• USD is the weakest major again following a dovish testimony from Powell. Now he has set the stage for a rate cut this month, the Greenback is paring gains made after Powell walked back earlier dovish comments.
  • USD/JPY is the weakest pair we track, hitting a 4-day low and shedding a further -0.43% after closing -0.41% lower yesterday. USD/CHF has also rolled over after hitting key resistance levels and has extended its decline to a 5-day low. Even GBP/USD has managed to lift itself to a 3-day high although we’re closely watching a key resistance level. Elsewhere for GBP, several crosses appear set to break to new lows.
  • With S&P500 hitting 3k, Asian equities tracked Wall Street higher with Chinese stocks taking the lead and index futures also in the black.

Up Next:

  • Final readings for German and French CPI are not expected to deviate too much form the prior releases, but you never know. Both reads disappointed last month so unless there’s a notable upwards revision, it may not prove to be a huge driver.
  • However, US CPI is the main event for traders today. Given we’ve effectively had the green light for a Fed cut this month (and calls for further cuts this year now piling up) then we’d expect a weak print from US CPI to weigh down on USD, in the current ‘chuck your dollars away’ environment. 

CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD consolidates around 1.1150 amid mixed trade headlines

EUR/USD is trading around 1.1150, consolidating previous gains. President Trump has expressed optimism about clinching a deal with China, while some officials have cast doubts. Brexit headlines are set to impact the euro as well.

EUR/USD News

GBP/USD slides toward 1.29 ahead of critical vote on the Brexit deal

GBP/USD falling toward 1.29 as parliament is set to debate and vote on UK PM Johnson's Brexit deal. The vote on the program to complete the process quickly is also critical. 

GBP/USD News

USD/JPY holds steady above mid-108.00s

The USD/JPY pair failed to capitalize on the early uptick to multi-day tops and is currently placed at the lower end of its daily trading range, just above mid-108.00s.

USD/JPY News

Brexit drama does not deter the pound

Despite an unending series of Parliamentary setbacks for Prime Minister Boris Johnson’s attempt to clinch the UK exit from the European Union, Sterling has retained almost all of its gains of the past ten days, suggesting that his Brexit deal will eventually be approved.

Read more

Gold edges up to $1490 area, lacks follow-through

Gold edged higher through the early European session on Tuesday and is currently placed at the top end of its daily trading range, around the $1489 region.

Gold News

Forex Majors

Cryptocurrencies

Signatures