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
The big news today was that Fed Member Lacker resigned from his post after an admission of guilt in his role of leaking confidential Fed information about FOMC policy. The strange thing about this is that this happened in 2012, but the resignation only come now – during his campaign President Trump did touch on a “crooked” Fed and this revelation will be a sucker punch to Yellen and her team.
Dean's Daily FX Update – 05 April 2017
In the Zone
- EURUSD
- AUDUSD
- USDCAD
- USDJPY
- USDCHF
Noteworthy News
- President Trump was back on the wires yesterday, stating that his infrastructure bill will exceed USD 1 tn, it seems as though the market is starting to ignore his tweets though.
Recap
The big news today was that Fed Member Lacker resigned from his post after an admission of guilt in his role of leaking confidential Fed information about FOMC policy. The strange thing about this is that this happened in 2012, but the resignation only come now – during his campaign President Trump did touch on a “crooked” Fed and this revelation will be a sucker punch to Yellen and her team.
All eyes will start shifting towards the meeting with President Trump and President Xi of China this weekend. The trade numbers in the US yesterday showed a lower than expected deficit number, while China had a larger than expected deficit yesterday. President Trump has long been critical of policy in China, but these data points don’t support his view and I wonder how this will change the tone of this meeting. Despite all these factors, the dollar did look somewhat close to unchanged on a lot of pairs – although there was a lot of morning volatility.
The USDJPY has been the biggest mover this week thus far and yesterday morning started in the same fashion. The pair started the day by breaking through the 110.50 level that we had highlighted yesterday, this pair found some support at 110.25 but was unable to reach major support at 110.00. As long as this pair remains above these key support levels this morning, the buyers will be filled with optimism.
Once again the EURUSD was choppy albeit once again in a very tight range. Price did drop below the 1.0650 level we highlighted yesterday but bounced again, I am still of the opinion that the EUR will bounce but needs to break out of the 1.0630 – 1.0680 range for this pair to gain some traction.
The GBPUSD continues to be hampered by weak economic data, the trading has been somewhat up and down this week and we can use the major MA as guidance in cable for now – it seems as though buyers and sellers are feeling each other out. The rally found resistance at the 200 MA level of 1.2485 while the move down found support at the 100 hour MA at 1.2415, I am going to use these two levels as my guide today.
With the exception of the JPY, the Dollar Index looks a little toppish to me and a possible move against the dollar looks on the cards.
Important Economic Data out today
Download Our New Weekly Calendar
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.
