• The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here: Link https://t.co/FwCNbvFqCC
    DailyFX Tue 04 Aug 2020 12:02

    The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session also overlaps with the New York session throughout the year.

    Key talking points in this article:

  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: Link https://t.co/jb1lbzJLqY
    DailyFX Tue 04 Aug 2020 11:37

    A Doji candlestick signals market indecision and the potential for a change in direction. Doji candlesticks are popular and widely used in trading as they are one of the easier candles to identify and their wicks provide excellent guidelines regarding where a trader can place their stop.

    In this article we explain how Doji patterns are formed and how to identify five of the most powerful and commonly traded types of Doji:

  • The Evening Star candlestick is a three-candle pattern that signals a reversal in the market and is commonly used to trade forex. Learn more about the evening star candlestick pattern here: Link https://t.co/ny7JOaZfLd
    DailyFX Tue 04 Aug 2020 10:02

    The Evening Star candlestick is a three-candle pattern that signals a reversal in the market and is commonly used to trade forex. Correctly spotting reversals is crucial when trading financial markets because it allows traders to enter at attractive levels at the very start of a possible trend reversal.

    This article explores the following talking points:

  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: Link https://t.co/zyX9aOGwnO
    DailyFX Tue 04 Aug 2020 09:47

    FOMO – Fear of Missing Out - is a relatively recent addition to the English language, but one that is intrinsic to our day-to-day lives. A true phenomenon of the modern digital age, FOMO affects 69% of millennials, but it can also have a significant bearing upon trading practices.

    For instance, the feeling of missing out could lead to the entering of trades without enough thought, or to closing trades at inopportune moments because it’s what others seem to be doing. It can even cause traders to risk too much capital due to a lack of research, or the need to follow the herd. For some, the sense of FOMO created by seeing others succeed is only heightened by fast-paced markets and volatility; it feels like there is a lot to miss out on.

    To help traders better understand the concept of FOMO in trading and why it happens, this article will identify potential triggers and how they can affect a day trader’s success. It will cover key examples and what a typical day...

  • New Zealand Dollar may fall as the NZD/JPY and NZD/CAD exchange rates struggle to breach pivotal resistance. Get your $NZD market update from @DanielGMoss here: Link https://t.co/Q3kA0W0Tmu
    DailyFX Tue 04 Aug 2020 08:02
    NZD/JPY could extend declines after carving out a potential Double Top reversal pattern at key resistance. NZD/CAD may be running out of steam as the RSI diverges with price at a pivotal inflection point. NZD/CHF looks to be carving out a Descending Triangle pattern at the monthly high. Could a downside break be on the cards.
  • #Gold and silver prices may turn lower based on bearish signals from IG Client Sentiment. Technical signals also warn the XAG/USD may fall, will XAU/USD meet the same fate? Find out from @ddubrovskyFX here: Link https://t.co/nUTpwNO3xD
    DailyFX Tue 04 Aug 2020 07:02

    Precious metals, such as gold and silver, have recently seen explosive price gains as financial markets continue to expect Treasury yields to remain depressed in the foreseeable future. Now recent changes in IG Client Sentiment (IGCS) warn that XAU/USD and XAG/USD may fall.

    IGCS is typically viewed as a contrarian indicator. For a deeper breakdown of the analysis, check out this week’s recording of my webinar on IGCS above. There I discussed the fundamentals and key event risk ahead, such as the Federal Reserve rate decision and key tech earnings from companies like Facebook and Amazon.

  • The US Dollar remains under pressure against ASEAN currencies. USD/SGD and USD/MYR may extend losses as USD/PHP and USD/IDR face bullish technical signals. Get your #ASEAN currencies market update from @ddubrovskyFX here: Link https://t.co/M5JaY4P0h9
    DailyFX Tue 04 Aug 2020 05:01

    The Singapore Dollar may extend its advance against the US Dollar after USD/SGD closed under the March low at 1.3760. This has exposed the 78.6% Fibonacci retracement at 1.3699 as immediate support. A bounce off that price may place the focus on falling resistance from late March – red line on the daily chart below. This trend line could reinstate the focus to the downside. A close under 1.3699 may pave the way to test 1.3558 which is an inflection point from November 2019.

  • The Japanese Yen may fall against its major counterparts as it enters the second half of an 8-year cycle. AUD/JPY, EUR/JPY rates eye push to fresh yearly highs. Get your $JPY market update from @DanielGMoss here: Link https://t.co/NfPDVPk8Gi
    DailyFX Tue 04 Aug 2020 04:01

    With the end of July fast approaching long-term investors will be intently watching how the Japanese Yen closes out the month, as cycle analysis suggests the haven-associated currency could substantially underperform its major counterparts over the next 6-9 months.

    JPY Index monthly chart created using TradingView

    **JPY Index averages USD/JPY, GBP/JPY, EUR/JPY, AUD/JPY

    The chart above highlights the cyclical nature in the Japanese Yen over the past 26 years, with the currency largely adhering to what appears to be an 8-year rotation. Significant bottoms in the JPY index were set in late 1998, early 2007 and late 2015.

    After bottoming out against its major counterparts, JPY then seems to outperform early in the cycle with key highs set just shy of two years after the 1998 and 2007 lows.

    Although the Japanese Yen soared to its current cyclical high only 13 months after the start of the period, it looks to have mirrored the price action seen in the...

  • The Euro may pay the price for the EU’s stance on its digital sovereignty while the US Dollar eyes closely-scrutinized US fiscal stimulus talks.. Get your market update from @ZabelinDimitri here: Link https://t.co/9jpieAjLnN
    DailyFX Tue 04 Aug 2020 03:26

    The Euro may endure the brunt of the European Union’s policy stance on digital sovereignty as the bloc risks angering China and the United States, resulting in fighting a digital war on two fronts. The latter last year expressed discontent over France’s attempt to implement a digital tax that subsequently led to threats of tariffs against goods ranging from porcelain to luxury handbags. The Euro subsequently suffered with local stocks.

    The EU has also experienced frequent run-ins with technology giants like Google, Apple, Facebook and Amazon – shorthanded as GAFA – that have damaged cross-Atlantic relations. Consequently, the EU’s turn inward in this regard threatens to further widen the rift between the two allies at a time when inter-regional cooperation is needed most amid the worst economic recession in a century.

  • The US Dollar slide extended against the Singapore Dollar, Malaysian Ringgit, Philippine Peso and Indonesian Rupiah. Focus turns to the US jobs report, ASEAN GDP and the RBI. Get your market update from @ddubrovskyFX here: Link https://t.co/KDkCIbsULh
    DailyFX Tue 04 Aug 2020 02:31

    The haven-linked US Dollar extended losses against its ASEAN counterparts last week, with the Singapore Dollar, Malaysian Ringgit and Philippine Peso seeing some of the best performance. The Indonesian Rupiah and the Indian Rupee were little-changed – see chart below.

  • Gold prices remain strong, holding near another new all-time-high established shortly after the open of this week’s trade. Get your $XAUUSD technical analysis from @JStanleyFX here: Link https://t.co/XFtbnsqdHj
    DailyFX Tue 04 Aug 2020 01:31
    Gold prices remain strong, holding near another new all-time-high established shortly after the open of this week’s trade. Gold prices have become fairly overbought on the Daily chart, and a big level sits just ahead around the 2k marker on the chart. Short-term Gold price action has built an ascending triangle formation, which will often be approached with the aim of bullish breakouts. This could bring a backdrop supportive of bullish themes, at least near-term.
  • $XAGUSD: Short-term price action falls below 100 on CCI, while remaining above the 55 period EMA. Get your #silver market update from @Tams707 here: Link https://t.co/lAd03ptyF4
    DailyFX Tue 04 Aug 2020 00:16

    An increase in rhetoric around the US-China trade wars, stimulus uncertainty and growing concerns related to the coronavirus pandemic have not only contributed towards a weaker US Dollar, they have also once again confirmed the appeal for Gold, Silver and other safe-haven assets.

    The monthly chart below highlights Fibonacci levels from three major moves. The first Fibonacci retracement (pink) represents the major move between the September 2008 and the March 2011. The second Fibonacci (blue) represents the medium-term move, plotted between the March 2011 high and the March 2020 low, while the third Fibonacci (purple), is the short-term move, taken from the March 2020 low to the July 2020 high.

    Silver Monthly Chart

    Chart Prepared by Tammy Da Costa, IG

    After recovering from March lows, a strong bullish trend has been present, with the price of silver increasing by approximately 25% until reaching 2600 on 28 July. However, last week, prices have been...

  • AUD/USD and NZD/USD drift into the crosshairs as an RBA decision and NZ jobs data loom.Get your market update from @RichDvorakFX here: Link https://t.co/Hc8cfQNtys
    DailyFX Mon 03 Aug 2020 23:41

    A weak US Dollar has garnered considerable attention last month owing to a sharp 4% slide recorded by the DXY Index for July. Recent declines notched by the USD have not only jeopardized the Greenback’s King Dollar title, but also caused some to question its longstanding status as the world’s reserve currency.

  • The Japanese Yen saw large inflows with bullish positioning rising some $1.1bln to $3.4bln as the precipitous decline in US yields dragged USD/JPY lower.Get your market update from @JMcQueenFX here: Link https://t.co/xcXG9Qk3Da
    DailyFX Mon 03 Aug 2020 22:31

    In the latest reporting week, speculators had increased their US Dollar shorts by an additional $5.2bln, taking overall bearish exposure to $24.2bln and thus nearing 2011 levels. This comes amid the US Dollar posting its biggest rout in over a decade, having dropped 4.4% in July. However, with short positioning reaching extreme levels, recent shorts may face the risk of a corrective move higher given that the short US Dollar trade is looking crowded. Alongside this, given that August is typically a more turbulent period for risk appetite, the US Dollar may begin to reverse course in the short term.

    Much of the selling in the greenback had been largely attributed to the boost in Euro longs which saw a $5bln increase in bullish bets. As such, on an open interest adjusted basis, net longs are the highest since April 2018 with much of the renewed interest in the Euro stemming from asset managers. However, with COVID cases beginning to pick up in Europe amid flare-ups in...

  • Recent US Dollar momentum continued this morning as the ISM manufacturing report for July crossed the wires at 54.2, beating expectations of 53.6. Get your market update from @FxWestwater here: Link https://t.co/OLjcnYc6Yy
    DailyFX Mon 03 Aug 2020 21:30

    Recent US Dollar momentum continued this morning as the ISM manufacturing report for July crossed the wires at 54.2, beating expectations of 53.6. While the greenback sank through most of July, price action is now bouncing back for the start of August. However, the USD gave up some gains following the release of the report, with the DXY index dropping to session lows.

    Source: IG Charts

    {{USD|TOST}}

    Giving a closer look into the report reveals new orders increasing from the previous month, with the index now at 61.5% from the prior 56.4% read. Employment also improved for July; however, the index is still in contraction territory at 44.3%. One respondent in the report noted, “Incoming orders are slow. This is usually our busiest time of the year, but production is reduced due to lack of demand. Additional layoffs expected.”

    Data Source: Bloomberg

    After trader’s digest today’s data from the ISM manufacturing report, eyes will turn towards this week’s...

  • USD aims to claw back recent downside as the Euro and Australian Dollar waver. Get your $USD market update from @RichDvorakFX here: Link https://t.co/dyyUuCcnSj
    DailyFX Mon 03 Aug 2020 20:30

    This has threatened the Greenback’s King Dollar title as a bearish trend begins to emerge with the broader DXY Index perched about 10% below March’s swing high. That said, with EUR/USD and AUD/USD edging lower over the last two trading sessions, the US Dollar is starting to show signs of life and brings potential for a larger reversal into focus.

    Chart created by @RichDvorakFX with TradingView

    Looking at a monthly US Dollar Index chart reveals a long-standing bullish channel of support extended through a series of higher lows since 2011. Along with the chance for a possible mean-reversion higher, this zone of technical support may provide some buoyancy to the broader US Dollar and alleviate recent selling pressure despite extended USD swap lines.

  • USD/MXN rates have warded off a potential significant breakdown, and now are turning higher back to key resistance – and former triangle support. Get your $USDMXN market update from @CVecchioFX here: Link https://t.co/G6dqe12XhN
    DailyFX Mon 03 Aug 2020 19:55

    The Mexican Peso had a weaker end to July than USD/MXN bears had hoped for, and the start of August does not look like it is off to a promising start for the Peso. As the pair grinds higher alongside a stronger DXY Index, USD/MXN rates find themselves at the precipice of reversing a multi-month downtrend in place since the depths of the coronavirus pandemic’ impact on financial markets in March.

    It’s not just USD/MXN rates that soon may see the recent trend of Peso strength reversed: another safe haven-linked cross, MXN/JPY rates, appear to be in trouble too (per Strategist Paul Robinson’s latest research note). Reversals in both USD/MXN and MXN/JPY rates could see multi-month trends reversed in a significant manner as August gets under way.

    The beginning of a new month brings about the typical smattering of important data releases on the forex economic calendar. The week started off on a poor foot with the July Mexican Business Confidence index coming in barely...

  • To really get USD/CAD moving back in the other direction a break above the March trend-line and beyond price/200-day resistance will be needed. Get your $USDCAD technical analysis from @PaulRobinsonFX here: Link https://t.co/nKRgUFI0vS
    DailyFX Mon 03 Aug 2020 18:30

    When I last looked at USD/CAD it was breaking out of a range and leaving behind the 200-day MA, but it wasn’t long after the break that the June low came into play. So far it is holding that threshold and looking to make an attempt on breaking above the trend-line off the March high.

    It has yet to break, but if it does then we may be witnessing a trend change, or an extended corrective move higher at the least. A break above the multi-month trend-line will again have a pivotal spot in play in the vicinity of 13500/25, an area which previously held well as support for over a month.

    To really get USD/CAD moving back in the other direction a break above the March trend-line and beyond price/200-day resistance will be needed. This means a solid daily closing print above 13524. If this happens we could very well see fresh buying interest come in along with shorts running for cover.

    If the March trend-line or the 13500 area continue to hold as resistance and USD/CAD...

  • Currencies: After the largest monthly drop in a decade, the US Dollar is starting the month on the front foot in what is a seasonally favourable month.Get your market update from @JMcQueenFX here: Link https://t.co/eaU1BqRVl4
    DailyFX Mon 03 Aug 2020 16:30

    Currencies: After the largest monthly drop in a decade, the US Dollar is starting the month on the front foot in what is a seasonally favourable month. The greenback’s major counterparts has posted key rejections from big resistance areas, most notably, this has been seen in the Euro and Sterling. As we highlighted in the latest CFTC speculative positioning data, US Dollar shorts is a crowded trade and thus risks are for a bout of short covering. Elsewhere, the Australian Dollar is among the notable underperformers ahead of the RBA rate decision as second wave COVID concerns prompt Australia to tighten lockdown measures.

    Source: Refinitiv

    Source: Refinitiv

    Equities: Despite US lawmakers failing to agree on a COVID support package, equity markets are showing a modest bounce with European shares firmly in the green and being led by the tech sector. Similarly, the positive risk tone has spilled into the US with both the S&P and Dow Jones futures rising...

  • Hey traders! Risk appetite is carried through today, but for which asset classes? Find out from @DailyFX Chief Strategist @JohnKicklighter ? https://t.co/n8seddRubJ
    DailyFX Mon 03 Aug 2020 16:10
  • The #Euro and Sterling both had a positive tone last week going into month-end and sellers have appeared in both currencies today. Get your market update from @nickcawley1 here: Link https://t.co/H56olNlp7L
    DailyFX Mon 03 Aug 2020 14:25

    A raft of economic data releases this week will be overshadowed by the BoE policy announcement, and Quarterly Inflation Report, on Thursday and the latest look at US employment data (NFPs) on Friday, two important economic events. The UK central bank is expected to leave policy unchanged although voting patterns may shift the dial a little. Governor Andrew Bailey will also give his latest views on the health of the economy and any further dovish shift – additional QE or forward guidance - may weigh on Sterling. The US dollar is trying to find a bottom after its recent sell-off and will need another good set of payroll figures to help its cause.

    DailyFX Economic Calendar

    EUR/GBP has broken back below trend and is currently struggling to push higher. The Euro and Sterling both had a positive tone last week going into month-end and sellers have appeared in both currencies today. EUR/GBP currently trades either side of 0.9000 and today opened below both the 20- and...

  • GBP/USD is consolidating last week’s sharp gains around 1.3070 and trade may be thin ahead of the BoE meeting. Get your $GBPUSD market update from @nickcawley1 here: Link https://t.co/KfHWBCB4Ur
    DailyFX Mon 03 Aug 2020 13:05

    The back end of this week will be key for GBP/USD with the latest BoE policy announcement released on Thursday and the closely-watched US Labor Report out on Friday. The BoE is expected to leave policy unchanged but governor Andrew Bailey may well hint at further dovish policy measures, especially QE, if the central bank believes that the economy needs another boost. COVID-19 continues to weigh on the UK economy and new cases of the virus continue to appear. There were 771 news cases on COVID-19 announced on Sunday, a gradual increase from the July 7 low of 352, and the government is already warning of new lockdown measures if this trend continues.

    For all market-moving data releases and events see the DailyFX Economic Calendar

    The US dollar made a fresh two-year low at the end of last week and while the greenback is trying to consolidate recent losses, there seems little in the way of any USD-positive news in the market. On Friday the latest US non-farm...

  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here: Link https://t.co/TQEVrfpKke
    DailyFX Mon 03 Aug 2020 11:30
    Spreads are based on the buy and sell price of a currency pair.Costs are based on forex spreads and lot sizes.Forex spreads are variable and should be referenced from your trading platform.
  • Hey traders! I'm sure you've all heard about trend trading. Sharpen your knowledge here: Link https://t.co/IlxjvBXh7D
    DailyFX Mon 03 Aug 2020 09:50

    A popular trading expression is "the trend is your friend." This expression has stood the test of time because trends are critically important to any trading plan. Forex trendlines can be seen in almost any charting analysis due to its usefulness and simplicity. This article provides traders with an in-depth guide on what trendlines are, how to draw them and how to apply this when trading.

  • Why financial market traders must monitor both monetary and fiscal policy? Find out from @MartinSEssex here: Link https://t.co/Z4WgszEBoh
    DailyFX Mon 03 Aug 2020 07:55
    When trading financial markets, especially when there are concerns about a global economic slowdown, it’s essential to monitor both government fiscal policy and central bank monetary policy. When they are working together, the chances of a slowdown turning into a full-blown recession are substantially reduced. When they are not, an economic meltdown is far more likely.
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