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
In the Zone
- After the dismissal of Steve Bannon on Friday, all eyes will be on the new Chief Strategist in the White House.
US politics has been begging for some radical change for some time now, and on Friday we could have seen the first signs of that as chief strategist Steve Bannon was given his marching orders. There has been so many “false starts” of late so I am hesitant to say this is a new dawn, I suspect it is yet another dismissal that tries to hide the short comings of President Trump.
The dollar did attempt to make a “come back” against the major pairs as the USDJPY bounced off an important support level of 108.50 and marched 100 pips higher. The real test will be this morning though, the news come late on Friday afternoon and the Asian Pacific session were not in the market. I am eager to see how the market reacts this week.
The market seems eager to trade cable at the moment but there are too many red flags for me to trade the GBPUSD, the pair did show some life in the early session in London but it fell through support and traded as low as 1.2830 before bouncing. I am hesitant to look for further upside and the fact that sterling is not able to make any significant gains when the greenback is clearly in a dismal state raises the alarm for me.
Oil enjoyed its largest one day gain since November 2016 and this was the initial catalyst for the bid in CAD. A stronger than expected CPI report sparked a further bid and in a flash, the USDCAD was trading as low as 1.2565. The inflation report was not as strong as what the currency move suggests and while I will be keeping an eye on the equity market, this is the pair that I will be most keenly be looking for opportunity.
Keep an eye out for the afternoon video that tries to tie everything together.
Important Economic Data out today
14:30 CAD Wholesale Sales
Effect: Actual higher than expected is good for the CAD
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.