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Dean's Daily FX Update – 24 October 2017
In the Zone
- EURUSD
- AUDUSD
- USDCAD
Noteworthy News
- Trump said that he is very, very close to his decision on the Fed Chair position which will take effect in February.
Recap
After all the event risk over the weekend you could be mistaken if you thought that we would start the week with a bang, yesterday however proved to be a very gentle start to the week. It was almost as though all the major trading centres were hesitant to take the lead and as a result most pairs traded in a very tight range of about 50 – 60 pips. Most of the action actually come really late last night as traders squared off positions, perhaps not willing to hold on when liquidity is so dry.
With a comfortable election win for PM Abe, we can expect another term of “Abenomics,” and this was the catalyst for the large gap open in the USDJPY last night. The pair saw a gap open and the pair topped off at 114.20 early Monday morning before spending most of the day drifting around consolidation at 113.75. There was one major push lower late last night to allow the pair to close that gap, I suspect however that there will be buyers building bids at 113.25 this morning.
The USDCAD is delicately poised at 1.2630, this is a make or break level for the pair and it seems as though there is a stalemate between buyers and sellers. The bias today looks as towards selling the pair but we may see a little bit of swaying before the BOC tomorrow, I fully expect the CAD to weaken tomorrow on the announcement, but the technical are saying otherwise.
I am hoping for a little bit more action this morning, but once again there is no real economic data of note to help move these markets. This week may be a test of our patience, but I am confident that we will get a trade.
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