Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Forex Today: US Dollar, Stocks Make Small Recovery

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

As optimism made a small recovery on the US economy, the US Dollar and stock markets made minor but fragile advances.

  1. In quiet day in the market yesterday, there was a natural minor rebound against last week’s pessimism on the Fed being behind the curve on rate cuts and on the prospect of a recession hitting the US economy. Major US stock market indices saw gains and the US Dollar firmed, while US treasury yields rose slightly. However, these developments look very fragile and prone to reversal in the direction of longer-term trends.
  2. In the Forex market, the New Zealand Dollar has been the strongest major currency since today’s Tokyo open, while the Japanese Yen has been the weakest, although the movements are so small they are probably not significant. There is a valid long-term trend against the US Dollar in the USD/JPY currency pair but the EUR/USD currency pair has fallen by more than 3 times the average true range of the long-term daily chart, indicating it is probably time for bulls to give up there.
  3. US Treasury Secretary Janet Yellen said over the weekend that she sees “no red lights flashing” on the US economy. It is clear she is trying to stave off increasing pessimism over inflation, and this may have worked a little yesterday, but will be tested today.
  4. New fears are arising that China may be falling into a deflationary spiral, which could be seriously damaging to the global economy given China’s large economy and role as manufacturer to the world and importer of raw materials. China is seeing a stream of data pointing to weak consumption and investment demand, and its stock market has declined over the summer.
  5. Tomorrow brings the release of US CPI (inflation) data which will be important for the market. Annualized inflation is expected to fall from 2.9% to 2.6%.
  6. Most commodities, especially softs, are looking weak. However, Gold remains relatively bullish as it trades only about 1 day’s average range below its record high above $2,500.
  7. Today will see the release of US Claimant Count Change data (unemployment claims), and a minor speech by the Governor of the Bank of Canada.

Ready to trade our daily Forex analysis? We’ve made a list of the best forex demo accounts worth trading with. 

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review
Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

Most Visited Forex Broker Reviews