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.

Free Trading Guides
EUR/USD
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
Oil - US Crude
Mixed
Wall Street
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
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • RT @CadieThompson: RESTAURANT APOCALYPSE: More than 110,000 restaurants expect to close up forever in the coming weeks, with millions out o…
  • 🇺🇸 USD ADP Employment Change (MAR), Actual: -27k Expected: -150k Previous: 183k https://www.dailyfx.com/economic-calendar#2020-04-01
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.06% 🇬🇧GBP: -0.45% 🇨🇭CHF: -0.45% 🇳🇿NZD: -1.08% 🇦🇺AUD: -1.22% 🇨🇦CAD: -1.42% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/HExKGVsOCd
  • ECB's Weidmann states that he is still skeptical of Eurobonds - Die Zeit $EUR
  • Hey, traders 👋 do you want live AMAS with our analysts, market updates and tools to improve your trading strategy? Join us now on Instagram! 👉 https://t.co/pHGzVMqsC4 https://t.co/uoyH5osnuX
  • Heads Up:🇺🇸 USD ADP Employment Change (MAR) due at 12:15 GMT (15min), Actual: N/A Expected: -150k Previous: 183k https://www.dailyfx.com/economic-calendar#2020-04-01
  • Análisis $USDMXN: Peso Mexicano cierra el primer trimestre con pérdidas superiores al 28% #usd #mxn #trading https://t.co/cPRrecg6lf
  • Moody's forecasts China real GDP growth of 3.3% for 2020
  • 🇺🇸 USD MBA Mortgage Applications (MAR 27), Actual: 15.3% Expected: N/A Previous: -29.4% https://www.dailyfx.com/economic-calendar#2020-04-01
  • Why must financial market traders monitor both monetary and fiscal policy? Find out from @MartinSEssex here: https://t.co/Fkzk88Y5gm https://t.co/gIARIOHCxS
Dollar Finds Little NFPs Afterglow, Pound and Oil Suffer Sharp Declines

Dollar Finds Little NFPs Afterglow, Pound and Oil Suffer Sharp Declines

2017-01-10 05:48:00
John Kicklighter, Chief Strategist
Share:

Talking Points:

• This past Friday's NFPs didn't offer any follow through for the Dollar after the weekend

• Rhetoric from UK Prime Minister May bolstered fears the country is on pace for a 'Hard Brexit' sending GBP sliding

• A sharp drop from US oil found a range of explanations, but the break of support may draw more attention

See the DailyFX Analysts' 1Q forecasts for the Dollar, Euro, Pound, Equities and Gold in the DailyFX Trading Guides page.

The new week has started with key global financial themes generating different levels of influence on the markets. This past Friday's NFPs managed to lift the US Dollar after its release, but there was no follow through to carry through the weekend. The Greenback wouldn't find any traction or additional reach Monday and Fed Fund futures have maintained their substantial discount to the Fed's hawkish views (a February 1 projection of 12 percent and March 15 forecast of 33 percent). Event risk for the world's most liquid currency is restained this week with upstream inflation and the University of Michigan Consumer Sentiment survey Friday top listing. Fed speeches meanwhile keep the central bank's outlook for an accelerated pace of three hikes in 2017 consistent.

In contrast, the British Pound experienced an unexpected swell in volatility. The Pound dropped across the board Monday in response to remarks made by UK Prime Minister Theresa May. The lawmaker was speaking loosely on the government's approach to the Brexit passed six months ago. While May said the country's approach to separation would not be piecemeal, traders interpreted her comments to suggest a preference for a 'hard' Brexit - one where they would forego access to Europe's single market to insure control over politically important measures like immigration. GBP/USD responded by dropping back to a multi-month low and putting pressure to inch closer to the multi-decade low set a few months back with the Pound 'flash crash'. Moves from EUR/GBP, GBP/JPY, GBP/CAD and others offer interesting technical progress as well. The question for Sterling traders should be whether there is run to this move or if it is prone to reversal in both activity and direction.

The scheduled docket ahead offers a relatively restrained threat for fundamental sparks. Aside some noteworthy updates on the Italian financial system - a source of pain for the Eurozone - the motivations are likely to be thematic and/or unanticipated. One of those themes to keep close tabs on is risk trends. From the deeply complacent and long stretched S&P 500 to the more recently imbalanced USD/JPY, there are both big picture trends and shorter-term opportunities to be found from this dynamic. Meanwhile, oil generated another abrupt move of its own. While there were headlines to peg this move to, it is more likely a reflection of more deeply held supply-demand issues along with a speculative slip. With a key technical break now disarmed, is this a trend that will reverse course? And, what to make of USD/CAD at noteworthy support? We discuss these market developments to start our trading week 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

News & Analysis at your fingertips.