen the resiliency the UK economy has since May. The past week or so, the Sterling has been quite strong against the commodity complex in particular, as emerging market weakness has started to impact the entire Asian-Pacific region.

Further Sterling gains shouldn’t be ruled out, even if the currency may be overbought in the near-term per technical indicators on H4 and daily timeframes (in particular against the Australian, New Zealand, and US Dollars. So far in August, the GBPAUD has appreciated by +2.60%; and over the course of the 3Q’13 so far, +4.24%. By comparison, the AUDUSD is up by +0.48% in August; and down by -1.25% in the 3Q’13.

So, as we wait for the most up-to-date information on the Fed’s QE3 taper today in the form of the July FOMC Minutes, the fact that the British Pound is the top performer and only currency to out maneuver the US Dollar bodes well. Even if the GBPUSD turns on signs of ‘Septaper’ coming to fruition, the British Pound should remain well-favored elsewhere for the foreseeable future.

GBPAUD 15-min Chart: August 14 to 21, 2013

British_Pound_Finds_New_Role_as_Haven_During_Emerging_Market_Turmoil_body_Picture_1.png, British Pound Finds New Role as Haven During Emerging Market Turmoil

Taking a look at European credit, peripheral bonds have continued to leak higher as European equity markets have struggled the past few days, proving to be a slight negative influence on Wednesday.Should this relationship persist – weaker credit and equities – the Euro could face increased pressure over the next several sessions.

The Italian 2-year note yield has increased to 1.860% (+1.5-bps) while the Spanish 2-year note yield has increased to 1.746% (+3.0-bps). Likewise, the Italian 10-year note yield has increased to 4.323% (+2.0-bps) while the Spanish 10-year note yield has increased to 4.465% (+1.4-bps); higher yields imply lower prices.

Read more: Euro Advances as Aussie, Kiwi Sink on Heightened Pre-FOMC Volatility

ECONOMIC CALENDAR – UPCOMING NORTH AMERICAN SESSION

British_Pound_Finds_New_Role_as_Haven_During_Emerging_Market_Turmoil_body_x0000_i1028.png, British Pound Finds New Role as Haven During Emerging Market Turmoil

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.

FX TECHNICAL ANALYSIS – CHART OF THE DAY

British_Pound_Finds_New_Role_as_Haven_During_Emerging_Market_Turmoil_body_x0000_i1029.png, British Pound Finds New Role as Haven During Emerging Market Turmoil

GBPUSD (D) – I maintain: “The pair continues to impress since early-July but there are signs of near-term exhaustion developing. Gains have been harder to come by the past few days despite broader US Dollar uncertainty; and the British Pound has been less enthused by stronger than expected data.

"Now, the daily RSI and Slow Stochastics (5,3,3) are approaching overbought territory as the pair nears resistance. Mid-June swing highs, the 61.8% Fibonacci retracement of the yearly high low, and ascending channel resistance (July 9 and August 2 lows to July 23 high) all come in between $1.5720 and 1.5760 this week. “

--- 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