Did you know: The Forex or FX Market derives its name from Foreign Exchange. It is essentially the exchange of currency (money) between two different countries. The FX market is the largest financial market in the world, and is open 24 hours per day, 5 days per week. Read More – Introduction To The Forex Market
Dean's Daily FX Update – 02 October 2017
In the Zone
- UDCAD
- USDJPY
- USDZAR
- Oil
Noteworthy News
- Scenes during the Catalonia elections yesterday were terrible, there are 844 confirmed injured thus far. This really does cast a shadow over the Spanish government and will give the EU a major test.
Recap
As we go into the last quarter of the year, it is unbelievable to think that the indices once again marched higher – we really are living in some crazy times. The end of the quarter also saw another White House official resign, Home and Health Service Secretary Tom Price. Rumours are that the he resigned because of the abuse of private jets but there are rumours floating about that he was rather pushed out because of the failure of the repeal and replace of Obamacare – the circus continues.
The EURUSD continued the recovery on Friday as the pair could not break below the cluster of support at 1.1710, the bounce was deep as the pair tested 1.1825. This major resistance level is now the bullish/bearish yard stick from a technical viewpoint. To me this is a fundamental play and watching the scenes unfold in Catalonia – I would think the bias in this pair would be towards a short. I will be looking for opportunity elsewhere.
The USDJPY manage to stay above both the 200 hour MA and the 100 hour MA at 112.20 and 112.00 respectively. Resistance at 112.85 also held, this level was attempted twice last week and both times it failed, this is not a good sign for the bulls trying to move this pair higher. The bias will be in the hands of the sellers if this pair is able to remain below this resistance and a look below those major MA levels will instigate further selling.
China is off this entire week for the Golden Week Celebrations and so the Asian session has not really given us any clues as to where the market is going. I will wait until late morning to get some direction.
Important Economic Data out today
10:30 GBP Manufacturing PMI
Consensus: 56.3
Effect: Actual higher than expected is good for the GBP
16:00 USD ISM Manufacturing PMI
Consensus: 57.9
Effect: Actual higher than expected is good for the USD
High Risk Investment Warning: Trading foreign exchange and/or contracts for difference on margin carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. Before deciding to trade the products offered by BlackStone Futures you should carefully consider your objectives, financial situation, needs and level of experience. You should be aware of all the risks associated with trading on margin. BlackStone Futures provides general advice that does not take into account your objectives, financial situation or needs. The content of this Website must not be construed as personal advice. BlackStone Futures recommends you seek advice from a separate financial advisor. Please take the time to read our Risk Disclosure Notice.
