Dollar slips as home sales decline

US stock market snapped 4-session winning streak on negative implications of slower China’s growth data to global growth outlook. The S&P 500 fell 1.4% to 2632.90. Dow Jones lost 1.2% to 24404.48. The Nasdaq dropped 1.9% to 7020.36. The dollar weakening continued as data showed existing home sales declined in December. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, slipped 0.01% to 96.287 but is higher currently. Futures on three main US stock indices point to mixed openings.

SP500

FTSE 100 underperforms other European indexes

European stocks extended losses on Tuesday on persisting global growth worries after China reported slower growth for 2018. The EUR/USD turned lower while GBP/USD rose with both pairs higher currently. The Stoxx Europe 600 lost 0.4%. The German DAX 30 fell 0.4% to 11090.11, France’s CAC 40 slid 0.4% and UK’s FTSE 100dropped 1.0% to 6901.39.

Chinese stocks rise while Asian indices slip

Asian stock indices are mixed today after President Xi Jinping told high-level Communist Party officials to be alert over “black swan” and “gray rhino” financial events in face of an economic slowdown at a meeting after China posted its slowest annual growth since 1990 - 6.6%. Nikkei slipped 0.1% to 20593.72 while yen resumed its slide against the dollar as Japan reported weak export data. Chinese stocks are higher supported by Beijing pledge to step up fiscal spending this year to support its economy: the Shanghai Composite Index is up 0.1%, and Hong Kong’s Hang Seng index is 0.1% higher. Australia’s All Ordinaries Index extended losses 0.3% as the Australian dollar resumed climbing against the greenback.

Brent up

Brent futures prices are recovering today. Prices ended lower yesterday: March Brent fell 2% to $61.50 a barrel on Tuesday.


Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.

This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.

Analysis feed

Latest Forex Analysis

Editors’ Picks

AUD/USD bounces-off the channel support, looks to regain 0.6850

The bulls managed to defend the channel support/uptrend near 0.6829 amid a rebound in the risk sentiment, as reflected by the recovery in the Asian stocks. AUD/USD looks to regain the 0.6850 level amid a broadly firmer US dollar and ahead of the Aussie jobs data. 

AUD/USD News

USD/JPY: Major bull cross fails to inspire Yen bears

USD/JPY is hovering below 110.00 with yen showing resilience, despite the bullish development on technical charts. The S&P 500 futures are hinting at risk reset in the markets. A notable equity market recovery could weigh over yen. 

USD/JPY News

Coronavirus FX Selloff, CAD Prime for Bank of Canada Breakout?

The most influential story for the financial markets today was reports that the first US case of corona virus has been confirmed. This deadly virus is spreading across the globe creating concerns about the impact on travel and consumer spending.

Read more

Gold: Stays below $1,560 following Tuesday’s bearish spinning top

Gold remains on the back foot while trading around $1,556.90 during the Asian session on Wednesday. The yellow metal portrayed a bearish candlestick formation, backed by bearish MACD, during the previous day.

Gold News

GBP/USD: Aims to revisit 200-hour SMA, immediate support trendline

GBP/USD registers mild losses while trading around 1.3045 during Wednesday’s Asian session. The pair earlier reversed from 50% Fib retracement of its fall from Jan 07 to 14. A two-week-old falling trend line adds to the resistance.

GBP/USD News

Forex Majors

Cryptocurrencies

Signatures