Gold prices got off to a solid start this week, benefiting from a weaker US Dollar and a small bump in Treasury buying. XAU/USD climbed 1.36% on Monday, with prices now tracking for a third weekly rise, although last week’s gain was marginal. Still, the yellow metal has held up rather well considering the upward price action seen in the US Dollar. A stronger USD typically acts as a headwind for gold prices.

The US Dollar’s upside reaction last week was due to increased bets that the Federal Reserve will begin reducing its pace of asset purchases, a move that is seen prefacing rate hikes. At the same time, increasing Covid cases around the globe, driven by the Delta variant, sent a wave of risk aversion through markets. That was likely responsible in part for underpinning gold prices as the metal attracts haven flows.

Comparing gold to a different currency base, such as the Euro, highlights the safe-haven flow seen last week, with XAU/EUR rising 0.91%. Bullion...

The Nasdaq 100 closed at a record high to start off this week, extending the dominant uptrend since last year’s Covid-induced bottom. Prices took out the key 14996 – 15172 resistance zone that had been in play since July. That exposed the midpoint of the Fibonacci extension at 15485. Above that price sits the 61.8% level at 15731 where beyond that sits the 78.6% point at 16080.

Negative RSI divergence is still present however, showing that upside momentum is fading. That can at times precede a turn lower. Such an outcome may place the focus on the 50- and 100-day Simple Moving Averages (SMAs). These could reinstate the dominant focus to the upside. Clearing the 100-day SMA could raise the risk of a more prominent correction, exposing the former 13829 – 14059 inflection zone.

Chart Created in TradingView

S&P 500 futures just barely managed to close at a record high on Monday, finishing at 4475 where the previous record was at 4474 on August 13th. This...

The US Dollar gained against most ASEAN currencies this past week, such as the Singapore Dollar, Thai Baht and Indonesian Rupiah. The Philippine Peso fared better, seeing a weekly gain against USD. The Greenback’s strength occurred despite average daily case growth in key ASEAN countries slowing – see chart below. Traders may now be focusing on more pressing external factors due next week.

Chart Created Using TradingView

Emerging Asia-Pacific currencies can be quite sensitive to capital flows, which are frequently impacted by external fundamental forces. Traders may be positioning themselves ahead of the Federal Reserve’s Jackson Hole Economic Policy Symposium on Thursday. There, the central bank could signal how soon it expects to begin tapering its massive balance sheet, which has been swelling since last year’s Covid outbreak.

That would be a sign that the extraordinarily easy credit conditions retail investors have been getting used to are slowly...

The Canadian Dollar be may increasingly at risk of depreciating further against the US Dollar. USD/CAD has closed above the key 1.2748 – 1.2808 resistance zone, marking the highest point since February. Still, confirmation is lacking and negative RSI divergence is present. The latter shows that upside momentum is fading, which can at times precede a turn lower. On the other hand, a bullish crossover between the 50- and 100-day Simple Moving Averages offers an upside bias, placing the focus on the January high and beyond.

It’s been a busy past week in USD/CAD.

Last Tuesday I had warned of a potential breakout in the pair as USD/CAD had moved up to a key spot of resistance with two really big drivers on the horizon for the following Wednesday. Canadian inflation was due that morning, and FOMC meeting minutes were scheduled for release later that day. The one-two punch of those releases not only brought a breakout beyond the 1.2621-1.2652 zone that I had talked about; but also a breakout beyond the six-month-high of 1.2800 as bulls

Prices in USD/CAD ran all the way up to the 1.2950 level, just shy of the 1.3000 psychological level to set a fresh nine-month-high in the pair. But that’s when the proverbial music stopped, as a reversal began on Friday that has continued to evaporate those breakout gains through this week’s open.

This backdrop is accented with some interesting observations on the chart. That Friday candle where sellers came rushing into the market ended as a...

As speculation builds ahead of the Federal Reserve’s Jackson Hole Economic Policy Symposium, the Euro has enjoyed a bit of a rebound. Rallying equity markets and rising bond yields have helped propel EUR/JPY rates higher, while the broad drop by the US Dollar (via the DXY Index) has aided EUR/USD’s recovery.

While these technical turnarounds appear significant, it’s possible that the rallies are burdened by the release of the ECB’s July meeting minutes on Thursday – ahead of what will likely be a volatile Friday around Fed Chair Jerome Powell’s Jackson Hole speech.

Last month, the ECB announced the results of its 18-month policy review, with the central bank shifting its inflation mandate from seeking “below but close to +2%” to “+2%.” Today, ECB Chief Economist Philip Lane added color to the conversation in a blog post. “The revision to rate forward guidance constitutes just the first step in implementing our new strategy.”‘Lower for longer’ remains the mantra...

The US Dollar gained against most ASEAN currencies this past week, such as the Singapore Dollar, Thai Baht and Indonesian Rupiah. The Philippine Peso fared better, seeing a weekly gain against USD. The Greenback’s strength occurred despite average daily case growth in key ASEAN countries slowing – see chart below. Traders may now be focusing on more pressing external factors due next week.

Chart Created Using TradingView

Emerging Asia-Pacific currencies can be quite sensitive to capital flows, which are frequently impacted by external fundamental forces. Traders may be positioning themselves ahead of the Federal Reserve’s Jackson Hole Economic Policy Symposium on Thursday. There, the central bank could signal how soon it expects to begin tapering its massive balance sheet, which has been swelling since last year’s Covid outbreak.

That would be a sign that the extraordinarily easy credit conditions retail investors have been getting used to are slowly...

Germany’s IFO indicator has confirmed what we already knew: the pace of economic recovery in the second half of the year has lost some momentum. Business expectations for August have dropped below 100 once again after three consecutive months above the three-figure line, with the business climate also dropping below 100 and coming in weaker than expected. Aside from the previous two months, this is still the highest reading since March 2019 and therefore continues to show a good perception of business conditions in Germany.

The current assessment has managed to come in above expectations and last month’s reading, marking its highest level since April 2019 and 7 months of consecutive improvements. The rise in current conditions and drop in future expectations highlights that the pace of growth is still expected to improve in current months but the longer-term outlook is weakening.

The drop in the IFO data is not really a surprise given the host of previous...

Keep up to date with all market-moving data releases and events by using the DailyFX Calendar

The Nasdaq Composite Index broke above 15,000 on Tuesday, while the Nasdaq 100 printed around 15,380, both new highs for the tech-dominated indices. While tech has been in favor for many, many months due to the Fed’s ultra-loose monetary policy, recent price gains in these indices have leveled off with traders looking ahead to this week’s speech by Fed chair Jay Powell at the virtual Jackson Hole Symposium. The Fed chair had been expected to announce a timetable for reducing the $120 billion a month bond-buying program - a negative for the tech sector - but these expectations have been pared back of late, witnessed by the 600 point rally in the Nasdaq 100 over the last week. Is the tech sector further building in expectations that chair Powell will give little away in his speech on Friday?

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Although the forex market is the most liquid of all asset classes, there are periods whereby volatility is constant, and others subdued. Understanding these different forex session times can improve the reliability of a forex trading strategy.

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The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Find out about the history of the Fed, its influence on USD and how to trade Fed monetary policy decisions.

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Technical analysis of charts aims to identify patterns and market trends by utilising differing forms of technical chart types and other chart functions. Interpreting charts can be intimidating for novice traders, so understanding basic technical analysis is essential. This article reveals popular types of technical analysis charts used in forex trading, outlining the foundations and uses of these chart types.

Our DNA FX quiz can tell you what type of forex trader is buried within your DNA. Simply answer the 14 questions honestly to learn which style of forex trading you are best suited for.

If you’re new to forex trading the results will help you develop your trading style and strategies, but even established traders might discover something about themselves they weren’t aware of…

Risk management is at the core of any good trading plan, without having a sound set of principles to follow a trader is doomed to fail. We outline rules and factors to consider when customizing a risk management game-plan right for you.

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Risk management is one of the most important aspects to successful trading, but far too often it’s overlooked. Job #1 for a trader is to always keep yourself in the game. A sound strategy and the discipline to follow it will go long way towards ensuring you stick around.

If you are in the learning stage, your objective is to keep losses very small until you figure out what you are doing from an analytical and strategy standpoint. Adhering to sound risk parameters early-on will go a long way towards building a foundation for later on.

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The Canadian Dollar be may increasingly at risk of depreciating further against the US Dollar. USD/CAD has closed above the key 1.2748 – 1.2808 resistance zone, marking the highest point since February. Still, confirmation is lacking and negative RSI divergence is present. The latter shows that upside momentum is fading, which can at times precede a turn lower. On the other hand, a bullish crossover between the 50- and 100-day Simple Moving Averages offers an upside bias, placing the focus on the January high and beyond.