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Dean's Daily FX Update – 05 October 2017
In the Zone
- GBPUSD
- Dax
Noteworthy News
- None
Recap
For a consecutive day, it was quiet in the market as we anxiously await employment data out of the US on Friday. I can’t remember the last time the market were so fixated on the NFP data, all ranges are well below its 22 day average which is the first sign of apprehension. This is going to be a difficult report to interpret as this report will be affected by the hurricanes. The ADP data came out right as expected, unfortunately there has not been any strong correlation between this and the NFP of late.
There is news filtering through that Secretary of State Rex Tillerson tried to resign in July and had branded President Trump a moron. These reports were rubbished by both Trump and Tillerson but you get the feeling that we have seen this before, usually I would not be surprised if Tillerson was fired in the coming weeks but I can’t help but think the White House cannot afford another departure.
The EURUSD spent most of the day trading below the 100 hour MA at 1.1765, this remains first resistance this morning ahead of the 200 hour MA at 1.1790. The buyers are still lurking around the 1.1700 level and I suspect this will continue to be the range heading into that report. I am hesitant to take a trade in this pair leading into the weekend, developments between Catalonia and Spain are getting more heated and chances are that we will see a gap open on Monday.
The USDJPY once again failed at major resistance, and it eventually broke below the 200 hour MA and started drifting towards 112.50, I still have a gut feel that this pair will eventually break higher than the 112.95 ceiling and perhaps Friday will be the catalyst.
The morning video is a little longer today, there doesn’t seem to be any high probability opportunities brewing. We are always going to have slow weeks and so it is important to remember that we need to remain patient in our quest.
Important Economic Data out today
14:30 CAD Trade Balance
Consensus: -2.6B
Effect: Actual higher than expected is good for the CAD
14:30 USD Non Employment Claims
Consensus: 266K
Effect: Actual lower than expected is good for the USD
14:30 USD Trade Balance
Consensus: -42.7B
Effect: Actual higher than expected is good for the USD
15:10 USD FOMC Member Powell Speaks
Consensus: None
Effect: More hawkish than expected is good for the USD
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