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
GBP/USD
Mixed
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
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/eReyYRYOn1
  • Last week’s march higher in EUR/USD may well extend further after Friday’s Eurozone economic statistics that will likely turn the ECB more hawkish on monetary policy. Get your weekly Euro forecast from @MartinSEssex here: https://t.co/EWrJy5LfOF https://t.co/NQj5xCdw9b
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHHGbZ https://t.co/uDeIMr1Ks4
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/srqRhfdKUd
  • Cable is pulling off after a strong run; near-term weakness may be the theme before trying to rally again. Get your weekly GBP technical forecast from @PaulRobinsonFX here: https://t.co/030gXzxlEc https://t.co/ux7W6OcBOm
  • 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/mfwJ0sZLTs https://t.co/FPKAoLQuuI
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/2L5DGk7cxl
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/zRBB1hmhJm
  • USD/CAD has bounced off a key support area on Friday and could potentially charge higher in the coming week as risk-aversion over coronavirus fears has started to dominate market moves. Get your weekly CAD technical forecast from @DColmanFX here: https://t.co/bySyBXTAdr https://t.co/y6UqD0quGN
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/sPcCTQfaRd
Dollar Down as Government Closes; Abe Tax Drops USD/JPY Under ¥98

Dollar Down as Government Closes; Abe Tax Drops USD/JPY Under ¥98

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- US government to shutdown as Congress fails…again.

- Italian government under pressure – vote of confidence on Wednesday.

- Complacency in markets – bonds, commodities, equities, and FX – likely finished.

To receive this report in your inbox every morning, sign up for Christopher’s distribution list.

INTRADAY PERFORMANCE UPDATE: 09:30 GMT

MAJORS

AUD

CAD

CHF

EUR

GBP

JPY

NZD

(vs USD)

+1.16%

-0.04%

+0.06%

+0.12%

+0.38%

+0.48%

-0.06%

Dow Jones FXCM Dollar Index (Ticker: USDOLLAR): -0.51% (-0.81%prior 5-days)

ASIA/EUROPE FOREX NEWS WRAP

The Dow Jones FXCM Dollar Index has taken a significant step downwards towards today, falling within points of its September and post-FOMC meeting lows as political turmoil in the United States reached a new low as the federal government shutdown. Bogged down by political ideologues on both sides of the isle, partisanship is now a veritable drag on US economic growth, which will be a major factor for the Federal Reserve not to taper QE3 at its October policy meeting.

Political tensions have risen on both sides of the Atlantic in recent days, although the Italian situation may be defusing as reports have emerged that up to 20 ex-Berlusconi supporters could fall in line with current Prime Minister Enrico Letta in order to prevent a collapse of the government. Such events would no longer necessitate elections, removing a fair deal of uncertainty from the near-future. Accordingly, the Euro has benefited from declining credit risks (noted below).

As the US government debacle festers, the Japanese Yen has benefited amid a shift in safe haven preferences, as well as a generally broader decline in risk-appetite. Aiding the leg up for the Yen today was news that Japanese Prime Minister Shinzo Abe would move forward with a sales tax hike, raising the rate from 5% to 8%. Concurrently, the government will cut corporate taxes to offset the fiscal drag.

Why is this JPY-positive? Investors are finding that the Japanese economy is strong enough to withstand a minor downturn in economic growth; and that momentum is strong enough to prevent inflation from becoming deflation. As long as economic data remains strong out of Japan, the scope for more monetary easing from the Bank of Japan is limited in the short-term.

USDJPY 5-minute Chart: October 1, 2013 Intraday

Dollar_Down_as_Government_Closes_Abe_Tax_Drops_USDJPY_Under_98_body_x0000_i1027.png, Dollar Down as Government Closes; Abe Tax Drops USD/JPY Under ¥98

Taking a look at European credit, rumors of a potential solution in Italy have eased concerns significantly on Tuesday. The Italian 2-year note yield has decreased to 1.803% (-7.1-bps) while the Spanish 2-year note yield has decreased to 1.386% (-9.0-bps). Similarly, the Italian 10-year note yield has decreased to 4.527% (-3.6-bps) while the Spanish 10-year note yield has decreased to 4.213% (-7.5-bps); lower yields imply higher prices.

Read more: Euro Drops on Weaker German Labor Market, European PMIs

ECONOMIC CALENDAR – UPCOMING NORTH AMERICAN SESSION

Dollar_Down_as_Government_Closes_Abe_Tax_Drops_USDJPY_Under_98_body_Picture_1.png, Dollar Down as Government Closes; Abe Tax Drops USD/JPY Under ¥98

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.

--- 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