Good Afternoon,
A quick fundamental update. We could potentially have a quiet week as it is big vacation time across the trading landscape. I am sure the beaches are packed. We started off strong in the USD with ISM services. Not much else on the landscape except for weekly claims. Remember though, that we just had a very telling week of fundamentals. Strong data supported by an open door policy by the Fed, the ECB and the BOE.
That is the takeaway for me fundamentally and technically. I segway to technicals as we know we have buyers abound in equities and that translates to low volatility, which translates to even more muted summer trading ranges. Technicals were tight in forex today and again, I expect to see that continue this week. Just a hunch.
The currencies seem to be going back and forth, without much direction. That makes sense as central banks are giving us varying degrees of easing policies. As I say in my webinars, this is the most crucial piece of information to disect on an ongoing basis. Have fun interpreting Fedspeak - no matter if you are a trader or investor and no matter what markets you are in.
Happy Trading and Be Environmentally Cool
Coach Brian
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