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
Bullish
Oil - US Crude
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
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Make smart trading decisions with your free guide to trade the news. Download your free guide here.https://t.co/pb5E2KgRzW #DailyFXGuides https://t.co/E9ZmJvqO0z
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/fqxw1AoKc1
  • Gold snapped a two-week losing streak but keeps price within the broader August downtrend. These are the levels that matter on the $XAUUSD weekly chart. Get your market update from @MBForex here: https://t.co/B3Jct6mIBD https://t.co/xTGIM2hRBv
  • $GBPUSD continues to move higher, despite Friday’s weakness, as vaccination hopes continue to fuel positive sentiment despite ongoing lockdown fears and downbeat UK data. Get your market update from @nickcawley1 here: https://t.co/S8UoHzOwFN https://t.co/qI6UZdggvM
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/6wxX6oQurn
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/w009tJEQZn
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/2AeO1AdD2M
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/INJz4NSugQ
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZX8cS https://t.co/qdrsi61CN8
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2021? Find out from @JohnKicklighter here: https://t.co/1oeXWEsJkb https://t.co/IyQdfq29fz
US Equities Lose Their Lift while the Dollar Keeps Going Post Trump

US Equities Lose Their Lift while the Dollar Keeps Going Post Trump

John Kicklighter, Chief Strategist

Talking Points:

• The US Equity Indexes were some of this past week's best performing benchmarks, but the risk climb was uneven

• For the Greenback, a rise in Fed forecasts has provided further lift beyond basic fundamental appetite

• As USD/CNY rises further into territory last 'set' by the Government during the GFC, a threat grows

See the DailyFX Analysts' 4Q forecasts for the Dollar, Euro, Pound, Equities and Gold in the DailyFX Trading Guides page.

The advance in US equities this past week was remarkable, but it never truly matched the sentiment run that we had seen in other corners of the market. Global stocks were struggling to keep pace, US Treasuries were retreating from their front-run-the-central-bank position and emerging markets were taking a battering. Yet, the uncertainty that faced the rest of the investment world after the upset in the US Presidential election could provide the American economy a short-term benefit via financial stimulus and passing benefits of near-term trade barriers. Long term, however, these were not pillars of strength to hold a bullish market foundation.

This week has started out with a sense of rebalance. The US stock charge has stalled as the risk retreat and subsequent dip buying reached their limits. A climb from here would need to stand on more than just the low-hanging fruit in a bid from fear-depressed assets. While the extreme scenarios no long seem a serious chance, there is still clearly a significant degree of uncertainty over what the future holds. That is a difficult environment in which to expand and leverage a risk exposure. Should there be a remarkable buoyancy in sentiment, the recently battered markets are likely to advance more significantly than the already-rich stock indexes. Meanwhile, growing trade risks poses greater problems for emerging markets and especially China which has seen the USD/CNY exchange rate continue to run higher into a range that the Chinese government set back around the Great Financial Crisis (GFC). If this keeps up, a simple view of strong Dollar and trade advantage for exporter China will be replaced with fear of capital flight.

Meanwhile, the Dollar has kept its charge where others markets have floundered. The flood of Fed speakers has already started Monday, and the consensus from these officials was that they were ready to hike rates at the coming meeting. We are loaded for further speeches by central bankers throughout this week and the round of October inflation statistics will start today with the Import Price Index. The question for USD bulls though is how much further can confidence a December rate hike can we go. The forecast already stands at 92 percent and the DXY Dollar Index is just arm's length from the upper bound of a range that has been in place since the beginning of 2015 and was itself a more-than decade high. We discuss this and more in today's 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