forex education

29 September 2017- Dean Forex Market Commentary

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 – 29 September 2017

In the Zone

  • UDCAD
  • USDJPY
  • USDZAR
  • Oil

Noteworthy News

  • In the light of the devastating earthquakes in Mexico, the central bank has left interest rates on hold at 7%. I would not be surprised to see these rates on hold for a little bit longer as the pick up the pieces.

Recap

As we expected yesterday, the market had a little bit of time to digest the tax reform proposals and we saw a gradual sell off of the dollar on the back of this. The better than expected US GDP data stemmed the tide somewhat in the afternoon session. We will have to keep an eye on what materializes this weekend as the White House administration try to determine the way forward and try and get something – anything – through congress.

For a second consecutive day, the EURUSD bounced off key support at 1.1710. The high traded at around 1.1800, just shy of key resistance at 1.1825 – this is a level that the bears will be watching with a little bit of concern as a test above this level will likely trigger stops. Look for 1.1815, which is the 100 hour MA to be the last salvation for the bears today.

The USDJPY dipped below the 100 hour MA at 112.30 late last night, we have further key levels to keep an eye on in the form of the 200 hour MA at 112.10 and the 100 day MA at 112.00 which are lurking as support levels. Resistance trades at 112.80 – 112.90 this morning and the pair will have to break in either direction for the market to trade in volume.

There was a late sell off in the USDCAD, this after a surprisingly neutral BOC was the catalyst for the pair to trade higher this week. 1.2400 – 1.2415 represents a big resistance area for this pair. I highlighted that this is a pair that I would look to “fade” this week and if the buyers fail to push this pair higher than this resistance, I will look at building offers.

Important Economic Data out today

10:30                                     GBP                                       Current Account

Consensus:                         -15.2B

Effect:                                   Actual higher than expected is good for the GBP

 

14:30                                     CAD                                       GDP

Consensus:                         0.1%

Effect:                                   Actual higher than expected is good for the GBP

16:00                                     GBP                                       BOC Governor Carney Speaks

Consensus:                         None

Effect:                                   More hawkish than expected is good for the GBP

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.