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
Forex: ECB Produced the EURUSD Break, Will NFPs Provide the Trend?

Forex: ECB Produced the EURUSD Break, Will NFPs Provide the Trend?

John Kicklighter, Chief Strategist

Talking Points:

• A plunge from EURUSD, market-wide drop in yen crosses and S&P 500 slip suggests risk aversion

• Key event risk - ECB decision, US GDP - was the source of Thursday's volatility

NFPs may feed Taper speculation, thereby gouging risk trends and finally provide a risk unwind

Sign up for DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, technical setups and much more!

This past trading day offered up the most action we have seen in months. Now, can Friday's NFPs adapt this surge in activity into a concerted risk-based trend? Looking at the top market movers this past session, there was evidence of a common driver in speculative positioning. With the S&P 500 sliding alongside EURUSD and the Yen crosses, we see a move that finds common ground in 'risk trends'. However, there was hesitation from the benchmarks (US equities) rendered steadfast by extracurricular means (stimulus), while individual event risk offered well-placed sparks in other key areas. Confidence is shaky, but a full-scale shift still requires a push. We discuss what to look for and what the trade scenarios are tomorrow in today's Trading Video.

Sign up for John’s email distribution list, here.

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

DISCLOSURES