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
  • 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
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/R7pa7DsM8n
  • What are some monetary policies that could affect Gold this quarter? Get your Gold free forecast here: https://t.co/bTXkGN1CIM #DailyFXGuides https://t.co/EhdZpmkzaH
  • Even more remarkable than the record high levels of leverage registered in US equities this past week was the attention it garnered. Paying attention to risk is a threat when markets are this high and the docket as dense as it is this week. My outlook: https://www.dailyfx.com/forex/video/daily_news_report/2021/01/23/Dow-VIX-Tesla-and-Leverage-Reflect-Greater-Risk-to-the-Relentless-Bull-Market.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/KBOJIRPTQe
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/qP2PbS4dsY
  • Are you new to trading? Technical analysis of charts aims to identify patterns and market trends by utilising different forms of technical chart types and other chart functions. Get a refresher on technical analysis or begin building your knowledge here: https://t.co/qV3c7a4YR3 https://t.co/POGWDIkqqz
  • USD hegemony is at risk thanks to changes in the global economy and the long-term consequences of the US-China trade war. Get your market update from @CVecchioFX here: https://t.co/5GO9UrvO4y https://t.co/H76jNJJxU5
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/1TiEWCbJ6t
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/fN2mfHgpON
  • The formation of several bullish technical patterns suggests that the haven-associated Japanese Yen is at risk of further losses against the Euro and Australian Dollar. Get your market update from @DanielGMoss here:https://t.co/qxQwHgD9Ey https://t.co/ym73tgtHLn
Dollar Rally Reaches Critical Make or Break Level Before Yellen, CPI

Dollar Rally Reaches Critical Make or Break Level Before Yellen, CPI

John Kicklighter, Chief Strategist

Talking Points:

• The DXY Dollar Index has extended its advance to eight straight days - the longest run in 3 years

• A Dow Composite cuts its bull run to seven consecutive days, but not before hitting a record high

• Top event risk ahead is focused on the Dollar with Yellen testimony pairing with CPI for rate speculation

See what live coverage is scheduled to cover key event risk for the FX and capital markets on the DailyFX Webinar Calendar

The pressure continues to build for the US Dollar. On the one hand, the currency continues to run with gusto on an eight-straight day climb that marks the most durable climb since July 2013. Yet, despite the advance, we have yet to clear psychological hurdles. Technically, the the upper bound on a two-year range stands at 100.50. Fundamentally, a charge on Fed rate forecasts has spent much of the viable fuel on the way up to a 94 percent probability of a December 14th rate hike. This past session's Fed speak (hawkish) and upstream producer inflation data (dovish) provided a mixed picture that was overlooked in favor of what lies ahead.

In the coming US session, we face the kind of event risk that can actually scale the final percentage points to certainty of a hike next month. The Consumer Price Index (CPI) is the market's favorite inflation measure, and it has shown a core trend that has overtaken the target with an impatient speculative rank looking for headline items to follow. Meanwhile, Fed Chairwoman Janet Yellen is set to testify before the Joint Economic Committee for the first grilling since the surprise US Presidential election outcome. It should also be noted that the group's most dovish member - Vice Chair Lael Brainard - is also set to speak. The potential scenarios on this rate forecast theme are seriously skewed, and we consider that for trading potential on the Dollar and its pairs.

For the other persistent theme - risk trends - the Dow Composite ended its impressive seven day run. That calls to a close the most steadfast advance in two years, but not before reaching a record high. The problem for those using this index as a barometer for the broader market though is the lack of conviction across the board. Other 'risk' assets like emerging market assets, high yield fixed income and front-run Treasuries stalled. USD/JPY and the Yen crosses meanwhile actually slipped. A full tilt sentiment implosion would make this remarkably appealing, but that has yet to take root. While US rate forecasts and the speculative scale are the two most potent drivers moving forward; we also look at scheduled event risk, Brexit tides 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