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
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
Oil - US Crude
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
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
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZjVIG https://t.co/oZPoyPH2iw
  • Using margin in forex trading is a new concept for many traders, and one that is often misunderstood. Margin is the minimum amount of money required to place a leveraged trade and can be a useful risk management tool. Learn about margin trading here: https://t.co/qZCE5asCzM https://t.co/yN1I9FrfIS
  • 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/5l3O9aHQbL https://t.co/DFEfCIl7zF
  • Thin liquidity can concentrate volatility and nowhere is that more evident than with Dogecoin. $DOGEUSD was down as much as 38% today. Watch for heightened bouts of volatility amid quiet risk trends in the week ahead: https://www.dailyfx.com/forex/video/daily_news_report/2021/04/17/Dollar-Outlook-Ties-Into-Key-Data-Rate-Forecasts-and-Even-Dogecoins-Rally-.html https://t.co/JO7O7zUKe9
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: https://t.co/zEEUHZjVIG https://t.co/Vv3jZNbLWg
  • 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/BdgFmkzWwW https://t.co/9j004hyzUZ
  • Learning how to trade does not have to feel foreign. Hone your skills and build your confidence with free DailyFX guides today! https://t.co/lnxaQOsgid https://t.co/7myL4vGnt8
  • Using margin in forex trading is a new concept for many traders, and one that is often misunderstood. Margin is the minimum amount of money required to place a leveraged trade and can be a useful risk management tool. Learn about margin trading here: https://t.co/qZCE5asCzM https://t.co/yxE0OmLIP0
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUd00T https://t.co/iSrjZTeWwf
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/WeLInepZiD https://t.co/7B0KI8HehW
US Dollar Dips on Trump’s Comment That He’s Not Happy with Hiking Fed

US Dollar Dips on Trump’s Comment That He’s Not Happy with Hiking Fed

Tyler Yell, CMT, Currency Strategist

US Dollar Index (DXY) Talking Points:

  • The ONE Thing: Trump’s comments stole the day as he took the unusual track of commenting directly on monetary policy when he said, “Our currency is going up, and I have to tell you it puts us at a disadvantage.” Thisis seen in the light of the trade war where he said the Chinese currency is ‘dropping like a rock.’ After the comments hit headlines, the White House said that Trump "respects independence of Fed.”
  • Yen jumps most in a month before trading at 113 rising 0.61%. Canadian Dollar is the only currency in G10 at time of writing lower on the day vs. USD after Trump’s comments. CHF also jumped taking USD/CHF down 0.5%.
  • Technical Outlook on the US Dollar: The bears in the US Dollar Index (DXY) have few legs to stand on while bullish arguments continue to compile. Whether looking through the lens of Ichimoku, Elliott Wave, Andrew’s Pitchfork, or MACD (there are more) the prudent approach seems to favor further US Dollar Index gains.

Trump Takes On the Fed

The Dollar dived after comments from US President Trump where he said he’s not thrilled about interest rate hikes through remains firmly in the driver’s seat against the G10. It’s hard to call the JPY strong against the USD above 110 in the current environment.

A key tenet of the Federal Reserve is their independence from executive office or overt political interference. While Trump’s comments have little precedent, it’s also unlikely that it will sway the Fed. We just heard from Fed Chairman Jerome Powell at the Humphry Hawkins semi-annual testimony where he emphatically emphasized that the Fed was wholly independent and that fiscal policy and the governmental plans.

To be fair, China’s currency is weakening aggressively with USD/CNY having risen by more than 8% since the April lows. Put another way; China is using the Yuan as a policy tool to act as a rudder to help them better steer the economy through this storm of Trade Wars.

Unlock our Q3 forecast to learn what will drive trends for the US Dollar through 2018!

Technically Speaking – US Dollar Meets Firm Resistance At 95

Please add a description for the image.

Chart Source: Pro Real Time with IG UK Price Feed. Created by Tyler Yell, CMT

Looking at the chart above, traders can see that the US Dollar Index has now met considerable resistance at 95. A shortcut I like to use in analysis is to identify an extreme day and draw that day’s range as resistance. The October 27 high of 94.929 and low of 94.50 have together brought considerable resistance to the US Dollar Index.

However, the US Dollar index is trading at higher lows for June & July. A break above this zone would favor a move toward the 61.8% retracement of the 2017-2018 range at 97.74. On the contrary, a break below the recent higher lows at 93.33 and 92.90 would mark the possibility of a larger pullback.

Until then, it’s likely time to pull back or at least discount the hyperbole on the US Dollar’s reaction about the Fed now bowing to Executive Office pressure.

New to FX trading? No worries, we created this guide just for you.

MORE SUPPORT FOR YOUR TRADING:

Are you looking for longer-term analysis on the U.S. Dollar? Our DailyFX Forecasts for Q3 have a section for each major currency, and we also offer an excess of resources on USD-pairs such as EUR/USD, GBP/USD, USD/JPY, AUD/USD. Traders can also stay up with near-term positioning via our popular and free IG Client Sentiment Indicator.

---Written by Tyler Yell, CMT

Tyler Yell is a Chartered Market Technician. Tyler provides Technical analysis that is powered by fundamental factors on key markets as well as t1rading educational resources. Read more of Tyler’s Technical reports via his bio page.

Communicate with Tyler and have your shout below by posting in the comments area. Feel free to include your market views as well.

Discuss this market with Tyler in the live webinar, FX Closing Bell, Weekdays Monday-Thursday at 3 pm ET.

Talk markets on twitter @ForexYell

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

DISCLOSURES