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 – 25 October 2017
In the Zone
- GBPUSD
- NZDUSD
- USDCAD
- USDZAR
Noteworthy News
- There are talks that there are enough within Trumps own party that will not support the Tax reform. This will be a blow to the White House Administration that is still yet to get anything through the Senate, expect the dollar to weaken on this news.
Recap
Another boring day yesterday led to a lot of the pairs drifting as there is very little in the way of headlines or economic data to sway the market. The economic calendar starts to get a little more lively from here on in and so hopefully this brings with it some opportunity. The market is at this point still speculating on who the next Fed Chair will be, I suspect that Yellen is definitely going to be given her marching orders – I suspect that it doesn’t matter who gets the nod, the greenback will strengthen on the news.
The commodity currencies were the pairs that felt the brunt of the move as the both the AUDUSD and NZDUSD slumped. The focus today will be the USDCAD though as the BOC announce their latest interest rate decision today. I suspect that after two consecutive hikes that nothing will be done today, the pair did extend its gains yesterday and traded as high as 1.2690 before finding some resistance. I got out of this trade at 1.2680 as I suspect that this will define the bullish tone today, the BOC could push this higher closer to 1.2770 today and so I will sit this pair out because of the event risk.
Both the USDJPY and EURUSD continue to chop around and seems directionless at the moment, the USDJPY continues to be directed by the US yields and is battling to break above 114.00 which is becoming a nice resistance level. The EURUSD is also responding to US politics, it did trade higher on news that Trump may not be able to get his tax plan through the Senate and then traded lower again on the news that Taylor may be the favourite for the Fed Chair position.
Important Economic Data out today
10:30 GBP Prelim GDP
Consensus: 0.3%
Effect: Actual higher than expected is good for the GBP
14:30 USD Core Durable Goods
Consensus: 0.5%
Effect: Actual higher than expected is good for the USD
16:00 CAD BOC Rate Decision
Consensus: 1.0%
Effect: Actual higher than expected is good for the CAD
16:30 USD Crude Oil Inventories
Consensus: -2.6M
Effect: No consistent effect on the USD
17:15 CAD BOC Press Conference
Consensus: None
Effect: More hawkish 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.
