Welcome to BlackStone Futures - Leading FSB Regulated Forex Broker

Dean Forex Market Commentary – 28 October 2016

28 Oct
Forex Market Preview

Dean Forex Market Commentary – 28 October 2016

Dean’s Daily FX Update – 28 October 2016


In the Zone


Noteworthy News

  • Nissan confirmed that they will be building the Qashqai and X-Trail in Britain for the foreseeable future. This is a major coup for the British Automobile industry and will aid in adding jobs, I would expect to see some more of these headlines and we know that the GBP needs to see more of this to recover.


Yesterday it was the turn of Global Bonds to take centre stage and provide the catalyst for currency moves, it was the European bonds that started the move and this filtered through the wider market.

The USDJPY was the main benefactor of this bond sell off, partly because their major bonds are frozen and so there was a flight to the JPY. The pair eventually found a little bit of resistance around 105.30, stops haven’t been triggered just yet and so there is still room for a continuation of this move. I am sure there will be some brave sellers but I would prefer not to look for shorts just yet.

EURUSD traded in a tight range and was driven mainly by economic data, I am still seeing 1.0900 as the main support level and price is flirting once again at this handle. There does seem to be some nice bids building at these levels and with the EU securing a potential trade deal with Canada, price could be underpinned today.

My concerns in cable were once again underlined yesterday, despite encouraging news out of the UK of late, the GBPUSD still sold off sharply. The market is prepared to short any rally, I am not prepared to look for the bottom in this pair and I am still of the opinion that there is more to come, for that reason I continue to look for opportunity elsewhere.

Despite the political scenarios in South Africa, the USDZAR was impressively resilient yesterday. As investors look for yield after a bond sell off, the ZAR could have seen some inflows – it is encouraging if South Africa can avoid a credit downgrade.

I would be cautious against trading the AUDUSD and NZDUSD, of the majors the commodity currencies are probably most vulnerable when bonds come under pressure, both pairs are probably itching towards our weekly ranges but I suspect both could over shoot and trade significantly lower. Next week will perhaps hold more value in these pairs.

Daily FX Ranges


Resistance                                          1.0925 – 1.0944

Support                                                1.0880 – 1.0860


Resistance                                          1.2245 – 1.2277

Support                                                1.2160 – 1.2130


Resistance                                          0.7633 – 0.7680

Support                                                0.7600 – 0.7560


Resistance                                          0.7150 – 0.7175

Support                                                0.7138 – 0.7115


Resistance                                          1.3393 – 1.3410

Support                                                1.3350 – 1.3330


Resistance                                          105.00 – 105.31

Support                                                104.50 – 104.30


Resistance                                          0.9950 – 0.9960

Support                                                0.9915 – 0.9900


Resistance                                          13.9292 – 13.9751

Support                                                13.7831 – 13.7182

Important Economic Data out today

  • 14:30                     USD                       Advance GDP

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.