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 – 21 July 2017
In the Zone
- EURUSD
- NZDUSD
- AUDUSD
- USDCAD
- Gold
- Silver
- Oil
Recap
It is widely accepted that as the dollar wilted against all the major currencies over the last couple of weeks it was inevitable that central banks around the world would consider talking down their currencies. This was evident before the market even opened when despite the UK retail sales coming in a lot better than expected, the currency weakened. This opened the floor for ECB president Draghi who definitely tried to back track on recent comments and soften his tone somewhat.
His initial statement clearly started getting the desired effect as slowly EUR traders started getting the message, but will still dubious as traders then changed their mind – “you can’t fool us Mario.” The major pairs got a further boost when yet another political bombshell out of the US reached the wires. I am indifferent to politics in the US and have often been critical of Donald Trump, but these latest revelations do make things seem like a witch hunt.
The EURUSD encapsulates the strange day yesterday, as the pair drifted towards previous key levels around 1.1465, that when traders started doubting the sincerity of Draghi and the pair traded back towards 1.1580. After the US news hit the wires, it wasn’t long before the pair was trading at 1.1660, there was some consolidation and the pair traded to 1.1617. Everything suggests that the EUR should weaken somewhat today with 1.1600 and 1.1580 being the first targets, but as I suggested yesterday, when we live in a world with some much political scandal – the technical mean nothing.
The USDJPY was another strange trading pair yesterday, we have highlighted a cluster of technical levels defined by the 200 day MA, the 100 day MA and the 2017 swing low trading at 111.70. We moved below these levels during the course of the day and again it failed. With everything that happened yesterday, I find it a little worrying that the JPY could not capitalize. It is for these reasons that I prefer to become a buyer at these levels.
We have a relatively long video this morning, all the pairs have reason to look for corrections, but the world seems like it is upside down at present and I am still very weary. I may just spending my day licking my wounds before tackling these markets next week.
Download Our New Weekly Calendar
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.
