The markets were eerily quiet yesterday, you could hear the tumbleweeds roll on through the major financial hubs as desks emptied out ahead of the holiday season. I expect reduced trading activity next week and the market to only get going again in January, and after a really tough 2016 you can’t begrudge traders from […]
Category: Forex Market Daily Review
The end of last week was dominated by dollar strength. Dean was watching three Forex pairs this morning to see if they could wrestle back some of the initiative. Mainly because they were showing signs of momentum slowing and they were at major resistance levels. Let’s see how we got on.
There has been plenty of data out over the last little bit. The dollar seems to have given up some more ground today in most FX pairs we follow. The commodity currencies have fared the best with the AUDUSD, NZDUSD and USDZAR all making gains.
We were not expecting a very busy day this morning and we were bang on the money. All of the forex pairs we covered this morning have traded in a very tight range and there has been little in the way of excitement.
Today has been the story of more summons, interdicts and other political rumblings for South African forex traders to deal with. Everyone from Zuma, Pravin, Julius and Madonsela looks like they are going to have their dealings looked into by the courts in one way or other.
Yesterday it was the summons of Pravin Gordhan and today it looks like Abrahams is prepared to reconsider. What South Africa must look like to the rest of the world is anyone’s guess? Then I suppose they don’t really care!
The story of the day is undoubtedly the RAND. Earlier this morning, NPA Head, Shaun Abrahams issued a summons for Finance Minister Pravin Gordhan on what is believed to be a fraud charge.
The markets were always likely to be a bit range bound today with the US and Canada enjoying a bit of turkey and cranberry sauce. Both have holidays and we have felt the effects on the FX markets today.
The major commodity currencies (AUDUSD, NZDUSD and USDCAD) were in focus this morning along with the USDJPY. The event risk was in the form of US Unemployment Claims which were out at 14:30 this afternoon.
Dean was focused on three Forex pairs this morning. He saw opportunities in the NZDUSD, USDCAD and the USDJPY. He was avoiding the others as they were either very range bound or had failed miserably to maintain support.