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05 September 2017- Dean Forex Market Commentary

05 Sep
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05 September 2017- Dean Forex Market Commentary

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 – 05 September 2017

In the Zone

  • AUDUSD
  • NZDUSD
  • USDCAD
  • USDZAR
  • Gold

Noteworthy News

  • In the wake of Hurricane Harvey, we have Hurricane Irma threatening to hit Puerto Rico this morning and reaching Florida by Friday. If this is the case then keep an eye on the dollar, having to pick up the pieces of two major hurricanes will force the Fed to keep rates on hold – dollar will take a back seat.

Recap

Both Canada and the US enjoyed Labour day celebrations yesterday and as a result this brought the market to a halt by lunchtime as there was no liquidity in the market. This has led the market to drift a little this morning as the market lacks some direction, I suspect that either the London or New York session will kick it off.

A perfect example of low liquidity trade was the GBPUSD last night, the pair dipped by close on 40 pips as the European desks signed off for the day. It was one of those moves that was exaggerated because of the low liquidity, usually a good move to fade – I would have been left a little bit hesitant to take the trade as the pair lacked any conviction.

There are a couple of brewing set ups, that we discuss in the morning video, starting to take shape for the week, but I suspect that we may have to wait for the momentum to pick up before we take the trade – also keep in mind that there could be some kind of tweet around the looming North Korean crisis that halts any potential moves.

Keep an eye out for the afternoon video that tries to tie everything together.

Important Economic Data out today

10:30                                 GBP                                    Services PMI

Consensus:                      53.5

Effect:                                Actual higher than expected is good for the GBP

 

11:10                                 AUD                                   RBA Governor Lowe Speaks

Consensus:                      None

Effect:                                More hawkish than expected is good the GBP

 

16:00                                 USD                                    Factory Orders

Consensus:                      -3.3%

Effect:                                Actual higher than expected is good for the USD

 

Tentative                          NZD                                   GDT Price Index

Consensus:                      -0.4%

Effect:                                Actual higher than expected is good for the NZD

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