The Latest in Forex News & Analysis.

Opening levels – USDJPY higher

By | October 22, 2017 5:32 pm | 0 Comments

$JPY opening gap higher for the week at 113.85 on the back of the news of PM Abe and LDP’s landslide victory on Japan’s general election this Sunday.

LDP and coalition won over 2/3 of Lower House seats which would enable them to proceed long discussed Constitution reform. It also means Abenomics to continue for now to keep BOJ’s ultra-easy monetary policy which is obviously positive $JPY and Nikkei stocks.


Other major FX pairs are pretty much unchanged from Friday close;

  • EURUSD 1.1765-70
  • GBPUSD 1.3185-90
  • USDCAD 1.2620-25
  • AUDUSD 0.7810-15
  • NZDUSD 0.6945-50

US Senate passes budget resolution

By | October 19, 2017 10:39 pm | 0 Comments

US Senate adopts budget resolution in step advancing Tax reform, USD making strong rally across the board pushing $JPY onto 113 handle, GBP towards 1.3100, NZD below 70 cents for the first time since May.

US stock futures surging at the same time, Dow futures trading over 100 points higher, Treasury bonds lower pushing 10 year yield up to 2.35%.


Australia Labor Data

By | 12:34 pm | 0 Comments


Strong Australian Job data, employment rose 19.8k vs 15.0k estimate, unemployment rate improve3d to 5.5% vs 5.6% prior month. AUD$ immediately higher from 0.7845 to 0.7870 paid, dragging AUDNZD cross back towards 1.10.


In the meantime $JPY trading marginally lower on the back of BOJ Deputy Governor Nakaso comment saying BOJ can control Yield Curve even with smaller JGB purchases


By | October 17, 2017 9:35 am | 0 Comments

UK CPI YoY came out at 3% matching market expectations. This reading confirms a positive streak for UK CPI as last month reading was 2.9%. Last time inflation hit 3% in UK it was 2012.

The rate hike in November is almost a done deal with market pricing it with a chance of 81.8%. It still remains unclear if the BoE will be required to take further actions after this hike. For any future step anyway it might be important to evaluate the wage growth and the pound strength.


GBP surges on Brexit Talk

By | October 12, 2017 2:19 pm | 0 Comments

GBP/USD surged after a German paper reported that Michael Barnier, Chief EU Negotiator, might offer UK a 2 year transition period in the EU, if UK meets its exit obligations.

GBP/USD trading at 1.3280 after touching a daily low of 1.3120

FED Minutes

By | October 11, 2017 5:41 pm | 0 Comments

FED minutes released today show that this December rate hike was a close call. Some FED voting members believe that inflation might stabilize below 2% without showing great confidence for the future. The market reacted with USD selling on multiple asst classes.


By | September 29, 2017 9:15 am | 0 Comments

EUR Core CPI YoY 1.1% vs 1.2% forecast and 1.2% prior reading. CPI YoY 1.5% vs 1.6% expected.

First decline for Core CPI in this quarter as we approach the deadline for ECB October meeting when President Draghi will communicate the monetary policy path and QE decision for 2018.

Considering that ECB has single mandate (price stability), we are currently far from the 2% target. Main concern is still that a single solution has to satisfy a multi-speed region like EU (Italian CPI MoM -0.3% vs -0.1% expected) .

End of Day Recap

By | September 27, 2017 4:55 pm | 0 Comments

US Core Durable Goods MoM 0.2% vs 0.2% forecast. US Durable Goods Mom 1.7% vs 1%. A positive reading for the US with a USD that strengthened on the day (USD Index + 0.43%).

Risk on across may asset classes, with equities up (new all time high for S&P500)  and metals down (XAU breaking a key support and now trading at 1283).

BoC Poloz with a dovish tone in his press conference sent USD/CAD to 1.2482, up 0.91%. A cloud of uncertainty over the next Central Bank move, considering also a weaker USD (compared with the beginning of the year) that might not help exports.

RBNZ rate announcement. Interest Rates unchanged with dovish comments. Lower NZD might be needed to support recovery and inflation growth.

Draghi Press Conference

By | September 25, 2017 10:50 am | 0 Comments

A cautious Mario Draghi reiterated on Monday that downside risks in EU are mostly tied to geopolitical factors. Growth is still in place but ECB should pay attention to not halt recovery.

Final decision on QE will be taken in October, as previously anticipated.


By | September 22, 2017 10:57 am | 0 Comments

CAD Core CPI for August came out at 0% compared with previous reading of -0.1%. Core CPI YoY stays stable at 0.9%. CPI YoY at 1.4% vs 1.5% forecast.

Disappointment on Core Retail Sales MoM, 0.2% vs 0.4% forecast with previous number revised down to 0.4% from 0.7%. Retail Sales MoM 0.4% vs 0.1% forecast.

Next Interest Rate decision for Bank of Canada is on October 25th, with current market expectation split almost 50/50.

BoC already raised Interest Rates twice this year surprising the market so far. Volatility on USD/CAD is expected to raise as we get closer to the IR decision.


HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING: FXDD Now provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect's individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and FXDD Now specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FXDD Now expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.