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
Oil - US Crude
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
More View more
Real Time News
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqi8ZEe https://t.co/Gps2Xp32h9
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/hftCEho1lM
  • Gold price action is primed for volatility next week with the Fed decision on deck. How real yields and the US Dollar react to fresh guidance from Fed officials will be key for gold outlook. Get your weekly gold forecast from @RichDvorakFX here: https://t.co/MzaIl7tPmZ
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/rFlQtyQS81
  • Canadian Dollar snapped a three-week losing streak after USD/CAD stalled at key technical resistance. Get your CAD weekly forecast from @MBForex here: https://t.co/BPHuKecwnz https://t.co/73OmuCKfU9
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/KzhQnGiLyt
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/cuneuJNZlH
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/danCiP5vqK
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/JhYoQ7I19K
  • The Nasdaq 100 index is aiming to breach a key resistance level at 14,950 for a second time. A successful attempt may open the door to further gains, although the MACD indicator flags signs of weakness. Get your equities forecast from @margaretyjy here: https://t.co/BEYupi32qB https://t.co/PWeXE8tZVY
Forex Strategy Video:  Chinese Yuan and Mexican Peso Open 2017 to Currency Wars

Forex Strategy Video: Chinese Yuan and Mexican Peso Open 2017 to Currency Wars

John Kicklighter, Chief Strategist

Talking Points:

• International efforts to engender economic advantage to others' detriment are growing in prominence and frequency

• What used to be competitive monetary policy events are evolving more decisively into outright currency wars

• In the opening week of 2017, a strong Dollar drive prompted brazen intervention efforts on the Chinese Yuan and Mexican Peso

See what live coverage is scheduled to cover key event risk for the FX and capital markets on the DailyFX Webinar Calendar.

'Currency wars' is a strong description to use for the state of the markets, but it is increasingly appropriate given the developments in the global financial markets over the past days, weeks and months. Looking into previous years, we have seen efforts employed by countries that could have been more equitably labeled 'competitive'. The Swiss National Bank's effort to curb the overpowering influence of the Euro with the implimentation of a 1.2000 floor (which failed in spectacular fashion) was a clear but tolerated move. In direct intervention on behalf of the Yen by Japanese policy officials as recently as 2011, trade partners made grumbled but didn't call the country out as they were limited efforts. And, there was China's long-standing control over its exchange rate which drew claims of currency manipulator but not much in the way of policy response.

Heading into 2017, we have seen the rise of protectionism and the fall of cooperativism. The blame of middling growth amid massive stimulus efforts has been placed at the feet of trade partners. What's more, these accusations are coming with increasingly bolder action. Among the most remarkable turns of wind arises from the US with the vows made by President-elect Donald Trump. Looking to act on percieved injustices to the US in global trade, the unorthodox policymaker has generated worry from investors and hits global counterparts. The Dollar's volatility is a clear barometer for the market's anxiety. But, perhaps the more exceptional response to the escalating US position is the blatant response to pressure of late by key global players.

Two of the more blatant moves to start 2017 were direct intervention efforts by China and Mexico. While these are not officially verified efforts, the communciation to the market was not veiled. A frequent target in US Presidential campaign, the Mexican Peso slide to a fresh record low (USD/MXN high) this past week before rumor spread through the market that the Mexican central bank was acting to shore up its currency with as much as $1 billion. The effort offered relatively little relief. In contrast, a massive 2.9 percent drop for USD/CNY - centered on the biggest two-day drop in the Chinese rate since 2005 - came with little word of effort or outlet. There is much debate over what side has prompted these more overt interludes into the market. Yet, as traders, we should concern ourselves with the ultimate results for conditions. Trading in a world of more explicit currency wars is the focus of this weekend 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