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
GBP/USD
Bullish
USD/JPY
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
Gold
Bullish
Oil - US Crude
Bullish
Bitcoin
Mixed
More View more
Real Time News
  • RT @markets: China cuts rates, adds medium-term funds to counter virus https://t.co/mo9zSlvelK
  • RT @ReutersBiz: BOJ Kuroda says to consider more easing if virus impact becomes big: Sankei https://t.co/3nUe8w1wCX https://t.co/zYURJZPI5q
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.40%, while traders in Germany 30 are at opposite extremes with 84.40%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/3W1wmqOZN6
  • NZD/USD Technical Analysis: NZ Dollar May Fall After Rally Stalls - https://www.dailyfx.com/forex/technical/home/analysis/nzd-usd/2020/02/17/NZDUSD-Technical-Analysis-NZ-Dollar-May-Fall-After-Rally-Stalls.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #NZDUSD #technicalanalysis https://t.co/AGFVqPHvRf
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.22% 🇨🇦CAD: 0.12% 🇪🇺EUR: 0.08% 🇳🇿NZD: -0.02% 🇬🇧GBP: -0.03% 🇯🇵JPY: -0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Ja6A4Wccdw
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.35% France 40: 0.27% US 500: 0.24% Wall Street: 0.20% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/S5Jho7QomA
  • 🇯🇵 JPY Industrial Production (YoY) (DEC F), Actual: -0.4% Expected: N/A Previous: -3.0% https://www.dailyfx.com/economic-calendar#2020-02-17
  • The US Dollar gained versus SGD and IDR despite a “risk-on” tone in markets, boosted by strong declines in the Euro. What is the week ahead for $USDSGD, $USDIDR, $USDPHP and $USDMYR? #USD #ASEAN #Euro - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/02/17/US-Dollar-USDSGD-USDIDR-May-Rise-on-FOMC-Minutes-and-Repos.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/YMkZ4WhG0A
  • Heads Up:🇯🇵 JPY Industrial Production (YoY) (DEC F) due at 04:30 GMT (15min), Actual: N/A Expected: N/A Previous: -3.0% https://www.dailyfx.com/economic-calendar#2020-02-17
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Silver: 0.63% Oil - US Crude: -0.02% Gold: -0.11% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/oNEkMGVhyX
Competitive Monetary Policy Creating Market Volatility, Distortion

Competitive Monetary Policy Creating Market Volatility, Distortion

2016-04-15 01:54:00
John Kicklighter, Chief Currency Strategist
Share:

Talking Points:

  • The Federal Reserve's unorthodox policies proved a relative 'success' but that was in an noncompetitive environment
  • With global policy edging to greater extremes and efforts increasingly competitive, problems arise
  • Dependency on accommodation is definitive, confidence in its influence is faltering and volatility is rising

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

Accommodative monetary policy is aimed at returning stability to the markets and promoting economic growth. However, in a global system where the net policy effort grows more extreme; problems are increasing. One of the most troubling developments is the market's skepticism that subsequent rounds of monetary policy will provide meaningful return via growth, capital market advancement or exchange rate relief. Given the dependency investor sentiment has built upon the efficacy of these efforts, doubt is extremely troubling. And, further aggressive efforts look more a lashing out of desperation with greater (detrimental) side effects than meaningful support. Another tangible complication is the competition - whether intentional or not - being stoked by these policy authorities. Market instability and volatility is an inevitable complication that we are already seeing gain an unmistakable foothold. We look closer at the evolving 'risks' of easing policy 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.

DISCLOSURES

News & Analysis at your fingertips.