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. See our updated Privacy Policy here.

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
More View more
Real Time News
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:https://t.co/MrLGSp7FYa https://t.co/m42Rdv39Dx
  • Chinese estates' Evergrande loss assumes all shares sold -BBG #Evergrande
  • RT @FxWestwater: Australian Dollar Fights FOMC-Charged US Dollar After Upbeat PMI Data Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/09/22/Australian-Dollar-Fights-FOMC-Charged-US-Dollar-After-Upbeat-PMI-Data.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr $AUDUSD https://t.co…
  • Heads Up:🇯🇵 Foreign Bond Investment (18/SEP) due at 23:50 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-22
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDrr7M https://t.co/B041Lqtg3S
  • #ASEAN based #USD index continues to extend the bounce off September lows post #FOMC This follows a test of the 100-day SMA as well as a rising trendline from June Eyes on the 38.2% Fib extension before potentially retesting the July/August highs https://t.co/uZ7OEJurPs
  • 🇦🇺 Markit Manufacturing PMI Flash (SEP) Actual: 57.3 Previous: 52 https://www.dailyfx.com/economic-calendar#2021-09-22
  • 🇦🇺 Markit Services PMI Flash (SEP) Actual: 44.9 Previous: 42.9 https://www.dailyfx.com/economic-calendar#2021-09-22
  • Heads Up:🇦🇺 Markit Manufacturing PMI Flash (SEP) due at 23:00 GMT (15min) Previous: 52 https://www.dailyfx.com/economic-calendar#2021-09-22
  • Heads Up:🇦🇺 Markit Services PMI Flash (SEP) due at 23:00 GMT (15min) Previous: 42.9 https://www.dailyfx.com/economic-calendar#2021-09-22
DailyFX Morning Market Minutes: COVID-19 Update, UK on Track, Upcoming Holidays

DailyFX Morning Market Minutes: COVID-19 Update, UK on Track, Upcoming Holidays

Christopher Vecchio, CFA, Senior Strategist
Advertisement

Market Minutes Overview:

  • According to Bloomberg News, the US administered north of 2 million vaccinations yesterday for the second time during the pandemic.
  • GBP/JPY and GBP/USD are working on multi-year bottoming efforts, another piece of evidence that the safe havens are potentially embarking on a rough go of sorts.
  • This Spring Festival Golden Week holiday coincides with US markets closed this coming Monday for President’s Day, meaning trading volumes should stay muted until at least Tuesday.

COVID-19 Update

New COVID-19 cases continue to drop in the United States, as do hospitalizations and deaths, per the COVID-19 Tracking Project. As my colleague Rich Dvorak has illustrated in a chart he shared this morning on the DailyFX Real Time Newsfeed, the drop in COVID-19 cases has coincided with the uptick in US vaccinations.

According to Bloomberg News, the US administered north of 2 million vaccinations yesterday for the second time during the pandemic. It’s noteworthy that Thursday-Friday-Saturday have typically produced the highest reported vaccination rates, which means we may be heading into a rather positive stretch of data coming over the coming days.

Sky is Blue for UK

Speaking of positive data and COVID-19, how about the UK economy? The UK leads the G10 FX space with more than 20 vaccinations per 100 people, about 33% higher than the US. But the UK and the US are in a different class of their own relative to the rest of developed markets: Canada and various EU countries like Germany, Italy, and Spain lag far behind.

As we close out the week, John Lennon comes to mind when thinking about the British Pound’s performance around the vaccine news and recent economic data, including today’s GDP report: “The sun is up, the sky is blue, it’s beautiful, and so are you.” The post-Brexit UK economy is proving resilient, particularly relative to the rest of Europe and most of the developed world.

The charts reveal a similar story. GBP/JPY and GBP/USD are working on multi-year bottoming efforts, another piece of evidence that the safe havens are potentially embarking on a rough go of sorts. This aligns with the perspective offered by the weekly DXY Index chart, suggesting that a multi-year trendline break coupled with a double top has formed.

Calmer Markets for a Few More Days

Lastly, heading into next week, it is the official start of the Chinese New Year, which means markets may be quieter for the coming days. This Spring Festival Golden Week holiday coincides with US markets closed this coming Monday for President’s Day, meaning trading volumes should stay muted until at least Tuesday.

--- Written by Christopher Vecchio, CFA, Senior Currency Strategist

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

DISCLOSURES