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
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
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
Bullish
Gold
Mixed
GBP/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
USD/JPY
Mixed
More View more
Real Time News
  • RT @IGTV: Looking ahead to next week, @JMcQueenFX looks at $NZDCAD and $NZDJPY ahead of next week’s rate decision from the Reserve Bank of…
  • Canadian #Dollar Outlook: $USDCAD Responds to Major Trend Support - https://t.co/4fMIS32WYJ https://t.co/qbC1xYLo6W
  • GBP/USD is close to recovering all of the COVID-19 sell-off seen in March and will need new drivers to push further higher. Get your $GBPUSD market update from @nickcawley1 here: https://t.co/ZTGGMm0vYx https://t.co/RkdBbIUUXT
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: -0.31% 🇨🇭CHF: -0.46% 🇨🇦CAD: -0.54% 🇪🇺EUR: -0.79% 🇦🇺AUD: -0.84% 🇳🇿NZD: -1.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/e0bdKqxsfz
  • Secretary Pompeo says actions on Hong Kong send clear message - BBG
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.52% France 40: 0.08% FTSE 100: 0.06% US 500: -0.05% Wall Street: -0.14% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/fho9Xdiw4A
  • $Gold pullback has finally started. Given aggression on the bid this week, could be end of week profit taking after a really big run to fresh all time highs. Picking off support potential going to be a challenge, but a couple of relatively nearby spots of prior res $GC $GLD https://t.co/c76XHAuzHd https://t.co/GKYJ9qKyS7
  • Fed's Rosengren says Main Street program inherently more complex to put in motion - BBG
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -1.16% Gold: -1.34% Silver: -4.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/8S8pnf2A6e
  • The Dollar's rally has offered up some EURUSD range in its well-defined 1.19-1.17 zone, but $GBPUSD has a break within its range shift that could carry more weight into next week https://t.co/jzJTfzcN1n
Dollar Surges, S&P 500 Stumbles after Yellen Speech...Does it Last?

Dollar Surges, S&P 500 Stumbles after Yellen Speech...Does it Last?

2016-08-27 02:20:00
John Kicklighter, Chief Strategist
Share:

Talking Points:

  • Fed Chair Yellen offered an optimistic outlook at Jackson Hole with others shoring up hawkish interpretation
  • The Dollar posted its biggest rally in two months while 'risk' assets stumbled
  • Fundamental fodder ahead includes NFPs, a G20 meeting and Brexit data; but can it overcome holiday quiet?

See how retail traders are positioning in the majors using the SSI readings on DailyFX's sentiment page.

After an extended period of quiet for the markets, traders were once again tempted by the jolt of volatility that ended out the past week. Speculative interpretation following Fed Chair Janet Yellen's and a range of FOMC members' speeches spurred the biggest Dollar rally in two months as well as the largest S&P 500 daily range since July 8th. A remarkable catalyst is needed to overcome a structural and seasonal slump in activity; and traders must ask whether that was enough of a shove to achieve it. Some are optimistic over - perhaps even desperate for - volatility and trend, but circumstance between participation and the countdown to the Labor Day holiday drain need to be weighed objectively.

In the week ahead, both the Dollar and broader 'risk' theme will navigate plenty of event risk that can charge speculative response. For the Greenback, the PCE deflator (the Fed's favored inflation reading) and August NFPs will outweigh noteworthy - but lesser - indicators and Fed speak. For those keeping tabs on the shaky foundation of sentiment via benchmarks like stock indexes, the final day of the Jackson Hole Symposium and next weekend's G-20 gathering represent imposing lightning rods. It is worth noting that in both cases, these crucial catalysts bookend the week. And, the disruptive liquidity drain of the US Labor Day market holiday on Monday, September 5th will be difficult to contend with.

While it is possible that major market swings and perhaps even a fundamental trend can arise through the coming week, it is not the most probable scenario. Therefore, it more strategic to head into the new trading week looking for more discrete opportunities that can evolve into larger trades should the fundamentals support it. Amongst the majors, that de-emphasizes pairs like EUR/USD and USD/JPY while bolstering AUD/USD and GBP/USD. Scheduled event risk for the Dollar, Pound and Yen among a few others can offer reasonable moves in the limited market scope. We look at what next week can bring for activity and market bearing in this weekend Trading Video.

To receive John’s analysis directly via email, please SIGN UP HERE.

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

DISCLOSURES

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.