A good start to the week for us as we managed land a few pips in the USDCAD. There are another three pairs on the watch list this morning as all of them are at solid resistance levels. The dollar has been so dominant and Dean looking for this to cool at some point.
Dean's Daily FX Update – 25 October 2016
In the Zone
- USDCAD
- USDCHF
- USDJPY
Noteworthy News
- A meeting at Luthuli House between the Justice Minister and NDPP (National Director of Public Prosecutions) Head Shaun Abrahams is sure to raise some suspicion. The NDPP is a politically independent and impartial body, the mere fact that the meeting is at the governing party’s national office is sure to raise some eyebrows. The last thing South Africa needs now is another scandal.
Recap
The action yesterday centred on the commodity currencies with the USDCAD proving to be the big mover. Just one headline by BOC Governor Poloz, “our best plan right now, is to wait for the next 18 months,” sent the Loonie into a spin and the pair dropped a 100 pips.
This statement was clarified later as not being a reference to monetary policy, the pair is back at yesterday’s open price, I am going to see how the London session opens up before making any decisions as I think I may see a short set up later on in the day.
We saw the first major move in metal prices yesterday with the iron ore price having a strong rally, this move underpinned the AUDUSD, and we could see a continuation move first thing this morning. The USDZAR came out of the blocks quickly yesterday – no doubt hoping that the higher metal prices will be reflected in gold. It has since become a little subdued, I think the market is eagerly waiting the Mid Term Budget Speech tomorrow before making the next move.
Other than the CAD “mishap” there was not really anything that moved the market yesterday and this led the EURUSD and GPBUSD to be rather quiet, let’s hope that ECB Draghi and BOE Governor Carney speeches this afternoon can nudge them from their slumber.
Daily FX Ranges
EURUSD
Resistance 1.0895 – 1.0910
Support 1.0860 – 1.0850
GBPUSD
Resistance 1.2240 – 1.2265
Support 1.2180 – 1.2160
AUDUSD
Resistance 0.7640 – 0.7650
Support 0.7590 – 0.7560
NZDUSD
Resistance 0.7168 – 0.7180
Support 0.7129 – 0.7115
USDCAD
Resistance 1.3360 – 1.3380
Support 1.3300 – 1.3275
USDJPY
Resistance 104.33 – 104.50
Support 103.75 – 103.50
USDCHF
Resistance 0.9950 – 0.9965
Support 0.9920 – 0.9900
USDZAR
Resistance 13.9935 – 14.0200
Support 13.8400 – 13.8154
Important Economic Data out today
- 10:00 EUR German Business Climate
- 16:00 USD Consumer Confidence
- 16:35 USD BOE Governor Carney Speaks
- 17:30 EUR ECB President Draghi Speaks
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