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 – 26 September 2017
In the Zone
- GBPUSD
- AUDUSD
- USDJPY
- USDZAR
- Oil
Noteworthy News
- Just when you though there was some unity in the Republican camp, we have seen news that once again the Republicans will not take the opportunity to repeal Obamacare.
Recap
Considering that there was talk from both ECB Governor Draghi and Fed Dudley the market was rather range bound and in a very tight range at that. Both were fairly upbeat on their respective economies yet both pairs did not really move. Comments out of North Korea later in the day is what set the market moving when an official stated that Trumps comments over the week were a declaration of war. It was barely anything to that extreme and I wonder if North Korea are looking for a reason for conflict, either way – this was the catalyst that the gold price needed.
This meant that the expected fall in the USDJPY was somewhat contained, although it did trade lower than the 100 hour MA at 112.00. Its fall took the pair to the next MA at 111.50 and this is the level that buyers decided to lean against. I suspect that the buyers will once again keep an eye on this level to lean against, it the pair breaks lower however, look for 111.00 to be the next target.
The EURUSD hovered around that 1.1875 level yesterday for most of the day before the JPY selling put some pressure on the EURUSD. This meant that the pair fell to as low as 1.1825 which was a recent swing low, the pair for now does seem to be finding resistance at 1.1875 but that 1.1825 will need to be broken before we can consider this a bearish trade.
Keep an eye on the wires today, we are very much living in a fundamental space and I would not be surprised if this continues to dominate the market.
Important Economic Data out today
16:00 USD CB Consumer Confidence
Consensus: 119.9
Effect: Actual higher than expected is good for the USD
16:00 USD New Home Sales
Consensus: 585K
Effect: Actual higher than expected is good for the USD
18:45 USD Fed Chair Yellen
Consensus: None
Effect: More hawkish than expected is good for 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.
