forex

Market Insight Commentary – 30 October 2017

Did you know that 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. BlackStone Futures provide a User Friendly trading environment in YOUR journey to Profitability on:

  • Forex
  • Global Equities
  • Commodities
  • Stock Indices

Click: Introduction To The Forex Market

After such a crazy week it was maybe fitting that we had endured an even crazier close to the market. I am not sure what the reason was, some market commentators are suggesting that after such a strong week for the dollar – the greenback was merely taking some profits off the table. Some are suggesting that despite the strong GDP showing, there are just too many caveats for this trend to continue. The last reason, which to me is the most plausible is that Trump may be leaning towards FOMC member Powell as the next Fed Chair, I am in the camp that suggests that anyone but Yellen will be good for the dollar – but Powell may be too similar to Yellen.

The dollar reversal was a big one on Friday, it was not more evident than in the USDCAD – after reaching a weekly high of 1.2920, it hit major resistance and dropped over 100 pips to 1.2800 very late on. The catalyst for this big move was a technical break higher in oil and so fundamentally this move in oil carried the CAD stronger. I am going to ignore the trend on the 4H chart for now, it does suggest that sellers may start building offers up here, but to me it looks as though the market may consolidate for a move higher.

Independence in Catalonia is back on the radar at the moment and this has led the yields fall, the market has for the most part ignored these developments and I suspect that there is enough legislation in Spain to prevent this. The pair fell to 1.1575 but it seems as though there is a lot of support for now.

It seems to me that the pairs may need to “flush” out today to give us a clearer view of the markets, there is a lot on the agenda this week and so we shouldn’t be short of any volatility.

Market Insight Commentary – Forex

In the Zone

  • GBPUSD
  • EURUSD
  • NZDUSD
  • AUDUSD

Market Insight Commentary – Indices

Important Economic Data out today

Noteworthy News

We have the FOMC on Wednesday as well as NFP on Friday, I also suspect that we get news on the new Fed Chair this week.