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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here:
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Gold are long at 84.50%, while traders in France 40 are at opposite extremes with 79.56%. See the summary chart below and full details and charts on DailyFX:
  • 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:
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.09% 🇨🇭CHF: 0.06% 🇯🇵JPY: 0.03% 🇬🇧GBP: -0.01% 🇦🇺AUD: -0.01% 🇳🇿NZD: -0.06% View the performance of all markets via
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: France 40: 0.14% US 500: 0.07% Wall Street: 0.04% Germany 30: -0.04% FTSE 100: -0.11% View the performance of all markets via
  • BoJ introduces new funding measure for climate change -BBG
  • BoJ: To present outline of new loan measure at next meeting, vital for monetary policy to consider market neutrality -BBG
  • BoJ: Corporate financing is likely to remain under stress, will launch new loan measure within 2021 -BBG
  • BoJ to extend Covid funding measures until March 2022 -BBG
  • BoJ maintains 10-year JGB yield target at about 0% and policy balance rate at -0.1% -BBG
Fed, ECB and Major Central Banks Resort to Forward Guidance

Fed, ECB and Major Central Banks Resort to Forward Guidance

John Kicklighter, Chief Strategist

Talking Points:

  • Forward guidance is setting expectations for economic health and possible monetary policy courses
  • Big efforts to upgrade stimulus (ECB, BoJ) and tighten (Fed) in a reflection of confidence are failing to lift markets
  • With policy options growing limited and impact wavering, the reliance on forward guidance (jawboning) will intensify

Having trouble trading in the FX markets? This may be why.

Both the ECB and Fed are steering monetary policy in an effort to bolster confidence. Given they are on opposite extremes of the spectrum - one has thrown the kitchen sink of stimulus at the market and the other has hiked - that may seem irrational. However, stimulus is aimed at bolstering confidence in reaching economic objectives and 'normalizing' would only be possible if the central bank was confident they would see positive growth/employment/inflation trends as intended. That said, tangible efforts are not resulting in the market responses - a vote of confidence that the results will be realized - that officials are intending. Quickly running out of room and with credibility starting to waver under big efforts, there are few options left. One of very few the flexible and abundant tools left is forward guidance. Already in use, expect it to be a more central effort to shape market expectations through forecasts going forward. This includes the Fed where Chairwoman Janet Yellen made a more distinct connection to future policy direction to a factor that has unnerved global market participants: China. We discuss the rise, influence and importance of forward guidance for the trader and investor in today's Strategy 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.