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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
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
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • OPEC technical meeting was told to expect US oil output to rise by 200kbpd this year - OPEC & Industry sources
  • 🇨🇦 New Housing Price Index YoY (MAY) Actual: 11.3% Previous: 9.9% https://www.dailyfx.com/economic-calendar#2021-06-18
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Gold are long at 82.84%, while traders in France 40 are at opposite extremes with 76.19%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/zkLXaQqTXf
  • Fed's Bullard says his dot plot reflects liftoff in late 2022
  • $USDCAD taking on a new life now, back above the longer-term trendline +370 from the failed breakout earlier this month https://t.co/2oP2ky434R https://t.co/BhnSTJFv2m
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/7nP2tv6q9a
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.03% 🇪🇺EUR: -0.07% 🇨🇦CAD: -0.13% 🇬🇧GBP: -0.41% 🇦🇺AUD: -0.49% 🇳🇿NZD: -0.54% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/ChEmo0URYP
  • Heads Up:🇨🇦 New Housing Price Index YoY (MAY) due at 12:30 GMT (15min) Previous: 9.9% https://www.dailyfx.com/economic-calendar#2021-06-18
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/v6m2DLdhHa
  • Heads Up:🇮🇳 Monetary Policy Meeting Minutes due at 11:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-06-18
USD Price Action a Week Away from FOMC

USD Price Action a Week Away from FOMC

James Stanley, Senior Strategist

Talking Points:

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

- In this webinar, we used price action to analyze the US Dollar, the S&P 500 and the German Bund ahead of next week’s Central Bank announcements out of the United States and Japan.

- We also looked at USD & SPX500 price action around last Friday’s FOMC commentary from Eric Rosengren of the Boston Fed. After Mr. Rosengren, often considered to be dovish, took a rather hawkish view towards near-term rate hikes equity markets convulsed with risk aversion around the fear of a faster-than-expected rate hike.

- While that risk aversion abated heading into a speech from FOMC member Lael Brainard yesterday, the US Dollar strengthened right back after her speech and has continued to run-higher. Given that we’ve just entered the ‘quiet period’ ahead of the next FOMC announcement, we may see some continuing elements of this theme of USD-strength ahead of next week’s announcement.

- The fear is largely based upon a reversal of the Central Bank support that’s driven many markets to all-time new highs. We looked at the German Bund in this webinar as an example of a market being driven by Central Bank action. If a Central Bank is supporting a market and buying in a rather constant manner, as the ECB has been doing with government bonds, this will get investors to buy-in as well (as this is design); but once Central Banks begin to remove that support, the reasons for being long are no longer as obvious; and this can create selling. Then as prices move lower and without the same Central Bank support that market has become accustomed to, the selling can become more severe.

- This is similar to the retracement that we’ve seen in the Bund since last Friday’s ECB announcement and the ECB didn’t even announce that they were going to end QE; they merely didn’t extend it in September and will likely do so in December. Nonetheless, Bunds were so frothy that they continue to sell-off on this lack of additional stimulus; and that selling created more selling which, as of now, hasn’t yet stopped.

--- Written by James Stanley, Analyst for DailyFX.com

To receive James Stanley’s analysis directly via email, please SIGN UP HERE

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES