There is a dollar holiday today because the US are enjoying Labor Day. We may see reduced liquidity and the ranges may be tighter as forex traders are less inclined to take big positions without the US involved.
One of the most frequent questions we get asked, is to please increase the leverage on a clients FX trading account. What is it about having huge amounts of leverage that gets so many clients banging on the door and looking for more and do they understand the implications?
The USD Holds Firm… It’s really all about waiting for that magic precipice at the end of the day, isn’t it? Do we fall over, or do we jump? Over the last week, the Forex market was quiet, as investors waited for the US Non-Farm Payroll data to be released.
The market is on Non-Farm Payroll watch which will be out at 14:30 SA time. It has been like watching paint dry and with a holiday in the US (Labor Day) on Monday, no one seems to want to make a call on the markets.
We are very much on NFP watch at the moment and we are seeing CFD traders and our FX clients closing positions that they may have had open since the Jackson Hole meeting on Friday last week.
The markets appear to be in a bit of a lull, according to Dean, and he can’t wait for after Labour Day (5th September 2016) when everyone should be back from their summer holidays. This is when the Forex markets and equities should find a bit more direction for the end of the year.
The theme for yesterday’s trading was to see where the markets were going to move post Yellen’s comments after the Jackson Hole meeting. We saw broad strength from the dollar across all major pairs after she left the possibility of a rate hike in September on the table.
The USDZAR aside, it seemed as though the market was eagerly awaiting the Yellen Speech at Jackson Hole. Would she put a potential September rate hike back on the table? Would she confirm market expectation that December would be the soonest?
The Jackson Hole meeting is hanging over the market where the Fed Chairman, Janet Yellen, will be making a speech this evening. The annual meeting gathers together the world’s leading central bankers, finance ministers and academics to discuss policy and world economic issues.
When it comes to anything in life we are all guilty of being impatient. This is part of our human nature. Patience is a Virtue that not only comes in handy during your daily lifestyle but in Forex Trading too.