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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Broad but Questionable Rebound for USD, Yen Crosses and Equities

Broad but Questionable Rebound for USD, Yen Crosses and Equities

John Kicklighter, Chief Strategist

Talking Points:

• Continuing with the rebound mounted on Friday, this week opened to an extended rise in risk-oriented trades

• Though broad, the bounce in these 'risk' positions fights a very strong current in global financial markets

• With the US and China back online with the upcoming session, convictions will be put to the test

See how retail traders are positioning in the majors in your charts using the FXCM SSI snapshot.

We are once again faced with the eternal market question: is this a temporary correction or the foundation of a new trend? Monday saw a general rise in global equities, the Greenback, and Yen crosses. The correlation and intensity of these moves speaks to a rebound in risk appetite following weeks of sometimes intense deleveraging. While we have see a broad shift away from higher yield exposure for some weeks, this sentiment tide itself is difficult to peg as the prevailing view. Risk aversion itself can still be called a correction for benchmarks like the S&P 500. This disparity makes for difficulty in casting long-term calls and positions. So, as we look for conviction, short-term opportunities can be reviewed like the UK data coming up and the patterns from GBPUSD, GBPAUD, GBPCAD, GBPNZD that exploit it. We discuss trading approaches to current market conditions 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.