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 – 12 October 2017
In the Zone
- EURUSD
- GBPUSD
- USDCAD
- Dax
- FTSE
Noteworthy News
- Statements yesterday from Trump suggesting that he if he can’t negotiate a NAFTA deal, he would terminate it. I think this is more concerning for Mexico than Canada, as I find it hard to believe that the US would not have some form of trade agreement with Canada.
Recap
We discussed yesterday that the market had a strange feel to it, by moving up a time frame on the charts – we were allowed to stay out of potentially bad trades. The main topic on the agenda yesterday was the FOMC meeting minutes, most officials did see another rate hike this year but were equally concerned that low inflation may become the new norm. The market latched onto this statement and thus interpreted the minutes to be more dovish which drove the greenback lower albeit not by much.
The EURUSD managed to trade through the 1.1825 resistance area yesterday, the next target is the 200 hour MA trading at 1.1880. This will be the first real test for the buyers as you do get the impression that the sellers will start leaning against this level.
The GBPUSD moved higher, but stalled at the levels that we highlighted at 1.3230 which also happens to be the 200 hour MA. The next target will be 1.3265 this morning and like the EUR, you may find that sellers start leaning against this level. The major support level is at 1.3200 and I suspect that these levels may prove to be the range for the rest of the week.
The big surprise for me yesterday was how little the USDJPY changed on the day, the pair did fall below support at 112.20, but for a second consecutive day the pair bounced higher. The bounce stalled again at 112.60 which is right between the 100 hour and 200 hour MA at 112.55 and 112.67 respectively. After two failed moves lower, the bias for me will be towards the buyers taking control today, but they will need to break through 112.50 for me to have any interest.
Important Economic Data out today
14:30 USD PPI
Consensus: 0.4%
Effect: Actual higher than expected is good for the USD
14:30 USD Unemployment Claims
Consensus: 251K
Effect: Actual lower than expected is good for the USD
16:30 EUR ECB President Draghi Speaks
Consensus: None
Effect: More hawkish than expected is good the EUR
17:00 USD Crude Oil Inventories
Consensus: -1.9M
Effect: No consistent effect on 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.
