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
Bearish
Oil - US Crude
Bearish
Wall Street
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
Gold
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
GBP/USD
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
USD/JPY
Mixed
More View more
Real Time News
  • Continuation patterns can present favorable entry levels to trade in the direction of the prevailing trend. Use continuation patterns in your technical analysis here: https://t.co/TUVnO3bO1P https://t.co/vBLkMKjf4x
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here: https://t.co/h7BKTd2J8N https://t.co/n8vpmuLdTW
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/CZePv1JEFh
  • The US dollar is unloved, oversold and at lows last seen over 30-months ago. At the moment there seems to be very little reason to buy the greenback. Get your $USD market update from @nickcawley1 here:https://t.co/VY3SLs35cp https://t.co/AVpY2GkGUG
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cBMUg9 https://t.co/IUii5478Jf
  • The Swiss Franc may continue higher against the US Dollar as technical pressure favors USD/CHF bears. .Get your market update from @FxWestwater here:https://t.co/yqJbbhAWiu https://t.co/TCBkQdrMAR
  • RT @jposhaughnessy: BOOM! Mystery solved. https://t.co/njXlgejE0j
  • Gold and silver prices have come under significant pressure recently. However, this correction lower could prove short-lived as price analysis hints at a reversal higher. Get your $XAUUSD market update from @DanielGMoss here:https://t.co/K1qL0fsGwy https://t.co/pH0HQmNX14
  • The dispute between the Federal Reserve and the Treasury Department concerned economists and government officials last week. Traders, however, appeared unfazed as U.S. equity markets proceeded to higher ground. Get your market update from @FxWestwater here:https://t.co/DKK7WWHKlu https://t.co/qxKvC8FAVd
  • The British Pound is eyeing a push to fresh yearly highs against the US Dollar. However, various technical setups suggest GBP could lose ground to JPY, EUR and NZD in the near term. Get your $GBP market update from @DanielGMoss here:https://t.co/NSUnZnPb4Q https://t.co/RuBAAWS37w
Dollar's Trump and Pound's Brexit Volatility Settle, Keep An Eye on S&P 500

Dollar's Trump and Pound's Brexit Volatility Settle, Keep An Eye on S&P 500

2017-01-20 02:24:00
John Kicklighter, Chief Strategist
Share:

Talking Points:

  • This week's top market movers - Dollar and Pound - cooled both trend and volatility as Trump and Brexit headlines slowed
  • Top event risk Thursday was the ECB rate decision, but a dovish tone offered little immediate Euro amplitude
  • Next week carries plenty of high-level event risk and key themes are constant threats, but top focus remain 'risk' trends

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

The FX market has displayed a remarkable level of volatility this past week, but it the seas are settling into the close of the week. While there is event risk to keep track of through the final 24 hours and the pent up tension behind general 'risk trends' should not be overlooked for a second, the prominent themes are losing some traction and focus is turning to high profile event risk into the coming week. EUR/USD carried some of the most tangible potential through the past session to carry into Friday via the ECB rate decision. The central bank and its President Mario Draghi didn't disappoint with a dovish tone that held despite evolving inflation expectations. That said, the contrast to the likes of the Dollar are well established in current price and concerns about the fading effectiveness of this and other accommodative programs doesn't have enough momentum to mount the speculative masses.

More remarkable through the past session and heading into Friday is the settling of the Dollar and British Pound. Both have been stoked by key event risk, but the amplitude of their respective moves this week owes to the ability to strike the fundamental theme that resonates with the most traders. For the Sterling, the Brexit swings will almost certainly continue moving forward. That said, UK Prime Minister May's speech on priorities for the country in forthcoming negotiations has curbed some of the more severe positioning. Further milestones on this front - whether data or speeches - will likely continue to experience greater lift for the Pound with encouraging (or less-painful-than-expected) developments than tumbles for disappointing updates. For the Dollar, Fed speculation has already proven that it needs a steady feed of data to charge definitive momentum. The 'Trump' factor however is still open field.

Through the final session, we have the US Presidential inauguration. This ushers in a new area of policies that will no doubt change the landscape for the Dollar, US markets and even the global financial system. However, this ceremonial event likely carries little material influence itself. Nevertheless, given the incoming President's penchant for delivering policy with short notice, Friday volatility for the Greenback shouldn't be written off. Most pressing and every ominous is the position of 'risk trends'. Speculative-motivated assets have settled into a narrow holding pattern that is leaving many feeling uneasy. The S&P 500's extraordinary quiet trading at record highs reflects a contrast of extremes. From a benchmark like this, it's not difficult to see 'how much there is to lose'. Keep tabs on risk trends even outside of the scheduled event risk on the docket. We talk active catalysts and building pressure 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