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08 August 2017- Dean Forex Market Commentary

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Dean's Daily FX Update – 08 August 2017

In the Zone

  • EURUSD
  • NZDUSD
  • USDZAR
  • UK100
  • SA40
  • Oil

Noteworthy News

  • All eyes will be on the no confidence in local parliament tonight, this could be the market mover this week and so I will be watching with some keen interest.

Recap

We highlighted yesterday that the next couple of weeks could be void of any market moving events that can move the markets and create an opportunity, it is probably sometimes easier to trade off the lower time frames and look for only a couple of pips at a time. The other option is to stay out of the market at all and have a holiday or to look at trading the pairs that you know are going to trade such as the AUD, NZD and ZAR.

Looking at some of the daily candles in the major pairs it was abysmal, in fairness though it was the Monday after NFP, Canada was on a public holiday, President Trump is on holiday and so the White House was quiet. I will be watching the Trump twitter account carefully though as I am sure that he would find it difficult to stay away.

The USDZAR could be one to watch today, we saw what happened last night that news filtered through that there would a secret ballot in the no motion vote tonight. There has been a lot of fundamental reasons to trade the market of late and it seems that locally we are joining the party – I am a little conflicted within myself as to what way the market will move today. Part of me wonders if the ANC would only pass the secret ballot if they were certain it would pass, the other side of me wonders if the ruling party are now ready to get rid of President Zuma.

If the no confidence motion passes, look for the USDZAR to trade towards 12.85 – 12.55 and if it does not pass, look for the pair to trade closer to 13.60 – 13.80. Either way, I suspect that there could be some action in this pair tonight.

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

Important Economic Data out today

Nothing of significance

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